MAHINDRA & MAHINDRA GROUP
INTRODUCTION
• In 1945, two enterprising brothers named
  J.C. Mahindra and K.C. Mahindra joined
  forces with Guam Mohammed and started
  Mahindra & Mohammed as a steel
  company in Mumbai.
• Two years later, India won its independence,
  Guam Mohammed left the company to
  become Pakistan’s first finance minister
• Entered automotive manufacturing in 1947 to
  bring the iconic Willis Jeep in India.
INTRODUCTION…

• Keshub Mahindra
- Former Chairman




              •   Anand Mahindra – Chairman
                  and Managing Director
• US $15.4 billion multinational group with
  more than 144,000 employees in over 100
  countries across the globe.
• New global brand name – Mahindra Rise
CORE BUSINESS
AUTOMOBILE
SECTOR                                       • DURO/ DURO-
                                               DZ
                                TWO
                               WHELLER       • KINE



                      COMMER
                      CIAL
  • UTILTY VECHILE/
    TRUCKS
  • MAXI/GIO/ALFA                   PASSENGER

                           • SUV / MUV
                           • Scorpio /
                             bolero/ xylo.
AUTOMOBILE INDUSTRY

 Emerging sector and has a potential to improve it.

The increasing GDP and economical resources have
boost up during the last decade which has
increased purchasing power of the Indian peoples.

“Indian Passenger Car Market Analysis”, the
passenger car market, which constitutes around 78.5%
of passenger vehicle sales.
KEY PLAYERS

                            1. TATA MOTORS
 Market Share: Commercial Vehicles 63.94%,
 Passenger Vehicles 16.45%.
 Tata Indica, India's first fully indigenous passenger car.
Tata Ace, India's first indigenously developed mini-truck.


                        2. MARUTI SUZUKI INDIA.
 A subsidiary of Suzuki Motor Corporation of Japan.
Market Share: Passenger Vehicles 46.07%.
 Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and
Sports Utility vehicle Grand Vitara.
KEY PLAYERS…
                    3. Hyundai Motor India
 Hyundai Motor India Limited is a wholly owned subsidiary of
world’s fifth largest automobile company.
 Market Share: Passenger Vehicles 14.15%.
number one exporter of passenger car of the country for the
sixth year in a row.
 i10, i20, Verna, Sonata, Accent etc.

                     4. Mahindra & Mahindra

 Market Share: Commercial Vehicles 10.01%, Passenger
Vehicles 6.50%.
mainly engaged in the Multi Utility Vehicle and Tractors.
 expanding its footprint in the overseas market with - XYLO
Key Factors influencing Automobile
                 Industry
• Consumer Sentiment Index
• Domestic Goods Price Metal/ Iron and Steel
• Import and Export Taxes (Duties) / Motor
  Vehicle Tariffs
• World Price Energy/ Crude Oil
KEY SUCCES FACTORS OF
            AUTOMOBILE INDUSTRY
 WHAT DO CUSTOMERS WANT?                      HOW DO FIRMS SURVIE
 {ANALYSIS OF DEMAND}                         COMPETITON ?
 •   PRICE/ ECONOMICAL                        {ANALYSIS OF COMPETITION }
 •   SUPPLY RELABILITY                        •   RAW MATERIAL
 •   FEATURES                                 •   ECONOMIC OF SCALE
 •   SPECIFIC TECHNICAL.                      •   FINANCIAL RECORCES
                                              •   TECHNOLOGY


                                KEY SUCCES FACTORS
• Conventional sources of cost efficiency include: large-scale plants, low-cost
  location, rapid adjustment of capacity to output.
• Differentiation through technical specifications
• and service quality.
Important Resources & Capabilities

        Capabilities           Resources

           Multinational
                                  Reputation
           management

        Segment-targeting      Physical resources

          Manufacturing
                               Human resources
            flexibility

        Efficiency and speed
                               Financial resources
            of distribution
CORPORATE STRATEGY
• Federated structure enables each business to
  chart its own success.
• Economies of scope.
• Economies of scale.
• Add value to shareholders
DIVERSIFICATION
 M&M group have presence in almost 14
 sectors
From its core business – automobiles it has
 diversified in many different sectors
Many of them are related and unrelated to its
 core business
Related diversified
when certain stages of the value chains “fit” each
other, we consider such diversification related

                            FARM AND
              MAHINDRA
                          CONSTRUCTION
              AEROSPACE
                           EQUIMENTS



 MAHINDRA
                                         ENERGY
  SYSTECH
                                    {solar/renewable}
(COMPONENT)
                     M&M
UNRELATED DIVERSIFICATION


INFORMATION       LEISURE &          RETAIL
TECHNOLOGY        HOSPITALITY        • MOM & ME.
[IT]              • MAHINDRA
                    HOLIDAY          • REAL ESTATE
• TECH MAHINDRA     &RESORTS INDIA   • SEZ
• MAHINDRA        • MAHINDRA         • LIVING SPACES
  SATYAM            OCEAN BLUE
• CANVAS-M          MARINE
What is synergy in Business???
• 'Synergy'
• This term is used mostly in the context of mergers
  and acquisitions.
• Synergy from mergers and acquisitions has been
  characteristically connoted by 2+2=5. It signifies
  improvement of the performance of the acquired
  company by the strength of the acquiring company
  or vice versa.
• Realization of synergies through consolidation —
  domestic and global have been one of the main aims
  of the worldwide M&A activities today
SYNERGY IN M&M GROUP
 M&M - Navistar Inc USA
M&M - Ssangyong Motor Company South
 korea
M&M - Kinetic Motor Company
TECH MAHINDRA - SATYAM
Benefits from the merger
• The following benefits are expected as a result
  of the merger:
• Enhancement of capabilities across verticals,
• Well-balanced geographic exposure,
• Well-balanced client mix,
• Other profitability related synergies.
ACQUISITION
                • MAHINDRA REVA
• Founded in 1994, the REVA Electric Car Company.
• joint venture between the Maini Group of Bangalore
  and AEV LLC of USA.
• In may 2010 Mahindra group acquire majority stake
  in company
• It has about 3,500 electric cars on the road in 24
  countries across Europe, Asia and Central and South
  America
ACQUISITION

         •   COMPONENT
M&M      •
         •
             IT SOLUTION
             GLOBAL DISTRIBUTION
         •   FINANCE


         • Several International
           patents
REVA     • DESIGN AND
           TECHNOLOGY
MAHINDRA REVA IN INDIA
• Inaugurating the world–class, energy
  efficient, green manufacturing plant in
  Bangalore – August 2012
• capable of producing 30,000 cars per year, is
  scheduled to begin production in end of 2012
Future plans of MAHINDRA
• Increase their share in 2 wheeler market in
  India and surpass their competitors like
  Hero,Bajaj.
• Research and development centres for 2
  wheeler industry.
• Mahindra plans smaller petrol engines for
  future compact models of cars.
• To go global, and introduce Reva (electric car
  in china.
THANK YOU

Mahindra & mahindra

  • 1.
  • 2.
    INTRODUCTION • In 1945,two enterprising brothers named J.C. Mahindra and K.C. Mahindra joined forces with Guam Mohammed and started Mahindra & Mohammed as a steel company in Mumbai. • Two years later, India won its independence, Guam Mohammed left the company to become Pakistan’s first finance minister • Entered automotive manufacturing in 1947 to bring the iconic Willis Jeep in India.
  • 3.
    INTRODUCTION… • Keshub Mahindra -Former Chairman • Anand Mahindra – Chairman and Managing Director
  • 5.
    • US $15.4billion multinational group with more than 144,000 employees in over 100 countries across the globe. • New global brand name – Mahindra Rise
  • 6.
  • 8.
    AUTOMOBILE SECTOR • DURO/ DURO- DZ TWO WHELLER • KINE COMMER CIAL • UTILTY VECHILE/ TRUCKS • MAXI/GIO/ALFA PASSENGER • SUV / MUV • Scorpio / bolero/ xylo.
  • 12.
    AUTOMOBILE INDUSTRY  Emergingsector and has a potential to improve it. The increasing GDP and economical resources have boost up during the last decade which has increased purchasing power of the Indian peoples. “Indian Passenger Car Market Analysis”, the passenger car market, which constitutes around 78.5% of passenger vehicle sales.
  • 13.
    KEY PLAYERS 1. TATA MOTORS  Market Share: Commercial Vehicles 63.94%,  Passenger Vehicles 16.45%.  Tata Indica, India's first fully indigenous passenger car. Tata Ace, India's first indigenously developed mini-truck. 2. MARUTI SUZUKI INDIA.  A subsidiary of Suzuki Motor Corporation of Japan. Market Share: Passenger Vehicles 46.07%.  Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
  • 14.
    KEY PLAYERS… 3. Hyundai Motor India  Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest automobile company.  Market Share: Passenger Vehicles 14.15%. number one exporter of passenger car of the country for the sixth year in a row.  i10, i20, Verna, Sonata, Accent etc. 4. Mahindra & Mahindra  Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%. mainly engaged in the Multi Utility Vehicle and Tractors.  expanding its footprint in the overseas market with - XYLO
  • 17.
    Key Factors influencingAutomobile Industry • Consumer Sentiment Index • Domestic Goods Price Metal/ Iron and Steel • Import and Export Taxes (Duties) / Motor Vehicle Tariffs • World Price Energy/ Crude Oil
  • 21.
    KEY SUCCES FACTORSOF AUTOMOBILE INDUSTRY WHAT DO CUSTOMERS WANT? HOW DO FIRMS SURVIE {ANALYSIS OF DEMAND} COMPETITON ? • PRICE/ ECONOMICAL {ANALYSIS OF COMPETITION } • SUPPLY RELABILITY • RAW MATERIAL • FEATURES • ECONOMIC OF SCALE • SPECIFIC TECHNICAL. • FINANCIAL RECORCES • TECHNOLOGY KEY SUCCES FACTORS • Conventional sources of cost efficiency include: large-scale plants, low-cost location, rapid adjustment of capacity to output. • Differentiation through technical specifications • and service quality.
  • 22.
    Important Resources &Capabilities Capabilities Resources Multinational Reputation management Segment-targeting Physical resources Manufacturing Human resources flexibility Efficiency and speed Financial resources of distribution
  • 23.
    CORPORATE STRATEGY • Federatedstructure enables each business to chart its own success. • Economies of scope. • Economies of scale. • Add value to shareholders
  • 24.
    DIVERSIFICATION  M&M grouphave presence in almost 14 sectors From its core business – automobiles it has diversified in many different sectors Many of them are related and unrelated to its core business
  • 25.
    Related diversified when certainstages of the value chains “fit” each other, we consider such diversification related FARM AND MAHINDRA CONSTRUCTION AEROSPACE EQUIMENTS MAHINDRA ENERGY SYSTECH {solar/renewable} (COMPONENT) M&M
  • 26.
    UNRELATED DIVERSIFICATION INFORMATION LEISURE & RETAIL TECHNOLOGY HOSPITALITY • MOM & ME. [IT] • MAHINDRA HOLIDAY • REAL ESTATE • TECH MAHINDRA &RESORTS INDIA • SEZ • MAHINDRA • MAHINDRA • LIVING SPACES SATYAM OCEAN BLUE • CANVAS-M MARINE
  • 27.
    What is synergyin Business??? • 'Synergy' • This term is used mostly in the context of mergers and acquisitions. • Synergy from mergers and acquisitions has been characteristically connoted by 2+2=5. It signifies improvement of the performance of the acquired company by the strength of the acquiring company or vice versa. • Realization of synergies through consolidation — domestic and global have been one of the main aims of the worldwide M&A activities today
  • 28.
    SYNERGY IN M&MGROUP  M&M - Navistar Inc USA M&M - Ssangyong Motor Company South korea M&M - Kinetic Motor Company TECH MAHINDRA - SATYAM
  • 29.
    Benefits from themerger • The following benefits are expected as a result of the merger: • Enhancement of capabilities across verticals, • Well-balanced geographic exposure, • Well-balanced client mix, • Other profitability related synergies.
  • 30.
    ACQUISITION • MAHINDRA REVA • Founded in 1994, the REVA Electric Car Company. • joint venture between the Maini Group of Bangalore and AEV LLC of USA. • In may 2010 Mahindra group acquire majority stake in company • It has about 3,500 electric cars on the road in 24 countries across Europe, Asia and Central and South America
  • 31.
    ACQUISITION • COMPONENT M&M • • IT SOLUTION GLOBAL DISTRIBUTION • FINANCE • Several International patents REVA • DESIGN AND TECHNOLOGY
  • 32.
    MAHINDRA REVA ININDIA • Inaugurating the world–class, energy efficient, green manufacturing plant in Bangalore – August 2012 • capable of producing 30,000 cars per year, is scheduled to begin production in end of 2012
  • 33.
    Future plans ofMAHINDRA • Increase their share in 2 wheeler market in India and surpass their competitors like Hero,Bajaj. • Research and development centres for 2 wheeler industry. • Mahindra plans smaller petrol engines for future compact models of cars. • To go global, and introduce Reva (electric car in china.
  • 34.