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Mahindra tractors
- 1. MAHINDRA & MAHINDRA Leveraging India’s Sizefor Global Scale inTractors
- 2. • When weIndians hit our pillows at night, our dreams about India’s future are not just colourful, but steroidal. All of us are finally beginning to believe that the sandcastles we build in our minds are not going to be simply washed away by the morning tide. - Anand Mahindra,Vice Chairman and Managing Director, Mahindra & Mahindra
- 3. Background Year History ofMahindra & Mahindra’s International growth milestones 1945 Two entrepreneur brothers name K.C.Mahindra and J.C.Mahindra joined forces with Ghulam Mohammed and started Mahindra & Mohammed as a trading steel company. 1947 India won its Independence, Ghulam Mohammed left the company to become Pakistan’s first finance minister 1948 Renamed as Mahindra & Mahindra Limited 1949 M&M entered Automotive Industry by assembling Jeeps from kits imported from Willys of the United States. 1956 Entered joint venture with Dr. Beck & Company, Germany 1957 Established Mahindra Owen, a joint venture with Rubery Owen & Company, United Kingdom 1963 Established the Intl.Tractor Company of India, a joint venture with Intl. Harvester Company, United States 1965 Commenced Manufacture of light commercial vehicles. 1969 Entered the world market with export of utility vehicles and spare parts
- 4. Year History ofMahindra & Mahindra’s International growth milestones 1982 Launched Mahindra brand of tractors 1984 Established Mahindra HellenicAuto Industries S.A. a joint venture in Greece to assemble and market utility vehicle in Europe 1996 Established Mahindra Ford India Ltd., a joint venture with Ford Motor Company, United States, to manufacture passenger cars 2003 Second tractor assembly plant set up in the United states 2004 Launched Bolero and Scorpio in Latin America, Middle East and South Africa 2005 Acquired 80% stake in the joint venture with Jiangling Motors (Mahindra ChinaTractor Company) 2006 Launched Scorpio Pick-up range in South Africa, an Indication of the strategic importance of Mahindra South Africa’s operations in the Company’s global growth plans. Mahindra announced to enter in United States with Sports utility vehicle and pickup by signing a distribution agreement with GlobalVehicles USA Inc. Scorpio and Bolero Marched into Kenya as part of Mahindra & Mahindra’s globalization drive. 2007 Mahindra International Engines Ltd. Entered majority joint venture withWarrenville, U.S. – based Navistar, North America’s largest combined commercial truck, school bus and midrange diesel engine producer. Scorpio launched in Australia, Chile, the United States and Morocco.
- 5. • 2015 –16 Revenue $17.8 Billion 30% 24% 15% 11% 8% 5% 4% 3% Share in M&M Revenue in 2008 of $6.7 Billion Automotive Farm Equipment Information Technology Financial Services Automotive Components Hospitality Steel Processing & Trading Infrastructure Development
- 6. Using a StrategicRoad Map for Globalization • After Greece Windup of Company and Encounter with U.S. Marshal, M&M could had been limited itself to India. • But it Regrouped itself, reviewed its Assets and Competitive advantage with purpose of uncovering how best to exploit key opportunities in American Market. • Goal of Market Share were set according toTarget market • Reengineering of the shop floor to Restructuring of the labour force to wholesale implementation of best practice across all sector • Not only above things very sufficient but a sea change in attitude had to accompany the reforms • The Mind set of Company changed from “If it Happens, it Happens” to “Let’s make it Happen”.
- 7. • If yourmanufacturing is world class, it doesn’t mean anything – you can be a contract manufacturer.You can be a great marketer in India, but that could serve to market somebody else’s product. You have the confidence to be multinational only if your product development engine is something that delivers confidence to you and you say “I have the capability to create a sustainable pipeline of Products / Services that can pass muster around the world”.
- 8. The Scorpio • OnJune 19, 2002, marked the birth of Scorpio and M&M becoming 21st Century company with global ambitions. • The Scorpio was developed for $120 million – the largest production investment the company has ever made. • It has engine from Renault, axle from Dana Corporation, Metal coatings from Visteon Corporation, etc. • Exported to Europe, Middle East and South Africa.
- 9. The Most Multinationalof M&M’s Business : Tractors • Today among top 3 tractor brand in world. • Other Competitors are John Deere, ACCO and New Holland • In 2006 M&M had 32% Market Share of Indian Market • The Ideology “If you succeed inAmerica then you can succeed anywhere” • The Local farmer from US –”I’ve been around farm equipment all my life, and for $27,000, the 5500 Model Tractor is by far the best value for money…When you lock it into 4WD, you can move 3,000 pounds like its nothing.The thing is an Animal” • Earlier M&M wanted toWorld leader in terms of Units of Sale but now the goal was to become theWorld Leader in terms of Brand. • “We are so confident in our brand umbrella that we can buy anything, put it through our channel, and ramp it up.” M&M even sellsTomyang and MitsubishiTractors under its brand name. • M&M was to be synonymous to Off-road and Four wheel drive. • Unlike inTractor where inorganic growth makes sense but inAutomotive business there is significant outsourcing so focus is entirely on building Brand. • “Having right product is a Paramount.” • Renault Chapter
- 10. Breaking Invisible Shackles •Globalizationis not a panacea to be approached with giddy abandon. It is a mindful, profitable expansion into international markets where each acquisitions in to auto component space to complete our design – to – delivery promise.
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