Mahindra and Mahindra Limited

Mahindra and Mahindra Limited
Content
 Market Overview
 Mahindra and Mahindra
 History
 Product Line
 Marketing & Business Strategy
 Financial
 CSR Initiatives
Growth drivers for the
Indian automotive industry
 Overall economic
Government growth
Policies  Lower duties & taxes
Increasing
 Contemporary New product  Growth in
products Indian Automotive consumer
launches Income levels
Industry demand  Easier financing
 Shorter life cycle
 Export
Competitiveness
 Reduced cost
Cost Competitiveness
to consumer
 India emerging as a
manufacturing hub
Players: Indian auto industry
Global Indian OEM
OEM Tata Motors Indian
Auto
GM Mahindra & Industry
Toyota Mahindra Global Indian

Ford Bajaj Auto OEM OEM
Hyundai TVS Motors

Honda Hero Honda
Skoda Bajaj Tempo
Volvo Ashok Leyland Global Indian
Mercedes Global
Suppliers Suppliers
Suppliers Engineering &

Delphi Development
Companies
Visteon
Bosch
Denso
Thyssen Krupp
Vehicle sales in INDIA
Auto components industry has
also grown at a rapid pace ...
Exports are rising - India has the
potential to become the global
outsourcing hub
Indian Automotive Industry
 The industry has grown at a CAGR of
14% p.a over the last 5 years
 With potential to emerge as one of the
largest in the world. Presently, India is
 2nd largest two wheeler market in the world
 4th largest commercial vehicle market in the
world
 11th largest passenger car in the world and is
expected to be the 7th largest market by 2016
 The industry has emerged as a key
contributor to the Indian economy
HISTORY OF M&M
JC Mahindra KC Mahindra G.Mohammad
Keshub Mahindra Anand Mahindra

Chairman-07 Vice Chairman,MD- 07
MILESTONES OF M&M
 M&M established its business connections in
the USA through Mahindra Wallace.
 It started steel trading on behalf of

European suppliers
 M&M was converted into a public limited

company on June 15,1955
 Machine Tools division was started.

Contd...
 Mahindra Engineering & Chemical
Products Ltd. (MECP) was formed.
 M&M became the market leader in the

Indian tractor segment-1983
 Mahindra British Telecom (MBT) was

formed as a joint venture with British
Telecommunication plc (BT), UK-1986
MISSION & VISION
 “We don’t have a group-wide mission
statement. Our core purpose is what makes all
of us want to get up and come to work in the
morning” -Anand Mahindra
 Indians are second to none in the world. The

founders of our nation and of our company
passionately believed this. We will prove them
right by believing in ourselves and by making
M&M Ltd. known worldwide for the quality of its
product and services.
CORE BUSINESS ACTIVITIES
 Automotive
 Farm Equipment
 Trade & Financial Services
 Infrastructure Development
 Information Technology
 Systech
 Specialty Businesses
M&M AUTOMOTIVE
COMPETITION
BUSINESS AND
MARKETING
STRATEGIES
BUSINESS STRATEGIES
 Restructuring of the company.

 E-business Initiatives
 Joint ventures.
 Foreign competition.
MARKETING STRATEGIES
 USP – ruggedness and performance.
 Products that redefined the market.
 Network of dealers, sales offices, service
stations etc.
 Strong market base in the urban and
semi-urban areas.
M&M FINANCIALS
Current Financial Health
 August Sales
 Total sales grew by over 30% over the
corresponding period last year.
 Domestic sales grew by 34% but exports declined by
21%
 Q1 FY2008 results
 M&M results:
Gross revenue grew by over 16%
PAT grew by 14%
 Group results:
Gross revenue grew by over 40% while PBT grew by
over 11%
Sector Performance
 Outgrew industry in UV sector
Registered a growth of 23.6% vs. industry
8.9%
 Commands an UV market share of 50%
as compared to 43.7% in the same
period previous year.
 Scorpio volumes grew by 16%, Bolero
volumes grew by 35%
Contd...
 Large 3-wheeler segment industry
volumes declined by 46%. M&M arrested
slowdown to 37%, market share of 53%
 Small 3-wheeler segment growth of
74% and market share of 18%
 Exports grew by 83% over the
corresponding period last year.
Important Financials
Particulars FY 2006 FY 2007 % variance
Sales Income 9,347 11,363 21.56
Expenditure 8,380 10,100 20.5
Gross Profit 1089 1525 40
PAT 857 1068 24.65
GPM% 10.54 11.71 1.17
Money figures in Rs. crore

Important Financials
 Mahindra scrip trading at Rs 715 per share
 EPS of 39.33
 P/E ratio of 18.22
 Market capitalization of Rs 17,431 crores
 Slow down expected on blue-chip auto
stocks due to increase on interest on auto
loans and prices have gone up due to
increase in raw material like steel, rubber,
etc.
Key Investments
 Production plant in Chennai
 Signed MOU with Renault-Nissan
 M&M holds 50% stake, the rest is shared
between Renault and Nissan.
 Earmarked $908 million for investment
 Expected to begin production in early 2009.
 Installed capacity of 400,000 units
Contd...
 Acquisition of 67.9% stake in Jeco
Holdings of Germany
 Jeco has production capacity of 100,000
tonnes of forged components across its 3
plants.
 Jeco manufactures forgings for gear
boxes, engines, axle parts, hubs, gears
and piston heads.
Corporate Social
Responsibility
CSR
“CSR has always been an integral part of
M&M group’s vision and the corner stone
of our core value of good corporate
citizenship”
– Keshub Mahindra
 Education
 Environment
 Health
FUTURE PLANS
 Plans to enter US market.

 Expand operations in Germany
 New plant
 Mahindra Axe
 Marketing JV with Nissan
CONCLUSION
 Performance.
 Both domestically and overseas
 Ability to deliver as per consumer demands
 JV in non expertise segments
 Potential in the market
 CAGR 19%
 Potential buyers (300 million+ middle class)
 Past performance and potential in the market
implies the expected growth of the company
References
 www.mahindra.com
 www.wikipedia.com
 www.icfai.com
 www.indiatimes.com
 Strategy and Business (June 07)
 The Hindu
 Auto India
THANK-YOU

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Mahindra and Mahindra Limited

Toyota Mahindra Global Indian

Hyundai TVS Motors

Suppliers Engineering &

Keshub Mahindra Anand Mahindra

 It started steel trading on behalf of

 M&M was converted into a public limited

 Machine Tools division was started.

 M&M became the market leader in the

 Mahindra British Telecom (MBT) was

 Indians are second to none in the world. The

 Restructuring of the company.

Sales Income 9,347 11,363 21.56

Expenditure 8,380 10,100 20.5

Gross Profit 1089 1525 40

PAT 857 1068 24.65

GPM% 10.54 11.71 1.17

Money figures in Rs. crore

 Plans to enter US market.

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