M&M War Room Strategy

1. MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM “ FOUR STROKE” ©b rahm&company

4. RANGE OF AUTOMOTIVE PRODUCTS POWERTRAIN MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM “ FOUR STROKE” Engine Parts Chassis & body Parts Suspension & Braking Parts ©b rahm&company

7. AFTER MARKET TO TIER – I STATUS – COMPLEXITY MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM Aftermarket Tier 2-n supplier Tier 1 supplier Low Medium High Transition Path Customer Complexity “ FOUR STROKE” OPPORTUNITES WIDEOPEN ©b rahm&company Rotating Auto Electricals Tyres & Tubes Heavy Forgings Wheel Rims Small Castings & Forgings Plastic Components Hand Tools Metal bonded & Molded Rubber Parts

9. COMMERCIAL VEHICLE BUSINESS APPOACH MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM Indian Commercial Vehicle Industry – Broad Scope - Half million Indian CV market is the fifth largest in the world “ FOUR STROKE” CATER TO THE GROWING DEMAND OF TRUCKS ©b rahm&company Long Distance Haulage >500kms Special Purpose 33000lbs 10 to 250km Application 19501 to 33000lbs 101 to 500km Short Distance Haulage 16001 to 19500 lbs 51 to 500kms Intercity Public Transport 14001 to 16000 <50km Distribution Network 6001 to 14000lbs 51 to 100km Last Mile Haulage 0 to 6000lbs <50kms

10. EVOLUTION OF TRUCKS & BUS MARKET WITH CHANGING ECONOMIES MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM Indian Bus market shows a high growth rate in the early phases of development driven by Intercity Passenger Market *AT Kearney Database “ FOUR STROKE” Growth in the GDP would fuel the demand for Trucks in India & Asian Countries Growth in GDP would fuel the demand for Trucks ©b rahm&company

13. MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM “ FOUR STROKE” - Recycling of dismantled spare parts – cost reduction - Tap the opportunities in the vehicle dismantling industry - Dismantling of spare parts INTEGRATION OF AFTERMARKET - SYSTECH Note : Proposed to start a new unit “MAHINDRA RE-ENGINEERING” needs to be set up ©b rahm&company

15. MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM “ FOUR STROKE” MARKET POTENTIAL – ALUMINIUM SCRAP ©b rahm&company Facts and Efficiency Average weight of aluminium per car 132 Average cost of aluminium 114 Average losses in melting 7% Expected loss in the form of depreciation of aluminium in vehicles over the years 15% Accounting to other expenses 7% Overall expected efficiency 70% Market potential Cost of aluminium per car Cost of product * Average weight * Overall efficiency Rs.10,500 approx Price that customer can realise for aluminium alone in his vehicle Expecting 20% return as profit and 25% as operational expenses and wastage Rs. 6,300 Profit for company 0.2*10,500 Rs. 2,100 Disposable vehicles in market All vehicles produced before Average life expectation - 12 years + 10% produced thereafter 11600 Market potential 10500*11600 121 million INR

17. MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM “ FOUR STROKE” STRATEGIC IMPLEMENTATION PROCESS ©b rahm&company

19. MOVING UP THE VALUE CHAIN - SYSTECH WAR ROOM THANK YOU “ FOUR STROKE” ©b rahm&company b rahm&company Originality! The mark of Genius Copyright @2010 b rahm&company. All rights reserved. Dilip Krishnan Founder & CEO