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