1. Mahindra War Room
Future of Mobility
TEAM SMCG
STRATEGIC MANAGEMENT CONSULTING GROUP
DEVESH MENDIRATTA |NITISH MAHAJAN |RAJAT JAIN |SYED HASAN AIJAZ

2. Motive
High infrastructure growth markets
Metro, high speed rail and freight
Cater to millennial demands
Commercial and socioeconomic sustainability
What we want to be- a Nation Builder
Challenge conventional thinking
Think disruptively
Drive positive change
Mahindra
Rise
Service
Markets and
Grow
Future Of
Mobility
Reinvent
Mobility
Environmental concerns
Oil economics
Changing consumer needs
Advanced technologies
Newer, Superior, Evo
lving
Explore all modes of Mobility - Rail
Leverage group’s synergies
Create future markets
Invest in the long term
Utilise
Strategic
Growth
Opportunity
Create a
new Business
Vertical
Mahindra Rolling Stock Limited
JV with a technological partner
High technology with frugal economics
Deliver stakeholder value

3. Executive Summary
Strategy to Create a new Rolling Stock Vertical
Rationale
The Business
The Growth
Mission: To become the leading
Indian manufacturer and exporter of
Metro trains in India and world over
Strategic Partnership with Kawasaki
Heavy Industries Rolling Stock
Company as the technological and
manufacturing partner
Target rapidly growing Indian Metrotrain market
Rolling Stock: The logical ‘fit’ in the
5Cs of Mobility
Establish plant at Chakan and
commence operations within 2 years
Manufacturing hub to service the
natural export market
Company : A new vertical to build
high quality and high performance
trains
In Phase 1, establish capacity for
Metro train systems.
Establish competency to fulfil High
Speed Rail and Dedicated Freight
Corridor ecosystem
Related Diversification: Address the
only missing link of the Automotive
Ecosystem
In Phase 2, establish capacity for High
Speed Rail system
Create a ₹
2,500 Crore+ company
(by turnover) within 4 years
Mahindra Group has an existing eco system of complementary automotive capabilities. The company can leverage
its synergies and incorporate them with a proven foreign technology to achieve a competitive advantage and gain
a sustainable market share

4. Agenda
Mahindra Rise
Future of Mobility
Market Identification
Proposed Business Model
Feasibility Study
Implementation Strategy
Tying the ends together

5. Mahindra Rise
The Alphabet of the language the Group Speaks
Accepting No Limits
• We accept no limits, and ask the same of
everyone else. In return, we work relentlessly to
provide the tools, information, and inspiration for
us to push past limitations and comfort zones
Alternative Thinking
• Alternative thinking means solving problems in
ways no one thought of before, by using fewer
resources and entering markets thought to be
unreachable
Driving Positive Change
• We want you to rise. And not just you. Your family.
Your neighbourhood. Your whole community. This
is why we come to work every day
MAHINDRA BUILDS THREE THINGS: PRODUCTS, SERVICES, AND POSSIBILITIES

6. Mahindra Rise
It is this DNA that
motivates us to propose
what we are going to
Tweet by Mr Anand Mahindra 8.29 PM Oct 22

7. The Journey
…that has been
…that is ahead

8. Future of Mobility
How do we foresee the future
Better
infrastructure
Greater
Urbanisation
More
comfortable
Faster transport
Bigger and
denser cities
Electricity over
fossil fuels
Seamless
communication
Zero Downtime
Forerunners in the race for Mobility
Electric Cars
For
Cleaner, greener and technologically advanced
Low to zero operating and maintenance costs
Zero dependence on oil economics
Against
Higher one time costs to individuals
Batteries to be replaced every 3 years- Not green
Unavailability of battery charging infrastructure
Feasible only for advanced countries- erratic electricity supply
Public Transport
For
Faster mobility- savings in travel time for passengers
Freedom from individual capex
Affordable and a far more convenient alternative to driving
Forms natural focal points for communities
Relieves congestion- also reduces number of road accidents
Zero dependence on oil economics
Changes in land use pattern
Increased employent
Against
High investment of the governments
Policy interventions required
Land bank

9. 5 Cs of Mobility

10. 5 Cs of Mobility
4
3
1
11
2
1
•Environment Friendly
•Renewable resources
•Regenerative
Clean
Clever
•Uses technology to be
efficient
•Optimises as per
terrain and conditions
Connected
Convenient
Cost
Effective
•Connected to the
users
•Connected to each
other
•Seamless connectivity
•Easy to park and ride
•No use of fuelling and
refuelling
•Zero Fuel charges
•Utilising solar power
•Zero oil changes
3
3
4
3
4
17
The marks awarded are as per our judgment

11. Mission
To become the leading Indian manufacturer and exporter of Metro trains in
India and world over

12. Metro Growth
Delhi
•193 km network operating 2002. Trains from Bombardier and Hyundai.
Mumbai
Proposals of cities with
population greater than 2
million under review by
Urban Development
Ministry
•Planned 147 km network. Expected 2014. Chinese CSR-CNR trains ordered
Chennai
•45.1 km network under construction. 42 train sets ordered from Alstom
Bangalore
•7.5 km operational. 114 km network planned. BEML and Hyundai ordered for
150 trains
Gurgaon
•5.1 km network under construction. Turnkey contract awarded to Siemens
Jaipur
•32.5 km network under construction. 10 trains ordered from BEML
Hyderabad
•71 km network under construction by L&T. 57 train order to Hyundai Rotem
Others
•Pune, Lucknow, Kochi, Ludhiana, Indore, Ahemdabad-Gandhinagar,
Chandigarh, Kanpur, Nagpur and Patna are under advance stage of planning
19 cities have been
shortlisted by the
Ministry for review for
Government funding
under PPP model.
Source: Metrobits.org;IndianExpress.org:HMR:JaipurMetro

13. Competition Analysis
Bombardier Transportation
•Canada headquartered Germany based
•Largest subway rolling stock manufacturer globally
•Wholly owned plant at Savli, Gujarat
•Propulsions manufacturing at Maneja
•Investment valued at 33 million euros
•800 people employed producing 32 metro cars per
month
•Supplied over 600 MOVIA cars to DMRC.
•Has exported 95 train shells to Australia from this plant.
•IRIS certified plant for technology standards
Hyundai Rotem
•Major supplier to DMRC and Hyderabad Metro
•Wholly owned plant at Hosur.
•Suffered image loss in Ukraine when trains failed to
perform
•Limited global experience primarily in East Asia
•Tie up with BEML for Indian business.
•Part of Hyundai Group, India’s largest exporter of cars.
Source: AmTrak: The Hindu: Times Of India: Jeffries Research
Alstom
Siemens India
•One of the largest supplier of subway rolling stock globally
•168 coach order from Chennai Metro worth 243 million
euro.
•Euro 30 million invested in manufacturing facility in
Chennai
•Engineering hub at Bangalore
•Has bid for over a billion euro contracts in India so far
•200 people employed so far
•Interested to build electric locomotives
•Just built the new Riyadh metro, a 4.38B euro project.
•Part of Siemens AG, a global technology major present in
India for over 20 years.
•₹. 2,000 crore of investments in India.
1
•Greenfield manufacturing at Aurangabad
•₹.200 crore investment employing around 1000 people.
•800 bogies per year capacity, designed as per European
norms.
•Won Turnkey contract for Gurgaon metro.
•Outsourced bogie manufacturing to CNR-CSR
•First factory outside US-Europe to address railway growth
in India.
BEML-BHEL
CSR
•Mini Ratna PSU has converted rail shed factory into metro
coach factory
•Jaipur Metro contract worth 380 crore to begin with
•Invested in developing technical expertise to compete
with global players
•747 crore order from Delhi Metro recently
•BEML–Rotem-Mitsubishi consortium to supply the trains
•Major suppliers to Indian Railway
•CSR Nanjing is largest rolling stock manufacturer in China
•Experience of over 50 years
•Has bagged a few orders from Delhi Metro
•Very limited global exposure
•Confirmed orders from reliance operated Mumbai Metro
•Security concerns of Indian Home Ministry over Chinese
equipment in strategic sectors

14. Competition Analysis
The world advanced rolling stock market is dominated by Bombardier, Alstom, Siemens and
Kawasaki. The former three have invested in building plants in India
Kawasaki the only global player not yet present in India
The other players in the Indian market are minor players and have not invested in capability building
in India, preferring to manufacture through a JV or export
The three global players have invested solo into the Indian market, building wholly owned
manufacturing plants
Major orders have only been received by only 4 players. They are responsible for nearly all of the
worlds installed subway systems
Big players like CAF, Nippon, Thales are also present in the market, looking to export from their foreign
plants
Source: AmTrak: The Hindu: Times Of India: Jeffries Research

15. Dedicated Freight Corridor
DFCIL
•Dedicated Freight Corporation of India Ltd incorporated in 2006. SPV
under control of IR to undertake planning, financial resource and
construction
Implementation
•L&T and Sojitz Corporation have signed EPC contract for 626km in West
DFC. Supreme Court clears DFC on Sep 1, 2013.
Purpose
•Indian Railways to improve customer orientation and establish industrial
corridors and logistic parks. Generate higher revenue. High capacity
and high speed
Phase 1
•Total length of 3300 km in West DFC and East DFC corridors. High Density
Corridors carrying 52% of passenger and 58% of freight
Western DFC 1500 km
•Dadri to Mumbai, passing through Delhi, Haryana, Rajasthan, Gujarat
and Maharashtra. Connects JNPT Port to Industrial hub.
Eastern DFC 1800 km
•Ludhiana, Punjab to Dankuni in West Bengal, passing through
Haryana, Uttar Pradesh and Bihar. Connects entire Gangetic Plain to
Eastern ports
Funding
•Japan International Co-operation Agency (JICA) technological and
financial support. The main Agency financing Metro projects.
Conditions
•Lead partner to be Japanese along with consortium of Indian
companies to execute the jobs. Stated preference for Japanese
products
Order Size
•200 electric locomotives of 9000 HP each from Japanese vendor in
Phase 1. Turnkey contract also possible.
•Kawasaki manufactures such locomotives for Japan railway
Policy
•Railway Board Chairman assures that DFC will be implemented by 2017(
West) and 2018 (east). Government identified DFC as ‘Top Priority’.
As per our conversation with a high ranking Railway Board
Official, the PMO has suggested multiple Indo-Japanese JV’s to
implement DFC’s, now on a high priority.
Source: Indian Railway: Economic Times: Nippon times

16. High Speed Railway
HSRC
Shatabdi
•High Speed Rail Corporation of India set up in August 2012
•Building first HSRC between Mumbai to Ahmedabad
•Reduce travel time from 8 hours to 2 hours
Frauscher India, an Austrian Signaling firm has committed
towards investing ₹75 cr over 4 years in a manufacturing
plant in Mysore. They have agreed to partner with HSR to
build an ecosystem as per our discussion with them
•Fastest train in India
•Peak capacity of 150 km/h
•Average speed of 130 km/h
Political
•Indo-Japan agreement in 2013 to study feasibility of HSR in India
•Preference for Shikansen trains to fight off TGV/Valero and the
Chinese
•Chinese vendors not preferred
Shinkansen
•Kawasaki is the major manufacturer of these bullet trains
•2400 km network in Japan transporting over 350 million annually
•Maximum speed of 320 km per hour with superior ride quality
Implementation
Economics
•500 km line costing up to $10 billion
•Technological reviews and costing to finish by 2014
•French SNCF already invested in surveys and initial studies
•Suited for India’s large population and medium distances
•Competition against LCC fliers as air fares rise continuously
•$1 billion worth yen-based soft loans already sanctioned by
Japan
As per our conversation with a high ranking Railway Board
Official, the PMO has suggested multiple Indo-Japanese JV’s
to implement DFC’s, now on a high priority
Source: Economic Times: NDTV.org: The Hindu

17. Markets: Exports
Middle East
•
Riyadh Metro
developed recently
•
Other oil rich
nations invited
initial bids for
turnkey projects
Central Asia
•
New oil and gas money
•
Infrastructure identified
as priority investment
Bangladesh
•
New subway
system announced
for Dhaka
•
DPR commissioned
for Chittagong
India
•
Huge infra
sector
investments
announced
•
19 metro
systems on anvil
of operations
Africa
•
Japanese and
Indian aid
investments
across Africa
•
The next wave
of infrastructure
development
South Korea
•
Existing Business
Relation in
automotive with
Ssangyong
Taiwan
•
Huge infra
sector
investments
announced
•
Only Metro in
Taipei City
Philippines
•
Huge infra
sector
investments
announced
•
Only Metro in
Manila
Thailand
•
Huge infra
sector
investments
announced
•
Only Metro in
Bangkok
Malaysia
•
Huge infra
sector
investments
announced
•
Only Metro in
KualaLampur
Indonesia
•
Huge infra
sector
investments
announced
•
Only Metro in
Jakarta
Australia
•
Received 95
trains from
Bombardier
India

18. Mahindra Core Competencies
Leadership
Financial and
Management
• A passionate
leadership
keen to
explore new
businesses
Reputation
• Adequate
muscle and
experience
to take on
big projects
• One of the
country’s
most
respected
business
houses
Engineering
• Frugal
Engineering
experience
earlier
Values
Knowledge
Technological
Synergies
• Professionalism,
Customer First
and Quality
Focus
• market
understanding
to anticipate
market’s needs
• Innovation
and
experimenta
l work
culture
• Group
companies
producing
complement
ary goods.

19. Mahindra Group : Support Capabilities
Automotive
Mahindra Vehicles
Manufacturing
Limited
Components
Mahindra Forgings
Limited
•Forging Products
• Manufacturing HCV
and LCV expertise
Consulting
Services
Mahindra
Consulting
Engineers ltd
Mahindra Castings
Ltd
Business and
Consulting Services
•HCV Engine
Manufacturing
•Castings of LCV and
HCV
•Captive Staffing and
Allied Businesses
•Design Services
SsangYong Auto
Parts
Manufacturing
•HCV Auto
Components
Mahindra Satyam
•Software Solutions and
Services
•Engineering Project
Consulting
Mahindra Navistar
Engines Pvt Ltd
Mahindra Graphic
Research Design
Information
Technology
Mahindra Gears
and Transmissions
Pvt ltd and
MetalCastello
S.p.A
Mahindra Ugine
Steel Company
•High Quality Alloy
Steels and Stampings
Industrial
Equipment
Mahindra
Conveyor Systems
Pvt ltd
•Bulk Handling Systems
Mahindra
Engineering
Services Limited
•Engineering Services
Bristlecone Ltd
•ERP Implementation
Solutions
The Tata Group, India’s
biggest industrial
conglomerate has a
successful history of
achieving synergies
between its numerous
group companies to
create sustainable
business ventures, often
disrupting existing
market dynamics.
Mahindra BPO
Services
•Back-Office Services
We assume
Mahindra has
similar synergies
and will be
successful in
utilizing them to
create quality at
competitive prices.

20. Related Diversification
High
Fit of the New Business
Performance
Rolling Stock +
Mahindra Automotive
Undiversified
expansion
Related limited
diversification
Unrelated
diversified
Diversification
Efficient operations due to very limited
diversification
Aircrafts
Two
Wheele
rs
Tractors
Feel of the New Business
Mahindra
Automotive
Buses
Cars
Trains
The only missing link of the Automotive Ecosystem
Trucks
SUV’s
High

21. Missing Link ?
Design and Manufacture
Technology
A proven and known technological leader
A partner with Engineering as Core value
A partner not already in the local market
A partner who is bullish about India
A partner with favorable political situation
A partner with world wide positive reputation

22. Evaluation of Partner
International
Operations
Experienced with
India
Current JVs/
Partnership
Technical Expertise
• Players international exposure and ability to JV with Mahindra in a
new market
• Considering the complexities of the Indian Market, a prior experience
with India shall add to the fitness of the player
• In case a player already has a similar JV it would be reluctant to go
for a JV with Mahindra
• A firm known for its engineering capabilities
Partnering Options
1) Nippon Sharyo
(Japan)
2) AnsaldoBreda
(Italy)/Talgo (Spain)
3) Bombardier
(Germany)
4) Kawasaki (Japan)
Long Term Synergy
• Where primary aim is to partner with a player to capture the rolling
stock markets in Rapid transport, a focus on high speed trains should
be considered by Mahindra
Environmental
Factors
• Country of the players and bullishness about India contribute towards
assessing the suitability of the player
5) Siemens (Germany)
6) Alstom (France)

23. The Potential Partners
•Japan-based
manufacturer since
1936
•Consolidated
subsidiary of Japan
Railway
•Notable projects in 8
countries, including
Japanese Shinkansen
•No previous
experience with India
•No other investments
in India
•Spanish
manufacturer of high
speed and inter city
rail since 1942
•Primary sales in Spain
and Portugal
•No previous
experience with India
•No other investments
in India
•Has a signed supply
contract in India
•Berlin headquartered
rolling stock division
•One of the largest
global rolling stock
companies
•Major supplier to
DMRC and other
Metro systems
•Wholly owned
Integrated plant in
Gujarat
• Proven international
credentials
•Japan-based one of
the largest global
manufacturer
•Germany-Austria
based manufacturer
of Valero trains
•Paris based
manufacturer of TGV
trains
•Subway, high power
locomotive and high
speed trains
•One of the largest
global rolling stock
companies
•Largest global rolling
stock companies
•Turnkey solutions
provider in New York
Metro, the worlds
largest
•Complete range of
electrical and
mechanical
components
•Invested 2500 crore in
hydraulic equipment
factory
•Major supplier to
Gurgaon and other
Metro systems
• Considerable quality
reputation in India
•Wholly owned
Integrated plant in
Maharashtra
•Complete range of
electrical and
mechanical
components
•Major supplier to
Chennai and other
Metro systems
•Wholly owned
Integrated plant in
Tamil Nadu

24. The Comparison
AnsaldoBreda /
Bombardier Kawasaki Siemens
Talgo
Factor (weight)
Nippon Sharyo
Alstom
International
Exposure(10)
Experience with
India(5)
8
6
8
8
9
9
3
3
7
8
9
7
Current Jvs/
Partnership(8)
5
5
4
8
4
4
Technical
Expertise (10)
Long Term
Synergy(8)
7
7
8
8
8
9
5
5
8
8
7
8
Environmental
Factors(10)
9
5
7
9
7
7
Weighted Total
335
275
361
418
373
381
The marks awarded are as per our judgment

25. The Perfect Marriage
Why Kawasaki
Why Mahindra
• Has prior experience of Indian
markets in Automobile
• The Japanese connection – Enjoys
Goodwill
• No existing JV in Rolling Stock in India
• Open avenues for Mahindra to
venture High Speed/Bullet trains
• One of the biggest transport player in
India
• Expert in 'Frugal Engineering' which
could provide competitive
advantage
• Good Market Knowledge and
relationships ties
• Opportunity of extensive synergies
• Else
• Kawasaki might enter with another
player say Tata/Birla/Reliance
• Delay might cause more crowded
players and missing out on demand
boom
• Else
• Mahindra might enter with another
player say Nippon Sharyo/Alstom
• Might miss out on the booming
Indian market having major projects
in pipeline

26. The Outcome
Enter Mahindra Kawasaki Rolling Stock Limited
• Vision: To become the preferred global Rolling Stock supplier in different transport
system
• Mission: To produce high quality metro rolling stock at competitive prices
• A 50-50 Joint Venture between the partnering firms
• Kawasaki becoming the first foreign player in the industry to come with an Indian
partner
• Kawasaki bringing in its technological prowess mixing it up with Mahindra’s 'Frugal
Engineering' expertise to bring competitive Rolling Stock supply to the market
• Hence becoming a supplier of high quality competitively priced rolling stocks to
meet both national and international needs

27. Metro Market Scenario Planning
Scenario 1
Scenario 2
Scenario 3
•7-8 player Oligopoly Market: Few
major players decide to enter the
rolling stock industry like Alstom,
Bombardeir, Seimens, Mahindra
JV, Mitsubishi, BMEL, HyundaiRotem, etc
•5 player Consolidated Market:
Mahindra pips other new players in
entering the market to join the
existing 3 player and a new player
say Hyundai-Rotem
•10-15 player crowded Market:
Considering the Metro
boom, multiple player enter the
market including Chinese players
which also bring in the price wars
•Consolidated Market share of
about 20-25% considering
Kawasaki brings in competitive
technical prowess to the JV
•Unsure Market share as winning
tenders becomes difficult
•Divided Market Share of about 1520%
•Eg : The Indian Consumer Goods
Market
•Eg : The Indian Tractor Market
•Eg: The Indian Mobile Market

28. Demand Forecasting
Delhi Metro
Current Track Length: 189Km
Current Trains running: 40(4 bogie), 97 (6 bogie), 25(8 bogie)
equivalent to 236(4 bogie) trains

Total track length of new tracks: 532Km

Total Track length of initial phases of projects: 249Km

Total trains running on the tracks: (249/189) x 236 = 311 trains

% Consideration for new Project: 0.8 = 248 Trains

Completion Factor of planned Projects: 0.7= 173.6 trains

Hence Estimated demand in the year 2016(assuming Rolling
Stock ordered 18-20 months in advanced) from new Projects:
174 trains
Project
Estimated
Operation
Date
Total
Track(km)*
Track
length of
first Phase
(km)*
1
Assumption: We assume that number of trains per kilometer
running on an existing metro is a good metric to forecast number
of metro trains required on a new track
Surat
2018
100
19
2
Pune
2018
82
30
3
Patna
2017
54
50
4
Nagpur
2017
40
25
5
Ludhiana
2018
28
16
6
Lucknow
2018
36
36
7
Kanpur
2017
84
27
8
Indore
2019
33
10
9
Chandigarh
2018
37
16
10
Bhopal
2018
38.5
20
S.
No
* Projected
Source: DMRC Website, Individual Metro Project Website

29. The Plant
The plant has to be set
up in Chakan to utilise
the capabilities of the
existing Mahindra
companies in the vicinity
Plant investment @₹
150
crore and a capacity of
25-30 trains a year
Subsequent investment
of another ₹
100crore
and subsequently
increase the capacity to
50-55 trains a year
The plant to have the
capacity and capability
to produce high
performance bogies for
locomotives and metros
Source: Google Maps

30. Financial Model : Assumptions
Investment Cost:
Capacity of Plant
Operating Margin (10 %)
• ₹ 150 crore in Phase 1
• ₹ 100 crore in Phase 2
• Plant setup at Chakan, Maharashtra
• Bombardier India plant at Savli cost ₹. 200
crore to set up
• Siemens India invested ₹. 200 crore in
Aurangabad facility
• 30 Metro trains / Year
• Excess capacity installed, production to
increase as per demand
• In phase 2, develop capability to
manufacture High Speed Rail and High
Performance rail systems
• We do not know Cost of Goods Sold of a
Metro train
• We assume operating margin as average of
all listed Mahindra Group companies
• OPM to be 6% in Year 1, then increasing to
8% in Year 2 and 10% in Year 3
• OPM to rise from Year 1 to Year 3 as we gain
tacit knowledge and markets’ confidence
WACC (8.5%)
Tax Rate
Sales
• Existing Bank Rate is 8%
• We assume Corporate debt, to create a
70:30 Debt-Equity company structure.
• In view of Mahindra balance sheet, we
assume debt rate as bank rate-100 basis
points at 7 %
• We assume equity returns at 12%
• We take Corporate tax rate at 33%
• No tax advantages as investment in
prosperous Indian state
• We assume a market share of 9-10% in 2016
• Sale price of each train targeted at 32 crore
• Alstom sells for 35 crore in Chennai metro
• Hyundai Rotem sells at 40 crore in Hyderabad
• BEML sells at 32 crore for Jaipur Metro
• Sales will grow at 20% annually for 3 years.
• Sales will grow as we produce similar/superior
product at competitive prices

31. Breakeven Analysis
CAGR – 37.28%
Excluding Time value
of Money we can
break even in 4 years
Capacity VS Production
60
50
Growth: 20%
40
30
20
10
Wacc
Selling Price
0
2016
2017
Capacity
2018
2019
120.00
100.00
CAGR: 37.28%
80.00
60.00
40.00
20.00
0.00
2016
2017
Growth Rate
Production
PAT ₹
crore
2018
2019
8.5 %
32 Cr
Investment
Capacity
Production
Operating Profit
Margin
Operating
Margin
Interest
PBT
PAT
20%
2016
150
30
25
2017
100
50
30
2018
2019
50
36
50
44
6%
8%
10%
12%
48.00
4.08
43.92
29.43
76.80
6.53
70.27
47.08
115.20 168.96
9.79
14.36
105.41 154.60 Total
70.62 103.58 250.71

32. Implementation Plan
Friday, December 27, Tuesday, July 15, Saturday, January 31, 2015
2013
2014
Wednesday, August 19, 2015 March 06, 2016 September 22, 2016 April 10, 2017 October 27, 2017
Sunday,
Thursday,
Monday,
Friday,
Feasibility analysis
Initiate talks: Kawasaki
•
XX
Phase 1
Phase 2
Terms of the JV
Technology share
Identify Synergies:Group
MCE consultancy with DMRC
IT Infra synthesis with Mahindra Satyam
Supply Chain Creation
Plant Construction - Chakan
Bidding tenders
Synergy with Subsidiary
Production for Metro Trains
Commence commercial operations
Expand Capacity
Production for High Speed Trains
Duration
The duration mentioned are based on our judgement

33. Tying the ends together

Case:
India has seen various industries booming at point of time and few players rode the
wave on such occasions:






Telecom Boom:
Dairy Revolution:
Information Technology:
Power:
Road infrastructure:
Bharti Airtel, Idea
Amul
Infosys and TCS
Adani Group and Reliance
GMR, GVK
Rationale
 We suggest to Mahindra to become the pioneer Indian player in the Public
Transport boom envisioned in the coming time.
 With an existing competency in transport and possible synergies provided by its
subsidiaries, the Public Transport is the golden opportunity
Don’t miss the train !

34. Late entrant in the market

CASE:
 Plethora of rolling stock manufacturers for rapid transport exist.
 Players have moved ahead and capitalized on the High Speed Rail as well
 Bombardier, Alstom and Siemens have already setup plants in India and are
capturing the Indian Market and also supplying to foreign demand

RATIONALE
 Abundant late entrant success stories available like
 Atari in video games worldwide
 Samsung in mobile phones worldwide
 LG in consumer electronics in India
 Dell in Indian PC market
 Mahindra would not be bringing in just another product in the existing
category, but provide a similar/better at competitive prices using the synergies
with Kawasaki
 The Rolling Stock Industry is yet to experience the Indian 'Frugal Engineering' at
which Mahindra is an expert.

35.  The
essence of strategy is to know what to do and
at what time…
 Anonymous
This Market Opportunity needs to be
addressed right NOW