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xCase prepared by:xHarpreet singh wadhwa xMba (g) x2 sem xAmity business school xharpreet_funjabi@yahoo.com

€ The

birth of Mahindra and Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India supply mission. There he met:ROOS ± Inventor of Jeep

€ BARNEY € Joined

hands with Ghulam Mohammed.
3

€ On

2nd October 945,Mahindra and Mohammed was setup as a franchise for assembling jeeps from Willys,U.S.A. Independence renamed to Mahindra & Mahindra. turnover of 6.7 billion dollars as of 2008.

€ After

€ Total

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€ Initially

setup to manufacture general purpose utility vehicles, Mahindra and Mahindra was first known for assembly of the iconic jeep in India. company later branched out into manufacture of light commercial vehicles (LCVs) and agricultural tractors, rapidly growing from being a manufacturer of army vehicles and tractors to an automobile major with a growing global market.

€ The

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€³

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 Mahindra & Mahindra limited known world wide for the quality of its products and services.
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€³

we don¶t have a group wise mission statement. Our core purposes is what makes all of us want to get up and come to work in the morning. core values are influenced by our past, tempered by our present and will shape our future. There are an amalgam of what have been, what we are and what we want to be.
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€ Our

€ € € €

TYPE : FOUNDED :

Conglomerate 945

HEADQUARTERS : Mumbai, India KEY PEOPLE : Keshub Mahindra (chairman), Anand G Mahindra (vice chairman and managing director) INDUSRTY : automotive REVENUE : US $ 6.7 billion (2008) EMPLOYEES : 65,000 plus WEBSITE : www.mahindra.com

€ € € €

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€ 1945:

2nd October, Mahindra and Mohammed established. jeep assembly commenced

€ 1949: € 1956:

shares listed on Bombay stock exchange.

€ 1963:

international Tractor Company of India established- a joint venture with international Harvester Company, USA manufacture of light commercial vehicles commenced.
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€ 1965:

€ 1969:

the Company entered the World market with export of utility vehicles and spare parts. Mahindra Engines developed an indigenous diesel engine for its vehicle to beat the fuel crisis. International Tractor Company of India merged with Mahindra & Mahindra to become its Tractor division.
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€ 1975:

€ 1977:

€ 1983:

Mahindra & Mahindra became market leader in the Indian Tractor market, a position it has retained till date. Scorpio launched, a new generation, world class sporty utility vehicle that redefined the market and lived up its positioning : µ NOTHING ELSE WILL DO¶

€ 2002:

€ 2004:Mahindra

World Tractor (75HP) launched in the International Market.

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€ 2005:

acquired 51% stake in SAR Transmission Limited, a company engaged in manufacture of gears and transmission shafts.

€ 2008:

project Ingenio is now Mahinrda XYLO. launch of Mahindra XYLO.

€ 2009:

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€ The

current trends of the global automobile industry reveal that in the developed countries the automobile industries are stagnating as a result of drooping markets, whereas the automobile industry in the developing nations, have been consistently registering higher growth rates every passing year for their domestic flourishing domestic automobile markets.

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€ Degree

Despite the high concentration ratio seen in the automotive sector, rivalry in the Indian auto sector is intense due to the entry of foreign companies in the market. of substitutes:-

of rivalry:-

€ Threat

The threat of substitutes to the automotive industry is fairly mild. Numerous other forms of transportation are available, but none offer the utility, convenience, independence and value offered by automobiles.
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€

The barriers to enter automotive industry are substantial. For a new company, the startup capital required to establish manufacturing capacity to achieve minimum efficient scale is prohibitive. Supplier¶s power:The industry is comprised of powerful buyers who are generally able to dictate their terms to the suppliers.

Barriers to entry:-

€

€

In the relationship between the automotive industry and its ultimate consumers, the power axis is tipped in the consumers¶ favor.
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Buyer¶s power:-

€ Stars
MAHINDRA AND MAHINRA

H R

Question
TVS N RA M TORS

marks

AJAJ

Cash cows

Dogs

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€ €

· India ranks 1st in the global two-wheeler market · India is the 4th biggest commercial vehicle market in the world · India ranks 11th in the international passenger car market · India ranks 5th pertaining to the number of bus and truck sold in the world · India is the second largest tractor manufacturer in the world.
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€

€

€

€ Models

Mahindra thar Mahindra bolero a) Camper b) Inspira c) stinger concept
a) b)

Mahindra Scorpio Gateway First
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Mahindra legend Mahindra Renault Logan ( in cooperation with Renault) Mahindra axe Mahindra major a) Souvenir concept Mahindra commander Mahindra cab chassis
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€ 1.

Strengths:Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company¶s market share is one of its biggest strengths. The company¶s ability to introduce new products in the market and to generate sales. Government incentives for manufacturing plants. Large domestic market.
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2.

3. 4.

€ Weakness:1. 2.

Infrastructure bottleneck High interest costs and high overheads make the production uncompetitive. Opportunities:Rising rural demand Increase in the income level Commercial vehicles : ban on overloading.
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€ 1. 2. 3.

€ Threats:1. 2.

Rising input costs Cut throat competition.

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€ The

company:-

The operations of Mahindra group of companies are guided by the following committees:· Remuneration/Compensation Committee · Audit Committee · Share Transfer and Shareholders/Investors Grievance Committee · Research & Development Committee · Loans & Investment Committee
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€ The

suppliers:-

In Mahindra group of companies there are a large number of suppliers. It includes both domestic and international suppliers. The Mahindra group has a separate committee called Supplier Relationship Management (SRM).
€ The

customers:-

Mahindra group has a large customer base. As its operation lies in different sectors, it almost covers all type of people in the market.
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€ The

competitors:-

In different area of operation, the group faces competition from many companies. It faces global competition.
€ Publics:-

This environmental force is similar for almost all business. It includes media etc.

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€ Bombay

chamber good corporate citizen award for 2006-07 application award

€ Deming € Japan

quality medal in 2007

€ Business

world FICCI-SEDF corporate social responsibility award 2007.
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€ Automotive € Farm

equipment

€ Systech € Trade

and financial service technology development
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€ Information

€ Infrastructure

€ Mahindra € Mahindra

united world college of India

united, a football club based in Mumbai, Maharashtra. foundation

€ Mahindra € K.C.

Mahindra education trust : nanhi kale.
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€ Mr.

Anand Mahindra features in the top 20 in the list of 50 Most Influential Indians in Business Week's edition dated August 13, 2007. & Mahindra was ranked second in the prestigious Most Trusted Car Company in India in a study conducted by TNS.

€ Mahindra

€ Mahindra

was ranked 31st in Business Today's annual survey of India's most valuable companies.
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€ India¶s € It

First Indigenously Developed SUV

Was Launched In June 2002. Started Work On Project Scorpio From

€ M&M € It

1997.

Was Designed To Target Urban Market To Fulfill The Demand Of Passenger Car As Well As SUV Fans And Having Comfort And Elegance

€ The

UV¶s Design Fall Between Passenger Car And SUV Called ³Car Plus´
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From

the year 1992 company faced tremendous competition specially from Telco.
The sale from 1994 to 1997 was Tata Sumo- 100000 units and M&M UV- 26321 units 

M&M¶s vehicles are more suitable for rough terrain than on urban road, works against it Took benefit of the small size UV market which is 15% of total vehicle market compared to Asian average (40%)D
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Made survey and collect customer preference and perception for designee and feature . Introduction of Quality Development(QFD) Process. Function  

Created a benchmark according to world class SUV¶s Big size Latest technology Affordable Price Have thrill and passion in driving Have Luxury International vehicles define image
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a) b) c) d) e) f)

‡

Company involve its suppliers from beginning to end. Company collaborated with suppliers on product design and development. Company make them partners in the scorpio project. The most important contact for Petrol Engines±With Renault Of France Diesel Engines -With AVL Of Austria
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‡

‡

‡ € €

€ M&M

only gave specification about what they wanted from the vendors & suppliers decentralized its vendor system and result better management resources and higher quality . Did Not Make Its Suppliers Wait. Setup Their Facility At Companies

€ Company

€ Company € Suppliers

Plant.

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‡

The Team Was Having 120 Members Of Average Age 27 Years Of 19 Teams. Apart From Traditional Approach ,They Worked Cross functionaly. The Team Had Holistic View. Teams Were Made Responsible For Cost , Quality And Performance. Cost Target Was Given To Each Team,called µDesigned To Cost¶.
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‡

‡ ‡

‡

€ €

It Was Launched With Three Models. 1000 Units Were Booked Within The Launch Of First Week. In 2003 Companies Income Rose By 22%. Breaking The Tradition Of UV, Scorpio Is Being Used Primarily As Personal Vehicle. Survey In 2004 Shows That Scorpio Byers Were Satisfied. It Extensively Tested, so It Has No Run Time Defect After Launching In Market.
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€ €

€

€

€ First

and foremost, they tried to provide a status of Pajero in Scorpio at affordable price. Public Relation, Mass media«nothing was left to make brand popular. adopted penetrative pricing strategy positioned between 5-7 lakhs.
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€ Advertising,

€ Scorpio

€ As

they were targeting urban areas, stronger distribution channels were needed. was launched in phase manner i.e. first in metros and then other cities were covered so as to ensure the attention towards main market first.

€ Scorpio

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€ Revenue

of Mahindra increased from Rs 1827cr. to Rs. 2511cr. with better returns to their share holders.

€ Profit

also zoomed up from Rs. 102 cr. to 147 cr. in FY 03.

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