INTRODUCTION

WHO WE ARE

Mahindra and an independent India began their rise together. In 1945, two enterprising brothers
named J.C. Mahindra and K.C. Mahindra joined forces with Ghulam Mohammed and started
Mahindra & Mohammed as a steel company in Mumbai. Two years later, India won its
independence, Ghulam Mohammed left the company to become Pakistan’s first finance minister,
and the Mahindra brothers ignited the company's enduring growth with their decision
to manufacture Willys jeeps under license in Mumbai. The company’s new name - Mahindra &
Mahindra, of course.The Mahindra brothers believed that new modes of transportation could be
a key to India’s prosperity, so one of their first goals was to build rugged, simple vehicles
capable of tackling the Indian terrain. Early pioneers of globalization, the brothers collaborated
with a wide range of international companies and before long, Mahindra’s reach extended to
steel, tractors, telecom, and more. Now, after more than six decades, Mahindra has grown from a
humble local outfit to a US $16.2 billion corporation employing more than 155,000 people
around the world. It’s been quite an adventure so far, and we’re proud of our global leadership
in utility vehicles, tractors, and information technology, as well as our significant presence in
financial services, leisure and hospitality, engineering, trade, and logistics. As we accelerate into
the 21st century, we’ll continue to pursue innovative ideas that enable people to rise. We’ve
come a long way, but the journey has just begun.

JAGDISH CHANDRA MAHINDRA

Jagdish Chandra Mahindra was born circa 1892 in Ludhiana, Punjab. The eldest of nine
children, the loss of his father at an early age placed the responsibility for the family on his
shoulders. He believed strongly in the power of education and ensured that all his brothers and
sisters studied hard. J.C. received his degree from Veermata Jijabai Technological
Institute (VJTI) Mumbai, one of India's premier engineering and technical institutes. He sent his
brother K.C. to Cambridge. The brothers were very close and the love and trust between them
was extraordinary. J.C. started out his career with Tata Steel, serving as the senior Sales Manager
from 1929 to 1940. When the steel industry became critical during World War II, the

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Government of India appointed him as the first Steel Controller of India. As Independence
approached, J.C. was prescient about the opportunities that Indian entrepreneurs would have to
contribute to the growth of the newborn nation. His vision and ambition led him to start
Mahindra & Mohammad in partnership with K.C. and Ghulam Mohammed.His vision and
insight into India’s post-independence economic development enabled Mahindra & Mahindra to
grow to the size, scope, and impact it has reached today.J.C. died tragically of a heart attack in
1951.

KAILASH CHANDRA MAHINDRA

Kailash Chandra Mahindra was born in 1894 in Ludhiana, Punjab, the second of nine children.
When their father died at an early age, his older brother J.C. stepped into the role of head of the
family. K.C.’s deep lifelong friendship with J.C. was remarkable. K.C. studied at Government
College, Lahore where he showed early promise of a brilliant scholastic career. Continuing his
studies at Cambridge, UK, he earned Honors, played hockey, and took a keen interest in
rowing.When K.C. graduated from Cambridge, Mr. Sachinanda Sinha, Vice Chancellor of Patna
University, introduced him to Mr. R.N. Mukherjee, Senior Partner of Messrs. Martin &
Company. He quickly rose through the company, editing the monthly magazine INDIA and,
briefly, the Hindustan Review. In 1942, K.C. was appointed Head of the Indian Purchasing
Mission in the United States. Returning to India in 1945, he was appointed the Chairman of the
Indian Coal Fields Committee of the Government of India and also of the Automobile and
Tractor panel. His contribution to developing strategic coal policies and applying the latest
methods of coal mining in India helped shape the industry, and his Coal Commission Report
became a seminal document in the industry. During these years, he also wrote a biography
called “Sir Rajendranath Mookerjee: A Personal Study.”In 1946, K.C. moved to Bombay with
his brother J.C. to found Mahindra & Mohammed. Under his 13-year leadership as Chairman,
Mahindra & Mahindra established itself as a major Indian industrial house in several sectors. He
also served as Director of RBI, Air India, and Hindustan Steel and Chairman of Indian
Aluminium Company. K.C. died in 1963.

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 PURPOSE AND VALUE

Our motivation to give our best every day comes from our core purpose: we will challenge
conventional thinking and innovatively use all our resources to drive positive change in the lives
of our stakeholders and communities across the world, to enable them to Rise. Our products and
services support our customers’ ambitions to improve their living standards; our responsible
business practices positively engage the communities we join through employment, education,
and outreach; and our commitment to sustainable business is bringing green technology and
awareness into the mainstream through our products, services, and light-footprint manufacturing
processes. This commitment to sustainability—social, economic, and environmental—rests upon
a set of core values. They are an amalgamation of what we have been, what we are, and what we
want to be. These values are the compass that guides our actions, both personal and corporate.
They are:

Professionalism: We have always sought the best people for the job and given them the freedom
and the opportunity to grow. We will continue to do so. We will support innovation and well-
reasoned risk taking, but will demand performance.

Good corporate citizenship: As in the past, we will continue to seek long-term success, which
is in alignment with the needs of the countries we serve. We will do this without compromising
ethical business standards.

Customer first: We exist and prosper only because of the customer. We will respond to the
changing needs and expectations of our customers speedily, courteously and effectively.

Quality focus: Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with others. We will
do it 'First Time Right.'

Dignity of the individual: We will value individual dignity, uphold the right to express
disagreement and respect the time and efforts of others. Through our actions, we will nurture
fairness, trust, and transparency.

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 VISION & MISSION

Vision:-

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.

Mission:-

“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

AWARDS

1. Bombay Chamber Good Corporate Citizen Award for 2006-07

2. Business world FICCI-SEDF Corporate Social Responsibility Award – 2007

3. The Brand Trust Report ranked M&M as India's 68th Most Trusted Brand in 2011 (from
16000 brands analyzed) and 66th Most Trusted Brand in 2012 (from 17000 brands
analyzed)

4. Deming Prize

5. Japan Quality Medal in 2007

6. Bluebytes News, Rated M&M as India's second Most Reputed Car Company (reported in
their study titled Reputation Benchmark Study ) conducted for the Auto (Cars) Sector
launched in April 2012.

7. Mahindra & Mahindra Farm Equipment Sector has won an AE50 Outstanding Innovation
Award 2007.
8. 'Golden Peacock Occupational Health & Safety Award' for the year 2007. and many
more

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 WHAT MAHINDRA DOES

At Mahindra, the US$27 million brand overhaul has been triggered by fundamental changes
within the 65-year old group. Earlier, its image was one of being reliable, rugged and tough -- all
attributes associated with its traditional business of tractors and utility vehicles. With operations
focused largely within the country, its tagline was "India is second to none."

Anand G. Mahindra (Mahindra), vice chairman and managing director of Mahindra & Mahindra
Ltd. (M&M) is credited for turning around his inherited family business into a highly focused,
professionalised multinational firm operating in diversified business segments. He has
transformed M&M from a farm equipment manufacturer into a Utility Vehicle (UV)
manufacturer. By 2008, M&M was the market leader in the UV segment of India. Mahindra’s
strategies resulted in the creation of ‘Scorpio’ – M&M’s Sports Utility Vehicle (SUV), which
has been the company’s claim to fame in the national and international arena. M&M is now
venturing into all the segments of the automotive industry. However, it is debatable if
Mahindra’s strategies will be effective in sustaining a diverse product portfolio amidst increasing
competition in India and abroad.

Following are the various strategies adopted by Mahindra and Mahindra co. to expand its limits:

DIVERSIFICATION STRATEGY
 Conglomerate Diversification

While the farm equipment and automotive business continues to bring in the bulk (around 65%)
of the group's revenues, over the past decade it has expanded and invested in new businesses as
disparate as aerospace, financial services, IT, hospitality, motorboats and real estate. Mahindra is
now spread across 11 businesses and has a bouquet of 121 companies.

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The Mahindra Group comprises 11 business sectors —

Aftermarket Automotive
Defense Systems Financial Services
Hospitality Information Technology
Real Estate Systech
Two Wheelers Farm Equipment
Aerospace

and Mahindra Partners—with a presence in 18 industries

Aerospace Aftermarket
Agribusiness Automotive
Components Construction Equipment
Consulting Services Defense
Energy Farm Equipment
Financial Services Industrial Equipment
Information Technology Leisure & Hospitality
Logistics Two Wheelers
Retail Real Estate

A Bouquet Of Companies:

 Indian Subsidiaries

Mahindra Life Mahindra

First Choice Mahindra Ashtech Tech Mahindra
Space Developers Consulting
Wheels Limited Limited Limited
Limited Engineers Limited
Mahindra Mahindra Mahindra
Bristlecone India Mahindra Gujarat
Engineering & Holdings & Holidays and
Limited Tractor Limited
Chemical Products Finance Limited Resorts India

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 Mahindra Mahindra &
Mahindra Logisoft Mahindra Steel
Infrastructure Mahindra Mahindra
Business Solutions Service Centre
Developers Intertrade Limited Financial Services
Limited Limited
Limited Limited
Mahindra
Mahindra Mahindra Engineering Mahindra World
NBS International
Shubhlabh Insurance Brokers Design & City Developers
Limited
Services Limited Limited Development Limited
Company Limited
Mahindra SAR Mahindra Mahindra World Mahindra Ugine
Mahindra Renault
Transmission International City (Maharashtra) Steel Company
Private Limited
Private Limited Limited Limited Limited
Plexion
Mahindra World Tech Mahindra (R CanvasM
Technologies iPolicy Networks
City (Jaipur) & D Services) Technologies
(India) Private Limited
Limited Limited Limited
Limited
Mahindra Stokes Mahindra Mahindra
Mahindra Hinoday Ashtamudi Resorts
Holding Company Integrated Automotive
Industries Limited Private Limited
Limited Township Limited Limited
Mahindra Hotels Mahindra
Mahindra Castings Mahindra Forgings Mahindra Retail
and Residences Technology Park
Private Limited Limited Private Limited
India Limited Limited
Mahindra
Mahindra Rural
Mahindra Mahindra Punjab Tractors Residential
Housing Finance
Holdings Limited Logistics Limited Limited Developers
Limited
Limited
Mahindra Mahindra Navistar Mahindra First
Aerospace Private Engines Private Choice Services
Limited Limited Limited

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  Foreign Subsidiaries

Mahindra (China)
Bristlecone Limited Tractor Company Tech Mahindra GmbH Bristlecone GmbH
Limited
Plexion Technologies Mahindra Forgings Gesenkschmiede JECO-Jellinghaus
GmbH Europe AG Schneider GmbH GmbH
Falkenroth
Falkenroth Schöneweiss & Co. Fried. Hunninghaus
Grundstucksgesellschaft
Umformtechnik GmbH GmbH GmbH
GmbH
Fried. Hunninghaus MHR Hotel PT Tech Mahindra
Mahindra Europe s.r.l.
GmbH & Co. KG Management GmbH Indonesia
Mahindra Overseas Mahindra-BT
Mahindra Forgings Mahindra Forgings
Investment Company Investment Company
Overseas Limited International Limited
(Mauritius) Limited (Mauritius) Limited
Mahindra Middle east Tech Mahindra
Mahindra Forgings Mahindra Forgings
Electrical Steel Service (Singapore) Pte.
Mauritius Limited Global Limited
Centre Limited
Mahindra & Mahindra
Bristlecone (Singapore) Tech Mahindra (R & D Tech Mahindra
South Africa
Pte. Limited Services) Pte. Limited (Thailand) Limited
(Proprietary) Limited
Stokes Forgings Dudley
Bristlecone UK Limited Stokes Group Limited Jensand Limited
Limited
Plexion Technologies Tech Mahindra Mahindra USA
Stokes Forgings Limited
(UK) Limited (Americas) Incorporated Incorporated
Mahindra Holidays and
Bristlecone Tech Mahindra (R & D Plexion Technologies
Resorts USA
Incorporated Services) Incorporated Incorporated
Incorporated
Tech Mahindra
CanvasM (Americas) Mahindra Graphic Bristlecone (Malaysia)
(Beijing) IT Services
Incorporated Research Design SDN.BHD
Limited
Tech Mahindra Heritage Bird (M)
(Malaysia) SDN.BHD. SDN.BHD

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  Joint Ventures

Mahindra Sona Limited PSL Erickson Limited

Mahindra Water Utilities Limited Mahindra Inframan Water Utilities Private Limited

 Associates

Owens Corning (India) Limited Mahindra Construction Company Limited

Officemartindia.com Limited Rathna Bhoomi Enterprises Private Limited
Kota Farm Services Limited Mriyalguda Farm Solution Limited
Mega One Stop Farm Services Limited Mahindra Forgings Limited
Mahindra Composites Limited Mahindra Lifespace Developers Limited
Mahindra Renault Nissan Automotive Private
Swaraj Automotives Limited
Limited
Swaraj Engines Limited

EXPANSION / GROWTH STRATEGY

 New Sector, New Geographies

The conglomerate has also moved beyond Indian shores.

 IN INDIA: It snapped up Kinetic Motors, Punjab Tractors, Satyam Computers and

Reva Electric Car.
 AN OVERSEAS: shopping spree led to
 Ownership of tractor businesses in China,
 Forging units and a design studio in Europe
 Aerospace companies in Australia.
 Mahindra now makes tractors in India and China and also assembles them in Africa,
the U.S. and Australia.
 With assembly plants in Brazil and Egypt, Mahindra sports utility vehicles drive
across Italy, South Africa, Uruguay and Serbia.
 The group is gearing up to begin selling pickup trucks in the U.S.

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  Pockets of Excellence

There are of course pockets of excellence within the group.

The multi-utility tractor Shaan, for instance, is used for farming, hauling produce and even
transporting people; thus maximizing a farmer's revenues.

Mahindra Finance helps farmers buy Mahindra tractors and pickup trucks, and even build
homes. To ensure regular loan collection, it has shunned the agency model and has company
staff stationed in rural India.

Then there is the Premium Mahindra Holidays & Resorts, which has launched affordable
sub-brands to rope in more travelers. Mahindra Homestays caters to budget travelers, Zest to
youngsters and Terra camps are aimed at the adventurous.

Mahindra Lifespaces has been working to develop eco-friendly real estate. Instead of applying
only cement to surface-coat building roofs, it now uses an additional layer of broken ceramic
tiles over the cement, which helps to bounce light and minimize heat absorption.

TAKEOVER / ACQUISITION STRATEGY

Whip through a list of Mahindra & Mahindra's (M&M's) dozen-odd acquisitions in the
automobiles and ancillary sectors over the past eight years can tempt you to look for a single
thread that binds them together. As far as sectors go, they are independent, autonomous and, as
M&M chairman Anand Mahindra puts it, "driven by their own logic." But he does point out that
the auto acquisitions have a "synergistic logic. They both build on global scale and provide new
strategic options in mobility; like, for instance, the Reva electric cars."

Despite the seemingly aggressive burst of M&As, the group is conservative in its approach to
inorganic growth, preferring to buy in a downturn. Most of the ancillary businesses, are
companies acquired when they had "bottomed out, were in dire straits and picked up by M&M at
a good price."

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Pawan Goenka, president of M&M's automotive & farm sectors, adds that every auto acquisition
is a fit with the overall strategy. It helps in developing of the brand, expanding globally and in
harnessing engineering expertise. "To that extent every ancillary acquisition helps in
strengthening our ecosystem in the auto space," says Goenka. So whilst the acquisitions in the
auto and ancillary sectors are independent of each other, they do derive benefits from each other,
although they are not direct," he adds.

The M&M group's component business has been driven by inorganic growth via Mahindra
Systech, a company floated in 2004. Over the years, a series of acquisitions in countries from the
United Kingdom to Italy to Germany, in areas ranging from forgings and castings to axle beams
and magnetic products, have helped Systech top $1 billion in revenues and develop serious skill
and scale.
Indeed, Systech's overseas acquisitions have helped the company become a supplier to reckon
with in European and US markets -- at last count, it had some 23 factories with a presence in 11
business segments.

It's the Indian acquisitions—like DGP Hinoday, Amforge and SAR Transmissions—That are
more effective in deriving synergies with M&M's auto business. For instance, Hinoday gives
M&M a complete portfolio of forgings parts with high-end casting thrown in— all produced in a
cost-effective manner.

Away from components, outright acquisitions have helped M&M plug gaps in its automobile
portfolio.

• KINETIC : buyout of Kinetic Motors' two-wheeler portfolio gave M&M an entry into scooters
and motorcycles.

• REVA : Reva Electric gave it a foothold in the alternative fuels space.

• SsangYong: Ssangyong, whose products are at least two development cycles ahead of M&M's
UVs. So, it is a strategic fit that adds value to the existing product range.

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And then there's "The synergy comes from the ability to expand our range into higher price
points without having to attempt to play catch up on our own," explains Mahindra.

The years ahead will determine the success of these efforts at inorganic growth. In two-wheelers,
it appears to be a long haul; although the company has grabbed share in scooters, in the larger
motorcycles segment, Mahindra is yet to make an impact. Reva—and indeed alternative fuel
technology— has miles to go before it becomes a mass-market phenomenon.

Kinetic Motor

Mahindra & Mahindra Ltd. (M&M), one of India's leading automotive has acquired business
assets of Pune-based Kinetic Motor Company Ltd. (KMCL). The deal enables Mahindra to
design and market a range of scooters, value engineered motorcycles and high-end motorcycles
for the Indian and global markets, helping it establish a robust, end-to-end two-wheeler business
in every segment of the industry.

"The acquisition of business assets of KMCL is a defining moment in the history of Mahindra as
it gives an opportunity to emerge as a full range player with a presence in almost every segment
of the automobile industry. For Mahindra, two-wheelers are an additional touch-point for
consumers to interact and bond with the ever expanding universe of Mahindra products and
services. Within the automotive space, it allows M&M to engage and build relationships with
customers at a relatively early stage of the 'personal transport solutions' value chain.

SsangYong Motor

The group's most recent and high-profile acquisition is Korean automaker SsangYong Motor
Company. Earlier in March, Mahindra completed its purchase of a 70% equity stake in
SsangYong for US$463 million. The conglomerate does not reveal global projections. But
analysts say that the consolidated global business which currently brings in 19% of the group's
US$7.1 billion revenues could gallop to 30% once the integration with SsanYong is completed.
Ssangyong's high-end SUVs coupled with all the benefits of superior technology and quality,
sourcing and international presence appears best placed to contribute to M&M's competencies as
a world class automaker.

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REVA

REVA is currently marketing its products in 24 countries across the world with an
overall vehicle population of over 3500, arguably the largest EV fleet globally. REVA
recently premiered its next generation electric car models, the NXR and NXG which received
an enthusiastic response. Mahindra REVA will now have access to Mahindra’s vehicle
development technology and distribution network, significantly enhancing its abilit y to launch a
state-of-the-art electric vehicle for global markets.

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 JOINT VENTURES
 Mahindra Navistar Automotives and Mahindra Navistar Engines.

Auto major Mahindra & Mahindra said it has completed the entire buyout of its stake in US-
based Navistar in two joint ventures - Mahindra Navistar Automotives and Mahindra Navistar
Engines.

"M&M has completed its purchase of the Navistar Group's stake in Mahindra Navistar
Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL),"
Mahindra & Mahindra Ltd (M&M) and Navistar International Corporation said in a joint
statement to the BSE.
The deal has received regulatory approval in India and Mahindra has now taken complete
ownership of operations and continues to sell MNAL and MNEPL products, they said. M&M
has bought the remaining 49 per cent stake in the joint venture with US-based Navistar
International Corp. The financial details were not disclosed.
"Mahindra & Mahindra remains committed to growing its presence in the Indian commercial
vehicle industry with Mahindra's truck and engine businesses continuing to play a critical role in
helping us achieve this goal." In December 2012, Navistar had announced its intention to exit the
joint venture as part of its strategy to focus on strengthening North American core businesses.
"Mahindra has been a valuable partner these last seven years and they are well quipped to move
the MNAL and MNEPL businesses forward as the Indian market continues to develop," Navistar
president and chief operating officer Troy Clarke said.
As part of the agreement inked by both the firms last year, Navistar would continue sourcing
components from India while Mahindra would continue to provide engineering services to it.
"The Navistar group will continue to support Mahindra through licence agreements and extend
necessary support to MNAL and MNEPL for purpose of business continuity," the companies
said.
 Renault

In April 2010, it bought out French auto maker Renault SA’s 49% stake in a five-year- old joint
venture,Mahindra Renault India Pvt. Ltd.

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M&M has signed two joint venture agreements to foray into passenger cars and commercial
vehicles segments in India. Renault and International Truck gain from partnering a firm like
M&M with strong presence in the country and an ability to localise their products within a short
time frame. M&M gains from learning production methods which can be incorporated into its
own manufacturing and increase its product portfolio. M&M encountered a huge learning curve
in its joint venture with Ford which was applied to its Scorpio program to make it possible.

Another point the Ford partnership drove home at M&M was to have a controlling stake in a
joint venture to make the most of it. Based on this, M&M has kept 51% in the two new alliances.

Passenger car plans

M&M will enter the passenger car business through the Mahindra Renault Ltd (MRL) joint
venture in early 2007. The first offering will be the Renault Logan model which will be imported
in CKD kits initially, with a large imported content with localisation gradually scaled up over the
next two years - reaching 55% to 60%. The value for money mid-sized Logan will be produced
alongside the Scorpio at M&M's Nashik facility.

Logan will be engineered for right hand drive markets before it is finally launched. M&M has
retained the distribution and car manufacturing contracts from MRL. The partners have set off
with an initial investment of US$160million. Later, MRL will be made an export hub for Logan
kits and CBUs to South Africa and SAARC (South Asian Association for Regional Cooperation)
countries.

 Truck plans
M&M has a 51:49 joint venture with International Truck (ITEC) for heavy commercial vehicles
developed specifically for India. Approximately US$92million will be invested in the project
which will commence production in 2007. The R&D work intended to tune the vehicles to
domestic needs will be engineered by the 300 people at MSAT. This will also help in taking the
localization levels up to 90% from the beginning. M&M's current dealership network and newly
appointed dealers will handle the sales of the trucks. Additionally, ITEC is expected to source
components from the JV amounting to US$100m by the third year in operation.

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 Rebranding At Mahindra
Sridhar Samu, a professor of marketing at the Hyderabad-based Indian School of Business, says
Mahindra is on the right track with the Rise effort. "Given the changes in [its] portfolio and
market, the repositioning will help bring clarity and align the group's businesses," he notes. "It
can also set new directions as [Mahindra] grows bigger and expands into new territories." Samu
adds that with the group moving into newer areas, "questions like what is your core business and
philosophy would have been hard to answer as there was nothing linking everything together."

Rise hopes to provide the missing link. "If [the group] is going to compete with the world's best
companies, it has to become an innovation factory, which is why I returned innovation to the top
of our current priorities," Anand Mahindra told the Harvard Business Review in 2008. Anita
Arjundas, managing director & CEO of Mahindra Lifespaces which develops townships and
apartments, adds, "Even though innovation is part of our DNA, we have to articulate this to a
larger audience."

Strategy For Overall Overhaul At Mahindra & Mahindra

In all businesses today, aligning human resource management with business strategy has become
an important element to succeed. And Mahindra & Mahindra group is no different.
Organisational restructuring, managing key resource requirements, performance management
systems, career and succession planning have all been re-aligned to form synergy with the
company’s overall business strategy.

A Choudhari, executive vice president, human resources & corporate services, Mahindra &
Mahindra group told FE that the re-alignment was necessitated by changing dynamics in the
business environment. He said that the objective was to grow leadership positions in the UV and
tractor market and developing successful businesses in relatively new business areas like IT,
financial services, realty and infrastructure development and also service industries like Time
share (Club Mahindra). “Keeping in mind the new business objectives the challenge was to re-
orient the human resource management towards these objectives,” said Mr Choudhari.

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 Organisational Restructuring
For the group, organisational restructuring posed the greatest challenge keeping in mind the
changing dynamics in the business especially the tractor and automotive division. In the
last three years, the emphasis was development of the long term strategy and fixing clear
business goals. Taking the example of tractors, the long term goal was to be the largest
manufacturer in the world. Thus the process began by changing internal benchmarks of
excellence to global standards. Benchmarking all business processes from product
development to customer care and commercial controls to JUSA (Japanese Union of
Scientists and Engineers) was implemented.
“We are targeting the Deming award through these initiatives, which encompass the entire
gamut of function of the company including the HR function and similarly the automobiles
business is targeting the TPM award from the Japanese Institute of Plant Management,”
said Mr Choudhari.

To achieve these objectives the company began a full reassessment of organisation and
management structure with the help of consultants like Mckinsey’s, Arthur Anderson and
Korn Ferry. The outcome was, clear roles and responsibilities were identified and the
competency required for each role was mapped. The officers went through individual
assessments of competencies against the requirement of each role. External consultants as
well as internal assessors ran assessment centres and each individual was then placed based
on competency and role fitment.

The restructuring also led to the pruning of the staff. In 2001, there were 3970 officers in 13
grades and levels which was brought down to 3400 officers in five responsibilities namely
strategic, executive, department/unit head, managerial and operational in 2003. This
organisational restructuring based on business needs was later extended to smaller
businesses in the group. For example, Mahindra Engineering services has recently been
established by combining key engineering and design resources from the Tractors and
Automotive division. ”Given the numbers involved the challenge was to manage
expectations, feeling of threat that is intrinsic to such an exercise, communications and
counselling. HR function played an important role as it led the exercise with co-opera/tion
from all line managers,” explained Mr Choudhari.

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 Managing Key Resource Requirements
The reassessment of organisational requirements brought in gaps in terms of management
resources. While many of the roles were filled through internal promotions and parallel
moves, certain gaps like inability of the senior management to fit in the role due to the
rapidly changing business environment emerged. Therefore the company began inducting
senior management resources from diverse companies like Xerox, Marico, Enron,
Hindustan lever Ltd as well as from engineering, tractor and automobile sectors. This
enabled the company to induct a talent pool with rich background which was suitable to the
changing business requirements of the group. Also in order to bring in young talent keeping
in mind the long term objectives, the group has started a formal Management Trainee
Scheme through campus recruitments. The move threw up an interesting observation, that
of acceptability of young blood working initially at operational level jobs with older
experienced people. To avoid the feeling of animosity and in order to build comaraderie,
the group has put in place a Mentoring system, where each management trainee has a
senior executive who plays the role of mentor. The mentor reviews the progress made by
the trainee every two-three months and provides guidance and counselling if the need so
arises. Further in order to encourage existing management resources to seek internal
opportunities beyond their immediate business group, a formal internal advertisement has
been established, which puts up vacancies on the Mahindra intranet.

 Management Development
Management development like any other company has also emerged as a special area of
focus at the Mahindra group. The need to enhance internal talent and leadership potential
was felt keeping in mind the changing business scenario. Allen Seqeuira, vice president,
corporate human resources and management development, Mahindra & Mahindra group
said that the thrust is on building leadership development at middle and senior management
levels and this objective is being met through a series of initiatives at all levels including
the top management, where the emphasis is on strategy, leadership and change.
Mr Seqeuira explained that a three tier approach is in place to develop the capabilities of the
management. The management development have been structured to meet the needs at each
responsibility band of management, said Mr Seqeuira. So, if the emphasis in the top

18
 management is on strategy, leadership and change, for the strategic and executive
management band, the focus is on team building, people skills, understanding and
managing technology and financial and marketing orientation. Similarly for department and
unit head manage- ment band, the emphasis is on general management skills, managerial
and personal effectiveness and multi functional understanding.

Apart from the in house management development programme, the group also utilises
selective outside programmes for high potential managers. These include management
programmes run by Harvard Business School, London Business School and India School of
Business - Hyderabad. “The idea is to take the management development programme to the
lowest level of the hierarchy to bring out the leadership potential, which is extremely
crucial for the company’s growth as it moves ahead,” said Mr Seqeuira.

 Managing Succession
A key HR function at Mahindra group is the career and succession planning. The objective
of this function is to chart out a detailed career path of each individual at the senior most
levels. The career path taps both the strengths and weaknesses and aspiration of each
individual executive.

The detailed career planning also leads to identification of incumbents as successor to a

specific responsibility.

“What we try to do,through our succession planning is the early identification of potential
successors and both formally and informally, begin to provide expanded responsibilities so
that there is an on-the-job development of a larger perspective and understanding,”
elaborated Mr Choudhari.

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SWOT ANALYSIS

STRENGTH

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 from those new products is a major strength. The reason being that this is very
essential for any company, for its survival in the long run. The company has established its brand
name in other countries of the world as well. This is evident from the 40% market share that it
holds in the 30-40 HP tractors market in the US.

 M&M is a strong brand in the automotive industry

 Constantly brings new products according to market requirements like XUV500 to keep
in pace with the needs of the customers
 Known for producing quality and economical products
 Large market share in farm equipment industry
 Has out-performed the Indian automotive industry in past few years Opportunities
 Expand overseas through various alliances
 Growth in rural economy should be tapped through increase in sale of tractors
 Introducing new innovation like hybrid cars etc

WEAKNESS

The company is highly dependent on the rural sector, and the rural sector in turn is highly
dependent on the monsoons. As a result, if there happen to be bad monsoons (less of rains) for
two consecutive years it could have an adverse impact on the demand of tractors for the
company.

 Still way behind Maruti Suzuki, Hyundai in PVs sector

 Dependent on growth of economy and government policies.
 Not know for having luxurious cars instead known for having sturdy cars
 Failed partnership with Renault (LOGAN)

20
OPPORTUNITIES

The government has been trying to strengthen the exports of agricultural products. As a result,
the quality of agricultural products necessarily has to be very high. For this, they need better
rural and agricultural infrastructure. This might result in an increase in demand for tractors. In
India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area, which is much
below the world average of 19 tractors for the same. Thus there is scope for the demand to
increase.

 Developing hybrid cars and fuel efficient cars for the future.
 Tapping emerging markets across the world and building a global brand.
 Fast growing automobile market.
 Growing in the market through electric car Reva (controlling stake)
 Entry into two-wheeler segments

THREAT’S

The company has a history of having invested in unrelated diversifications such as telecom,
holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from time to
time when these turned unmanageable. This is a cause for concern as such diversifications could
divert the company's attention from its core business. It is a dangerous tendency as it leads to
destruction of shareholders value. The entry of foreign players in the tractors segment could pose
a threat to the company as these foreign players are technically more competitive than Mahindra
& Mahindra.

 The ever increasing fuel prices and overall inflation could slowdown sales
 Global competitors getting ahead in technology
 Diversification in various sector can lead to losing focus from core business
 Highly competitive automotive industry
 Ever changing customer preferences
 Substitute modes of public transport like buses, metro trains etc
 Government policies for the automobile sector across the world

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BCG MATRIX

22
23
 BCG Matrix Analysis

STARS
High growth, High market share:
For M&M Tractors market are stars. It holds large market for M&M.and in products SCORPIO
is star. Stars are leaders in business. They also require heavy investment, to maintain its large
market share. It leads to large amount of cash consumption and cash generation. Attempts should
be made to hold the market share otherwise the star will become a CASH COW.

CASH COWS
Low growth , High market share :
Utility vehicles market and in product JEEP are cash cows for M&M. They are foundation of the
company and often the stars of yesterday. They generate more cash than required. They extract
the profits by investing as little cash as possible They are located in an industry that is mature,
not growing or declining.

DOGS
Low growth, Low market share :
Two wheelers market and in product BOLERO is dogs for M&M. Dogs are the cash traps. Dogs
do not have potential to bring in much cash. Number of dogs in the company should be
minimized. Business is situated at a declining stage.

QUESTION MARKS
High growth , Low market share :
Commercial vehicles market are question marks for M&M. Most businesses start of as question
marks. They will absorb great amounts of cash if the market share remains unchanged, (low).
Why question marks? Question marks have potential to become star and eventually cash cow but
can also become a dog. Investments should be high for question marks.

24
 COMPETITOR ANALYSIS

 TATA MOTORS

Here we take a look at Tata Motors the nearest competitor of Mahindra & Mahindra Ltd in
the automotive industry. M&M, which is a leader in the utility vehicles and SUV space, has been
growing rapidly over recent times. M&M has moved to the third position in the Indian passenger
vehicle market, riding on higher demand for its vehicles, including the newly launched XUV500
SUV and thus taking over Tata Motors spot. Maruti Suzuki remains the market leader, followed
by Hyundai.

 Sales: According to company figures,

M&M sold 61,504 units during April-June 2012, with sales growing 28%.

In contrast, Tata Motors' sales slipped 7% to 60,405 units in the same period.

Out of the first three months of the current fiscal, sales of Tata Motors have fallen in two
months (April and June), and single-digit growth was witnessed in May. This contrast
can be attributed to the fact the Tata Nano failed to make an impact on the market as it
was expected to do. Other hatchbacks like Tata Indica range have showed little growth
but the demand has stayed fairly flat. While the sales of the sedan cars like the Indigo
family have lowered. And that of the MUV/SUV like Sumo, Safari, Aria have also been
flat. Although on the positive side Tata Motors is still leading the mini truck market with
its model Tata Ace.

 Quality: In recent times Tata motors have lost a certain amount of credibility in terms
of providing high quality PVs with instances of fires in Tata Nano after its launch. But
Tata Motors plan to change that image with the recent acquisition of two iconic brands
Jaguar and Land Rover in 2008. Improvement in the world’s cheapest car i.e. Tata Nano
are hoped to bring in increase in sales volumes.

25
 Pricing: Both companies have their models in various price range to compete with each
other.

Example:

1. Tata Aria v/s Xuv 500 (10-15 lakhs)

2. Mahindra Verito v/s Tata Indigo CS (4-6lacs)

It would be difficult to say whether one company has an advantage over the other in
terms of pricing due to the number of variants available in the market for different
models of both companies.

 Partnership, JVs, Alliances: Tata Motors is also expanding its international

footprint, established through exports since 1961. The company's commercial and
passenger vehicles are already being marketed in several countries in Europe, Africa, the
Middle East, South East Asia, South Asia, CIS, Russia and South America. It has
franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. Tata
Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in
the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008.
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture
with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata
cars and Fiat powertrains. In 2006, Tata Motors entered into joint venture with Thonburi
Automotive Assembly Plant Company of Thailand to manufacture and market the
company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has
begun production of the Xenon pickup truck, with the Xenon having been launched in
Thailand in 2008. Tata Motors (SA) (Proprietary) Ltd.

26
 MARUTI SUZUKI INDIA LIMITED

East meets South in Maruti Suzuki India (MSIL). The New Delhi-based company is a
subsidiary of Suzuki Japan, and India's largest OEM of passenger cars, netting about 55%
of domestic sales. It touts a 13 brand line with over 150 options, including the family car
Maruti 800, premium hatchback Ritz, and popular compact A-Star. The company runs
two production sites. Its Gurgaon facility, integrating three plants, is able to churn out a
whopping 700,000 cars annually. The Manesar facility, dedicated to first-to-
market rollouts, promises to grow to an annual assembly capacity of 300,000. Revving up
its bottom line, MSIL exports Suzuki models to Latin America, Africa, and Southeast
Asia, and sporadically to Europe.

 ASHOK LEYLAND LIMITED COMPANY INFORMATION

Through good times and hard, Ashok Leyland keeps on truckin' on. Founded in 1948, the
company is one of India's major manufacturers of commercial vehicles, rolling out multi-
axle trucks and tractor trailers, as well as light trucks and buses, emergency, and military
vehicles. Ashok Leyland touts its 18- to 82-seater double-decker buses, popular for
moving India's metro public. Operations also make spare parts such as crank shafts,
crown wheels and pinions, and ball and roller bearings, and engines for industrial
generator and marine applications. Engineering, consulting, and testing services are
offered, too. Since 1987 Ashok Leyland has been part of the Hinduja Group, serving as
its flagship business.

27
  BAJAJ AUTO LIMITED COMPANY INFORMATION

Bajaj Auto Limited makes scooters for commuters. The company manufactures and sells
small motorcycles, scooters, and three-wheeler vehicles. Motorcycle and scooter models
include the Avenger, Discover, Kristal, Platina, and Pulsar. Its three-wheelers are used
for both consumer transportation and light delivery. Bajaj also makes spare parts, sold to
authorized service centers, and retailers through its distributors. Technology partner,
Kawasaki Heavy Industries, has helped Bajaj bring a number of bikes to the Indian
market -- including the Kawasaki Bajaj Ninja heavy cruiser. More than 3 million units of
Bajaj's rides are made and distributed annually to 50-plus countries. Bajaj was founded in
1945.

 Mahindra & Mahindra Ltd. vs Eicher Motors Ltd.

 MAHINDRA AND MAHINDRA

Attribute Value Date

PE ratio 13.68 28/08/13
EPS (Rs) 56.80 Mar, 13
Sales (Rs crore) 10,022.52 Jun, 13
Face Value (Rs) 5
Net profit margin (%) 8.17 Mar, 13
Last bonus 1:1 14/06/05
Last dividend (%) 260 30/05/13
Return on average equity 22.87 Mar, 13

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  EICHER MOTORS LTD.

Attribute Value Date

PE ratio 58.79 29/08/13
EPS (Rs) 53.61 Dec, 12
Sales (Rs crore) 381.82 Jun, 13
Face Value (Rs) 10
Net profit margin (%) 17.33 Dec, 12
Last bonus
Last dividend (%) 200 12/02/13
Return on average equity 23.06 Dec, 12

 MAHINDRA GETS FRESH COMPETITION FROM NISSAN TERRANO

COMPACT SUV

The Indian car market is really hard hit by a massive slowdown, which has taken its toll on most
of the auto makers operating in India. Thus, be it the auto market leader Maruti or the Indian
SUV master Mahindra, all are anxious to find out the ways to handle this harsh situation. What
makes it worse for the leading auto makers in India is the fact that the other global auto makers
are lining up fresh and exciting models against the bestselling rival cars in order to snatch away
customers.

In such a situation, the Indian leader of utility vehicles is having a very hard time as it is hard
pressed from three sides. Firstly, the Indian economical instability, the falling rupee coupled with
rising diesel costs and interest rates are ensuring poor consumers sentiments resulting into low
demands. Secondly, the Indian government has levied an additional 3 percent of excise duty on
the SUVs that is doing further damage to the demands for Mahindra’s massive vehicles. Lastly,
the Indian compact SUV segment is really booming, which is making all the rival companies
churn out loads of new cars that is intensifying competition for the Mahindra SUVs.

29
At present, Mahindra has got yet another compact SUV rival today in the form of the Nissan
Terrano compact SUV. Mahindra’s demands have been said to be considerably dampened by the
arrival of the new Ford EcoSport compact SUV and now, Nissan has launched its Renault Duster
based Terrano mini SUV on 20th August, 2013 in Mumbai.

The Renault Duster is an extremely popular compact SUV itself, and thus the Terrano which is
based on its platform is expected to be equally successful. Nissan in alliance with Renault has
thus launched a yet another potent mini SUV in the highly competitive SUV segment of India.

The Nissan Terrano is essentially a badge engineered product but is considerably different that
the Renault Duster with a lot of exterior alterations. The car really looks stunning and looks
prepared to attract the new age car consumers. Under its hood, the car gets the same set of mills
as the Duster that is the 1.6 liter petrol as well as two diesel motor options.

With the launch of the Terrano, Nissan today marked its entry into the compact SUV segment of
India which is highly is highly potential and most popular at present. Nissan is also confident
about this car’s success in the Indian car market.

Nissan Terrano will lock horns with the Mahindra XUV500, newly launched Ford EcoSport and
Force One SX apart from its own counterpart the Renault Duster.

The car is to go on sale in India from October and is priced below the Rs 10 lakh slab. Thus, all
together it is supposed to intensify the market competition for Mahindra even further. Moreover,
Mahindra & Mahindra does not have many proper compact SUV models apart from the Quanto
which is also losing its charm. However, the Indian auto giant is readying itself to launch a baby
SUV, S101 soon.

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  The Mahindra Quanto is here and it aims to fill a lot of gaps.
Take a look at some of the Quanto's competitors across the segment

Positioned as a compact MUV, the Mahindra Quanto straddles a whole lot of segments. But the
sweet pricing of Rs 5.82 lakh for the base variant makes the Quanto an alluring, value-for- money
buy not just for premium hatchback buyers but also those considering diesel sedans and then
some in the same price band. Let’s see how these vehicles stack up against the Quanto:

Maruti Swift Diesel

Yes, it might seem odd putting the Swift here, but large diesel hatches are exactly at what the
Quanto is squarely aimed at. The Swift has pretty much been the best seller since its inception
but now with the Swift diesel costing the same as the much larger Quanto, there is a possibility
that the Mahindra will eat into the Swifts sales. What the Swift does have over its goliath
competitor is a brilliantly refined motor, amazing handling and not to mention the best after sales
service out there. But space is at a premium in the Swift and the Quanto seems to have acres of
it. A tough battle this one is going to be.

Hyundai i20 diesel

It’s been one of the most complete premium small cars that we have had. Lots of space, brillia nt
interiors and a very very strong diesel motor. Where the Quanto edges ahead is its 5+2 seating
and a cheaper price tag. The i20 is a premium hatch at a premium price. The Quanto might beat
the i20 at price and space but the i20 fights back with a premium sedan feel and that very strong
engine.

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Maruti Suzuki Ertiga Petrol

Another Maruti in the group, but this one takes the fight to the Quanto with space and size. The
Ertiga is the latest MUV from Maruti and not to mention an immediate success thanks to its
compacts dimensions and amazing 7 seating option, but there’s a catch. While the Ertiga may be
a genuine 7 seater unlike the Quanto which is a 5+2, you can only buy a petrol variant of it( we
are talking of a budget with fits the Quanto here) considering the diesel Ertiga costs about 2.5
lakh more than the Quanto. If the expensive fuel doesn’t bother you, the Ertiga petrol does make
a better bet.

Premier Rio

India’s first genuine compact SUV, the Premier Rio makes a strong case for itself now that it
comes with the brilliant 1.3 CRDi4 engine. Compact dimensions, smart looks along with some
very good ground clearance makes the Rio a very good bet for India. But that’s not the complete
story. While the engine is good, quality of materials and ergonomics are still not upto scratch.
The Rio does not have the space nor the reassuring built to last feel of the big Mahindra either.
But if small rocks your boat, the Rio does stand a small chance here.

CSR AND SUSTAINABILITY

 How Mahindra & Mahindra is championing sustainability

At a recent event at the Mahindra United World College near Pune, Mahindra & Mahindra CMD
Anand Mahindra, in his speech to a gathering of students, teachers and parents, broke off to
speak to the support staff (who were also present) about sustainability and the adjoining 170-acre
biodiversity park.

32
"Sustainability is a part of our 'rise' philosophy. You cannot rise if you take more from the
community than you put back. It is imperative for us to protect the flora and fauna around us,"
Mahindra finished off in Hindi, compressing a company credo into a few short sentences. If the
segue into sustainability seems odd, those who know Mahindra well say he takes every chance
he can to talk about it.

”Sustainability has to be a way of life to be a way of business," says Mahindra. This expressed
commitment might explain the group's robust sustainability programme (now in its fourth year).

Beroz Gazdar, senior VP, group sustainability, says the strategy for charting a sustainability
course at M&M is quite simple: make the various verticals see a business case in it, and leverage
that to bring them on board.

So, when it comes to helping employees make the connect between business and sustainable
practices, Gazdar uses a simple argument. "If we're talking about water conservation in our
factories, I simply point out that without water, there would be no operations. No water, no
work," she says.

"They immediately understand why not saving water, or trying to improve the water table around
our plants, can be a business risk." It's not just the factories. The $15.4-billion group wants its
entire 140,000-global workforce to get the message, which is why it has adopted (and branded,
as part of its 'rise' campaign) the phrase, 'alternative thinking'.

33
34
The idea has gained traction among 10 of the 18 businesses, and propelled the group towards a
more seamless integration between operations, decision-making and sustainability.
The plan is to corral all stakeholders — employees, customers, local communities, dealers and
the supply chain — and nudge them towards this idea of 'alternative thinking' on sustainability.

Making Progress
To that end, M&M has set for itself specific green and corporate social responsibility goals. Its
2011-12 sustainability report, released last week, shows the group has surpassed many of its
three- and five-year targets on energy efficiency, reduced emissions and water consumption.

Water conservation drives have led to a significant reduction in use in the auto and real estate
sectors. "Last year, we conducted a water audit and mapped everything, from availability and use
of rainwater, to sources for supply, like tankers," says Gazdar.

"Then, we spoke to plant managers to get their buy-in on reducing consumption." Many of the
plants are heading towards water neutrality, with enough for the local community.

This year, M&M has pledged to align itself with six of the eight agendas of the Centre's National
Action Plan for Climate Change.

Smoke Signals
"But let's not forget that this is a company that makes gas-guzzling SUVs (sports utility
vehicles)," says the head of a sustainability consulting company, not wanting to be named.

"We'd be happier to see a large chunk of R&D spend going towards creating greener fuels and
such. Acquiring (electric carmaker) Reva was a first step; but a company of M&M's calibre
needs to do much more."
A policy paper of the Centre for Science and Environment says with the passenger-car market
shifting towards "heavier and bigger vehicles (like SUVs) that guzzle fuel", India needs more
stringent checks.
It adds that the auto industry is unhappy with the recently approved 'corporate average fuel
consumption standards' for vehicles — a target of 18.15 km/litre or 129.8 gm of CO2/km in
2015, and 20.79 km/litre or 113 gm of CO2/km in 2020 — and is pushing for rollback.

35
The paper also says companies want the implementation timeline postponed to 2018 and 2023,
and the government to recalibrate the approved target of 20% CO2 reduction over 2010 levels in
2020, to 16% reduction by 2023.

With a stable full of large vehicles, M&M is in the thick of things. Gazdar, however, says there is
enough evidence to offset these claims. "Our new investments, like the Reva, Mahindra Solar
and Mahindra Research Valley speak for themselves. They show people we are responsible," she
says.

Spreading the Philosophy

About half of M&M's various stakeholders, including its supply chain, are aligned to the group's
sustainability vision. Employee participation in the volunteering programme has increased by 7%
over last year.

M&M conducts independent audits of supply-chain contractors to ensure workmen are insured,
there is women's sanitation and a creche on site, etc. Elsewhere, Mahindra Lifespace Developers
projects are designed as per the Centre's National Building Code regulations, to ensure health
and safety of end-users and workers.

 HOW WE HELP
We see our role as a major corporation both in India and in the world as an incredible
opportunity to lead businesses towards sustainability. Sustainability encompasses not only the
conservation of our environment, but also a responsibility to every stakeholder—not only our
shareholders, employees, and customers, but also the communities we impact and the suppliers
we source from. By making every aspect of our business sustainable, from creating fuel-efficient
automobiles in green facilities to encouraging sustainable supply chain management to reducing
office footprints, we affirm our commitment to a better world. Beyond conducting business
consciously and responsibly, we support our communities through many environmental and
social initiatives. We build schools and support educational programs for students of all ages.
Our environmental initiatives include building greener facilities and planting one million trees
across India. When people in need require medical help, we provide health and disaster relief.

36
And we also embrace culture and sport through our festivals and youth sports leagues. No matter
what you need to rise, we are here to provide it.

A. Gateway House

“As the world gets increasingly interconnected, developments in geopolitics and geo-
economics affect our lives in all sorts of unexpected ways. This is true for individuals,
politicians, lawmakers, businessmen and citizens from all walks of life. There is a crying need
for these issues to be studied and for civil society to have an awareness and understanding of
their impact on our decisions and on our lives. I think the creation of an independent and
non-affiliated body like Gateway House will go a long way towards filling this need. I
compliment Gateway House for starting this initiative and am delighted to support it.”

—Anand Mahindra

In 2009, Anand Mahindra joined forces with other business leaders and intellectuals to
support the creation of the Indian Council on Global Relations, better known by its brand-name,
Gateway House. Independent, nonpartisan, and membership-based, Gateway House is a foreign
policy think-tank established to engage India’s leading corporations and individuals in debate
and scholarship on India’s foreign policy.Gateway House seeks to draw the attention of leaders
from the business, political, and social spheres to the geopolitical challenges facing India today.
As India is poised to play a transformative role in globalization and world affairs, it is
simultaneously faced with extraordinary opportunities and extraordinary problems—terrorism,
internal strife, a hostile neighborhood, poverty and a youthful population with high
aspirations.Indian business, with its increasing global footprint, has been leading diplomacy for
at least a decade, but neither business nor government has leveraged this leadership to India’s
advantage. And although Mumbai is the home to India’s top businesses and at the heart of the
changing international matrix, it lacks a platform to inform and influence foreign policy in New
Delhi and around the world. Based in Mumbai, the country’s financial center, Gateway House
will act as that vital intersection between business and foreign policy.Gateway House is modeled
on, and mentored by, the Council of Foreign Relations, New York (USA). Join us as we raise
awareness about foreign policy among Indians, produce and disseminate ideas and reports that

37
stimulate the public debate on India’s foreign policy choices, and groom the next generation of
Indian foreign policy leaders.

B. NGO Partners

Mahindra partners with a range of NGOs to make a difference..

Partner with many NGOs across India to improve local economies, health, and education in
the areas we touch. Check out the list below.

Akanksha Foundation Anandwan

Amarjyoti Charitable Trust
Army Navy Air Force Wives Activity Trust
Association of People with Disability
Dhwani Educational Resource Center
Enable India
Impact India Foundation
Ankur Society for Alternative in Education
Aseema Charitable Trust
Centre for Learning Resources
Door Step School
Etasha Society
India Sponsorship Committee

Iswar Charitable Trust Janmadhyam

Janodaya Trust Jayaprakash Narayan Memorial Trust
Joint Women’s Programme Katha
K.B. Hire School K.C. Mahindra Educational Trust

Naandi Foundation Nai Raahen

National Association for the Blind Mitra Jyothi
Paragon Charitable Trust Paraspara Trust

38
Parikrama Foundation People Pro Trainers and Consultants
Pratham Delhi Education Initiative Prayas Juvenile Aid Centre Society
Rasta Sarvesham

Score Foundation Sewa Delhi Trust

Shashwat Shikhar
SNEHA (Society for Nutrition, Education SNDT- KKPKP (Kagad Kach Patra
and Health Action) Kashtakari Panchayat)
SMILE Social Outreach Foundation
Society for All Round Development SPRJK Trust

Suhrud Mandal Swadhar

United Poona Sports Academy Vanasthali Rural Development Centre
Vision Foundation Welingkar Institute of Management
Development & Research
Xavier’s Resource Centre for the Visually
Challenged

C. Foundations

At Mahindra, we believe that real change comes about when people give not just their money,
but their time as well. We’re fortunate to be able to give both. Our many foundations and
initiatives harness thousands of employee volunteer hours and put millions of our own dollars to
work expanding opportunities for disadvantaged groups. We create outreach programs that draw
from our core competencies and partner with NGOs to support key initiatives in areas outside
our in-house expertise. Our efforts are broadly organized around education, health, and the

39
environment. In all our initiatives, we seek partnerships with the people we serve and the other
stakeholders who contribute to solutions, from local governments to NGOs. Our foundations
support hard and careful work over the long term, so that we can create lasting transformations in
the communities we belong to and serve.

D. K.C. Mahindra Education Trust

Every year, the K.C. Mahindra Education Trust gives thousands of scholarships to make
education possible for more Indian students.

E. Tech Mahindra Foundation

We partner with 55 NGOs to support local communities.

40
 F. Mahindra Satyam Foundation

We put our core competencies to work for positive change in education, livelihood opportunities,
empowering persons with disability, and health.

G. Mahindra Education Society

When we set up factories in Mumbai and Khopoli, Maharashtra and Zaheerabad, Andhra
Pradesh, we also built schools for local students.

41
 H. Mahindra Foundation

We provide medical treatment through financial aid and provide disaster relief during natural
disasters.

I. Mahindra Foundation USA

We help connect Americans with Project Nanhi Kali to provide education for girls in India.

J. Our Employee Social Options Program (Esops) connects Mahindra

employees with people who need help. Each year, we organize ongoing initiatives or one-time
programs to reach out to groups like the elderly, the disabled, disadvantaged students, or rural
population. During the year from 2012-2013, 19,867 Esops volunteers contributed 1,09,250
man-hours. And each year, more and more volunteers join us in reaching out—we’ve grown
more than four times in size since the first Esops in 2006.We target to donate 1 percent of our

42
annual profit after tax to social activities each year, but we also believe in the importance of
spending our own time and effort. Run by our Corporate Social Responsibility Department,
Esops coordinates and focuses employees’ activities in order to create the greatest impact on the
problems we tackle. Employees can select from a wide range of activities in the three focused
areas of Health, Education, and Environment, or get involved in special local initiatives.Our
initiatives effect lasting change through education or permanent operation. For example,
we support an annual traveling hospital on rails, the Lifeline Express, to bring free surgical
treatment to people with polio-related orthopedic disabilities, hearing disorders, cleft lips, and
eye problems. The Lifeline Express partners with district health and administration authorities,
doctors, surgeons, technicians, and students to provide consistent care free of charge.Our
education initiatives are designed in response to local needs. In FY 2009-2010, the Mahindra
Spares business provided guidance and career counseling for 100 school dropouts and their
parents. Our automotive plant in Mumbai ran a 14-day program for women to develop their
personal skills, supporting female empowerment by training women to be effective self-
advocates. And our farm equipment operations in Nagpur responded to the farmer suicide
epidemic in the Vidarbha region with an initiative to identify and train resource-poor youth,
empowering them to take advantage of other career opportunities.

FUTURE

A New Core Purpose: Expansion Gives 'Rise' to Rebranding at Mahindra

Every year, Anand Mahindra, vice chairman and managing director of the US$7.1 billion
Mahindra Group, holds a two-day "blue-chip"
conference with his top executives. The team reviews
the year gone by and sets targets for the future. For
the most recent conference held in December last
year, Mahindra flew 500 of his top executives to
Kuala Lumpur, Malaysia. On the second day of the
conference, he deviated from the usual agenda,

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screening a short film about how the Mahindra Foundation, along with group company Mahindra
Consulting Engineers, reached out to the flood-ravaged Pattori village in Bihar's Madhepura
district in northern India in 2008 by building a new social infrastructure. They built an eco-
friendly village and provided amenities like water supply, sanitation, solar lighting and disaster-
resistant dwelling units.

The film had nothing to do with the various businesses of the group that range from automotive,
farm equipment, aerospace and IT to retail and leisure holidays. But it was central to the
conference. It represented Mahindra's new vision for his team -- to be innovative and rise above
the ordinary.

This vision has found expression through a new brand positioning and a new "core purpose" and
tagline for the group -- "Rise" -- that was launched in January. The concept of Rise is built on
three pillars: accepting no limits, alternative thinking and driving positive change.
"Rise means achieving world-class standards in everything we do, setting new benchmarks of
excellence and conquering tough global markets," according to Mahindra.

This is the group's first rebranding exercise in over a decade. A similar exercise was done 13
years ago to outline the conglomerate's core values. At that time, the brand identity was about the
celebration of being Indian. The idea was centered on the belief that Indians are second to none,
and that through the quality, reliability and durability of Mahindra's products and services, the
group would prove that to the world. But in a changing world, with India strongly established in
the global economy, and with the group's own businesses expanding to new sectors and new
geographies, the conglomerate's leaders felt that its central ideals needed to be redefined.

Over the years M&M have tried to expand their business in global markets:

Mahindra And Mahindra Ltd (M&M) is planning growth in China by aiming to create a single
face for brand Mahindra in that country. M&M is proposing to integrate sales and marketing,
manufacturing operations and supply chain of its two different joint venture
(JV) companies in China namely Mahindra China Tractors Limited and Mahindra Yeuda
Yancheng Tractors Company Limited (MYYTCL) in order to synergies the business there.

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Mahindra And Mahindra Ltd could tie up with Kenya's Simba Corp. to sell its utility vehicles
and pickup trucks in the African nation. And also plans to set up plants in African region.
Mahindra And Mahindra Ltd may be considering a bid for Hawker Beechcraft; the bankrupt
aircraft maker. Mahindra & Mahindra Limited completed acquisition of South Korean company
Ssanyong Motor plans to develop vehicle platforms jointly with its South Korean unit Ssangyong
Motor Co., Ltd., the first of which is expected to be ready in three to four years and also launch
Ssangyong SUV’s in Indian market. M&M also has a controlling stake in Reva Electric Car
Company in Europe. M&M also plans to tap in the growing Brazilian automotive industry.
M&M entered Ecuador market with the launch of Mahindra Vehicles.

M&M also plans to expand in the local market:

1. Mahindra & Mahindra Limited plans to launch eight new vehicles in the current fiscal year
that started on April 1, according to its automotive president Pawan Goenka which has already
started with the launch of XUV500 which has recorded large number of bookings.

2. Mahindra & Mahindra Limited and Telephonics Corporation, a subsidiary of Griffon

Corporation, have announced the signing of a Joint Venture (JV) to provide the Indian Ministry
of Defence (MOD) and the Indian civil sector with radar and surveillance systems, Identification
Friend or Foe (IFF) devices and communication systems.

3. M&M have entered the two wheeler segment by taking over Kinetic Motors.

4. They are also expanding in other sectors like through acquisition by Tech-Mahindra of Satyam
Computer Services have expanded its portfolio in IT sector which supported the 2010 FIFA
World Cup—the world’s biggest sporting event.

5. Mahindra First Choice Wheels inaugurates authorized dealerships in Kolkata & Delhi.

6. New Bolero Maxi Truck is launched as the latest offerings in pick-up segment.

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7. It has launched CNG version of Maxximo at 3.99 lac to compete with Tata ACE. 8. Mahindra
two wheelers inaugurated future ready Research and Development facility in Pune to mke
sustainable and eco-friendly two wheelers and also launched Duro DZ in January.

A Perfect Vision For Their Future

Mahindra and Mahindra has a perfect vision for their future car line up with four exciting and
stunning cars. Mahindra after, finishing its course of introducing new cars, focuses on minor
details of facelift, with new surprise packages in 2015. The cars to vouch for in 2015 is the small
car and new compact SUV. The small car will be Mahindra’s grand leap into the small car
category which is a powerful segment in India with 70% car sales unit in India.

Mahindra is also due to introduce the most reasonable car of a compact SUV which is expected
to fit in the INR 4-5 lakh segment. The small car and compact SUV segment will be developed
in collaboration with South Korean shares of Ssangyong. The company is also manufacturing six
new small cars with supreme engines with Ssangyong along with a modified Scorpio in 2015.

Mahindra has formulated a scheme for the coming few months, with new cars of Reva E20 an
electric hatchback and Verito compact sedan. The E20 for its stacked compartments of an
efficient electric car is priced between INR 5-6 lakhs which is scheduled to arrive in March 2013
after approval from Union Budget. The Verito CS is due to arrive with turbo diesel engine of 1.5
liter K9K units which will priced under INR 6 lakhs.

Mahindra has an interesting assembly line of cars with the E20 and Mahindra Verito CS. The
Verito CS has been spotted often, with its test mules and spy images. The car was captured in
Chennai and Nashik. The Verito CS will be designed with condensed engineering technique
observed in the Maruti Suzuki Swift Dzire and Tata Indigo CS.

The test car in the outskirts of Chennai showcases elements of taillights which more or less
adopts the design of the Tata Indica. From the images, it is evident that the Verito CS will be a
trendy notchback with a 1.5-litre Renault K9K diesel engine as observed in the full-size Verito.
The Mahindra E20 is another dynamic creation of Mahindra with its strong foothold in the
electric segment. The E20 will be equipped with supreme Lithium Ion batteries that can cover

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100km per charge with ease in city conditions to commute long distances. The car can be
charged with 15 ampere plug anywhere even at home.

The Mahindra cars to watch out for at the moment is the Verito CS and E20 both unique in its
own way developed with advanced technologies of condensation and lithium ion batteries

Recent /Current Ventures

Mahindra Navistar Automotives Ltd. (MNAL), the commercial vehicle joint venture between
Mahindra & Mahindra Ltd. (M&M) and Navistar Inc. of USA, unveiled its 25 tonne and 31
tonne trucks for the Indian market. Mahindra & Mahindra Ltd announced the launch of the
Maxximo, the world’s first mini-truck to be powered by a 2-cylinder CRDe engine with DOHC
technology and 4 valves per cylinder.

India’s iconic SUV, the Mahindra Scorpio, took another step to stardom with the unveiling of a
premium, special edition `Scorpio Coffee Table Book’. Film actor Ajay Devgan - the Scorpio’s
first customer, and Anand Mahindra, Vice-Chairman and Managing Director, Mahindra Group,
took special pride in unveiling the book, which chronicles the journey of India’s best loved SUV
since its launch in 2002. – January 6. Dubai, UAE, June 17, 2010: Mahindra & Mahindra Ltd.
along with its subsidiary MOICML (Mahindra Overseas Investment Company Mauritius Ltd.),
Arabia Holdings and Ras Al-Khaimah Transport Investments LLC have signed an agreement to
create a joint venture company in the Emirate of Ras Al Khaimah in the UAE for armouring of
vehicles.

Mahindra announces that it has no plans of introducing new models until

2016 fiscal

Mahindra & Mahindra, the Indian Utility Vehicle Leader had been pretty busy launching new car
models in the Indian car market right from the year 2011. Mahindra started with the introduction
of some of its patent quality SUVs in the form of the premium XUV500 and the compact
Quanto. Later, the Indian car major moved on to something completely different and green in the
form of the first 4-seater EV from the company named the E2O. And the recent launch came in

47
the form of the Verito Vibe, which is also Mahindra’s first venture into the compact hatchback
segment of India. All these new products were unveiled by the company in swift succession.

While Mahindra’s big launch E2O did not make it really big among the non-EV inclined Indian
populace, Mahindra’s other vehicles are doing fairly well. However, the Indian car giant did get
hit by the market slowdown especially after the Indian Government announced in its Union
Budget that the SUVs beyond certain specifications will have to pay an additional excise duty of
3%. Ever since, Mahindra is trying hard to find ways to evade the hiked excise duty by
incorporating techniques such as stone guard fixtures to reduce the ground clearance of certain
models.

Mahindra is also busy is developing several new cars as well as a new engine family for future
use and does not want to hurry in any new launches right now. The boss of Mahindra’s
automotive division, Dr. Pawan Goenka has revealed that Mahindra will be taking its time to
reorganize itself and prepare for new launches and that there will be no fresh launches till the
financial year of 2016. Till then, the SUV master of India will channel its energy to update and
enhance its current product portfolio for India.

Earlier it was expected that Mahindra will soon bring its S101 compact SUV into the market to
compete with the newly launched rivals. Other cars such as the next-gen Scorpio and the all new
Bolero were also expected soon enough. However, this announcement reveals that Mahindra will
not be launching these cars until 2016 fiscal. Mahindra’s refreshing strategy is already revealed
in its updated XUV500 with a bundle of new features. Going with the official announcement,
other such refreshed Mahindra vehicles are also expected to immerge soon.

As per reports, Mahindra has also shelved the Verito Electric sedan launch, as the Indian car
market is yet not ready to accept full fledged Electric Vehicles (EVs) and did not respond very
well to the potential all electric passenger car E2O. The company is waiting for the Indian
government to offer subsidy to the electric vehicles which will make the price tag of such
vehicles more practical for the Indian car consumers.

The same fate is probably meant for the other Mahindra electric vehicles such as the electric
variants of Gio and Maxximo. In the meanwhile, Mahindra is trying its best to push the
Mahindra Reva E2O to the consumers in the non-EV friendly environment of India.

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 CONCLUSION

Mahindra & Mahindra Is The Only Indian Company Among The Top Three Tractor
Manufacturers In The World. The Group Has A Leading Presence In Key Sectors Of The Indian
Economy. The Group Employs Over 50,000 People And Has Several State-Of-The-Art Facilities
In India And Overseas. Mahindra Has Conquered The International Segment As Well And Rolls
Out Products In More Than Forty Countries. The Company Has Built Its Cars With Admirable
Technology, Besides Commercial Models, Mahindra Has Targeted All The Possible Car Design
Genres, From Hatch And Has Explored The Depths Of Electric Cars As Well With The E20
Manufactured With Powerful Lithium Ion Batteries.

Mahindra Has Delivered Remarkable Results In Overseas Markets And Has Showcased Some
Of The Incredible And Cutting Edge Technology Used To Design Indian Cars Which Move
Beyond Boundaries And Restraints. It Would Be Interesting To Observe Many More Models
With Novel And Advanced Technology. Mahindra Has Done India Proud With Its Marvelous
Assembly Line Of Cars.

Mahindra & Mahindra Has Comprehensive Manufacturing Facilities With High Level Of
Vertical Integration. Catering To The Sector's Diverse Customer Base Spanning Rural And
Semi Urban Customers, Defence Requirements And Luxurious Urban Utility Vehicles Or Suvs.

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