SUMMER INTERNSHIP REPORT

ON

“SUPPLY CHAIN MANAGEMENT OF

MAHINDRA & MAHINDRA”
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(2021-2024)
INTERNAL GUIDE SUBMITTED BY

MS RANJANA JADAUN NABEEL AHMAD

SCHOOL OF MANAGEMENT Student Id: 21031153

GEHU

GRAPHIC ERA HILL UNIVERSITY

DEHRADUN

1
 ACKNOWLEDGEMENT
This report has been made possible with the cooperation of many persons whom I wish to
express my gratitude and appreciation. I am very grateful to the people who supported me to
transform the report in the materialistic form.
I am thankful to MS RANJANA JADAUN faculty management at GRAPHIC ERA
HILL UNIVERSITY, Dehradun for her gratitude during my project and giving me full co-
operation and also valuable information and guidance, without which it would not be possible for
me to complete the manuscript.
I would also like to thanks the librarian and staff members of GRAPHIC ERA HILL
UNIVERSITY, Dehradun for providing me the required books in this field and my friends who
were always there to assist me at odd hours also.

NABEEL AHMAD

2
 DECLARATION

I hereby declare that the project entitled “SUPPLY CHAIN MANAGEMENT OF

MAHINDRA & MAHINDRA” submitted in partial fulfillment of the requirement for the
degree of BBA to Graphic Era Hill University, at Dehradun is my original work and not
submitted for award if any other degree/ diploma or similar title or prize.

DATE: ..2023 NABEEL AHMAD

BBA (2021-2024)
PLACE: Dehradun

3
 CERTIFICATE

I have the pleasure in certifying that NABEEL AHMAD is a bonafide student of 4th Semester
of the Bachelor’s Degree in Business Administration of GEHU, Dehradun.

He has completed his internship work entitled “SUPPLY CHAIN MANAGEMENT OF

MAHINDRA & MAHINDRA” under my guidance.
I certify that this is his original effort and has not been copied from any other source. This
project has also not been submitted in any other university for the purpose of award of nay
degree.

This project fulfills the requirement of the curriculum prescribed by Graphic Era Hill University,
Dehradun for the said course.

Signature: …………………………………
Name of the Guide: MS RANJANA JADAUN
Date: ……………………………………….

4
5
 CONTENT

SR.NO TOPIC

1 CHAPTER 1

INTRODUCTION

2 Chapter 2

COMPANY PROFILE

3 CHAPTER 3

RESEARCH METHODOLOGY

4 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

5 CHAPTER 5

FINDINGS

CONCLUSION

RECOMMENDATIONS

BIBLIOGRAPHY

QUESTIONNAIRE

6
 CHAPTER 1 INTRODUCTION

SUPPLY CHAIN MANAGEMENT

"Supply Chain Management is the procedure of being refined to the point where the client gets
what he calls when he requested and wherever he requires."

An economy can't be focused unless organizations working there are aggressive. More beneficial
business methodologies require all the more profoundly qualified individuals, enhanced base,
better data, better suppliers and exceptional aggressive weight. India, before 1990, works in a
secured economy. The quick opening of the Indian economy organizations gave less time to get
ready for global rivalry. The sudden change in the monetary situation presents expansive
difficulties and opportunities. Indian organizations rivaling multinational players on the upsides
of expense and dissemination channels.

One of the essential characterizing qualities of creating nations is the sufficiency of fundamental
inputs that are ordinarily needed to bolster the sorted out financial action. Past organizations
chose to item necessities for clients. Yet, in the globalized universe of today, clients have ended
up effective. They have ended up additionally requesting and need the greatest estimation of the
items. Organizations utilize minimal effort, amazing and mixed bag as its focused weapon until
1980. In the mid 1990s, the idea of time-based rivalry entered the photo. The situation has
prepared for the noteworthy acknowledgement and usage Management Supply Chain.

In today's surroundings, organizations confront the thorough rivalry around the world. In the
meantime, business methods have ended up extremely complex because of the consolidated
effect of globalization, the desires of the most elevated client, government regulations and the
WTO. The affectability of economies to outside environment is making procedures eccentric and
questionable business. Makers are under weight to concentrate on giving items and
administrations that meet client norms.

7
 Processes of the supply chain and Interfaces

None of the methods of the inventory network are particular or restrictive obligation regarding
any individual from the system of store network comprises of clients, producers, suppliers,
retailers and wholesalers. This duplication of obligations over each of the aftereffects of the
inventory network in four discriminating interfaces in an ordinary store network of five stages,
viz., Retail client interface, the interface retailer-merchant interface maker and wholesaler
producer supplier interface.

1. Customer Interface Retail:

Exercises in this interface compass the range straightforwardly or in a roundabout

way included in getting and satisfying client orders exercises. Interest arranging,
client request administration, resource administration, client request satisfaction and
client are vital exercises in this interface.

 Demand Planning:

Make precise interest figures through the assistance of different expectation

calculations, reproduction, various time skylines and collection, value flexibility/
affectability to ascertain the interest gauge taking into account deals from earlier
years, regularity and different variables quantitative.

 Sales Order Management:

Incorporates procedure request satisfaction programmed customer focused. It

concentrates on those exercises, in particular, the plant administration, connections,
dispersion and item design to client requests, treating frameworks orders from retail
clients to bolster arrangements. Various continuous difficulties develop in dealing
with the request satisfaction process due to contract producing and creative
approaches to look after adaptability.

8
  Asset Management customers:

This module deals with the lifecycle of client communication, including deals power
computerization and client support. It is a capable instrument to concentrate all business
exercises and consumer loyalty. Fulfilled clients are monetary resources that yield future
money streams and along these lines influence shareholder esteem. Every money related
resource are a piece of a worth chain where human capital is a vital element.

 Fulfillment of customer orders:

The impromptu request is a reality in business. Client requests are satisfied toward the
end of the retailer yet in an assembling situation reevaluation of request is done
specifically from the assembling plant. In the event that the appeal can't be fulfilled,
permits special buy if important to guarantee that basic assets are constantly committed to
clients of higher need. It additionally accommodates up to-convey abilities to guarantee
the physical transportation is accessible inside the earth time before making a promise to
the client.

2. Interface-Distributor Retailer:

The exercises that happen on this side is specifically or in a roundabout way included in
the administration of renewal and dispersion channel to take care of client demand. To
consent to a retail arrange recharges are made along the channel through the conveyance
focuses or stockrooms. So as to attain to store network for smooth and proficient kid, it is
fundamental to take a gander at dispersion arranging, stock administration and
designation area.

 Distribution Resource Planning:

This action guarantees that arrangement guide and stock suitable for a scope of buyer and
retail houses. In choosing and arranging the designation of assets, consider the

9
distribution centers and retail store, stock and transportation expenses and interest
estimates for every outlet. The reason for unfolding and refolding of spots and existing
stock is to attain to large amounts of client administration at insignificant expense.

 Inventory Management:

Stock goes about as a supply to follow up on changing market needs. At the point when
the association would not like to adjust your capacity, then you ought to additionally
settle on choices about what to keep stock in the distribution center and when. This is
called stock organization choice. The expense of transport, interest conjectures and stock
support are utilized to focus stock levels to keep up at every area in every period.
Alongside transport, holding expense data, conveyance and anticipated interest, one
needs to propose stock approaches that help choice making to accomplish a blend of ease
and high client administration. It additionally has a direct connection with the level of
consumer loyalty.

 Region Assignment:

Sales Region ought to be alloted with the goal that deals are boosted and both clients and
delegates are cheerful. Designation Region considers client area and interest gauges as
inputs and deals areas outlined by arrangement of targets chose by the leader.

3. Interface Distributor-Manufacturer:
The action did in merchant assembling interface cover the entire scope of exercises
specifically or by implication identified with the physical creation of merchandise and
administrations to recharge inventories wholesalers. The courses of action in this
interface are connected more with associations attempted to be the drivers of the whole
production network, from the transformation of the wellsprings of crude items and
administrations end. Utilizing physical, financial and HR, directed the courses of action
identified with assembling.

 Supply Chain Network Design:

10
This is progressively for organizations looking to enhance execution of the production
network. Decides the effect of business on operations and expenses of the
organization.On the off chance that utilized viably, serving to enhance choice making in
store network and upgrading the consequences of the inventory network. System
configuration includes deciding areas of stockrooms and processing plants and portion of
retailers or clients to the stores.

 Planning Supply Chain:

It considers the entire channel before arranging and dealing with the crude material,
transportation and completed items. Arranging the production network is close to supply
the normal interest and ability to direct variances popular. This requires key, strategic and
operational arranging level parts. Arrangement of the inventory network incorporates
items to make, when to make, how to make them, to make them and where to recover
material. Organizers ought to likewise deal with the occasional needs, various
arrangements, bottlenecks, potential supply deficiencies, due dates and client need.

 Production Scheduling:

Creation planning framework proposed choice bolster assembling arrangements and

timetables. A creation planning DSS can utilize computerized reasoning, scientific
procedures and reenactment systems to create plans.

Interface 4. The manufacturer-supplier:

Exercises in this interface cover the entire scope of straightforwardly or in a roundabout
way identified with the buy of materials to deliver merchandise and administrations
exercises. Fundamentally these procedures are utilized in the wake of looking in client
request, limit, accessibility of stock and on the grounds that assembling suppliers, and so
on.

11
  Procurement:

Sourcing incorporates supplier based administration, aggregate expense control,

administration of the relationship long and transient with suppliers for shared advantage.
Also, measuring supplier execution, creating associations with key suppliers and enhance
quality and conveyance execution are incorporated.

 Material Requirement Planning:

Use the bill of a product from the time of delivery of materials and components for
planning in manufacturing a particular product should begin.

 Transport Management:

Transport is the methodology connected with the physical development of materials/

items/ inbound or outbound from the limit of the association administrations. It happens
in all system interfaces production network. Fast development of items and
administrations in a savvy and steady way is critical to increase aggressive situating in
the business.

 Planning Fleet:

Normally includes sending an armada of the organization, as well as the choices with
respect to the determination of business transporters on specific courses.

MEANING OF LOGISTICS

Logistics is concerned with getting the product and services where they are needed and when
they are desired. It is difficult to accomplish any marketing or manufacturing without logistical
support. It involves the integration of information, transportation, inventory, warehousing,
material handling, and packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials, work

12
in process and finished inventories where required at the lowest cost possible support no activity
can be performed to meet defined goal. The current challenge is to perform logistics
scientifically in order to optimize benefits to the organization. Logistics is planning function of
management. Logistics function is concerned with taking products and services where they are
needed and when they are needed.

LOGISTICS MANAGEMENTS:

Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet
customer’s requirements rather to the customers delight. A professional working in field of
logistics management is called a logistician

Logistics, as a business concept evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one’s business with materials, and shipping out products in an
increasingly globalize supply chain, calling for experts in the field who are called supply chain
logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and to the right target customers and it is the science of process
having its presence in all sectors of the industry. The goal of logistics work is to manage the
fruition of project life cycle, supply chains and resultant efficiencies. Logistics is concerned with
getting the products and services where they are needed or when they are desired. It is difficult to
accomplish any marketing or manufacturing without logistical support. It involves the integration
of information, transportation, inventory, warehousi9ng, material handling, and packing. The
operating responsibility of logistics it the geographical repositioning of raw materials, work in
progress and finished inventories where required at the lowest cost possible.

ORIGIN AND DEFINITION OF LOGISTICS

The term ‘logistics’ originates from the ancient Greek Logos (ratio, word, calculation, reason,
speech, oration). Logistics is considered to have originated in the military’s need to supply

13
themselves with arms, ammonization and rations as they moved from their base to a forward
position. In ancient Greek, roman and byzantine empires, there were military officers with the
little “logistickas” who were responsible for financial and distribution of supplies.

The oxford English dictionary defines logistics as “ the branch of military science having to do
with procuring maintaining and transporting material, personnel and facilities.”

The American council of logistics management defines logistics as” the process of planning,
implementing and controlling the efficient and effective flow, and storage of goods, services and
related information from the point of origin to the point of consumption for the purpose of
conforming to customer requirement.”

IMPORTANCE OF LOGISTICS MANAGEMENTS

LOGISTICS IS THE BED ROCK OF TRADE AND BUSINESS

Without selling and or buying there can be no trade and business. Buying and or selling takes
place only when goods are physically moved into and or away from the market.

Take away logistical support trade and business will collapse

INTEGRATES LOGISTICAL ACTIVITES

In conventional management environment, various activities of logistics work in isolation under

different management function. Each pocket trying to sub optimizes its objectives at the cost of
overall organizational objectives. Purchasing trying to purchase at minimum price at the cost of
what is needed by operation. Operation produce large quantities at minimum production cost
ignoring demand leading to doom inventory. Logistics function of management brings all such
functions under one umbrella pulling down inter departmental barriers.

14
COMPETITIVE EDGE

In the fiercely competitive environment logistics provides the edge. Due to technological
revolution most of the products are moving into commodity markets. In a commodity market
where price is controlled by competition, where there is no product differentiation in terms of
quality parameters like performance and reliability, where brands are almost irrelevant,
competitive edge is that of availability of product and service in terms of time, place and
quantity.

LEADS TO CUSTOMER SATISFACTION

Through superior customer service organizational objectives of P (productivity), Q (quality), C

(cost), D (delivery), E (employee morale), F (flexibility), S (safety), H (health), E (environment)
are set to meet customer expectation.

SUPPORTS CRITICAL FUNCTIONS LIKE OPERATIONS AND MARKETING

Strong logistics support enables a company to move towards JUST IN TIME production system
for survival in high competitive market

LOGISTICS WINS OR LOSES WARS

British lost American war of independence due to poor logistics. Rommel was beaten in the
desert by superior logistics of allies

Logistics helps a lot in maintaining 4 P’s

The 4 P’s of marketing mix

Product mix

A product has both tangible and intangible components. Customers view product as “ boundless
of satisfaction” rather then just physical things.

15
  Quality, technology

 Packaging

 Labeling

 Branding

 Trademark

 Merchandising

 Size, design, colour, feature

 Service

 Warranty

 Product line and range

Price mix

Price is an important consideration in buying decisions. Price also denotes quality in the
costumers mind a psychological factor for some products

 Pricing policies

 Credit terms

 Cost and profit

 Allowances and discounts

 Computation

 Terms of delivery

16
Place mix

The marketer has the responsibility of making his product available near the places of
consumption so that consumer can easily buy it. If the brand proffered by consumer is not easily
available at the convenient location

 Distribution channels

 Transportation warehousing and storage

 Inventory level

 Positionig

 Promotion mix

 Advertising

 Sales promotion

 Personal relations

 Publicity

 Direct responses

Promotion mix

Marketing promotion is a management process trough, which an organization develops, presents

and evaluates a series of messages to an identified audience. So, effective promotion depends on

 The nature of communication

 The target audience

 The environment in which it is received

 The receiver’s perception of the source as. E.g. Friends, reference group etc.

17
LOGISTICS MANAGEMENT AND SUPPLY CHAIN

SCM and logistics management, the definitions made by the Council of Supply Chain
Management Professionals, CSCMP. SCM is defined as “ supply chain management
encompasses the planning and management of all activates involved in sourcing and
procurement, conversion, and all Logistics Management activities. Importantly, it also included
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service provider, and customer. In essence, supply chain management integrates
supply and demand management within and across companies “supply chain encompass the
companies and the business activities needed to design RFDn, make, deliver, and use a product
or service. Business depends on their supply chains to provide them with what they need to
survive and thrive. Every business fits into one or more supply chains and has a role to play in
each of them. The pace of change and the uncertainty about how markets will evolve has made it
increasingly important for the companies to be aware of the supply chains they participate in and
to understand the roles that they play. Those companies that learn how to build and participate in
strong supply chains will have substantial competitive advantages in their markets. Supply chain
management is the coordination of production, inventory, location, and transportation among the
participants in supply chain to achieve the best mix of responsiveness and efficiency for the
market being served. There is a difference between the concept of supply chain management and
the traditional concept of logistics. Logistics typically refers to activities that occur within the
boundaries of single organization and supply shins refer to networks of companies that work
together and coordinate their action to deliver a product to market. Also traditional logistics
focuses its attention on activities such as procurement, distribution, maintenance, and inventory
management. Supply chain management acknowledges all of traditional logistics and also
includes activates such as marketing, new product development, finance, and customer service.
In the wider view of supply chain thinking, these additional activities are now seen as part of
work needed to fulfill customer requests. Effective supply chain management requires
simultaneous improvement in both customer service level and the internal operating efficiencies
of the companies in the supply chain. Customer service at its most basic level means consistency
high order fill rates, high on-time delivery rates, and a very low rate of product returned by
customer for whatever reason. Internal efficiency for organizations in a supply chain means that

18
these organizations get an attractive rate of returns on their investments in inventory and other
assets and those they find ways to lower their operating and sales expenses.
Supply chain diagram and explanation

The physical flow of goods takes place from the factory to either the depot or to the
carrying and forwarding agent, depending upon the geographic distance and the location of the
Depot. The transport & logistics for this is outsourced to third party vendors which are under
Transport Corporation of India (TCI). Depending upon the demand these goods have, they flow
from Depot or the C&F agent to the dealer and their network. In case of high profile dealers, the
dealer can himself take the physical delivery of goods directly from the manufacturing plant. The
dealer, at the last juncture, caters ASC, RSO, Sub Dealer & its own branch. The channel
members and the key roles for each of these channel members is detailed below.

19
Industry overview
Automobile is one of the largest industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has been recognized as one of the drivers of
economic growth. During the last decade, well¬-directed efforts have been made to provide a
new look to the automobile policy for realizing the sector's full potential for the economy. Steps
like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy
framework in consonance with WTO requirements have set the industry in a progressive track.
Removal of the restrictive environment has helped restructuring, and enabled industry to absorb
new technologies, aligning itself with the global development and also to realise its potential in
the country. The liberalization policies have led to continuous increase in competition which has
ultimately resulted in modernization in line with the global standards as well as in substantial cut
in prices. Aggressive marketing by the auto finance companies have also played a significant
role in boosting automobile demand, especially from the population in the middle income group.
The Indian two wheeler market has a size of over Rs 100,000 million.
The Indian two wheeler segment contributes the largest volumes amongst all the segments in
automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz;
scooters, motorcycles and mopeds; some categories introduced in the market are a combination
of two or more segments e.g. scooterettes and step thru’s. The market primarily comprises five
players in the two wheeler segment with most of the companies having foreign collaborations
with well-known Japanese firms earlier. But most of the companies are now planning 100%
subsidiaries in India.
In the last four to five years, the two-wheeler market has witnessed a marked shift towards
motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier
bikes to withstand the bad road conditions. In the process the share of motorcycle segment has
grown from 48% to 58%, the share of industry.

20
Two-wheeler Industry in India
Two-wheeler segment is one of the most important components of the automobile sector that has
undergone significant changes due to shift in policy environment. The two-wheeler industry has
been in existence in the country since 1955. It consists of three segments viz. scooters,
motorcycles and mopeds. According to the figures published by SIAM, the share of two-
wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This
high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms,
capacity expansion, choice of products including capacity mix and technology, all critical areas
of functioning of an industry, were effectively controlled by the State machinery. The lapses in
the system had invited fresh policy options that came into being in late sixties. Amongst these
policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation
Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This
controlling mechanism over the industry resulted in: (a) several firms operating below minimum
scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology.
Recognition of the damaging effects of licensing and fettering policies led to initiation of
reforms, which ultimately took a more prominent shape with the introduction of the New
Economic Policy (NEP).
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of
regulation and tight control to a more liberalised and competitive era. Two major results of
policy changes during these years in two-wheeler industry were that the, weaker players died out
giving way to the new entrants and superior products and a sizeable increase in number of brands
entered the market that compelled the firms to compete on the basis of product attributes.
Finally, the two-¬wheeler industry in the country has been able to witness a proliferation of
brands with introduction of new technology as well as increase in number of players. However,
with various policy measures undertaken in order to increase the competition, though the degree
of concentration has been lessened over time, deregulation of the industry has not really resulted
in higher level of competition.
A Growth Perspective
The composition of the two-wheeler industry has witnessed sea changes in the post-reform
period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the

21
Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the
total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of
the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6
per cent respectively. A clear picture of the motorcycle segment's gaining importance during this
period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during
the period 1993-94 through 2003-04.
Some of the features that deserve attention in respect of the Indian two wheeler segment
are as mentioned:
 the total sale of two wheelers in India has touched a figure of 7.86 million units by March,
2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period
reached 8.63 million units.
 the production of two wheelers in India is expected to reach a staggering 17.85 million units
by 2015-16, more than double of the current production level.
 the two-wheeler production capacity is to reach 22.31 million units in 2015-16 compared with
10.78 million in 2006-07.
 India is likely to export 1.39 million two-wheelers in 2015-16 compared with 590,000 in
2006-07.
 Total investment for new capacity generation in two-wheeler segment is likely to be more
than $2.2 billion (INR10, 000 crore).

Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and
popularity of their two wheeler. The key to success of automobile industry lies not only in
having good products but also in being able to provide the customer with the level of service
they desire. Because of increasing competitiveness in the Indian automobile industry almost all
automobile manufacturers have invested valuable resources on customer satisfaction as a tool to
understand the needs and expectations of their customers. Increased presence of two- wheeler
vehicles throughout the country has created a growing need for providing service infrastructures
closer to the customers' homes or offices. A study on customer satisfaction on post-sales service
with reference to two-wheeler automobile industry was conducted in the Dehradun city. Primary
data was collected from 100 customers who purchased the motorbikes of various two-wheeler
companies. The study is presented under two heads: a) Part I and b) Part II. Part I outlines the

22
perception of customers on post-sales service and Part II gives a ranking of respondents based
upon satisfaction.

INDUSTRY PERFORMANCE

The domestic two wheeler industry volumes declined by 14.7% to 567k units as compared to
665k units in Nov’07. This was primarily due to a slump in domestic motorcycle volumes which
dropped 20.2% to 431k. However, domestic scooters and other two wheeler volumes grew by
9.4% to 136k units led by strong performance from Hero Honda Ltd (HH), Honda Motorcycle &
Scooters Ltd (HMSI) and Suzuki Motorcycle India Ltd (SMIL) in gearless scooter space. The
lack luster performance in the domestic markets was to an extend compensated by a 50% jump in
exports to 89k units. Overall the two wheeler industry volumes dropped by 9.3% to 657k units
from 724k units in Nov’07

1.3.1) COMPANY-WISE PERFORMANCE ANALYSIS

HH improved market share after it held its volumes in Nov’08 in an otherwise declining market.
A small dip of 0.8% in motorcycle sales was supplemented by a strong performance in scooter
segment, which grew by 33.8% to 14k units. Overall volumes remained flat at 289k units. A
strong performance in FY09 relative to peers has helped HH increase market share by 180bps to
43.2%.
BAL and TVSM volumes dropped 37% and 21% to 131k units and 45k units respectively post
decline in motorcycles sales. Both BAL and TVSM have a strong presence in the economy and
premium segments. The economy segment wherein majority of the purchases are financed, was
largely hit by a slowdown in availability of finance and loan
disburses. The premium segment, a forte for BAL with its Pulsar model accounting for 50%
market share and TVS with its Apache model, saw increased competition post launch of Yamaha
FZ16 in Oct’08. Competition is further expected to increase with launch of Suzuki GSR150 in
Jan’09.HMSI, which has seen a strong growth in volumes in FY09, extended its gains with 63%
increase in motorcycle volumes to 37k units largely due to incremental volumes from 125cc CBF
Stunner launched in Jul’08. The Scooters & other two-wheeler segment wherein HMSI holds

23
40% market share due popular models like Activa & Dio grew by 27.7% 63kunits. HMSI with
its strong performance in FY09YTD has witnessed an 80bps increase in market share to 12%
Automobile is one of the largest industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has been recognized as one of the drivers of
economic growth. During the last decade, well¬-directed efforts have been made to provide a
new look to the automobile policy for realising the sector's full potential for the economy. Steps
like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy
framework in consonance with WTO requirements have set the industry in a progressive track.
Removal of the restrictive environment has helped restructuring, and enabled industry to absorb
new technologies, aligning itself with the global development and also to realise its potential in
the country. The liberalisation policies have led to continuous increase in competition which has
ultimately resulted in modernisation in line with the global standards as well as in substantial cut
in prices. Aggressive marketing by the auto finance companies have also played a significant
role in boosting automobile demand, especially from the population in the middle income group.

Two-wheeler segment is one of the most important components of the automobile sector that has
undergone significant changes due to shift in policy environment. The two-wheeler industry has
been in existence in the country since 1955. It consists of three segments viz. scooters,
motorcycles and mopeds. According to the figures published by SIAM, the share of two-
wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This
high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms,
capacity expansion, choice of products including capacity mix and technology, all critical areas
of functioning of an industry, were effectively controlled by the State machinery. The lapses in
the system had invited fresh policy options that came into being in late sixties. Amongst these
policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation
Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This
controlling mechanism over the industry resulted in: (a) several firms operating below minimum
scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology.
Recognition of the damaging effects of licensing and fettering policies led to initiation of
reforms, which ultimately took a more prominent shape with the introduction of the New
Economic Policy (NEP) in 1985.

24
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of
regulation and tight control to a more liberalised and competitive era. Two major results of
policy changes during these years in two-wheeler industry were that the, weaker players died out
giving way to the new entrants and superior products and a sizeable increase in number of brands
entered the market that compelled the firms to compete on the basis of product attributes.
Finally, the two-¬wheeler industry in the country has been able to witness a proliferation of
brands with introduction of new technology as well as increase in number of players. However,
with various policy measures undertaken in order to increase the competition, though the degree
of concentration has been lessened over time, deregulation of the industry has not really resulted
in higher level of competition.

It is important to remember that the above-mentioned forecast presents a long-term growth for a
period of 10 years. The high growth rate in motorcycle segment at present will stabilize after a
certain point beyond which a condition of equilibrium will set the growth path. Another
important thing to keep in mind while interpreting these growth rates is that the forecast could
consider the trend till 1999 and the model could not capture the recent developments that have
taken place in last few years. However, this will not alter the regional distribution to a significant
extent.

Table 1 suggests two important dimensions for the two-¬wheeler industry. The region-wise
numbers of motorcycle and scooter suggest the future market for these segments.
At the all India level, the demand for motorcycles will be almost 10 times of that of the scooters.
The same in the western region will be almost 20 times. It is also evident from the table that
motorcycle will find its major market in the western region of the country, which will account
for more than 40 per cent of its total demand. The south and the north-central region will follow
this. The demand for scooters will be the maximum in the northern region, which will account
for more than 50 per cent of the demand for scooters in 2015-16.

25
The present economic situation of the country makes the scenario brighter for short-term
demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004.
Both industry and the service sectors have shown high growth during this period at the rates of
8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP
growth to some extent. Taking into account all these factors along with other leading indicators
including government spending, foreign investment, inflation and export growth, NCAER has
projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term
forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very
recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A
significant shift has also been observed in Indian households from the lower income group to the
middle income group in recent years. The finance companies are also more aggressive in their
marketing compared to previous years. Combining all these factors, one may visualise a higher
growth rate in two-wheeler demand than presented in Table 1, particularly for the motorcycle
segment

Table 1: Demand Forecast for Motorcycles and Scooters for 2015-16

2-Wheeler Segment Regions

South West North-Central East & North-East All India
2835 4327 2624 883 10669
Motorcycle
(12.9) (16.8) (12.5) (11.1) (14.0)
203 219 602 99 1124
Scooter
(2.6) (3.5) (2.8) (2.0) (2.08)

There is a large untapped market in semi-urban and rural areas of the country. Any strategic
planning for the two¬-wheeler industry needs to identify these markets with the help of available
statistical techniques. Potential markets can be identified as well as prioritised using these
techniques with the help of secondary data on socio-economic parameters. For the two-wheeler
industry, it is also important to identify the target groups for various categories of motorcycles
and scooters. With the formal introduction of secondhand car market by the reputed car
manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry

26
needs to upgrade its market information system to capture the new market and to maintain its
already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban
areas also requires more focussed attention. It is also imperative to initiate measures to make the
presence of Indian two-wheeler industry felt in the global market. Adequate incentives for
promoting exports and setting up of institutional mechanism such as Automobile Export
Promotion Council would be of great help for further surge in demand for the Indian two-
wheeler industry.

The key to success of two wheeler automobile industry

The key to success of two wheeler automobile industry lies not only in having good products but
also in being able to provide the customer with the level of service they desire. Because of
increasing competitiveness in the Indian automobile industry, almost all automobile
manufacturers have invested valuable resources on customer satisfaction as a tool to understand
the needs and expectations of their customers. Increased presence of two- wheeler vehicles
throughout the country has created a growing need for providing service infrastructures closer to
the customers' homes or offices. A study on customer satisfaction on post-sales service with
reference to two-wheeler automobile industry was conducted in the Dehradun city. Primary data
was collected from 100 customers who purchased the motorbikes of various two-wheeler
companies. The study is presented under two heads: a) Part I and b) Part II. Part I outlines the
perception of customers on post-sales service and Part II gives a ranking of respondents and
satisfactory index on
post-sales service of two-wheeler automobile industry. The Indian two wheeler market is
increasingly becoming a price warfield. Everyone and their competitor wants to win the title of
the 'World's cheapest bike' and the customer has become the King. But I often wonder if this
price based competition is good for the health of the industry. Isn't everyone eating their own
margins in the quest for greater market share and farther market expansion? And where does this
leave smaller players like LML (going through some very tough times as of now), Kinetic (good
scooters, questionable field network, trying hard in motorcycles) and even Yamaha and TVS? I
am not even talking of Hero Motors. A big guy like Hero Honda or Bajaj Auto can arm twist
suppliers to deliver parts cheaper, which I am sure the suppliers won't mind doing considering

27
the volumes that these two guys offer. Both the Munhall and Bajaj families are also typical in the
way they promote companies run by their brothers, cousins, in-laws etc. etc. So Bajaj Auto can
always ask for cheaper rates from a Varroc or Auragabad Electricals while Hero Honda can do
the same with MAC or Munjal Showa or Omax Auto. But what happens to LML (still makes a
lot of its components, very archaic), Kinetic (mostly independent suppliers), TVS (Sundram
Group suppliers, who anyways act independent, very professional but is it the best way
forward?), Yamaha (independent suppliers) or a new entrant like Suzuki (they will buy
components from anyone except a Munjal family or a Sundram company)? Without volumes,
one is not in a position to get the best prices.

Without the best component prices, the price of the final product goes up. But then you have to
fight Bajaj Auto. So you reduce the selling price of the bike. Then your margins nosedive!
This seems to be a vicious circle to me :
Low volumesHigh component prices > High final price > Still lower volumes > Low
profitability or another way forward may be Low volumes > High component prices > Low final
prices > Compromise on margins > Low profitability. Still another way forward may be like this
Low volumes > Low component prices (I compromise on component quality) > Low final
product price > High volumes > Low dependability > Low customer satisfaction > Low volumes
> Low profitability. Thus the fat gets fatter while the small gets smaller and may eventually get
wiped out.
The only way out seems to be technical innovation which can give a low volumes company
advantage over a high volume one. Unfortunately low volumes low profitability also means that
you don't have major money to invest in R&D.
Or in some cases, like TVS, where R&D does get a priority, it is mostly copied very quickly by
rivals as most of the R&D is supplier driven. So a Central loses its technical advantage to a CT
100 very quickly. After all the battle field is of 100cc bikes, not battle tanks. The other way out
of this vicious circle is by concentrating on niches. Indian bike manufacturers till now have
focused on street commuters only. A high percentage of the market is shifting to a low margin,
high volume game and smaller manufacturers need to get out of this rut to survive. So Kinetic
should not be doing a Boss and TVS should not be putting its energies into a Star or even a

28
Central. Small companies should be focus sing on 150cc + niches and experiment with new body
styles. Performance and quality should be the marketing weapons rather than price.
Talking of the two wheeler industry, the names that effortlessly come to us is Bajaj Auto, Hero
Honda, TVS Motor, Yamaha Motor, Kinetic and others. The two wheeler segment has played an
important role in giving a push to the automobile industry in India. In fact, the production, sales
and exports of the two wheelers is a fair indication of the growing importance that it enjoys in
this country's manufacturing economy. An overview of the two wheeler industry makes this clear
that the two wheelers are among the most sought after automobiles in India for some time and
the trend is likely to stay for a while. The economic growth, need for better conveyance and
gradually improving road infrastructure coupled with better credit and financing options, have
acted as a major catalyst in encouraging the growth and development of the two wheeler segment
in India. Further, the new and improved features on the two wheelers, their stylish and trendy
looks and a rage with the country's youth who form a substantial influence in determining the
consumer behavior have ensured that the two wheelers remain on top of the automobile industry'
agenda in India
population is not expected to diminish. Hence, a strong service sector is needed to support and
sustain growth in the automotive industry .As in any service sector, manpower plays critical part
in the success of automotive servicing. Currently, the sector
faces key gaps in terms of numbers and skilled man power. It is estimated that the automotive
service sector would require manpower of about 0.5 million over the next 10 years. To meet this
requirement, industry players may need to closely collaborate with technical training institutes to
ensure a steady supply of trained employees. At the same time, players need to take steps to
improve their employee retention, through focused recruitment and improved career planning
and management. Some of the key initiatives that could be implemented include:

1. Expedite the implementation of ATIs, as envisaged in the AMP. Develop certification courses
based on industry requirements
2. Industry players and institutes to jointly refine the curriculum of relevant courses, to meet the
servicing requirements of vehicles with modern technology
3. Industry players to provide assistance to the institutes they work within terms of equipment
and know-how, as well as training for the instructor

29
4. Industry players could also look at conducting tests, contests or other filters to select
promising students as potential employees, and providing industrial training, scholarships, etc, to
them
5. Focus on employee retention through employee friendly processes and policies and a
conducive work environment. The thrust on servicing is expected to continue in the long term, as
vehicle volumes increase and technology continues to evolve. Therefore, getting the right
manpower in place is one of the key cornerstones for success.

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 CHAPTER-2 COMPANY PROFILE

HISTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE

Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on,
after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan,
where he became Finance Minister. As a result, the company was renamed to Mahindra &
Mahindra in 1948.

M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled

CKD jeeps in 1949. Over the passing years, the company expanded its business and started
manufacturing light commercial vehicles (LCVs) and agricultural tractors.
Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in
manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in
China, the United Kingdom and the USA.

M&M partnered with companies prominent in the international market, including Renault SA,
International Truck and Engine Corporation, USA, in order to mark its global presence. M&M
also started exporting its products to several countries across the world. Subsequently, it set up
its branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra
South Africa and Mahindra (China) Tractor Co. Ltd.
At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding
leadership in the market of the country, for around 25 years. The company is an old hand in
designing, developing, manufacturing and marketing tractors as well as farm implements. It
made its entry to the passenger car segment in India, with the manufacture of Logan (mid-size
sedan) in April 2007, under the Mahindra Renault collaboration.

31
Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and
three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has
gained immense popularity in India. It is one of the most opted vehicles in its.

SUV PRODUCT OF MAHINDRA AND MAINDRA

MAHINDRA BOLERO

Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra and
Mahindra Group. The car is robust in appearance and it has been elegantly designed, keeping in
mind the conditions of the Indian roads.

Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has
equipped it with a 2500 cc diesel engine with5- speed transmission.

MAHINDRA SCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in
India in 2002.

This SUV has redefined the expectations for the design of SUVs with its sturdy looks and
powerful performance, the sophisticated interior design adds to the further glory to the
appearance.

MAHINDRAINGENIO
Mahindra & Mahindra is planning to launch a new multi-purpose vehicle (MPV) to take on the
Toyota Innova and the Chevrolet Tavera in both the individual buyer and taxi segments.
Mahindra has currently named the project Ingenio. The vehicle is expected to hit the market in
2009. .

MAHINDRA RENAULT LOGAN

Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a
spacious, practical and affordable vehicle. The outlook of Logan is impressive and the basic

32
version is a value for money, however the top-end versions are a bit high on price. The
prominent feature of this car is its performance, interiors and economy.

MAHINDRA XYLO

Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in
India on January 13, 2009. The car boasts of having all the luxurious features that are seen in
today’s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its
commanding road presence. Fully packed with the latest features, the MUV is sure to impress
Indian consumers and provide a stiff competition to the other vehicles within its class.

Performance Of Mahindra XYLO

Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine, which
generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The
powerful engine is developed on the NEF CRDe platform and is mated to 5-gears manual
transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds.

MILSTONE, AWARDS AND ACCOLADES

M&M’s 61st year was studded with a number of noteworthy achievements, prestigious
prizes and glittering awards.

DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA

Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006”
instituted by the National Institute of Industrial Engineering (NIIE), Mumbai.
Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime
Achievement Award for his ‘unparalleled contribution to industrial growth and social and
economic development of the community’.

The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS)
presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata.

33
SLEW OF HONOURS FOR MR. ANAND MAHINDRA

Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in
2006-07, including:

 The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as
well as the CNBC TV India “Business Leader of the Year Award”.

 The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business
Standard and ITM Business School in association with Times Now and DNA newspaper.

 The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management
Association (LMA).

 The Most Inspiring Corporate Leader of the Year’ Award by NDTV Profit

 The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year.

Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive
Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was
featured in the list of 50 Most Influential Indians in Business Week’s edition dated August 13,
2007

HIGHEST CRISIL RATING FOR M&M

M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level - I
from CRISIL for the ability to create value for all stakeholders, while adopting sound corporate
governance practices.

DUN & BRADSTREET AMERICAN EXPRESS CORPORATE AWARDS 2006

Mahindra & Mahindra was rated as the leading Indian company in the Automobile - Tractors
sector in the ‘Dun & Bradstreet – American Express Corporate Awards 2006’. The Automobile
Sector comprises of three categories – Passenger Vehicles, Commercial Vehicles and Tractors.
These awards recognize the virtues of size and growth in the awards methodology. M&M ranked

34
No. 1 in these two segments in the premier Dun & Bradstreet India publication, India’s Top 500
Companies 2006.

MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD

Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth Amity
Global HR Summit 2007 held at the Amity International Business School, Noida. The Amity HR
Excellence Award recognized Mahindra as one the most admired companies across the global on
account of its innovative strategies for Human Resources Management and Development.

GLOBAL HR EXCELLENCE AWARD FOR M&M

Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices
(Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards
recognize organizations and individuals who have embraced change, encouraged constructive
challenges and demonstrated entrepreneurial skills in the corporate world.

M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD 2006-07

M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 2006-
07 at a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on September
21, 2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of
the Group Management Board and Chairman, Mahindra & Mahindra CSR Council, received the
award on behalf of the company.
This Award recognizes and honors conspicuous achievement by corporate organizations by way
of service to the civic community, in addition to outstanding operational performance. It takes
into account several parameters, including Business Performance, Corporate Interests, Employee
Welfare, Customer and Stakeholder Satisfaction and Social Investment.

GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE

Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate
Governance 2006. This award validates the company’s ‘Best-in-Class’ corporate governance
practices and reflects its transparent and ethical dealings with stakeholders across the entire value
chain. It recognizes the Management’s commitment to the highest standards of corporate conduct

35
and its commitment to Corporate Social Responsibility as a distinct activity that helps build
commendable social values and adds to the ethical fiber of the organization.

BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN EXCELLENCE AWARD

Mahindra & Mahindra has been awarded as the organization with the “Best Automotive
Manufacturing Supply Chain Excellence”. The awards were presented by India Times
Mindscape (Times of India Group) along with the Business India Group at the Express,
Logistics & Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is
accredited with the research for the award nominees and winners.

HIGH RANKINGS FOR MAHINDRA

M&M was ranked second in the prestigious e Most Trusted Car Company in India study
conducted by TNS. M&M scored 127 points, just seven points below the top ranking company,
according to a TNS.

 M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top achieving
companies in India. The company has moved up four ranks from last year. To quote from
the ‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification into the auto parts
value chain and its plans for new platforms for utility vehicles and joint venture with
Renault for Logan have led to a gain in ranks.”

 M&M was ranked 22nd in Business India’s annual survey of the country’s top companies
- Super 100

 M&M was ranked 31st in Business Today’s annual survey of India’s most valuable
companies

36
 MILESTONE OF MAHINDRA AND MAHINDRA

YEAR ACHIEVMENTS

1947 In October, the first batch of 75 Utility Vehicles (UVs) imported in CKD
condition from Willys overland Export Corporation.

1949 Lease of 11,071 Sq. yards at Mazagaon from British India Steam navigation.
The first Willys Overland Jeep built in India at the Assembly Plant , Mazagaon,
Bombay (now Mumbai).

1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep

Corporation and American Motors Corporation.

1962 Indigenous content of Jeep goes up to 70 per cent. To centralise manufacturing

operations, 137 acres of land purchased at Kandivli.

1965 FC 150 Petrol Trucks introduced.

1967 Two wheelers drive Utility Vehicles introduced. The 101" wheel base and
Metal Body UVs introduced. Indigenous content goes up by 97 per cent.

1969 The start of vehicles export. Export of total 1200 UVs along with spare parts to
Yugoslavia. Exported also to Ceylon, Singapore, Philippines and Indonesia.

37
1970 The contracts to export of 3304 vehicles, mainly to Yugoslavia and Indonesia
concluded.

1971 Separate R&D section set up.

1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A was
introduced with new transmission and axle ratio. Collaboration agreement with
Jeep corporation (subsidiary of AMC, Detroit).

1975 FC 260 Diesel light truck and CJ 500 D Diesel was introduced with MD 2350
Diesel Engine.

1979 The Government of India approves in principle, technical collaboration with

Peugeot (France) for the manufacture of XDP 4.90 Diesel Engine.

1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at
Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly
Line.

1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at Igatpuri
formally inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of
France for the manufacture of 25,000 Peugeot and Petrol engines.

1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640 DP
with 4 speed gearbox and Mahindra MM 440 was introduced.

38
1986 CJ 640 DP Vehicle introduced.

1987 MM 540 DP metal Body Wagonette introduced.

1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form
Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in
Andhra Pradesh.

1989 The CJ 340 DP model was introduced. M&M and Peugeot announced their tie
up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes and
latest XD 3 diesel engines. M&M acquired automotive pressing unit at Kanhe,
from Guest Keen Williams Ltd.

1991 Introduced CJ 500 DI model with MDI 2500 A direct injection diesel engines.
M&M bags order to export 10,000 CKD kits. Commander range of models:
650 DI, 750 DP/HT were also launched with tremendous market response.

1993 The Mahindra Armada was launched

1995 Mahindra Nissan Allwyn Ltd. (MNAL) was merged with M&M and
Zaheerabad LCV operations becoming part of Automotive Sector. FJ series of
LCVs were shifted from Nasik to Zaheerabad. Igatpuri Engine Plant received
ISO 9002 certificate.

39
1996 The new LCV model Cabking DI 3150 & Mahindra Classic vehicles were
launched. New Commander 5 Door Hard Top introduced.

1997 Commercial production of the Ford Escort commenced at Nasik Plant. License
& Technical Assistance Agreement signed with Mitsubishi Motors Corporation
for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10).
Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV.

1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyager was launched by the
Chairman at Zaheerabad Plant on 12/11/97

DEALER PROFILE
Dehradun Premier motors (PVT) LTD.
Our Distinction:
This is one of the largest authorized dealers for Mahindra & Mahindra in uttarakhand
Partners in Progress:
We are the preferred partners of M&M automotives, chiefly due to our successful sales record
and quality. Our facilities have remained unsurpassed, as we strive everyday to better our self.
Commanding Presence:
Premier motors as a centralized air-conditioned showroom of its kind in Uttarakhand, spread
gracefully and decorated elegantly over an impressive 2500 sq.ft at Dehradun, Being equipped
with affable front office staff and adept professional technicians, Provide a perfect of quality
Service and Reliability.
Space Friendly:
The interiors are aimed at making you feel completely at ease, In luxury. Because for us the
customer is king, one who deserves a regal offering. The setting is apt for times when you need
to switch into a relaxed state of mind.
Technology to Stay Ahead:

40
We are equipped with the latest technological advancement in the industry, in order to give the
best of services when it matters. Not just to be part of, But to build the future, is our motto.
Ambience the Exude Relaxation:
Ours is one of the few service centers to be equipped with a fully-fledged customer-waiting
lounge. A part from a television and pool table, it had a wed kiosk to keep u connected all the
time.
Service with Commitment:
Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure
consistency in performance each time, without fail.
Attention to Details:
We provide genius spare parts and accessories to ensure exceptional performance. Every single
aspect related to your vehicle is taken care of at our premises.
Dealing Made Convenient:
It is a part of our commitment policy to give advantage to the customer at every juncture. We
offer assistance of every kind at our premises itself, which makes it a one stop facility.
Expert Guidance at Every Step:
Our sales team gives utmost priority to your satisfaction. When you need help to make the right
choice, it is ensured that the result is beyond your expectations. Thus making it a point that you
get the best in both luxury and comfort always.
Models:
Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945,
keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale
value. These from a formidable force that gives our customers the pride and the joy of value
forever. What drives M&M is

 Commitment
 Leadership
 Any an eye for appropriate technology.

Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged
in a single-minded endeavor to bring you cars that only state-of-the-art, but are also some f the

41
most environment-friendly vehicles in this world-a reflection of our commitment and care, for
better environment.
At the heart of every M&M is a unique engineering and an optimal mix of power and economy.
All this is supported by M&M nation – wide dealership network and automated workshop that
provide excellent after sale service
The company has constantly exploring new opportunity to define the shape to tomorrow’s
driving technology.
Promotional Activities:
The promotional activities adopted by premeire motors are
1. Test Driving
2. Free Driving
3. Hoarding
4. Discounts
5. Advertisement in Newspaper and magazines
6. Gift Schemes
7. Free Services
8. Mileage Contents

Promotional expenses have been borne by both Dehradun premier motors and M&M, shares in
advertisement cost.
Service Offered:
Six Service and paid service after sale of Cars.
 Free checkups campaigns
 Finance through bank
 Demonstration for new products
 Acceptance of warranty claims

Working Time in Dehradun premier motors :

Working hours in premier motors are 12 hours per day starting from 9:30 am to 9:30pm with
one-hour break for lunch and 15 minutes for evening tea and coffee.

42
 CHAPTER 3 RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM

The need for the study was to assess the effectiveness of Logistics Management & Supply Chain
Management in the Mahindra & Mahindra compared with other organization in the same
industry. The organization also needs relevant data as to how it can improve its management
policies in order to gain future market share.

 Seek the general perception of retailers towards Mahindra & Mahindra

 To know the retailers psyche and their behavior towards Mahindra & Mahindra

OBJECTIVES OF THE STUDY

 To explain the current structure of Mahindra & Mahindra supply chain

management.
 To explore the critical issues and core activities associated automobile supply
chain management.
 To examine the informal channel partners roles in M & M supply chain
management.
 Understanding the importance of supply chain management in the M & M

SIGNIFICANCE OF THE STUDY

Supply chain management is the plan and control of material and information flow among
suppliers, facilities, warehouses and customers with the objectives of minimization of cost,
maximization of customer services and flexibility. The supply chain of a business process
comprises mainly five activities viz., Purchase of materials from suppliers, transportation of
materials from suppliers to facilities, production of goods at facilities, transportation of goods
from facilitates to ware houses and transportation of goods from ware houses to customers. In

43
this paper, a supply chain model is developed for anautomobile industry, located in Andhra
Pradesh, India. The supply chain includes four echelons namely suppliers, plant, warehouse and
customers. In this model, emphasis is mainly on production and distribution activities, with a
view to find out purchase plan of manufactures, production plan of product mix and
transportation plan of the products.
1. RESEARCH DESIGN:

A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:-
 Exploratory Research.
 Descriptive Research.
 Casual Research.

a. Exploratory Research:-

The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.
b. Descriptive Research:-

The objective of descriptive research is to describe things, such as the market potential for a
product or the demographics and attitudes of consumers who buy the product.
c. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

Based on the above definitions it can be established that this study Descriptive Research would
be used for the study as the attitudes of the customers who buy the products have been stated.

Descriptive or Survey Research Design due to its enormous advantages will be used in the
project report.

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 2. SAMPLING DESIGN

An integral component of a research design is the sampling plan. Especially it addresses three
questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to select
them (sampling Procedure). Making the census study of the entire universe will be impossible on
the account of limitations of time and money. Hence sampling becomes inevitable. A sample is
only his portion of population. Properly done, sampling produces representative data of the entire
population.
i. Through questionnaire
ii. Through personal interview

SAMPLING TOOL:-
Questionnaire will be used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.

3. DATA COLLECTION:

Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. The data collection component of research is common to all
fields of study including physical and social sciences, humanities, business, etc. While methods
vary by discipline, the emphasis on ensuring accurate and honest collection remains the same.
The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have been
posed.

a. Method:

In this study data collection would be collected through:

i. Survey
ii. Interview

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 b. Sources of data collection

The data for the research will be collected through Primary as well as secondary sources.

I. PRIMARY SOURCES

Primary data will be collected through the questionnaire filled by various respondents. Primary
Data is the one which is of employee`s importance and backbone of any study. It will be
obtained from respondents with the help of widely used and well known method of survey. In
this study primary data will be collected through questionnaire. In this structured questionnaire
was will be. Questionnaire will be a list of questions given to number of persons. It secures
standardized results that can be tabulated and treated statistically. Structured questionnaire are
those questionnaire in which there are definite, concrete and predetermined questions. In this
questions are presented with exactly the same wordings and the same form to all the respondents.

II. SECONDARY SOURCES

Secondary data is the one which is collected through the magazines, newspapers, shopkeepers’
catalogue and the advertisement. This types of data is known as published data. Data which is
not originally collected is called secondary data. The first step in any research is the collection of
secondary data. In this project, data will be collected from company records, internet and
journals.

Sampling Plan:

A sampling plan is a detailed outline of which measurements will be taken at what times, on
which material, in what manner, and by whom. Sampling plans should be designed in such a way
that the resulting data will contain a representative sample of the parameters of interest and allow
for all questions, as stated in the goals, to be answered.

Sampling Unit : Mahindra & Mahindra Dehradun

Sampling Size : 50

Sampling Area : Dehradun

Statistical Tools Used : Bar Graph and pie charts

46
 CHAPTER 4 DATA ANALYSIS AND INTEPRETATION
Q1: Is supply chain management department having all the address of the developer branches of
the company?

Yes 90%

No 10%

10%

Yes
No

90%

Interpretation: Most of the respondents i.e. 90% says that department has the address of the
developer branches of the company where as 10% that they don’t know.

47
Q2: Rate the working strategies of supply chain management department on the basis of the
current programs?

Outstanding 50%

Excellent 20%

Good 10%

Average 20%

20%

Outstanding
Excellent
10% 50%
Good
Average

20%

Interpretation: Most of the respondents i.e. 50% says that scm department working strategies
are outstanding, 20% says that it is excellent where as only 10% says it is good but 20% says that
it is an average.

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Q3: Is the supply chain management department is having sufficient transportation?

Yes 80%

Not sufficient 20%

20%

Yes
Not sufficient

80%

Interpretation: Most of the respondents i.e. 80% says that department has a sufficient
transportation where as 20% says that they don’t have sufficient transportation.

49
Q4: According to the current growth process of the organization, which of the following needs
much attention and progress to boost the production?

Operational activities 50%

Tactical activities 20%

Current programming strategies 30%

30%
Operational activities
50% Tactical activities
Current programming
strategies

20%

Interpretation: Most of the respondents i.e. 50% says that scm department has to give more
attention to the operational activities in growth of the organization, 30% of the respondents says
that current programming strategies has to be changed where as 20% says that tactical activities
are also the reason.

50
Q5: Choose the right option, where the supply chain department is facing problem in taking care
of the raw material?

During storage 30%

Packaging 30%

Testing of packaging 20%

Evaluation of defective raw material 20%

20%
30%
During storage
Packaging
Testing of packaging
Evaluation of defective raw
20% material

30%

Interpretation: Most of the respondents i.e. 30% says that companies is facing problem in
storage and packaging where as 20% respondents says that they face problems during testing and
evaluation of defective raw material.

51
Q6: How do you rate the delivery activity of the department?

Excellent 60%

Very Effective 20%

Good 10%

Average 10%

10%
10%
Excellent
20% 60% Very Effective
Good
Average

Interpretation: Most of the respondents i.e. 60% says that delivery activity of the department is
excellent, 20% says that its is effective where as 10% says that delivery activity of the
department is good and average.

52
Q7: Is there any case recorded by the supply chain department in which the production
department complained late delivery of raw materials?

Yes 20%

No 80%

20%

Yes
No
80%

Interpretation: Most of the respondents i.e. 80% says that there is no case recorded by the
supply chain department in which the production department complained late delivery of raw
materials where as 20% says that it is found.

53
 CHAPTER 5 FINDINGS

 Most of the respondents says that department has the address of the developer branches

of the company.

 Most of the respondents says that scm department working strategies are outstanding.

 Most of the respondents says that department has a sufficient transportation.

 Most of the respondents says that scm department has to give more attention to the

operational activities in growth of the organization.

 Most of the respondents says that companies is facing problem in storage and packaging.

 Most of the respondents says that delivery activity of the department is excellent.

 Most of the respondents says that there is no case recorded by the supply chain

department in which the production department complained late delivery of raw

materials.

54
 RECOMMENDATIONS

Keep doing various Events and Promotional Activities to boost the sales of the Brand, some are
mentioned below:
 Effective implementation of scheme & offer announced by the company.

 Display of POP Material, Banners, Posters, etc. at Retail Outlets

 Arranging dealer meets

 A lot of manual labour is utilised in warehouses for put-listing and pick-listing. This can
be addressed through high-end RFID usage – the way it is done for major logistic
companies like DHL.

 Warehouse layout needs to be looked into so that increased SKU complexity can be
handled better.

 Including seasonality in the forecasting process will help meet customer expectations
better during high-rush seasons and manage inventory costs better during lean periods.

 Periodic review of categories should be undertaken and non-performing or highly volatile

categories should be dropped (or replaced with new categories).

55
 CONCLUSION

As far as Mahindra & Mahindra, is concerned it can be stated that through its excellent
service and aggressive two wheeler segment, organization has shown a noticeable increase in the
market share. However, there are some areas where the company is not at the top-most position
but it can certainly gear up in the near future and is committed to acquire that spot. On
implementation of the above recommendations, the management can Mahindra & Mahindra to
the top most position when bench marked in the coming years.

Today with the advancement of technology and impact of globalization have made it necessary
for the countries to engage necessarily in international trade for their survival. Various factors
including but not limited to industrialization, development of transportation, globalization,
technology that enables trade and communication has contributed to change in the format for
business organization as well as trade practices.

Business is undergoing a strategic transformation companies require clear vision and an

attunement to balance the need sustainable in doing sum. It is a pointer to the direction in which
corporate strategies would need to change in order to make organization function a truly
responsible.

In other words future belongs to only those organizations that undertake and imbibe well defined
SCM. The globalization of SCM with goal of increasing competitive advantage, creating more
value-added and reducing costs through global sourcing. In a highly competitive business
environment a well established supply chain strategy absolutely essential for ensuring
competitive edge in the market place. SCM is the most powerful tool for bringing innovations
and maintaining price competitions which is a door step for transferring companies into a power
house.

56
 BIBLIOGRAPHY
REFERENCES
1. Kaushal, Rajeev & sinha. “Tele Communication “, Indian brand equity foundation, Dec,
2008
2. Bauer, Thomas, “Motivation and satisfaction of mega-business event attendees”, 2008
(http://www.emeraldinsight.com/Insight/
viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?
contentType=Article&hdAction=lnkhtml&contentId=1718193&history=true>) [Viewed
10/3/09]
3. Jallet, Frederic, “Yield management, Dynamic pricing and CRM in telecommunications”,
(http://www.emeraldinsight.com/Insight/
viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?
contentType=Article&hdAction=lnkhtml&contentId=1747102&history=true>) [Viewed
13/3/09]
4. Ferguson, Rick, “Telecom's search for the ultimate customer loyalty platform”, 2008
(http://www.emeraldinsight.com/Insight/
viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?
contentType=Article&hdAction=lnkhtml&contentId=1737913&history=true>) [Viewed
10/3/09]
5. Roos, Inger, “Emotional experiences in customer relationships – a telecommunication
study” 2008
(http://www.emeraldinsight.com/Insight/
viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?
contentType=Article&hdAction=lnkhtml&contentId=1729216&history=true>) [Viewed
7/3/2009]
6. Debnath, Roma Mitra, “Benchmarking telecommunication service in India”, 2008
(http://www.emeraldinsight.com/Insight/
viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?

57
contentType=Article&hdAction=lnkhtml&contentId=1742535&history=true>) [Viewed
2/3/09]

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 QUESTINNAIRE
Q1: Is supply chain management department having all the address of the developer branches of
the company?

Yes

No
Q2: Rate the working strategies of supply chain management department on the basis of the
current programs?

Outstanding

Excellent

Good

Average
Q3: Is the supply chain management department is having sufficient transportation?

Yes

Not sufficient
Q4: According to the current growth process of the organization, which of the following needs
much attention and progress to boost the production?

Operational activities

Tactical activities

Current programming strategies

Q5: Choose the right option, where the supply chain department is facing problem in taking care
of the raw material?

59
During storage

Packaging

Testing of packaging

Evaluation of defective raw material

60
Q6: How do you rate the delivery activity of the department?

Excellent

Very Effective

Good

Average
Q7: Is there any case recorded by the supply chain department in which the production
department complained late delivery of raw materials?

Yes

No

61