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eSangathan Newsletter N°4

June 2007
Last minute • €1 billion in digital technologies for Europeans to age well.This new action plan adopted by the
European Commission was announced on June 14, 2007.

• A Ministerial level event on eInclusion is organised jointly by the Portuguese government and the
European Commission on December 2-3, 2007 as part of the Portuguese Presidency.

• The second call for proposals is open. Deadline is October 9, 2007.

Editorial
The Mahindra Group is on a significant growth
Introduction information technology & telecom (Tech
Mahindra, Bristlecone), and infrastructure
curve globally in terms of markets, operations and The US $4.5 billion Mahindra Group is among development (Mahindra GESCO, Mahindra
sourcing. These global business aspirations are the top 10 industrial houses in India. Mahin- Holidays & Resorts India Ltd., Mahindra
being met with a fine blend of youth and expe- dra & Mahindra is the only Indian company World City).
rience. It is not new for the organization to extend among the top four tractor manufacturers
the contracts of a few key retiring employees. This in the world and is the market leader in I. Mahindra & Mahindra Financial Services
option is exercised depending on the experience &
multi-utility vehicles in India. The Mahindra Ltd., which began operations in 1995, be-
expertise of the person, her/his inclination to con-
tinue in service and the business needs. Group has ambitious global aspirations and came a subsidiary of M&M in 1999. MMFSL
has a presence in five continents. is India’s leading non-banking finance com-
There could be some practical difficulties in such panies focused on the rural and semi-urban
an arrangement. A retiree expert may wish to work 1. History sector providing finance for utility vehicles,
from a more convenient location than the usual Mahindra is one of India’s largest and oldest tractors and cars with largest network of
office environment, whereas organization expects industrial groups. Incorporated as Mahindra branches covering these areas.
him to collaborate with other team members at
& Mohammed on 2 October 1945, collabora-
other locations. Flexibility in working time also
plays a role. Such contrasting needs sometimes ting with US company Chrysler to produce II. Tech Mahindra commenced operations as
pose problems in extending the work relationship left-hand drive jeeps for India and making a Software Services company in 1988 and
beyond the formal retirement. its name as a jeep company. focuses on providing services to the glo-
bal telecom industry. It is a joint venture
In such a scenario, Information & Communication between Mahindra & Mahindra Limited
Technology (ICT) would provide viable options the (M&M) and British Telecommunications plc
individual as well as the organization. The Colla- (BT), UK.
borative Work Environment (CWE) facilitated by
ICT can make a retiree person more available, ap-
III. Mahindra Realty & Infrastructure Deve-
proachable and acceptable. It is important, howe-
ver, that the technology is adapted to suit the ol- lopers Ltd., (MRIDL) was incorporated in
der generation as well. It is also necessary for the August 1994 to give shape to the diversi-
retirees to embrace the technology for their and fication plans of the Mahindra Group into
organization’s benefit. real estate and infrastructure business, as
a wholly owned subsidiary of Mahindra &
A joint team from Mahindra & Mahindra Limited Mahindra Ltd.
and Tech Mahindra Limited is spearheading the
Indian pilot work. The team would use Microsoft’s
IV. Mahindra Acres Consulting Engineers es-
Sharepoint platform for collaboration between re-
tiree experts and other participants. Subsequent- tablished in 1995, is a fast growing mul-
ly, other tools such as online chats and desktop tidisciplinary engineering consultancy
sharing would get added to the repertoire. organization with clientele including Go-
vernment of India Undertakings, Public
© eSangathan Consortium All rights reserved

As the story would unfold in the coming days and Sector Undertakings, large Private Sector
months, the team expects to gather a lot of insight Companies and Corporates.
on how ICT could support the work life of retiree 2. General Facts
experts. Project eSangathan would help M&M in M&M Group’s biggest businesses are still V. Automartindia technically commenced
e-inclusion of retirees in work environment. These the automotive and tractor sectors, which
findings in the context of India’s social and cultu- operations in August 1999, when it began
account for more than US$1 billion in sales trading in used cars on the Internet. About
ral background would provide a useful perspective each. The Automotive business is the num-
for other societies as well. 67,000 potential used car buyers registe-
ber one manufacturer of sports utility ve- red themselves with the company, «who
More information on the pilot will be available in hicles (SUVs) in India, producing around 20 are predisposed to the idea of buying used
the future on the Indian version of the eSanga- models. cars».
than blog. This blog site has direct links from the
main eSangathan blog that acts as project web- The Group has a leading presence in key VI. Systech is a fully integrated ‘Art to Part’
site for eSagathan project. sectors of the Indian economy, including automotive component supplier established
trade and financial services (Mahindra In- in 2004 in response to the growing competi-
Arvind Tawde tertrade, Mahindra & Mahindra Financial
Sr. VP & CIO tiveness in the automotive industry.
Services Ltd.), automotive components,

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eSangathan Newsletter N°4
June 2007
VII. Mahindra Special Services Group was established in 2001, a lea- By 2016, the automotive industry should be creating employ-
ding player in the field of Information Security, with a core focuses ment opportunity for 25 million people in India, according to
on protecting organizational innovations. government predictions, set out in its Automotive Mission Plan.
Growth in the Indian economy has boosted their sales, and a
VIII. Mahindra AshTech is in the business of turnkey contract execu- pool of Indian labour has helped the firm to meet strong de-
tion established in 1999 for Ash Slurry System and Traveling Water mand.
Screens. This sector will be the major contributor for Indian economic
growth. Considering this M&M group has diversified its business
IX. Mahindra Defence Systems, a special division, provides total solu- into cars, trucks, auto components sourcing, forgings, gears,
tions for the entire range of light combat / armored vehicles and composites and old car market. All these businesses are labour
their derivatives for defence/ security forces. intensive industries and M&M group is contributing in maximi-
zing job opportunities for the Indian labour market.
X. Mahindra Logistics set up in 2000, Corporate People Movement
Source: http://www.dhi.nic.in/draft_automotive_mission_plan.
division offers people logistics, mainly to IT and BPO companies.
pdf
It provides clients with a GPS based fleet to transport their em-
ployees to and from office. M&M group has been engaging in global partnerships and acqui-
sitions to emerge into new sectors and markets through dyna-
XI. Spares Business Unit was established in 2000 to cater to the needs mic business initiatives and thus creating employment opportu-
of the Automotive and Farm Equipment Sectors, both in India and nities across sectors and geographic dimensions. The group has
the overseas market. been very active in contributing to various social initiatives.
During this evolution process, M&M group is getting recognized
XII. Mahindra Engineering & Chemical Products Limited (MECP) is a for its contribution to the economy. Inorganic growth forms a
leading supplier of Material Handling Equipment and Systems with key part of the Group’s basic philosophy of enhancing global
a product range includes Bulk Handling Systems as also Unit Han- reach and competitiveness.
dling Systems for various specialized applications.
3.1 Acquisitions
XIII. Mahindra Sourcing is an expert sourcing solution provider of auto- In a world advancing at the speed of light, Mergers and Acqui-
motive and tractor components, formed in 2004 with expertise in sitions (M&A) form the basic growth mantra. With greater ex-
sourcing, negotiation and supplier quality assistance. posure to markets abroad and increased competitiveness, Cor-
Source: http://www.mahindra.com porates have successfully faced the challenges of competing on
foreign turf and have matured and grown in self-confidence. It
has made strategic acquisitions across the globe including Sto-
3. Business Dynamics kes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss
The past decade has seen several exciting changes in India’s & Co GmbH (Germany). Its global subsidiaries include Mahin-
economic thinking. The liberalized business and legal environ- dra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra
ment, privatization of the public sector, the globalization of South Africa.
the economy and the resulting freedom and challenges have
Source : http://economictimes.indiatimes.com/Mahindra_For-
resulted in a dramatic growth in business and business oppor-
gings_to_become_2nd_largest_player/RssArticleShow/articles-
tunities.
how/2105978.cms
India’s auto industry has become a tremendous job creator and
as such a crucial driver of economic growth. Already, some 10 3.2 Partnerships
million people are working in factories across India - making Mahindra has a joint venture with French car maker Renault (Mahin-
cars and motorcycles, tractors and trucks - or in sales and ser- dra Renault) that will manufacture and market the Logan, a C-seg-
vice centers and their numbers are set to swell. ment (compact), low cost car, in India. It also has collaboration
© eSangathan Consortium All rights reserved

with Nissan. In February 2007, Mahindra, Renault and Nissan an-


nounced the location of what could be one of the largest automo-
tive production sites in India, with an installed capacity of 400 000
units per year after seven years. Mahindra also has a joint venture
with US company International Truck and Engine Corp (the principal
operating company of Navistar International Corp) which will ma-
nufacture trucks and buses for India and for export. Recently, M&M
has secured an exclusive marketing and support agreement with
Seabird Aviation Jordan for SEEKER range of aircraft into India, with
aero-surveillance capability to India.
Source: http://www.mahindra.com/Newsletters/M&M%20Ne
wsletter%20Issue%204%202005/MnM%20Dec%202005/html/
Circa%202005.htm

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eSangathan Newsletter N°4
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3.3 Competition
There is definite cost advantage as labor cost is 8-9 per cent
of sales as against 30-35 per cent of sales in developed econo-
mies. India is excellent source for IT based Engineering solution
for products & process Integration. There are strong supporting
industries i.e. auto component industry is having world class
capabilities. There is huge demand in domestic markets due
to infrastructure developments and M&M is able to leverage its
knowledge of Indian market.

3.4 Employee Base


With over 60 years of manufacturing experience, the Mahin-
dra Group has built a strong base in technology, engineering,
marketing and distribution that are key in its evolution as a
customer-centric organization. The total employee strength is
above 40 000 and it is spread across various sectors and geogra-
phies. The Mahindra Group has various initiatives to facilitate
its employees with learning assistance to enable the individual
to increase effectiveness in the current job or increase his/
her potential for future development. It also follows ‘Shadow Mahindra United World College of India (MUWCI) has the mis-
Boards’ to help anticipate change, and throw out outmoded sion to enable young people «through international education,
ways of thinking and working to ensure that young high poten- experience and community service», to «become responsible
tial managers are more involved in the planning process. citizens, politically and environmentally aware, and committed
to the ideals of peace and justice, understanding and coope-
3.5 Corporate Social Responsibility ration, and the implementation of these ideals through action
and personal example.
Mahindra Group defines Corporate Social Responsibility as ma-
king socially responsible products, engaging in socially res-
URL: http://www.muwci.net/
ponsible employee relations and making a commitment to the
community around it. At the Mahindra Group, Corporate Social
Responsibility is not just a duty; it’s a way of life. Social ini- 3.6 Recognitions
tiatives include in various fields such as education, health and
disaster relief, arts and culture, environmental development The Automotive Sector manufactures utility vehicles, light com-
and sports. mercial vehicles, and three wheelers. Its flagship model, the indi-
genously developed Mahindra Scorpio, has won numerous awards,
“Nanhi Kali” project aimed at reducing the drop-out rates of including “Best Car of the Year” from both CNBC Auto Car and BBC
girl children from Government Schools. The foundation ensures on Wheels.
that the sponsored girl children get at least 12 years of school · Forbes has ranked the Mahindra Group in its Top 200 list of the
education and bring about a change in the parents view that the World’s Most Reputable Companies and in the Top 10 list of Most
education of the girl child is equally important. M&M Group’s Reputable Indian companies.
60th Anniversary Corporate Social Responsibility initiative had · Mahindra & Mahindra was awarded the prestigious Auto Monitor
sponsored for the treatment and recovery-cum-rehabilitation Corporate Social Responsibility Initiative of the Year 2007 Award
of 60 profoundly hearing impaired, underprivileged children for its Nanhi Kali Project at a glittering function held in Delhi.
through the cochlear implant programme. · Club Mahindra Varca Beach Resort, Goa and Lakeview Resort,
URL: http://www.nanhikali.org Munnar have won an RCI Gold Crown Award each year since
inception for excellence in Resort Quality and Hospitality.
© eSangathan Consortium All rights reserved

On June 13, 2007, Tech Mahindra Limited has launched its Tech · Tech Mahindra entered into a $1 billion deal with BT, making it
Mahindra Foundation, aimed at the upliftment of the less pri- the biggest deal ever by any Indian software company.
vileged and socially disadvantaged, especially children and wo- · Systech received the Best Supplier Award for 2006 from Benteler
men. The foundation is expected to spend 60 million in the Automotive, a global tier one supplier with revenue of over $
current year from a corpus of Rs.250 million which has contri- 4 billion, for 2006 at an award ceremony at Paderborn in Ger-
butions from both the company and the employees. many.
· Mahindra & Mahindra won the ‘Most Innovative’ award for its
Source : http://www.hindu.com/2007/06/14/sto- Corporate Personnel tracking system from PC Quest, under its
ries/2007061401871800.htm Best IT Implementation Awards for the year 2006.
· Tech Mahindra awarded for Outstanding contribution, Achieve-
Mahindra Excellence in Theatre Awards (META) is the latest in
ments in the telecom industry and for continued support to the
the Mahindra Group’s efforts to encourage national theatre in
OSS/BSS community at the Billing & OSS World 2007 conference
two broad categories - Emerging theatre and Established thea-
and many more..
tre covering English & Hindi theatre.

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eSangathan Newsletter N°4
June 2007
4. M&M Pilot Group views into a united message, provoke discussion, argument and
counter-argument.
eSangathan an FP6 EU-funded project from the IST programme, de-
Kubus Method – project management in phases of the innovation life
dicated to the inclusion of the ageing workforce in the information
cycle; process-governed project activity and goal-directed pro-
society. It is intended to foster dialogue and exchanges on the topic
ject.
and to learn from the two pilots namely, Öresund region in Sweden and
Gantt chart for project planning for business needs.
Denmark and Mahindra & Mahindra corporation in India.
Social Learning Curve (SLC) - SLC will reflect both the obstacles and
the incentives to the learning process, initially from data to infor-
There are many experts who work even after retirement at M&M
mation and then from information to knowledge.
Group. The group believes that the most important actions necessary
to adapt to an ageing workforce are enhanced training and develop-
The participants will start learning the Microsoft SharePoint Portal as a
ment, together with later retirement. This pilot’s objective is to un-
community portal with Announcements, News, Discussion, Blogs, Wiki,
derstand the impact of collaborative working environment of the user
Bookmarking, Project Planning and Task Management / issues tracking.
group in carrying out their official work, advantages and disadvantages
Microsoft Office Communicator for instant messaging, video conferen-
from corporate and social life and awareness of aging workforce.
cing and electronic meeting systems. Being provided with collaborative
environment with secured access, they would feel safe to communi-
At present the retiree experts are quite comfortable in adapting to
cate ideas, store and distribute documents for various business needs
technologies. Their nature of work is more of a consultancy on their
at home and at office.
specialized domain. Some work two days a week, some of them work
full time. Some of the retiree experts are working half time in a day, 4.3 Expected Results
some continue to work the same way as they used to work before their
retirement. Experts are having varied professional experiences. Some With help of various usage statistics provided by Microsoft SharePoint
of them had served as scientist in government organization, some re- Portal we would be able to extract site collection usage, requests, to-
tired from private and joined M&M and some continue after retiring tal number of users, referrers, destination pages, search queries and
from M&M. search results. From Office Communications server, we would be able
to capture usage information related to file transfers, audio/video (A/
4.1 Participants V) conversations, application sharing, remote assistance, meetings,
and conferencing servers in call detail records (CDRs).
The Indian Pilot carried out in Mahindra and Mahindra is spread across
the Automotive Sector, Information Technology Sector, Systech Sec-
With the help of the above statistics we would be able to identify
tor, Speciality Business Sectors of M&M group. Key Companies include
the CWE with respect to increase productivity of work and social life,
Mahindra and Mahindra, Tech Mahindra, Mahindra Defence Systems
reduction in terms travel requirements for business needs, effective
and Corporate Head Quarters. It consists of a team of 30 employees
knowledge sharing in terms of Socratic dialog and syntegration, effec-
with a retiree ratio of 3 for 1, i.e. for every retiree expert there is
tive innovation lifecycle management and effective task, project plan-
minimum of 3 serving person. Experts are having very good education
ning for business needs.
background and are comfortable with internet, instant messaging and
The Gantt chart used by the members of the community would allow
are enthusiastic to seeking knowledge over the web. They would be
us to track the various project initiatives and its completion in terms of
sharing ideas, knowledge and manage daily business needs through the
percentage of various tasks is being carried out.
tools provided in the collaborative working environment.

4.2 Methods We would be able to measure the frequency of usage of collaborative


working environment technologies which would allow us to identify
Identification of qualitative and quantitative units of measures, use of their improvement in performing tasks, developing knowledge on the
weblogs for participants, corporation and monitoring staff for moni- portal for ideas generated into goal oriented project. For instance, a
toring work and social aspects of workplace. Using the collaborative member of the community is posting a new idea (discussion / blog)
working environment of Microsoft SharePoint portal server and Office on the portal; the content would be viewed by fellow members and
Communications Server as a departure tool, the methods to be used for retiree experts of the community and would be giving their comments
social innovation would be : in terms of their experience (tacit knowledge). We would be able to
© eSangathan Consortium All rights reserved

measure the statistics in terms of number of responses on a topic,


Socratic Dialogue – encourages participants to reflect and think inde- number of replies of an individual on that topic to find out the social
pendently and critically through communication platform. learning curve aspect of the system.
Syntegration - a group of people seeking to compress their divided

eSangathan Newsletter is published by : eSangathan Consortium Useful links :


@ Mahindra Group
Editorial Coordinator : NicoleTURBÉ-SUETENS (Distance-Expert) @ India Inc CSR
assisted by Marie-France MÉDANA @ The Automotive Research
europe@distance-expert.com
Association of India
Editorial Board: Martina Sophia BACH, Leif Bloch RASMUSSEN, Chitresh MARKANDA ,
Miguel MEMBRADO, Mandar VARTAK and Marianne ZIEKEMEYER @ Confederation of Indian Industry
eSangathan is supported by : European Commission (DG INFSO) @ National statistics
Contract FP6-IST-035064, eSangathan Specific Support Action
For more information: info@esangathan.eu - http://www.esangathan.eu

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