1 Company Overview (Mahindra Tafe escorts)

1.1 Company background

Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private limited company under the Indian
Companies Act of 1913 by two brothers, Mr. J.C. Mahindra and Mr. K.C. Mahindra. It was converted into a public limited
company on June 15, 1955. Mahindra & Mahindra Ltd, one of the largest private sector companies in India, is
the flagship company of the Mahindra Group. The company commenced operations in 1945 to manufacture General
Purpose Utility Vehicles and later on entered into manufacturing of Tractors and Light Commercial Vehicles (LCVs). Over
the years, the company has expanded its operations from automobiles and tractors to steel, trading and manufacturing
of Ash Handling Plants & Traveling Water Screens. The company is focused to become a world giant in the tractor
business. It has already made its presence felt in countries in Europe, Latin America, Africa and United States of
America.
Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold
worldwide across six continents. In 2010, Mahindra became the number one selling tractor in the world. Mahindra has a
huge consumer base in India, China and America and a growing base in Australia. The company builds more tractors
in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In 1963, M&M formed a joint
venture with International Harvester to manufacture tractors carrying the Mahindra nameplate for the Indian market.
Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M developed its first
tractor, the B-275. Mahindra Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in
the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing
tractor market in China, Mahindra acquired majority stake in Jiangling. To raise awareness about Mahindra in the US,
Mahindra USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is
participating with a #23 Mahindra Tractors Chevrolet. The car will be driven by Robert Richardson, Jr. Mahindra USA, Inc.
announced a 17-race primary and 18-race associate sponsorship for the 2009 NASCAR Nationwide Series. With this
sponsorship, Mahindra was the first Indian company to sponsor a car in NASCAR. In 2008, Mahindra was a sponsor of the
McDonald Motorsports team which ran the #81 car in the NASCAR Nationwide Series
As the market leader in India for the past 30 years, FES has helped bring Farm Tech Prosperity to the Indian farmer with
technologically superior affordable solutions. Mahindra has achieved the distinction of being the largest tractor company
in the world with tractor sales in more than 40 countries across six continents with more than 1000 dealers world-wide.

In its quality journey, FES has won the Deming Application Prize in 2003 for Brand Mahindra and in 2012 for Brand
Swaraj. FES is the second company in India to win the Japan Quality Medal in 2007, followed by the TPM Excellence
Award in 2011 and TPM Consistency Award in 2013.
In 2007, Farm Equipment Sector, Mahindra & Mahindra Ltd. took over Punjab Tractor Ltd. and added Swaraj to its brand
stable. FES has 8 state-of-the-art tractor manufacturing plants in India located in Zaheerabad, Mumbai, Nagpur,
Rudrapur, Jaipur, Rajkot and Mohali (Swaraj- 2 plants).
FES offers services beyond tractors such as agri-mechanization solutions under Mahindra AppliTrac, Seeds, Crop care
solutions and market linkages to high value markets through Mahindra Subhlabh and energy solutions through Mahindra
Powerol.

1.2 Timeline with key milestones and their strategic impact

Mahindra Launches the Arjun Novo

2014
Arjun Novo is in line with Mahindra's vision of becoming the pioneer in providing
technology-driven farming solutions to farmers across the country. With new
benchmarks in technology, comfort and ergonomics, new Arjun Novo is all set to
change farming practices and improve efficiency and quality of output, leading to Farm tech prosperity

Mahindra rolls out the 2 millionth tractors

2013

Zaheerabad Plant inaugurated 2013 (Cater to the southern Indian market with ease)

Swaraj Receives the TPM award and Farm Division Plants receive the TPM consistency award
2013

Mahindra Swaraj receives the coveted Deming prize medal 2012 (Increased the brand reputation and assurance on quality)

FES receives the TPM Award

2012

Indias first 15 HP Tractor - Yuvraj 215 launched.

Launched Mahindra AppliTrac - Farm Mechanization Business
2010

Mahindra Launches Samriddhi by Mahindra to Deliver Farm Tech Prosperity

2009

M&M No.1 Tractor company in the world, by volume 2009 (established as global leader)

JV with Yancheng Tractor Company China

2008 (entry into Chinese market)

Won the Japan Quality Medal

2007

Acquired leading Indian tractor company Punjab Tractors 2007

Subsidiary company Mahindra Australia formed 2005

One millionth tractor produced

Entry in China JV established (MCTCL)
2004

Won the Deming Application Prize 2003

Autonomous sector of M&M - Farm Division (FES) Subsidiary company Mahindra USA (MUSA) formed
1994

Achieved leadership position in Indian tractor market

1983

Formation of International Tractor Company of India Ltd 1963

1.3 Vision, Mission, Goals, and Strategic Themes

Mission/Vision
Vision: Indians are second to none in the world.
The founders of our nation and of our company
passionately believed this. We will prove them
right by believing in ourselves and by making
M&M Ltd. known worldwide for the quality of its
product and services.

Goals and Objectives

To
provide
highly
innovative product

technological

Strategy followed
E-business Initiatives and by out
sourcing of technology

By 2015 it wants to enter almost all

continents of world

Products
that
redefined
the
market
Joint ventures, acquisition and
merger with different players in
other countries
Foreign competition.

Plan to open 30 outlet pan in India by

next 4 year
Mission: We dont have a group-wide mission
statement. Our core purpose is what makes all of
us want to get up and come to work in the
morning

to make the production system even

more efficient

Restructuring of the company.

Network of dealers, sales offices,
service stations etc.
proactively following world-class
methodologies like QC story and
QC tools, Six Sigma, DOE ( Design
of Experiments) and TPM ( Total
Productive Maintenance)

To usher prosperity; for its customers,

dealers, employees, society and all
other stakeholders.

By developing good citizenship

behavior.
Keeping
good
relationship with customers by
providing better quality service
and providing latest information

To be the market leader in all power

segments of tractors.

Strong market base in the urban,

semi-urban and rural areas.
USP

ruggedness
and
performance.

1.4 Key Product and Service Portfolio

PRODUCTS

Upto 20 HP
21 to 30 HP

YUVRAJ 215 NXT

MAHINDRA 255 DI
MAHINDRA 265 DI

31 to 40 HP

MAHINDRA 265 DI POWER PLUS

MAHINDRA 275 ECO
MAHINDRA 275 DI TU
MAHINDRA 295 DI
MAHINDRA 395 DI
MAHINDRA 405 DI

41 to 50 HP

MAHINDRA 475 DI
MAHINDRA 575 DI
MAHINDRA 595 DI
ARJUN 555 DI

50 HP plus

ARJUN NOVO 605 DI-I

ARJUN NOVO 605 DI-PS
ARJUN INTERNATIONAL
SERVICES
SAMRIDDHI

1.5 Core Competencies of the firm

1.6 Business Model of the organization
Key Partners

Who are our Key Partners?

Who are our key suppliers?
Which Key Resources are we
acquiring from partners?

Motivations for partnerships

Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities


Key
Activities

Value
Propositions

Customer
Relationship
s

Customer
Segments

Which Key Activities do

partners perform?
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
What value do we deliver to
the customer?
Which one of our customers
problems are we helping to
solve?
What bundles of products and
services are we offering to
each Customer Segment?
Which customer needs are we
satisfying?

What type of relationship

does each of our
Customer Segments expect
us to establish and maintain
with them?
Which ones have we
established?
How are they integrated with
the rest of our business
model?
How costly are they?
For whom are we creating
value?

Categories
Production
Problem Solving
Platform/Network
Characteristics
Newness
Performance
Customization
Getting the Job Done
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability

Mass Market
Niche Market

Key
Resources

Who are our most important

customers?

What Key Resources do our

Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
Through which Channels do
our Customer Segments want
to be reached?
How are we reaching them
now?
How are our Channels
integrated?
Which ones work best?
Which ones are most costefficient?
How are we integrating them
with customer routines?

Channels

Cost
Structure

Revenue
Streams

What are the most important

costs inherent in our business
model?
Which Key Resources are
most expensive?
Which Key Activities are most
expensive?

For what value are our

customers really willing to
pay?

Segmented
Diversified
Multi-sided Platform
Types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Channel phases
1. Awareness
How do we raise awareness about our companys products and
services?
2. Evaluation
How do we help customers evaluate our organizations Value
Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support
Is your business more
Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
Sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
Types
Asset sale

For what do they currently

pay?
How are they currently
paying?
How would they prefer to
pay?
How much does each
Revenue Stream contribute to
overall revenues?

Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising

Fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
Dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market

1.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map)
1.8 SWOT Analysis
1.9 Competitor Analysis (identify competitors)

Company
M&M
Escorts

Market Cap
(Rs.in Cr.)

P/E(TTM)
(x)

P/BV(TTM)
(x)

EV/EBIDTA
(x)

ROE
(%)

ROCE
(%)

D/E
(x)

77,270.10

23.01

4.60

11.20

23.90

22.60

0.24

1,701.41

14.16

0.95

3.62

9.70

11

0.29

Asian
Tractors

2.23

0.60

74.67

0.16

VST Till.
Tract.

1,268.78

16.84

4.07

6.17

29.90

41

HMT

3,623.07

103.59

18.23

-21.60

-9.80

0.43

http://www.indiainfoline.com/company/mahindra-mahindra-ltd/365#sthash.3YlFUYMm.dpuf

1.9.1 Based on Critical Success factors

1.9.2 Based on Financial indicators

2 Future Growth Strategy for the organization

2.1 Portfolio Analysis
2.1.1 Based on BCG Matrix

2.2 Companys Strategic Roadmap for future

Near Term (<- 2 years)
Growth Areas
High Level Tasks
Potential Benefits to be
achieved
Rewards
Risks
Key Success Factors

Mid Term (2-5 years)

Long Term (5-10 years)

2.3 Product Market Investment Strategy

Country of
Investment

Category of
Investment

Industry
Reward to
Risk Ratio (A)

Country
Reward to Risk
Ratio (B)

Risk Adjusted
Rewards
( 0.65A +
0.35B)

Product Market
Investment Strategy

Investment
Rationale

Which Industry?

Strategic Alliance?

High Profit?
Potential
Market ?

Which
Product/service?

Mergers/acquisitions?
FDI?

Cost
efficiencies?

Ratio calculations based on reward and risk ratings from Business Monitor International Report March 2014

2.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and
IOE

Reimagining
Reimagining
Reimagining
Reimagining
Reimagining
Reimagining

Business Models
Business Processes
Customer Segments
Products & Services
Workplaces
Channels

3 Company Overview
3.1 Company background
3.2
3.3
3.4
3.5
3.6

Timeline with key milestones and their strategic impact

Vision, Mission, Goals, and Strategic Themes
Key Product and Service Portfolio
Core Competencies of the firm
Business Model of the organization

Key Partners

Key
Activities

Value
Propositions

Who are our Key Partners?

Who are our key suppliers?
Which Key Resources are we
acquiring from partners?
Which Key Activities do
partners perform?
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
What value do we deliver to
the customer?
Which one of our customers
problems are we helping to
solve?
What bundles of products and
services are we offering to

Motivations for partnerships

Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities

Categories
Production
Problem Solving
Platform/Network
Characteristics
Newness
Performance
Customization
Getting the Job Done
Design

Customer
Relationship
s

Customer
Segments

Key
Resources

Channels

each Customer Segment?

Which customer needs are we
satisfying?

What type of relationship

does each of our
Customer Segments expect
us to establish and maintain
with them?
Which ones have we
established?
How are they integrated with
the rest of our business
model?
How costly are they?
For whom are we creating
value?
Who are our most important
customers?
What Key Resources do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
Through which Channels do
our Customer Segments want
to be reached?
How are we reaching them
now?

Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability

Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
Types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Channel phases
1. Awareness
How do we raise awareness about our companys products and
services?
2. Evaluation

Cost
Structure

Revenue
Streams

How are our Channels

integrated?
Which ones work best?
Which ones are most costefficient?
How are we integrating them
with customer routines?
What are the most important
costs inherent in our business
model?
Which Key Resources are
most expensive?
Which Key Activities are most
expensive?

For what value are our

customers really willing to
pay?
For what do they currently
pay?
How are they currently
paying?
How would they prefer to
pay?
How much does each
Revenue Stream contribute to
overall revenues?

How do we help customers evaluate our organizations Value

Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support
Is your business more
Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
Sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
Types
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
Fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent

Dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market

3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map)
3.8 SWOT Analysis
3.9 Competitor Analysis (identify competitors)
3.9.1 Based on Critical Success factors
3.9.2 Based on Financial indicators

4 Future Growth Strategy for the organization

4.1 Portfolio Analysis
4.1.1 Based on BCG Matrix

4.2 Companys Strategic Roadmap for future

Near Term (<- 2 years)
Growth Areas
High Level Tasks
Potential Benefits to be
achieved
Rewards
Risks
Key Success Factors

Mid Term (2-5 years)

Long Term (5-10 years)

4.3 Product Market Investment Strategy

Country of
Investment

Category of
Investment

Industry
Reward to
Risk Ratio (A)

Country
Reward to Risk
Ratio (B)

Risk Adjusted
Rewards
( 0.65A +
0.35B)

Product Market
Investment Strategy

Investment
Rationale

Which Industry?

Strategic Alliance?

High Profit?
Potential
Market ?

Which
Product/service?

Mergers/acquisitions?
FDI?

Cost
efficiencies?

Ratio calculations based on reward and risk ratings from Business Monitor International Report March 2014

4.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and
IOE

Reimagining
Reimagining
Reimagining
Reimagining
Reimagining
Reimagining

Business Models
Business Processes
Customer Segments
Products & Services
Workplaces
Channels

5 Company Overview
5.1 Company background
5.2
5.3
5.4
5.5
5.6

Timeline with key milestones and their strategic impact

Vision, Mission, Goals, and Strategic Themes
Key Product and Service Portfolio
Core Competencies of the firm
Business Model of the organization

Key Partners

Key
Activities

Value
Propositions

Who are our Key Partners?

Who are our key suppliers?
Which Key Resources are we
acquiring from partners?
Which Key Activities do
partners perform?
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
What value do we deliver to
the customer?
Which one of our customers
problems are we helping to
solve?
What bundles of products and
services are we offering to

Motivations for partnerships

Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities

Categories
Production
Problem Solving
Platform/Network
Characteristics
Newness
Performance
Customization
Getting the Job Done
Design

Customer
Relationship
s

Customer
Segments

Key
Resources

Channels

each Customer Segment?

Which customer needs are we
satisfying?

What type of relationship

does each of our
Customer Segments expect
us to establish and maintain
with them?
Which ones have we
established?
How are they integrated with
the rest of our business
model?
How costly are they?
For whom are we creating
value?
Who are our most important
customers?
What Key Resources do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
Through which Channels do
our Customer Segments want
to be reached?
How are we reaching them
now?

Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability

Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
Types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Channel phases
1. Awareness
How do we raise awareness about our companys products and
services?
2. Evaluation

Cost
Structure

Revenue
Streams

How are our Channels

integrated?
Which ones work best?
Which ones are most costefficient?
How are we integrating them
with customer routines?
What are the most important
costs inherent in our business
model?
Which Key Resources are
most expensive?
Which Key Activities are most
expensive?

For what value are our

customers really willing to
pay?
For what do they currently
pay?
How are they currently
paying?
How would they prefer to
pay?
How much does each
Revenue Stream contribute to
overall revenues?

How do we help customers evaluate our organizations Value

Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support
Is your business more
Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
Sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
Types
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
Fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent

Dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market

5.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map)
5.8 SWOT Analysis
5.9 Competitor Analysis (identify competitors)
5.9.1 Based on Critical Success factors
5.9.2 Based on Financial indicators

6 Future Growth Strategy for the organization

6.1 Portfolio Analysis
6.1.1 Based on BCG Matrix

6.2 Companys Strategic Roadmap for future

Near Term (<- 2 years)
Growth Areas
High Level Tasks
Potential Benefits to be
achieved
Rewards
Risks
Key Success Factors

Mid Term (2-5 years)

Long Term (5-10 years)

6.3 Product Market Investment Strategy

Country of
Investment

Category of
Investment

Industry
Reward to
Risk Ratio (A)

Country
Reward to Risk
Ratio (B)

Risk Adjusted
Rewards
( 0.65A +
0.35B)

Product Market
Investment Strategy

Investment
Rationale

Which Industry?

Strategic Alliance?

High Profit?
Potential
Market ?

Which
Product/service?

Mergers/acquisitions?
FDI?

Cost
efficiencies?

Ratio calculations based on reward and risk ratings from Business Monitor International Report March 2014

6.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and
IOE

Reimagining
Reimagining
Reimagining
Reimagining
Reimagining
Reimagining

Business Models
Business Processes
Customer Segments
Products & Services
Workplaces
Channels