A

Corporate Profile
On
MAHINDRA & MAHINDRA LIMITED
Under the supervision of
Dr. RAJAN SHARMA
Assistant Professor
For the partial fulfilment of the award of degree of BBA
Submitted By:
ILA KAMBOJ
Class: MBA 5 year 3rdsem
Roll no. : 14
Registration no. : 12 UD - 10

Submitted To:
INSTITUTE OF MANAGEMENT STUDIES
Kurukshetra University, Kurukshetra
August December 2013

DECLARATION

I, ILA hereby declare that I have completed the report entitled assigned to me by the Institute, to
be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra University.
Further, I declared that this is original work done by me and the information provided in the
study is authentic to the best of my knowledge and belief.

Signature

ILA

ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so easy
to understand for a person who is willing to get knowledge about the MAHINDRA AND
MAHINDRA LTD.
I am deeply indebted to my esteemed teacher & our chairman Prof. M.K.JAIN, K.U.K.,
because he gave me opportunity of making project report. I am also thankful to my lecturer as
well as my supervisor (Guide) DR. RAJAN SHARMA for their kind support & suggestion for
making project report.

Signature
MBA 3rd

ILA KAMBOJ

semester
Roll no. 14

CONTENT
CHAPTER
1.

TITLE OF THE CHAPTER

Introduction to Sector
1.1 Introduction
1.2 Sector
1.3 Players of The Sector

PAGE NO.
5-8
8-12
13

2.

3.

Mahindra & Mahindra

2.1 Introduction

14-15

2.2 History

16-20

2.3 achievements

21-24

2.4 Products & Services

24-25

2.5 Organisational Structure

Analysis & Interpretation
3.1 profit & Loss a/c
3.2 Capital Structure

4.
5.

26
27-28
29

3.3 Balance Sheet

30-31

3.4 Shareholding Pattern

31-32

3.5 Competitor Analysis

SWOT Analysis

32
33

Conclusion

34

Learning From Report

35

Reference

36

CHAPTER 1
INTRODUCTION TO SECTORS
4

1.1 INTRODUCTION

Mahindra and an independent India began their rise together. In 1945, two enterprising
brothers named J.C. Mahindra and K.C. Mahindra joined forces with Guam Mohammed and
started Mahindra & Mohammed as a steel company in Mumbai. Two years later, India won its
independence, Guam Mohammed left the company to become Pakistans first finance minister,
and the Mahindra brothers ignited the company's enduring growth with their decision
to manufacture Willis jeeps under license in Mumbai. The companys new name - Mahindra &
Mahindra, of course.

The Mahindra brothers believed that new modes of transportation could be a key to Indias
prosperity, so one of their first goals was to build rugged, simple vehicles capable of tackling the
Indian terrain. Early pioneers of globalization, the brothers collaborated with a wide range of
international companies and before long, Mahindras reach extended to steel, tractors, telecom,
and more.

Now, after more than six decades, Mahindra has grown from a humble local outfit to a US $16.2
billion corporation employing more than 155,000 people around the world. Its been quite an
adventure so far, and were proud of our global leadership in utility vehicles, tractors, and
information technology, as well as our significant presence in financial services, leisure and
hospitality, engineering, trade, and logistics. As we accelerate into the 21st century, well
continue to pursue innovative ideas that enable people to rise. Weve come a long way, but the
journey has just begun.

Kailas Chandra Mahindra was born in 1894 in Ludhiana, Punjab, and the second of nine
children. When their father died at an early age, his older brother J.C. stepped into the role of
head of the family. K.C.s deep lifelong friendship with J.C. was remarkable.

K.C. studied at Government College, Lahore where he showed early promise of a brilliant
scholastic career. Continuing his studies at Cambridge, UK, he earned Honors, played hockey,
and took a keen interest in rowing.

When K.C. graduated from Cambridge, Mr. Sachinanda Sinhala, Vice Chancellor of Patna
University, introduced him to Mr. R.N. Mukherjee, Senior Partner of Messrs. Martin &
Company. He quickly rose through the company, editing the monthly magazine INDIA and,
briefly, the Hindustan Review.

In 1942, K.C. was appointed Head of the Indian Purchasing Mission in the United States.
Returning to India in 1945, he was appointed the Chairman of the Indian Coal Fields Committee
of the Government of India and also of the Automobile and Tractor panel. His contribution to
6

developing strategic coal policies and applying the latest methods of coal mining in India helped
shape the industry, and his Coal Commission Report became a seminal document in the industry.
During these years, he also wrote a biography called Sir Rajendranath Mookerjee: A Personal
Study.

In 1946, K.C. moved to Bombay with his brother J.C. to found Mahindra & Mohammed. Under
his 13-year leadership as Chairman, Mahindra & Mahindra established itself as a major Indian
industrial house in several sectors. He also served as Director of RBI, Air India, and
Hindustan Steel and Chairman of Indian Aluminum Company.

K.C. died in 1963.

Jadish Chandra Mahindra was born circa 1892 in Ludhiana, Punjab. The eldest of nine
children, the loss of his father at an early age placed the responsibility for the family on his
shoulders. He believed strongly in the power of education and ensured that all his brothers and
sisters studied hard.

J.C. received his degree from Veermata Jijabai Technological Institute (VJTI) Mumbai, one of
India's premier engineering and technical institutes. He sent his brother K.C. to Cambridge. The
brothers were very close and the love and trust between them was extraordinary.

J.C. started out his career with Tata Steel, serving as the senior Sales Manager from 1929 to
1940. When the steel industry became critical during World War II, the Government of India
appointed him as the first Steel Controller of India.

As Independence approached, J.C. was prescient about the opportunities that Indian
entrepreneurs would have to contribute to the growth of the newborn nation. His vision and
ambition led him to start Mahindra & Mohammad in partnership with K.C. and Guam
Mohammed.

His vision and insight into Indias post-independence economic development enabled Mahindra
& Mahindra to grow to the size, scope, and impact it has reached today.

J.C. died tragically of a heart attack in 1951.

1.2 SECTORS
1. AEROSPACE: The Mahindra Aerospace division was created in 2007 to expand our
existing automotive design and manufacturing expertise to the growing aerospace industry.
Through our Components sector (known internally as the Sestet sector), we acquired several
companies with design and manufacturing experience. The combination of our acquired
experience with our existing technological capabilities has come to fruition rapidly; completed
aircraft are already flying in the Middle East and Australia

in the next few years, we seek to

become leaders in the global market for aerospace components, assemblies, and completed
aircraft. Our locations in India and Australia give us the advantage of lower operating costs than
traditional Western European and North American-based companies, and our existing
technological expertise compares favorably against other emerging manufacturing locations.
We're preparing ourselves for strong growth as international and domestic demand for aircraft
increases.

2. AFTERMARKET: We entered the aftermarket industry in 1999 to create a business

ecosystem for pre-owned cars that mirrors the ecosystem for new cars. The market for used cars
is estimated to be bigger than new cars, and its growing rapidlybut only about 16 percent of
car sales take place in the organized sector. We set about to professionally organize the preowned car industry in India so that you can trust youre getting a quality vehicle. Mahindra First
Choice Wheels is Indias first multi-brand pre-owned car business. Our aftermarket services also
extend to financing and exchange platforms, building and providing maintenance services
through Mahindra First Choice Services. Together, our aftermarket businesses bring our
customers comprehensive service for all their automotive needs.

3. AGRIBUSINESS: Despite a diminishing share in the India's GDP, agriculture remains a

key sector of the economy and continues to play a vital role in driving India's economic growth.
About 60 percent of India's population lives in its villages and a majority of rural households
depend on agriculture and related activities for their livelihood. Agriculture continues to support
numerous downstream linkages with industry by becoming a supplier of vital industrial raw
material.
9

The Mahindra Group's close linkage to rural India and agriculture is almost as old as the
company itself. The vehicles we've been building for the past six decades are extensively used in
rural and semi-urban India as a source of transportation of people and goods. Our tractor
business is five decades old and continuously sets new benchmarks for reliability and qualitya
fact reflected by our 40 percent market share in India. As we entered the new millennium, we
embarked on expanding our basket of offerings for the Indian farmer and entered the
agribusiness sector.

Our agribusiness activities support farmers at every step, from seed supply to crop care to
distribution. We contribute to the growth of Indian agriculture by helping farmers enhance their
productivity and prosperity with our products and services.

4. AUTOMOTIVE: In 1947, we introduced India to the utility vehicle. More than 65 years
later, we're still India's premier utility vehicle (UV) company, but we've also grown quite a bit. In
addition to making groundbreaking UVs like the Scorpio and Bolero, Mahindra offers cars,
electric vehicles, pickups, and commercial vehicles that are rugged, reliable, environmentally
friendly, and fuel-efficient. The acquisition of the Ssangyong Motor Company in 2011 brought a
major South Korean utility manufacturer with a presence in more than 90 countries into the
Mahindra fold. Our global presence means you can find Mahindra vehicles on the roadsboth
paved and unpavedof Australia, Europe, Latin America, Malaysia, South Korea, and South
Africa. And we're seeking out new terrain every day.

Mahindra is also there for you through the construction of excellent components, provision of
spares, and commitment to superior service. Our automotive businesses cover all your
transportation needs thanks to strategic synergies between our expertise in design,
manufacturing, and service.

10

Our vehicles also meet global regulatory requirements such as End of Life Vehicles Directive
(ELV) in the European Union (EU). All our EU export vehicles are ELV certified, ensuring safe
dismantling and recycling of fluids in environment friendly manner, meeting recycling target of
85% and recovery standard of 95% where not more than 5% of the vehicle weight are sent to
landfill.

5. TWO WHEELERS: We entered the Two Wheeler industries in 2008. Weve developed
rapidly since then by focusing on brand-building via new product development guided by
consumer insights, strategic partnerships, service orientation, and building scale. Within eight
months of entering the industry, we launched a portfolio of PowerScooters to critical acclaim in
September 2009. Less than a year later, our PowerScooters had captured a double digit market
share. In 2011 Mahindra became the first Indian two-wheeler manufacturer to enter the FIM
MotoGPTM World Motorcycle Racing Championship, showcasing our engineering and
technology expertise on a platform where the best in the world compete. We followed this up by
entering the Indian motorcycle market in 2013. We aim to grow into a major player in the Indian
Two Wheeler industry with a robust presence in all product segments.

6. CONSULTING SERVICES: Our consulting services spread across two key areas in the
Evolution of the Indian business environment: information security and infrastructure
development. As the business environment becomes more complex, competitive, and
challenging, companies increasingly need expert guidance to optimize their non-core
activities.Through our consulting services, we help companies keep up with the fast-changing
business climate. Our Special Services Group is constantly reevaluating its information securit
and risk management processes as the environment shifts, dealing with known threats and
anticipating future risks.
Mahindra Water Utilities is partnering with the government to provide high
Quality water to businesses and homes in Tirupur, a critical region for the textile industry.

11

And Mahindra Consulting Engineers is shaping the development of infrastructure across the
country, influencing the building blocks for regional economic growth. We are on the crest of the
wave of the changing business world, smoothing the way forward for our clients across many
key industries.

7. DEFENSE: India's national security challenges are varied and complex, ranging from
contested borders to regional peacekeeping to domestic unrest and natural disasters. As we
become an economic and political leader in Southeast Asia and across the globe, we need better
defense solutions to support us in our growing roles. Since the late 1990s, India has begun
Systematic modernization and upgrade of its military equipment. A key component of this push
Is the indigenization of our defense supplies? Weve been involved with defense systems since
1947 when a licensing agreement allowed us to become importers, assemblers, and then
Adapters of the iconic Willis Jeeps used in WWII.
From there, we moved into designing and constructing our own line of armored
vehicles to become the largest private sector supplier to the government. We've now expanded
into defense systems like sea mines, surveillance solutions, weapons, ammunition, and more. As
India improves its national security capabilities, we want to be there providing cutting-edge
technology based on decades of experience and care. Our expertise, manufacturing strengths, and
cost- efficient production also make our products useful to foreign governments and security
organizations. We partner with several countries to bring them a range of defense solutions for
use by police forces, the Army, and the Navy.

8. ENERGY: The power sector in India presents a fascinating array of challenges and
opportunities. As the economy grows rapidly, the need for a reliable and quality power supply
becomes critical. Although the government has been paying increasing attention to the power
sector in the last 10 years, demand continues to grow faster than supply capacity build-up. The
demand-supply gap has created a huge demand for power back-up solutions across the industrial
and economic spectrum of India. We see incredible opportunity in this complex field. First, we
12

envision bringing reliable and innovative power back-up solutions to India that ensures an
uninterrupted power supply for all the critical sectors of the economy. Our line of diesel
generators offers electricity backup to remote locations to power banks, hospitals, schools
Businesses and industry. And our Home Uninterrupted Power Supply (UPS) systems maintain
reliable power when you experience an inconsistent supply at home. Second, the advance of
green energy technology is opening up a new path forward for India to install sustainable energy
infrastructure the first time around. Drawing on our existing capabilities and market penetration,
we are exploring ways to help India move directly to clean energy using solar power
technologies.

9. INFORMATION TECHNOLOGY: Mahindra has a leading presence in the global

Information Technology (IT) industry, offering a full range of IT solutions and support through
four outstanding companies with special expertise. As globalization intensifies competition and
drives companies to focus on their core competencies, a knowledgeable and capable IT partner
becomes critical to success.

We design industry-specific IT solutions to help our clients take advantage of the new
opportunities and adapt to the new challenges of a changing world. In our two decades of
experience in the industry, we have partnered with several Fortune 100 and Fortune 500
companies to deliver outstanding solutions that have helped drive their success.

10. FINANCIAL SERVICES: We entered into rural finance and insurance because we saw
an opportunity to provide services in areas where the demand for financial products and services
is higher than the formal banking system can supply. By making credit available, we open
opportunities for people to improve their own lives and create lasting systems of livelihood.
Mahindra Finance and its subsidiaries offer a complete range of financial services and insurance
solutions for both businesses and personal life. Our flagship financial services business provides
vehicle, asset, and personal financing. Our general and life insurance broking services provide
13

customers with security and protection. We provide rural housing finance for new construction
and renovation. Our business insurance plans protect the small businesses that drive employment
and economic growth and safeguard against risks that might otherwise have lifelong
ramifications. We have more than 2.5 million relationships with customers in rural and semiurban India, making us the largest non-banking financial company (NBFC) in the country. We
see rural finance and insurance as an integral part of sustainable economic development and a
smart business move, empowering customers to create a brighter future for them.

1.3 MAJOR PLAYERS OF THE SECTORS

1. TATA MOTORS
Market Share: Commercial Vehicles 63.94%,
Passenger Vehicles 16.45%.
Tata India, India's first fully indigenous passenger car.
Tata Ace, India's first indigenously developed mini-truck.

2. MARUTI SUZUKI INDIA.

a subsidiary of Suzuki Motor Corporation of Japan.
Market Share: Passenger Vehicles 46.07%.
Ritz, A star, Swift, Wagon-R, Estill and sedans DZire, SX4 and Sports Utility vehicle Grand
Vitara.
14

3. Hyundai Motor India

Hyundai Motor India Limited is a wholly owned subsidiary of worlds fifth largest
automobile company.
Market Share: Passenger Vehicles 14.15%.
number one exporter of passenger car of the country for the sixth year in a row.
i10, i20, Verna, Sonata, Accent etc.

4. Mahindra & Mahindra

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%.
mainly engaged in the Multi Utility Vehicle and Tractors.
expanding its footprint in the overseas market with - XYLO

CHAPTER 2

MAHINDRA & MAHINDRA

2.1 INTRODUCTION

Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 with
a license to bring the iconic Willis Jeep onto Indian roads. Over the years, weve diversified into
many new businesses in order to better meet the needs of our customers. We follow a unique
15

business model of creating empowered companies that enjoy the best of entrepreneurial
independence and Group-wide synergies. This principle has led our growth into a US $16.2
billion multinational group with more than 155,000 employees in over 100 countries across the
globe.

Today, our operations span 18 key industries that form the foundation of every modern
economy:aerospace, aftermarket, agribusiness, automotive, components, construction equipment,
consulting services, defense, energy, farm equipment, finance and insurance, industrial
equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two
wheelers.

Our federated structure enables each business to chart its own future and simultaneously leverage
synergies across the entire Groups competencies. In this way, the diversity of our expertise
allows us to bring our customers the best in many fields.
Since 1945, weve built our company around the core idea that people will succeed if they are
just given the opportunity. Employees across the Group constantly challenge conventional
thinking to create solutions that make a significant difference in the lives of our customers.
Thats why everything we buildbe it a tractor, financial service, solar-powered lamp, or
softwareis designed to empower you to reach your potential.

Internally, we follow three basic tenetsaccepting no limits, thinking alternatively, and driving
positive change in everything we do. These brand pillars guide all our actions and business
decisions from deciding whether or not to enter a new field or planning a portfolio of services.

We hope youll take what we do and make it your own.

We accept no limits, and ask the same of everyone else. In return, we work relentlessly to
provide the tools, information, and inspiration to push past limitations and comfort zones.
16

This challenger spirit galvanized us to meet the oil crisis in the 1970s by re-engineering our fuel
efficient tractor engines for utility vehicles. It led us to take on the challenge of designing the
Scorpio utility vehicle at a cost that many industry experts thought was impossibly low. Weve
created completely new business models to enter areas others had written off or ignored, like our
leading hospitality business and our rural financial services.

This determination influences every aspect of our culture and our employees. As a result, each
Mahindra business constantly pushes the envelope and raises the bar as we strive to deliver better
value to our customers.
Alternative thinking means solving problems in ways no one has thought of before, by using
fewer resources and entering markets thought to be unreachable.

Take the XUV 500 for examplewe developed our best-in-class utility vehicle from the ground
up using a process that put drivers needs first. Our Energy Solutions help businesses keep going
when everyone elses lights go out. We build two wheelers that provide affordable mobility
solutions to more people. And our extensive array of innovative IT services is increasing
productivity at some of the worlds leading companies.

Thinking alternatively isnt always easy, but its always worth it.
Driving positive change Mahindra is a business with a conscience. Every product we make
and each market we explore must make sound economic sense, but it just so happens that smart
business decisions are often good for people and communities as well.

We strive to spread positive impact through our products and services by greening our
manufacturing process and by being a good employer. We want to be counted among the global
17

companies that make incredible products and services, but we also wish to be recognized for
creating a better world.

2.2 HISTORY

1945: 2nd October, Mahindra & Mohammed established.

1948: The Company was renamed Mahindra & Mahindra Limited (M&M).Steel trading
business commenced, in association with suppliers in UK.

1949: Jeep assembly commenced.

1950: The first business with Mitsubishi Corporation commenced and 5000 tons of
wagon-building plates from Yalata Iron & Steel were supplied.

1953: Otis Elevator Company (India) was established.

1954: Technical and Financial Collaboration with Willys Overland Corporation to

assemble Jeep-type vehicles.

1956: Shares listed on the Bombay Stock Exchange. Dr. Beck & Company established a joint venture with Dr. Beck & Company, Germany.

1957: Mahindra Owen established - a joint venture with Rubery Owen & Company
Limited, UK.

1958: Machine Tools Division commenced operations.

1960: Mahindra Sintered Products Limited established - a joint venture with Bir Field
(GKN Group, UK).

1962:

Mahindra Ugine Steel Company established - a joint venture with Ugine

Kuhlmann, France.
18

1963:

International Tractor Company of India established - a joint venture with

International Harvester Company, USA.

1965: Manufacture of light commercial vehicles commenced. Vickers Sperry of India

Limited established - a joint venture with Sperry Rand Corporation, USA.

1969: The Company entered the world market with export of utility vehicles and spare
parts.

1970: Mahindra Engineering & Chemical Products Limited commenced operations.

1971: International Harvester collaboration ended.

1975: Mahindra Engines developed an indigenous diesel engine for its vehicles to beat
the fuel crisis.

1977: International Tractor Company of India merged with Mahindra & Mahindra to
become its Tractor Division.

1979: License from Automobiles Peugeot, France, for manufacture of XDP 4.90 Diesel
Engines.

1982: Mahindra brand of tractors launched.

1983: Mahindra & Mahindra became market leader in the Indian tractor market, a

Siro Plast Limited established.

position it has retained till date.

1984: Mahindra Hellenic Auto Industries S.A. established - a joint venture in Greece to
assemble and market utility vehicles in Europe.

1986: Tech Mahindra (formerly known as Mahindra British Telecom) established - a

joint venture with British Telecommunications Plc (BT), UK, leading the way for the
Group's entry into Information Technology.

1987: Acquired International Instruments Limited.

19

1989: Automotive Pressing Unit (now Mahindra Ugine Steel Company Limited)
acquired from GKN.

1991: Introduction of Commander Range of vehicles. Mahindra Financial Services

Limited established as a wholesale fund provider.

1992: Merged diverse activities of Steel, Machine Tools and Graphics into Intertrade
Division.

1993: Incorporation of Mahindra British Telecom International Inc., USA, a wholly

owned subsidiary of Mahindra British Telecom.

Mahindra Steel Service Centre Limited established in association with Mitsubishi

Corporation and Nissho Iwai Corporation of Japan.

Mahindra Acres Consulting Engineers Limited established - a joint venture with Acres
International Limited (Canada) to provide multidisciplinary engineering consultancy
services.

Armada range of vehicles launched.

1994: Reorganisation of the Group creating six Strategic Business Units: Automotive,
Farm Equipment, Infrastructure, Trade & Financial Services, Information Technology
(earlier known as Telecom and Software) and Systech (earlier known as MSAT).
Mahindra Realty & Infrastructure Developers Limited established.
established for distribution of tractors in the USA.

Mahindra USA Inc.

EAC Graphics (India) Limited

established in collaboration with The East Asiatic Company Limited A/S, Denmark.
Mahindra Allwyn Nissan Limited merged with the Company.

1995: Mahindra Holding & Finance Limited became a subsidiary of Mahindra &
Mahindra to carry out business as an investment company.

Technical collaboration with Mitsubishi / Samcor to manufacture the Mitsubishi L300.

1996: Mahindra Ford India Limited established - a joint venture with Ford Motor
Company, USA, to manufacture passenger cars.
20

The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115
million.

Mahindra Holidays & Resorts India Limited established.

Mahindra Consulting (now Bristlecone) established.

1997: Inauguration of the Mahindra United World College of India. Mahindra World
City Developers Limited established to set up integrated townships.

1999: Launch of Bijlee, a battery-operated, environmental-friendly 3-wheeler.

The largest online used vehicle website in India launched by Mahindra Network Services.

The Company acquired a major stake in Gujarat Tractors and renamed it Mahindra
Gujarat Tractors Limited.

Mahindra & Mahindra Financial Services Limited became a subsidiary of Mahindra &
Mahindra.

Mahindra Logisoft Business Solutions Limited established.

Mahindra Intertrade Limited established as the trading arm of the Group.

2000: The Company adopted a new logo.

Mahindra Auto Specialties Limited established - a new 100% subsidiary.

Mahindra & Mahindra set up its first satellite tractor plant at Rudrapur.

A new age tractor, Mahindra Arjun 605 DI (60 HP), launched.

Bolero GLX (a utility vehicle) launched in response to the needs of urban consumers.

2001: Champion, a 3-wheeler diesel vehicle, launched.

21

Mahindra MaXX launched, a multi-utility vehicle positioned with the caption 'Maximum
Space, Maximum Comfort'.

Mahindra & Mahindra tied up with Renault for Petrol Engines.

A separate division established to provide Defence Solutions.

Mahindra Special Services Group established to provide Information Security.

Mahindra Infrastructure Developers Limited established for development and

management of infrastructure projects.

Mahindra Lifespaces Developers Limited established for development of corporate

property.

2002: Scorpio launched, a new generation, world-class sports utility vehicle that
redefined the SUV market and lived up to its positioning: 'Nothing else will do'.

2003: Invader launched - a sporty open top vehicle.

A second tractor assembly plant set up in USA.

MaXX Pik Up launched.

India's first Turbo tractor launched - Mahindra Sarpanch 595 DI Super Turbo.

Mahindra & Mahindra ventured into Industrial engine business.

An alliance formed between Mahindra Defence & Lockheed Martin Information

Systems, UK, for defence products.

Mahindra Engineering Services established.

2004: Mahindra World Tractor (75 HP) launched in the International market.

Systech (earlier known as MSAT) established, to focus on developing components as

well as offering engineering services.
22

Bolero and Scorpio launched in Latin American, Middle East and South African
markets.

Signed MoU to enter into joint venture with Jiangling Motor Company Group (JMCG) of
China, to acquire tractor manufacturing assets from Jiangling Tractor Company, a
subsidiary of Jiangling Motor Company Group.

Mahindra & Mahindra became the first Indian company to achieve sales of one million
tractors.
2005: Acquired 51% stake in SAR Transmission Private Limited, a company engaged in
manufacture of gears and transmission shafts.

Farm Equipment Sector launched operations in Australia.

Mahindra & Mahindra became the first Indian auto manufacturer to launch the Common
Rail Diesel Engine (CRDe), offering it in the Scorpio.

Acquired 80% stake in the joint venture with Jiangling Motors i.e. in Mahindra (China)
Tractor Company.

Mahindra Renault Limited established - a joint venture with Renault to manufacture and
market Logan, a mid-sized sedan, in India.

Mahindra International Limited established - a joint venture with International Truck and
Engine Corporation to manufacture trucks & buses in India.

2006: Announced plans to set up a 3000 acres Special Economic Zone in Jaipur.

The Mahindra United football team won the Federation Cup trophy.

Mahindra & Mahindras fifth full-scale automotive plant opened in Hardiwar Industrial
Estate to manufacture three-wheeler.

The Scorpio Hybrid was unveiled at the Delhi Auto Expo along with 9 other prototype
vehicles.
23

Mahindra & Mahindra acquired the Stokes Group of UK, the largest automotive forgings
company in the UK.

Mahindra Finance became the first Mahindra Group Company in 23 years to be listed
publicly and was oversubscribed 27 times.

BMW entered Mahindra World City, Chennai.

The All New Scorpio with 43 new features was launched.

Mahindra Life spaces announced plans to set up a Special Economic Zone spreading over
3000 acres in Pune.

Scorpio was chosen for the Gondwanaland Expedition a landmark assignment for the
vehicle.

Mahindra Holidays & Resorts India Limited (the 'Company'), a leisure hospitality
provider offering quality family holidays and part of the Mahindra Group of
Companies.

Mahindra & Mahindra's Farm Equipment Sector (FES) showcased India's first biodiesel.

Mahindra & Mahindra launched the Scorpio V-series.

On Nov. 1, 2007, a wholly owned affiliate of Navistar International Corporation (Other

OTC: NAVZ), signed a joint venture agreement with Mahindra & Mahindra to produce
diesel engines for medium and heavy commercial trucks and buses in India.

Logan was the highest selling sedan and Scorpio the highest selling UV in July
2007.

Mahindra launched the Mahindra Pik-Up (double cab) in Chile in July 2007.

2008: Mahindra enters into JV with TMI Pacific in Australia

24

Project Ingenio is now Mahindra XYLO

Mahindra introduces FuelSmart system in Bolero and Scorpio SUVs

Tech Mahindra receives the Frost and Sullivan 2008 Growth Excellence Award

Anand Mahindra receives Harvard Business School Alumni Achievement Award

Mahindra launches first Sustainability Report with highest GRI Rating

Mahindra First Choice Services launches first CarXSpace outlet in Chennai

Mahindra to enter the two-wheeler industry.

Mahindra Tractors launch Indias first bio-diesel tractor

Mahindra Intertrade inaugurates a world-class Electrical Steel processing plant in

Vadodara

2009: Mahindra launches the Xylo January 13

Mahindra launches the New, Mighty Muscular Scorpio- March 6

2.3 Achievements/ recognition:2009:

Golden Peacock Award for Occupational Health & Safety - 2009

Mahindra FES won gold as the Best New Tractor in the Lower Horse Power Category
(upto 70 Hp) at the 76th International Novisad Fair.

On May 14, 2009, Mahindra & Mahindra was awarded the prestigious 21st CFBP
Jamnalal Bajaj Uchit Vyavahar Puraskar 2008,

25

On April 29, 2009, Club Mahindra Snow peaks Resort, Manali was awarded as the Best
Socially Responsible Resort at Manali.

The Scorpio receive the Best Off roader vehicle of the year 2009 award and the Start-stop
technology received the Environment Initiative of the year 2009 award from
Carwale.com on April 29, 2009.

On April 8, 2009, 'Club Mahindra' was adjudged a Consume Superbrand after passing a
rigorous consumer validation process, which included a survey across 19000+
respondents and scrutiny by the Brand Council Club Mahindra falls within the top 10%
of all brands across all segments and categories.

Mahindra received five corporate collateral awards.

Mahindra received the Green Award for the Scorpio M2DI.

Mahindra Renault received the Integrated Marketing Campaign of the Year award.

Mr. Anand Mahindra, VC & MD, Mahindra Group, was felicitated with the Qimpro
Platinum Standard (Business) 2008 award.

Mahindras Auto Sector has won the Top Gear Manufacturer of the Year award.

For the Third time in a row, Mahindras Zaheerabad plant bagged the 1st prize in Andhra
Pradesh Productivity Council Energy Conservation Award 2008.

Mahindra received the Best Innovation Award at the UTVi Autocar Awards 2009.

2008:

Mahindra & Mahindra was awarded the Niryat Shree Bronze Trophy by FIEO.

Mahindra Farm Equipment Sector (FES) with their partner RC&M (a leading
experimental marketing solution provider) bagged two golds at the second edition of the
Rural Marketing Association of India (RMAI) awards 2008.

26

Mahindra and Mahindra Limited have been conferred with the CSIR Diamond Jubilee
Technology Award 2007.

Mahindra & Mahindra Ltd. received the prestigious ICSI National Award for Excellence
in Corporate Governance for the year 2008.

Zaheerabad plant has bagged the 1st prize in National Energy Conservation Award
2008.

Nashik Plant has been awarded the National Certificate of Merit for Excellence in Energy
Management.

Nashik Plant was awarded the prestigious CII National Award For Excellence in Water
Management 2008.

The Mahindra Group was honoured with nine communication awards at the 48th annual
ABCI (Association of Business Communicators of India) awards note in Mumbai on
Friday, 7th November 2008.

Tech Mahindra Limited was conferred the 2008 Frost & Sullivan Growth Excellence
Award.

Auto Sector Igatpuri Plant won the Best Kaizen Award at the 12th National Kaizen
Conference in Delhi on October 13-14.

The Nashik Plant became the first plant to win the prestigious CII National Award for
Excellence in Energy Management 2008.

Club Mahindra Lake View Resort, Munnar has won the CNBC AWAAZ Travel Awards
'08 for Best Resort for Health and Rejuvenation.

Mahindra & Mahindra was honoured with the Businessworld FICCI-SEDF Corporate
Social Responsibility Award.

Mahindra World City is the runner-up in the Best Developer - Mixed Use category at the
2008 Cityscape Asia Real Estate Awards.
27

Mahindra Lifespaces bagged the Creative Excellence in Employer Branding award from
the Economic Times in the Real Estate category at a ceremony held in Mumbai in March
2008.

Mahindra Lifespaces project The Woods in Wakad, Pune won the AESA (Architects
Engineers & Surveyors Association of Pune) Gold Award, 2008.

M&M won the Auto Monitor CSR award for the Lifeline Express at a glittering
ceremony held in New Delhi on the 7th of March 2008.

Mahindra & Mahindra won the following awards at the Asia Pacific HRM Congress
2007-08 in Mumbai on February 14, 2008.

Employer Brand of the Year 2007-08, Award.

Best HR Strategy in line with Business, Award for Talent Management, -Award for
Continuous Innovation in HR Strategy at Work,-Award for Excellence in Training,-Award
for Managing Health at Work -Award for Global HR Strategy, -Award for Excellence in
HR through Technology and -Award for Innovative Retention Strategy.

Mahindra & Mahindra Ltd. was awarded the 'Excellence in Innovation' Award.

Mr. Anand Mahindra received the CEO of the Year award.

On January 19, Mr. Anand Mahindra, Vice Chairman and Managing Director of
Mahindra & Mahindra, was honoured with Business India's Businessman of the Year
2007.

On January 18, Mahindra Holidays & Resorts India Limited bagged the coveted Avaya
Global Connect Award.

On January 18, Mahindra and Mahindra won the BSE award.

On January 15, FES won the prestigious 'Golden Peacock National Quality Award - 2007'

On January 10, the Logan won the Midsize Car of the Year Award.
28

Logan was declared the Hindustan Times Car of the Year 2007.

The Scorpio and the Logan received the TNS 'The Voice of the Customer' award.

2007:

The Nashik Plant of Automotive Sector was awarded the prestigious Platinum 1st Runner
up Award.

Mahindra & Mahindra Auto Sector's Zaheerabad plant has won the First Prize in the
National Energy Conservation Awards 2007.

Mahindra & Mahindra was honoured with the Pegasus Corporate Social Responsibility
Gold Award.

Mahindra Powerol has won the prestigious 'VOICE OF CUSTOMER' award.

Mr. Bharat Doshi, Executive Director & Group CFO, M&M, received the CFO of the
Year award.

Mahindra & Mahindra has been awarded as the organization with the Best Automotive
Manufacturing Supply Chain Excellence.

Mr. Arvind Tawde, Sr. VP and CIO, Mahindra & Mahindra, received the CTO of the Year
2007 award.

Mahindra & Mahindra has been honored with the coveted Bombay Chamber Good
Corporate Citizen Award 2006-07.

The Institute of Economic Studies (IES), New Delhi, has awarded the 'Udyog Rattan'.

M&M has won the Security Strategist Award 2007.

Mahindra Lifespaces has been honoured as the Best Developer in the Best Transparent
Systems category at the recently held CNBC Awaaz - CRISIL Real Estate Awards.

Mahindra & Mahindra was awarded the prestigious SAP ACE 2007.
29

Mahindra & Mahindra Farm Equipment Sector has won an AE50 Outstanding Innovation
Award 2007.

'Golden Peacock Occupational Health & Safety Award' for the year 2007.

And many more.

2.4 Products and services offered by the company:Automotive

Scorpio

Xylo

Bolero

Maxx Range

Naya Commander

Savari

Major

Bolero Camper DLX

Maxx Pic-ups

Champion range of Three Wheelers.

Farm Equipment

Agri inputs and services

Engines

Farm Implements

Tractors
30

Financial Services

Loans and Mutual Fund

Distribution

Insurance and Risk Management Services

Trade, & Retail and Logistics Retail - Mahindra Retail Ferro Alloys and Metal Scrap
Steel and Steel Related Services Technical Products And Services Toys and Apparel
Corporate People Movement Supply Chain Management Service Centre for Automotive
and Electrical Steels
Information Technology

Dealership Management

Facility Management

Software Solutions

Infrastructure Development

Development of Infrastructure Projects

Engineering consultancy

Integrated Business Cities

Lifetime holidays

Living Spaces and Working Spaces

Systech

Composites

Engineering Services
31

Forgings

Gears

Sourcing of Auto Components

Stampings and Steel

Speciality Business

Ash Handling Equipments for Power Plants

Defence Vehicles

Information Security Consultancy

2.5 ORGANISATIONAL STRUCTURE

S.No

Name

Designation

Anand G Mahindra

Chairman

Anand G Mahindra

Managing Director

Narayan Shankar

Company Secretary

Bharat Doshi

Additional Director

Pawan Goenka

Additional Director

SB Mainak

Additional Director

Keshub Mahindra

Chairman Emeritus

Deepak S Parekh

Non Executive Independent Director

Nadir B Godrej

Non Executive Independent Director

10

M M Murugappan

Non Executive Independent Director

11

Narayanan Vaghul

Non Executive Independent Director

32

12

AS Ganguly

Non Executive Independent Director

13

R K Kulkarni

Non Executive Independent Director

14

Anupam Puri

Non Executive Independent Director

15

Vishakha N Desai

Non Executive Independent Director

16

Vikram Singh Mehta

Non Executive Independent Director

17

AK Nanda

Non Independent & Non Executive Director

CHAPTER 3
ANALYSIS & INTERPRETATION
3.1 Profit & Loss - Mahindra & Mahindra Financial Services Ltd.

Mar'13

Mar'12

Mar'11

Mar'10

Mar'09

12Months

12Months

12Months

12Months

12Months

3856.72

2767.70

1974.46

1531.70

1364.83

.00

.00

.00

.00

.00

NET SALES

3856.72

2767.70

1974.46

1531.70

1364.83

Other Income

3894.70

2786.95

2012.47

1568.60

1384.61

.00

95.75

56.26

18.28

.00

INCOME:
Sales Turnover
Excise Duty

TOTAL INCOME
EXPENDITURE:
Manufacturing Expenses

33

Material Consumed

.00

.00

.00

.00

.00

223.40

193.26

150.91

128.53

117.33

.00

78.10

56.29

27.17

20.00

779.67

362.34

370.67

362.61

403.11

Expenses Capitalised

.00

.00

.00

.00

.00

Provisions Made

.00

.00

.00

.00

.00

TOTAL EXPENDITURE

1003.07

729.45

634.14

536.60

540.44

Operating Profit

2853.65

2038.25

1340.32

995.10

824.39

EBITDA

2891.62

2057.50

1378.33

1032.00

844.17

22.24

19.56

15.79

9.90

7.42

.00

.00

.00

.00

1.31

EBIT

2869.38

2037.93

1362.54

1022.10

835.44

Interest

1618.76

1120.32

660.21

501.73

509.86

EBT

1250.62

917.61

702.33

520.36

325.58

Taxes

396.51

305.14

239.34

176.18

111.11

Profit and Loss for the Year

854.11

612.47

462.99

344.18

214.47

28.58

7.65

.11

.20

.05

Other Non Cash Adjustments

.00

.40

.00

-1.68

.00

Other Adjustments

.00

-.40

.00

.00

.00

REPORTED PAT

882.69

620.12

463.11

342.71

214.52

.00

.00

.00

.00

.00

Equity Dividend

204.76

145.60

104.00

72.68

53.30

Equity Dividend (%)

181.83

141.79

101.51

75.71

55.68

Shares in Issue (Lakhs)

5687.65

1040.03

1040.03

969.01

969.01

EPS - Annualised (Rs)

15.52

59.62

44.53

35.37

22.14

Personal Expenses
Selling Expenses
Administrative Expenses

Depreciation
Other Write-offs

Non Recurring Items

KEY ITEMS
Preference Dividend

34

3.2 Capital Structure - Mahindra & Mahindra Financial Services Ltd.

Period

Instrument

Authorized

Issued

Capital

Capital

(Rs. cr)

(Rs. cr)

- PAI D U PShares

Face

Capital

(nos)

Value

(Rs. Cr)

From

To

2012

2013

Equity Share

140.0

113.8 563020175

2.0

112.6

2011

2012

Equity Share

140.0

104.0 102687571

10.0

102.7

2010

2011

Equity Share

140.0

104.0 102452964

10.0

102.5

2009

2010

Equity Share

110.0

96.9 95981477

10.0

96.0

2008

2009

Equity Share

110.0

96.9 95710859

10.0

95.7

3.3 BALANCE SHEET

Particulars

Mar'13

Mar'12

Liabilities

12

12 Months 12 Months
35

Mar'11

Mar'10

Mar'09

12

12 Months

Months
Share Capital

295.16

Reserves & Surplus

Months
294.52

293.64

290.96

272.62

14363.76 11876.57

10019.75

7527.60

4959.26

Net Worth

14658.92 12171.09

10313.39

7830.23

5243.97

Secured Loan

266.67

400.18

407.23

602.45

981.00

Unsecured Loan

2960.40

2774.04

1913.87

2277.70

3071.76

TOTAL LIABILITIES

17885.99 15345.31

12634.49

10710.38

9296.73

Gross Block

8602.96

7502.36

5858.26

4866.18

4653.66

(-) Acc. Depreciation

3645.10

3216.34

2725.35

2537.77

2326.29

Net Block

4957.86

4286.02

3132.91

2316.74

2315.28

Capital Work in Progress

863.48

794.73

773.68

1374.31

886.96

Investments

11833.46

10310.46

8925.63

6398.02

5786.41

Inventories

2419.77

2358.39

1694.21

1188.78

1060.67

Sundry Debtors

2208.35

1988.36

1260.31

1258.08

1043.65

Cash and Bank

1781.41

1188.43

614.64

1743.23

1574.43

Loans and Advances

3389.26

2985.59

3138.40

2034.47

1402.45

Total Current Assets

9798.79

8520.77

6707.56

6224.56

5081.20

Current Liabilities

7662.13

6721.40

5223.75

3822.50

3520.20

Provisions

1905.47

1845.27

1681.54

1796.54

1277.56

Total Current Liabilities

9567.60

8566.67

6905.29

5619.04

4797.76

231.19

-45.90

-197.73

605.52

283.44

.00

.00

.00

4.12

12.55

12634.49

10710.38

9296.73

Assets

NET

CURRENT

ASSETS
Misc. Expenses
TOTAL
ASSETS(A+B+C+D+E)

17885.99 15345.31

36

3.4 Shareholding Pattern - Mahindra & Mahindra Ltd.

Holder's Name

No of Shares

% Share Holding

Promoters

154947019

25.16%

ForeignInstitutions

220829686

35.86%

FinancialInstitutions

93886194

15.24%

GeneralPublic

48445151

7.87%

OtherCompanies

34379800

5.58%

ForeignOcb

20999632

3.41%

NBanksMutualFunds

7646450

1.24%

ForeignNRI

1955065

0.32%

Others

1000643

0.16%

Foreign Promoter

651772

0.11%

CentralGovt

558482

0.09%

Foreign Collaborators

622

0%

3.5 COMPETITORS ANALYSIS

Company

Mahindra &
Mahindra
HMT
Escorts

Market

Sales

Current

Change

(Rs.Million)

Price

(%)

404411.60

935.30

0.23

15.77

1607.92

28.15

-1.57

0.00

21403.86

44/21

38938.80

115.80

-3.94

8.47

14194.40

125/48

37

P/E Ratio

Cap.
(Rs.Million)

52-Week
High/Low

576044.15 1026/742

Punjab Tractors
VST Tillers
Tractors

9695.86

96.05

0.00

5.24

5835.58

99/88

4816.59

573.85

-2.56

7.69

4957.79

635/330

CHAPTER 4
SWOT ANALYSIS

SWOT Analysis
Strength

1. Mahindra has been one of the strongest brands in the Indian

automobile market
2. Mahindra group give employment to over 110,000 employees
3. Excellent branding and advertising, and low after sales service
cost
4. Sturdy SUVs good for Indian roads and off-road terrain

Weakness

1. Mahindras partnership with Renault did not live up to

international quality standards through their brand Logan

38

Opportunity

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

Threats

1. Government policies for the automobile sector across the world

2. Ever increasing fuel prices
3. Intense competition from global automobile brands
4. Substitute modes of public transport like buses, metro trains etc

CHAPTER 5
CONCLUSION
Mahindra & Mahindra has a ver good market share.
the company is offering good services , which is reflected on the satisfaction of the customer
Majority of Customer are satisfied with the design of the vehicle.
Mahindra & Mahindra motors are providing better facilities compare with other brand
As 67% of the respondents are happy with the Bolero, it satisfies that the customer satisfaction
level
Are very high.

39

Though the majority of the customers are satisfied that the maintainance cost of Mahindra old
Product is less. , around 20 % of the customers are not satisfied because of the newly launched
products
As 80% are happy with the availability of the seats and facilities in the old product of the
Mahindra
& Mahindra
As 20% are against it because of the same type of vehicles launched by the other companies.

LEARNING FROM THE REPORT

Firstly, i came to know how to make a report.
From this report i came to know that the Mahindra & Mahindra was established in 1945 on 2nd
October
When it was established its name was Mahindra & Mohammed
After in 1948 it was renamed as MAHINDRA & MAHINDRA.
I came to know about the automobile sector in India. How many companies are
40

Involved in the automobile sector

Mahindra & Mahindra has a great competition with Maruti , Tata Motor , Hyundai
Mahindra offered various types of product like Xylo, Bolero, Scorpio, and Maxx Pic-Ups.
The company is earning great profits.
Mahindra & Mahindra Group gives employees to over 1, 10,000

REFERENCES
www.mahindra&mahindra.com
www.shine.com
www.economictimes.com
www.google.com
www.wikepedia.com

41

42