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MAHINDRA
& COMPLETE STUDY ON AUTOMOBILE SECTOR
MAHINDRA
ON
1
BONAFIDE CERTIFICATE
Certified that this project report titled Mahindra and Mahindra complete study
of Automobile Sector is the bonafide work of MR. Monu. A. Tiwari, who carried
out the project under Prof. Abhay Srivastav’s supervision. Certified further, that to
the best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.
2
FACULTY GUIDE CERTIFICATE
Certified that the dissertation title Mahindra and Mahindra complete study of
Automobile Sector is a bonafide work done Mr. Monu A. Tiwari under Prof.
Abhay Srivastava guidance in partial fulfillment of Master of Business
Administration programme at FAZLANI ALTIUS BUSINESS SCHOOL. The
views expressed in this dissertation is only of that of the researcher and the need
not be those of this institute. This project work has been corrected by me on the
basis of rough draft being submitted.
Visiting Faculty
3
DECLARATION
Monu A. Tiwari
SMM/22
4
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend our sincere thanks to all of them.
I am highly indebted to Fazlani Altius Business School for their guidance and
constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to express my gratitude towards Prof. Abhay Srivastava for his kind
co-operation and encouragement which help me in completion of this project.
Place:Mumbai
Date:20th july,2013
Monu.A.Tiwari
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INDEX
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29 Automobile industry in and beyond the crisis 196-198
30 Current status of Indian auto industry 199
31 Need for automotive policy 200-205
32 Case study on yuvraj 206-207
33 Conclusion 208-209
34 Webliograpgy 210
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Objectives of the Reports is to know:
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EXECUTIVE SUMMARY
Today, our operations span 18 key industries that form the foundation of every
modern economy: aerospace, aftermarket, agribusiness, automotive, components,
construction equipment, consulting services, defence, 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 Group’s competencies. In this
way, the diversity of our expertise allows us to bring our customers the best in
many fields.
9
Founders:-
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KESHUB MAHINDRA (FORMER CHAIRMAN)
During his long career he has held many key positions, served on the Board of
Directors of several organizations, and been a member of many organizations and
committees. He has also held many other important positions, such as Chairman of
Bombay Chamber of Commerce and Industry (1966–67), President of
ASSOCHAM (1969–70), Chairman of the Indian Institute of Management,
Ahmedabad (1975–85); Member of the Foundation Board - International
Management Institute, Geneva (1984–89); Chairman, India Nominating Committee
'Single Nation Programme', Eisenhower Exchange Fellowships, USA (1998–2005).
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ANAND MAHINDRA (CHAIRMAN & M.D.)
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Mahindra and Mahindra Full History:-
1945
- The Company was Incorporated and converted into Public Limited in 1955 at
Mumbai. The Company Manufacture Jeep type vehicles, petrol industrial engines,
industrial process control instruments and flow meters. Trading in steel and
manufacture of professional grade electronic components. Jeeps are manufactured
under a license and an agreement with Willys Motors Inc., Toledo, Ohio, U.S.A.,
for whom the Company also acts as exclusive distributors for the whole of India for
their entire range of vehicles including utility vans, cargo/personnel carriers and
pick-up.
1958
- The Company entered into an agreement with Birfield Ltd., to form Mahindra
Sintered Products Private Limited for the manufacture of a wide range of self-
lubricating bearings.
1968
- With effect from 1st April, the wholly owned subsidiary Mahindra Engineering
Co. Ltd., was merged with the Company. International Tractor Company of India
Ltd., was merged with the Company effective from 1st November 1977.
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1970
- The name was changed from Mahindra Van Wijk & Visser Ltd. to Mahindra &
Mahindra Ltd. This was merged with the Indian National Diesel Engine Co., Ltd.,
during 1977-78. 1977 - 74,
- 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without payment in
cash to shareholders of International Tractor Co. Ltd., on its merger in prop 1:1
Pref. and 2:3 Equity. 12,500-7.8% Pref. shares redeemed on 1.2.1979.
1978
- The Company started negotiation with Balania K. Zacharopoulos Ltd., Athens for
jointly promoting a new company in Greece for the manufacture of Jeep vehicles
and trucks. Initially, it was proposed to assemble these vehicles mainly from CKD
packs to be shipped from India.
1979
1983
1984
- Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra & Mahindra Ltd.
(MML) with effect from 3rd April. Pursuant to the scheme of amalgamation of
MSL with MML, the shareholders of MSL were allotted 1,88,166 equity shares of
MML in the ratio of 1 equity share of MML for every 6 shares held in MSL.
1985
1987
- (17 months), approval from Government was received for the manufacture of
Peugeot 504 pick-up vehicles in collaboration with Automobiles Peugeot of
France. - A new model M-595 tractor in the 50 H.P. range was introduced.
1988
- The Company acquired a off-shore drilling rig "Ile d' Amsterdam" from Foramer
S. A., France as on 1st March. A firm letter of intent was received for one land rig
for drilling operations at Jwalamukhi, Himachal Pradesh against a tender from
ONGC. The Company already entered into an agreement with Forasol S.A., for
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purchase of a land rig and related equipment. 1989
- During the year improved versions of CJ 500 range of jeeps and FJ range of
LCVs were introduced. Also a sporty model of jeep was introduce which was well
received by the target audience.
- During September, the Company acquired the automotive pressing unit at Kanhe
from Guest Keen Williams, Ltd. for a gross consideration of Rs 28.75 crores. The
unit has an installed capacity of 10,000 tonnes per annum.
1990
- A letter of intent was obtained from ONGC for extension of the contract for a
further period of one year. However, on account of certain procedural delays
ONGC dehired the rig and it remained non-operational for about 160 days.
However, the Company received a contract from ONGC for a much higher day rate
and the rig was rendering service to ONGC with effect from 9th November.
- As on 1st May, the Company allotted on private placement basis 14% redeemable
non-convertible debentures for a total value of Rs 20 crores to UTI, LIC, ICICI,
Army Group Insurance Fund and GIC and its subsidiaries. These debentures are
redeemable in full at a premium of 5% on 1st May 1997.
1991
- New replacement kits for the series of diesel engines, the XDP 4.90 were
successfully launched in order to replace petrol engines in passenger cars and
create new demands for the series of diesel engines manufactured by the Company.
- During the second half of the year, the Company introduced the new range of
`Commander' vehicles which were well received in the market. A new model on
the anvil was a five door ten seater vehicle "Armada" with a factory built body for
which dies were imported from Japan.
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- To meet the changing needs of the market, the Company introduced a new model
225 DI (25HP) tractor.
- Another 8,64,049 zero interest fully convertible bonds of Rs 90 each for a total
value of 9,50,45,390 were allotted to Peugeot India Holding, France, a subsidiary
of Automobiles Peugeot, France as on 18th January.
- As per the terms of the issue, a portion of Rs 55 of each debenture was converted
into one equity share of Rs 10 at a premium of Rs 45 per share and a portion of Rs
45 each bond was converted into one equity share of Rs 10 at a premium of Rs 35
per share an on 1st April.
- In order to meet the long term working capital requirements, the Company issued
in January 1991, 14% redeemable non-convertible debentures aggregating Rs 25
crores to Infrastructure Leasing and Financial Services, Ltd. on a private placement
basis. The debenture are redeemable in full at premium of 5% on 8th January,
1998.
1992
- It was proposed to launch a new LCV with a much larger platform, imported
driving comfort and better styling .
1993
- Mahindra Nissan Allwyn Ltd. (MNL) was amalgamated with Mahindra &
Mahindra Ltd. (MML) with effect from 1st November. Pursuant to the scheme of
amalgamation, the shareholders of MNAL were allotted 9,73,200 equity shares of
MML in the ratio of 1 equity share of MML for every 25 shares held in MNAL.
With the merger modern automotive plant owned MNAL became a Unit of the
Company's automotive division.
1994
- During the year a new Company Mahindra USA Inc. had been established in
Texas, U.S.A. with the objective of increasing tractor sales in U.S.
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- 9,73,200 shares allotted to the erstwhile sharehodlers of MNAL 11,14,682 shares
allotted against the detachable warrants. 35,85,874 shares allotted to Ford Motor
Company USA, at a premium of Rs 370 per shares. 28,00,000 shares allotted to the
promoter group.
1995
- Two new models - 365 DI and 585 - DI were also launched in 30-35 HP and 45-
50 HP segments respectively.
- The Company entered into a joint venture agreement with Ford Motor Company
USA (Ford) for promotion of a new Company for the manufacture and marketing
of Ford range of passenger and other vehicles. The Company has an equity
participation of Rs 160 crores each by Ford and the Company.
- The tractor division received the ISO 9001 certification from TUV of Germany.
1996
- The Company proposed to introduce the `Armada Grand' with XD3 diesel engine,
5 speed BA 10 transmission with air-conditioning and power steering as standard
features. New models like, soft top and FRP versions of CL/MM 550 models,
comfortable 8 seater Armada with Disc Brakes and an optional factory fitted air
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conditioner, Commander 650 DI on a longer wheel base and MM 540/550 XDB
models with the powerful 2.5 lines XD3 engine and the all-synchromesh 5 speed
BA 10 transmission were launched during the year.
1997
- The Zaheerabad plant and R&D division were awarded Iso 9002 and ISO 9001
certification respectively. With the technology received from Fuji Technica, Japan
the company undertook to manufacture dies for vehicle bodies in the new Die
Shop. During the year, 7 new models to cater to different nice markets were
introduced.
- New products viz. 275 DI TU upgrades B-275 model with increased power and
585-C, 585 DI model with constant mesh transmission for ease operation were
introduced.
- M&M is entering into a 50:50 joint venture with the $8 billion Case of the US for
manufacturing high horse power tractors.
- M&M has signed an agreement with Chemoleums Ltd under which M&M will
use a special quality of Chemoleums lubricating oil, Mahindra Singlestar, for its
tractors.
- M&M has signed a wage agreement with its union at its automotive plant at
Kandivali, evolving a Mahindra Production System (MPS) which is an
amalgamation of latest work measurement techniques and Toyota Production
Systems.
1998
- M&M has signed new productivity agreements with its workers at the Kandivli
(Mumbai), Nashik and Zaheerabad (Andhra Pradesh) plants.
- Mahindra Ford is likely to sign a MoU with the government to import auto kits.
- Mercedes-Benz India Ltd and Mahindra Ford India Ltd have signed a MoU with
the Directorate-General of Foreign Trade (DGFT), under the new MoU policy for
car manufacturing in the country.
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- Danish company Maersk, Mahindra & Mahindra and the Tamil Nadu Industrial
Development Corporation (Tidco) propose to establish a joint venture to develop
Colachel on western coast of south Tamil Nadu into a hub port.
- Mahindra & Mahindra (M&M) is all set to float a 50:50 joint venture company
with the Punjab state government for setting up a hi-tech agro-commodity
exchange in the state.
1999
- M&M has set up a new company - Mahindra Auto Specialities Ltd - for bullet-
proofing passenger vehicles and providing specialised services. M&M has signed
an MoU with Plasan Sasa of Israel for design and development of armoured (bullet
proof) solutions on M&M utility vehicles for use by Indian security forces.
- The Mahindra & Mahindra group and the TVS group have floated a joint venture
to provide software solutions to the automobile sector.
- Mahindra & Mahindra Ltd (M&M) has created a tier-IT structure under Mahindra
Holdings & Financial Ltd whereby individual subsidiaries will tap the capital
market depending upon their need for cash.
- Utility vehicle major, Mahindra and Mahindra (M&M), is entering the Rs 1,000-
crore three-wheeler market for the first time. The company will launch its first
three-wheeler a diesel-driven eight seater within 8-10 months from now.
2000
- The Company will be launching its first CNG-powered utility vehicle in Delhi.
23
- The Company consequent to disciplinary action taken by the Management against
certain workmen and Union representative, the workmen of Kandivli Plant of
Tractor Division of the company initially stopped work and thereafter resorted to
illegal strike on 11th January.
- The Company proposes to make a call for redeeming Bonds of value US $25.378
million out of current outstanding of US $27.866 million.
- The Company tie-up with Citibank for a channel financing agreement for their
dealers.
- Mahindra & Mahindra launched its eight seater Marshal DI Deluxe 2000 in
Western Maharashtra.
- The Company has launched its new generation tractors Arjun 605 DI at the
Kandivali plant.
- The Company and French car maker Renault have signed an agreement to explore
the possibility of using Renault petrol engines for M&M's planned Scorpio utility
vehicle.
- The Company has launched a fresh voluntary scheme for employees in its tractor
division. The Scheme will open on June 8 and will continue till July 31.
- The Company launched the 39 HP and 40 HP models of its `Bhoomi Putra' range
of tractors.
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- The Company has entered into a technical alliance with Austrian engine
manufacturer AVL list GmbH for production of light commercial vehicles of 3.5
tonne capacity.
- M&M will launch the LCV under the `Loadking' name in January next year.
- M&M has launched its first 60 HP class tractor Arjun 605 DI here, will from now
roll out a new mode very six months.
- The Company the utility vehicle market leader, launch of its latest UV, the Bolero
GLX.
- The Company will launch Scorpio, its urban utility vehicle, by the end of the year.
- The Company has launched the first of its new series of "Horizin Tractors", the
Mahindra "Arjun 605 DI" in Andhra Pradesh.
- Mahindra & Mahindra is to go for a expansion, keeping pace with its plans for the
introduction of new models, including the Scorpio.
- Mahindra and Mahindra Limited (M&M) launched yet another range of new
generation tractors to grab a large share of an emerging mature market.
- The Company has launched its fourth portal business with an investment of $1
million.
- The Board has approved an ESOS and decided to allot 55,24,219 No. of equity
shares to the Mahindra & Mahindra Employee Stock Option Trust.
2001
- The Company has set up a farm extension services division called Mahindra
Shubh Labh, which will pioneer the building of a chain of one-stop shops offering
a comprehensive range of farm-gate services.
- Mahindra & Mahindra is set to launch three new variants of its utility vehicle
Bolero to boost its presence in the urban segment.
- The strike at the company's Nashik automotive plant which began on March 4,
has been called off with effect from 8th March.
- Credit Rating and Information Services of India Ltd. has revised the rating
assigned to the company's long-term debentures to `AA+' to `AAA'.
- Mahindra & Mahindra has tied up with French auto giant Renault for sourcing
petrol engines for its premium utility vehicle Scorpio which would be launched
later this year.
-The price of Mahindra & Mahindra Ltd (M&M) shares hit a 92-month low on the
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Bombay Stock Exchange (BSE) on june 14 fuelled by market apprehensions of a
steep fall in the company’s sales in May 2001
- Mahindra & Mahindra launched the premium version of its 7 seater multi-utility
vehicle, Bolero GLX.
2002
-Mahindra & Mahindra Ltd has informed BSE that ICICI Bank Ltd has withdrawn
the nomination of Mr Inder Chand Jain as their Nominee Director from the Board
of M& M with immediate effect.Consequently Mr Inder Chand Jain ceases to be a
Director of Mahindra & Mahindra Ltd with immediate effect.
-Mahindra & Mahindra Ltd has informed BSE that Mr. David Friedman (currently
the Alternate Director to Mr.Lewis W. K. Booth) has been appointed as a Director
of the Company w.e.f. October 30, 2002 in the vacancy caused by the cessation of
Directorship of Mr. Lewis W.K. Booth. Mr. V.K. Chanana has been appointed as a
Nominee Director of UTI w.e.f. October 30, 2002 in place of Mr. Sanjiv Kapoor
whose nomination has since been withdrawn by UTI.
2003
- Signed an agreement with Canara Bank . Where in, Canara Bank will provide
loan to those farmers who are willing to buy Mahindra's tractors and other farm
implements.
- Mahindra and Mahindra Ltd on December 24th showcased its new products,
Bolero XL and Bolero XLS, for prospective customers in Karnataka.
2004
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-Mahindra & Mahindra delisting of shares from DSE
-Auto giant Mahindra and Mahindra has launched its latest variants of Bolero XL
range here on January 19, 2004, thus heralding its launch across the State.
-M&M enters into agreement for acquiring majority stake in US based Bristlecone
Inc
-Mahindra & Mahindra Ltd has informed that the equity shares of the Company
have been delisted from Pune Stock Exchange Ltd w.e.f. January 16, 2004.
-Mahindra & Mahindra Ltd has informed that HSBC Global Investment Fund has
acquired 3,99,825 equity shares of the company through market on May 17
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-- Andhra Bank has announced that it has joined hands with Mahindra Tractors for
financing the distribution of tractors through the bank branches across the country
-Mahindra & Mahindra (M&M) has forayed into the Latin American markets
through the opening of an assembly line in Uruguay
-Mahindra & Mahindra Ltd (M&M) on announced its foray into the South African
automobile market
2005
- Mahindra & Mahindra tractors' top dealer in the US has become the largest tractor
dealer in the US, muscling past dealers of John Deer, New Holland and Kubota.
-Mahindra & Mahindra Ltd (M&M) launches its Common Rail Diesel Engine
(CRDEe) fitted-Scorpio, which conforms to BS III emission norms on February 22,
2005,
-M&M, Renault ink MoU to set up Rs 550 crore car manufacturing plant in Nasik
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-Mahindra unveils 3-wheeler cargo carrier Champion Alfa model
-Mahindra & Mahindra inks a JV with International Truck & Engine Corporation,
USA
-Mahindra & Mahindra has given the Bonus in the Ratio of 1:1
2006
- Mahindra & Mahindra Ltd on Oct 11,2006 signed a agreement with ITMCo (Iran
Tractor Manufacturing Co) to sell tractors in Iran. The agreement was signed in
Tehran.
-Mahindra & Mahindra (M&M) and French automaker Renault have joined hands
yet again to establish a greenfield passenger car manufacturing plant in India within
five years.
- Mahindra & Mahindra inks deal with Global Vehicles USA Inc
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2007
-Mahindra and Mahindra (M&M) has launched the line of sports utility vehicles
(SUV) and pick up trucks that it plans to begin selling in the United States starting
from 2009.
-The latest product from Mahindra Defence Systems, the Axe FAV is an extreme
offroading multi terrain defence purpose vehicle.
2008
-Mahindra & Mahindra acquires renowned Italian design house, GRD Italy.
2009
2010
- Mahindra & Mahindra has hiked prices of its products by up to Rs 18,000 due to
the in excise duty announced in the Budget.
- Mahindra & Mahindra announced its entry into the heavy commercial vehicle
segment in partnership with Navistar Inc of the U.S.
- Mahindra & Mahindra (M&M) announced that Mahindra Tractors has sold one-
lakh tractors in 2010.
- Mahindra & Mahindra Finance Services Limited (MMFSL) launched its new loan
against gold product in Kerala, which has been specifically designed in order to
provide liquidity against gold ornaments without selling them.
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-Company has splits its Face value of Shares from Rs 10 to Rs 5
2011
- Mahindra & Mahindra - Mahindra announces entry into Micro Irrigation Business
- Mahindra & Mahindra - India Mahindra & Mahindra Ltd. completes acquisition
of a majority stake in SsangYong Motor Company
- Mahindra & Mahindra - Mahindra launches 'Verito' the Logan with Mahindra
badge
2012
- Mahindra and Mahindra wins arbitration award and class action suit against
global vehicles
33
- Mahindra & Mahindra has entered the Kenyan passenger vehicles market with the
launch of their utility vehicles, XUV500 and Scorpio. Other vehicles include pick-
up range, Genio and Maxximo mini-truck
- Mahindra & Mahindra Ltd said that the company has signed an agreement with
Telephonics Corporation to form a joint venture, named as Mahindra-Telephonics
Integrated Systems Limited.
- Mahindra Ugine inked joint venture with Sanyo Special Steel & Mitsui & Co.
Ltd. names new venture as Mahindra Sanyo Special Steel Pvt Ltd.
2013
- Auto major Mahindra and Mahindra has inked partnership with online shopping
portal, Snapdeal.com to sell its two-wheeles on the site.
- Mahindra & Mahindra Ltd - Mahindra launches the Verito Executive edition
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Mission Statement:-
“We don’t have a group-wide mission statement. Our core purpose is what makes
all of us want to get up and come to work in the morning”
-ANAND MAHINDRA
Vision Statement:-
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.
Mahindra wants to be among the top 10 automotive brands in the world. "The
lifecycle of automotive products is reducing very fast," he says. "The customer is
very demanding and his needs are changing rapidly. For driving growth in
business, we need a new product pipeline." Increasingly, Mahindra is positioning
itself to engineer those products by itself. It is even feeling emboldened to take
calculated risks, as it did with the XUV500's infotainment system, which also faced
some teething troubles.
"We got too aggressive in bringing a very advanced entertainment system to India,"
says Goenka. "We could have taken a safe route of bringing something that's tried-
and-tested and stayed a generation behind." When the issues with the XUV500
came to light, a cross-functional team of 15-20 members, led by senior officials
from R&D, purchase, servicing and quality worked with a German consultant to
35
address them. "It was important to understand customer issues for future vehicle
programmes," says Mahesh Babu, part of the XUV 500 team.
"Sometimes, it was quality, design or just a freak application outside the design
boundaries." He adds that the company's response time to customers has reduced
considerably. Most of Mahindra's R&D spends in 2012 went into launching new
product and engine refreshes, including Quanto and E20. It also included expenses
on its integration efforts with Ssangyong. "Ssangyong is jointly developing fuel-
efficient smaller engines with Mahindra, but M&M still has a long way to go," says
Mahantesh Sabarad, analyst at Fortune Financials.
"Currently, its six engines in the range of 1 to 1.6 litre, including petrol and diesel,
are being developed with Ssangyong to power some of the proposed new
launches." Auto sourcing is a lot about deriving economies of scale. If Mahindra
was to work on the six-engine platform on its own, it would be able to do volumes
of up to 80,000 annually.
With Ssangyong as partner, and suppliers from Korea and India, Mahindra can
produce about 300,000 engines per year. "It will not be enough," says
Ramakrishnan of Frost and Sullivan India, adding that improving quality should be
the company's first priority. Pravin Shah, CEO, automotive, M&M, calls quality a
'relative term’. “We make value-for-money products," he says. "Consumers do not
see quality in isolation; it's an entire value proposition." And Mahindra is chipping
away at it.
36
Long term objectives :-
Anand Mahindra, vice chairman and MD of Mahindra Group, believes the team has
a long way to go to reach its full potential. And apart from "establishing themselves
as a force in the circuit and further enhancing the reputation of the country in the
sport,
"That is indeed our long term goal," says Mahindra. "But that is for later. My belief
is that we can't nurture riders if we don't know the game ourselves.
"We want to establish ourselves as one of the strongest teams in the circuit and then
we will slowly bring up Indian riders. Of course, slowly we will graduate to Moto2
(250cc). That's the next logical step," he adds.
"We are just two races old and it's great that we already made a mark by scoring
our first points. But there is a lot more to do in this season itself," says Mahindra.
"Our riders, Danny Webb (of England) and Marcel, are very experienced in the
circuit. Last Sunday's race was proof enough of their quality. As a manufacturer,
we are glad that we were able to provide the riders the best hardware possible. That
was my primary concern," he added.
The Mahindra bikes were indeed competitive in wet conditions at Jerez on Sunday
with Webb setting sights on a top-10 finish before he crashed out. Schrotter, the
junior rider in the team, took over though. Starting 23rd on the Grid, the 18-year-
old German made his way through the field to finish 13th.
Schrotter, who is in his fourth year in the 125cc Championship, was very happy
with the bike's performance after the race.
"It is very competitive and was handling very well too. We have small work here
and there. For instance, improvement has to be made during braking and that
should save us more time. But in a few races, if we keep improving at the same
rate, we would be fighting for podiums," said Schrotter.
37
Small improvements is what we are looking at now, adds Mahindra.
"The big improvement we have made so far was to bring down the weight of the
bikes as it will save us valuable time. One area in particular is the new titanium
exhaust system which saves a few pounds. As the season goes on we will further
develop the bikes," promises Mahindra.
"Webb is just 19 years old. But he is a veteran in the circuit already and is very
talented. He probably pushed the bike a little too much last Sunday and I am sure
he has learnt from his mistake. He was very disappointed that he couldn't score the
team's first points and has promised to make amends in the coming races," smiles
Mahindra.
38
Various companies of automotive under Mahindra Group:-
39
1) Mahindra and Mahindra Automotive Division:-
Over the years, we’ve spun off into new ventures in order to better meet the needs
of our customers, expanding into automotive and non-automotive components,
Information technology, Financial services, and energy. We operate in a federated
structure so that each business can take risks and grow on its own and
simultaneously leverage synergies across the entire Group’s competencies.
We’ve been the leader in utility vehicle for over fifty years, since we built the first
Willys jeeps under license on Indian soil in 1947. Today, our portfolio comprises a
wide spectrum of vehicles from two wheeler to heavy Trucks, SUVs to school
buses. Our services include maintenance and repairs, customization, providing
spares, and manufacturing and engineering. We’re opening a new organized-sector
market for pre-owned cars and expanding into foreign markets including the United
States and Europe.
40
2) Mahindra Graphic Research Design:-
Our style consulting services begin with a brand analysis to understand and then
shape brand identity. We offer concept definition for two wheeler’s, passenger
vehicles and light and heavy trucks. Next, we help with engineering processes
including the part design of BIW (body in white), exterior and interior trim, and the
instrument panel. We use CAE to model static and dynamic qualities, lifetime
wear and tear, safety, and autoform and moldflow manufacturing processes. We
also build prototypes and provide support for regulatory, plant process, and part
manufacturing compliance. Finally, we offer project management services from
project development to product to market support.
41
3) Mahindra Navistar Automotive:-
In 2005, Mahindra & Mahindra entered into a joint venture with Navistar Inc USA,
and Mahindra Navistar Automotive set out to build a range of indigenously
developed commercial vehicles for Indian terrain. Six years later, we’re still
creating and developing Light Commercial Vehicles (LCV) and Heavy
Commercial Vehicles (HCV) that continue to set the standards.
We manufacture a wide range of LCVs and HCVs that are rugged, reliable,
environmentally friendly and fuel-efficient. Designed ground-up in India with
technological assistance from Navistar Inc (USA), a market leader in trucks and
buses in the USA and the world’s largest mid-range engine manufacturer, our
trucks are created to fulfill requirements that are specific to your needs. Our new
state-of-the-art plant at Chakan, near Pune, is staffed by 800 highly trained
technicians, engineers, and specialists, and stretches over 700 acres.
Our constant drive to improve means that our range of trucks is not only high on
performance, but also low on maintenance. With rigorous tests to ensure high
performance even in the toughest of conditions and features that will make your
journey comfortable no matter how far you’re going, our trucks will help you
prosper in your business. Whether it’s goods, people or dreams, our trucks move it
all.
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4) Mahindra Navistar Engines:-
Our plant at Chakan has an installed capacity of 45,000 engines per year. We’ve
already localized 70 percent of our engine components through 42 vendors. Our
engines are extensively validated for over 18,000 hours. We’ve tested them for 1.5
million km under different geographic conditions to make sure they will deliver the
best performance for both on and off highway applications.
Our first engine, the six cylinders, 207 HP Maxxforce engine, is already powering
25 and 49 to Mahindra Navistar Trucks on long distance hauls. The Maxxforce
platform ranges from 180 HP to 310 HP and is available in both mechanical and
electronic variants. The electronic common-rail Generation 3 version is the most
advanced engine available on Indian roads.
MNEPL is poised to grow to market leadership over the next few years. Through
exceptional dedication to quality and knowledge of the Indian market, we are
committed to developing a robust engine business that will improve truck
performance-and prosperity-for many Indian businesses.
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5) Mahindra Reva Electric Vehicle:-
We acquired a majority stake in the Reva Electric Car Company in 2010 to advance
the design and production of electric cars worldwide. By integrating Reva’s
electric car technology with our own leading engineering, we can build higher
performance electric vehicles that satisfy customers’ demand both for better
lifestyles and a healthy environment.
At Mahindra REVA, we are constantly seeking solutions to issues that range from
the kind of products that will define the future and the technologies that will go into
these vehicles to the intelligence that these vehicles will possess and the way they
will be manufactured. These questions are shaping our vision of the Future of
Mobility. The advanced vehicles of the future will not only offer unmatched
features, safety, and convenience. They will also be clever and environmentally
friendly.
The increasing fusion of electronics and IT with automotive technologies will give
rise to vehicles with advanced intelligence and connectivity. Other developments in
distribution models, financing options, flexible ownership models, personalisation
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of vehicles and greater choices across the ecosystem will further alter the entire
experience of interacting with the mobility ecosystem.
As a total systems solution provider, we develop all our Electric Vehicle (EV)
systems in-house. We are pushing EV technology to the next step to create better
energy management, faster charging, and advanced telematics. We offer
innovative electric vehicles and mobility solutions, technology licensing, and
licensed manufacturing and distribution.
We’re well established as a major global player with the largest deployed fleet of
electric cars on the road today. We’ve sold around 1,800 electric vehicles in
Europe, and more than 1,700 are on the road across Asia and Central and South
America. In total, we’re present in 24 countries worldwide and growing. The
Mahindra Group’s manufacturing expertise and wide global distribution network
will help Mahindra Reva scale up production and spread green technology across
the globe.
In 2007, Reva was named one of India's Coolest Companies by Business Today We
received the 2008 Frost and Sullivan Powertrain Company of the Year award for
excellent sales volume, market penetration, and customer satisfaction. And in
2009, Business Week voted our founder and Chief Technology Officer, Chetan
Maini, one of India's top 50 most influential people. In 2010, the Reva-i was
crowned Car of the Year at the Overdrive & CNBC TV 18 awards.
In 2013, we were named amongst the Top 50 most innovative companies in the
world by Fast Company.
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6) Mahindra Vehicle Manufacturers:-
Mahindra Vehicle Manufacturers was set up in 2007 to push our technology to the
edge. We designed and built a greenfield facility at Chakan, near Pune,
Maharashtra, to integrate the best in technology, environmental sustainability,
social responsibility, and operational excellence. Spread across 700 acres and
planted with approximately 10,000 trees, Chakan offers a flexible and eco-friendly
manufacturing layout for multiple Multi-Purpose Vehicles (MPVs), sport utility
vehicles (SUVs), and commercial vehicle that allows us to respond rapidly to
changing customer needs.
With a current capacity of 3.2 million vehicles per year and a future-ready
expandable module setup, we have the flexibility to constantly innovate and adapt
to changes in market demand or customer requirements. We currently manufacture
Mahindra & Mahindra’s entire medium and heavy commercial vehicle range from
the 0.75 ton Maxximo to the 49 ton Mahindra Navistar Trucks. The new Global
SUV and Pik-Up range will also be manufactured here.
Our staff of over 2,000 is highly trained in the fields of mechanical, electronic, civil
and electric engineering as well as paint technology. We partner with two regional
tribal Industrial Training Institutes (ITIs) to facilitate a match between educational
quality and content and industry demands. Our partnership has resulted in periodic
faculty training sessions, a restructuring of the curriculum, and the recruitment of
173 students to an apprenticeship training scheme by 2011. We also maintain our
own residential training centre which provides a month-long training to the selected
trainees before they initiate work at the shop floor.
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We use solar energy and waste heat from the oven exhaust to power activities in
the paint shop, reducing our consumption of gas and electricity for an overall
reduction of 3,500 tons of CO2 per year. A cluster of 70 solar dishes provides the
energy for cooling the paint used for the vehicle bodies. And by recycling waste
water through reverse osmosis and multiple effect evaporation, we achieve zero
water discharge across the entire plant.
The Ssangyong Motor Company joined Mahindra & Mahindra in 2011. Founded
in 1954 as the Ha-dong-hwan Motor Workshop, Ssangyong is today a major player
in the South Korean utility vehicle space and enjoys a market presence in more
than 90 countries. Based in Pyeongtaek, South Korea, Ssangyong is more than
4,800 people who are passionate about cars.
In the 1960s, we built Korea’s first large buses and began exporting them in
1966. In the 1970s, we expanded into specialized trucks from buses to fire
trucks. We welcomed the era of four-wheel drive with new independently
developed platforms, the Korando, and Musso, in 1993. In 1997, we introduced
the Chairman, one of Korea’s leading luxury sedans. Today, we are a leader
in SUV’s with a full product line including RextonII Kyron, Kerando, Actyon
and Actyon sports. We also offer sedan and MPV product lines, Chairman
and Rodius.
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We’re currently focusing on strengthening our global competitiveness by
producing environmentally friendly engines. We’ve developed an eco-friendly
diesel common rail engine to conform to the EURO5 standards. We are also
designing an engine to comply with the EURO6.
In the next few years, we plan to strengthen our global distribution network. We
have already set up local head offices and parts centers in Europe. We believe that
emerging markets are the key to sustainable growth, and we are building local
bases in markets such as Central America, Eastern Europe, Africa, China, and
India.
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8) Mahindra Trucks and Buses:-
Indian roads can be more than a little challenging thanks to wide variation in
terrain, inclement weather, and a large percentage of unpaved or unmaintained
routes. To succeed, you need a transportation solution that can handle it all. We
designed Mahindra trucks from the ground-up in India to excel in Indian
conditions, so that you have a more than able partner in your business.
At the core of our Heavy Commercial Vehicle range are our revolutionary
MaxxForce engines. These state of the art engines deliver high performance at
high fuel efficiency and meet EPA and Euro emissions standards. Join us at the
cutting edge of pro-environment business solutions.
Our trucks come in multiple sizes, depending on the load carrying capacity. A
strong and durable suspension, rugged chassis aggregates, robust brakes, and heavy
duty axles to handle its superior torque, are designed to be low maintenance and
easy to repair. Coupled with best-in-class ride and handling, and low turning radius
for excellent maneuverability and generous cabin space - this makes for a pleasant
ride for you and a passenger.
In addition we also offer buses and special vehicles through our Tourister range of
vehicles
We meet both Indian and European safety standards to make sure you’re safe even
in adverse driving conditions.
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Strategic management process:
A. Strategic formulation
B. Vision & mission
C. Opportunities & threats
D. Long term objectives
E. Alternative strategy
F. Strategy selection
Strategy implication:-
The Mahindra Group has a new tagline, which reflects a new strategy. It's a call to
action a core purpose that will galvanize employees, customers and stakeholders in
coming together to form a more cohesive, formidable unit. The Mahindra brand
logo will read as Mahindra Rise from here onwards. This tagline is the acceptance
of no limits in creativity, alternative thinking and drive positive change. This is not
some corporate branding but a new strategic move that will cost the Mahindra
Group Rs 120 crore over the next three years. It will strengthen Anand Mahindra's
federation of companies. This is a strategic move.
The Global Recruit Program from the Mahindra Group empowers you to learn and
experience firsthand the challenges and opportunities presented by a changing
world and an evolving global economy by working with one of India’s biggest and
most dynamic corporate houses. At Mahindra, you will be placed in positions of
real time responsibility and operations, where you will be enabled and encouraged
not only to participate in actual day to day operations, but also make strategic
decisions that have significant strategic implications on Mahindra’s national and
global business operations. All in an atmosphere that constantly encourages you to
use your learning and education to come up with your own ground breaking ideas
and initiatives.
In the 21st century, the focus of the world will be on the emerging markets of Asia
and the economies powered by the aspirations and energies of their billions. In such
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a 'flat' world, experience in countries like 'India' instead of being considered a plus,
will rather be mandatory, and your success in the global marketplace of the future
will depend on whether you have this knowledge or not.
The OSM forms the focal point of the entire program, as a platform for the period
of your working association with the Mahindra Group, and as a classroom for your
knowledge assimilation while on the job.
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Annual objective
Company tracks the objectives and targets laid out in the road map of the triple
bottom line approach. Various green projects have been implemented by your
Company in the areas of abatement of air pollution, recycling and reduction of
water and Solid Waste Management in accordance with world class Green supply
chain standards. Your Company’s commitment to the environment stems from the
Mahindra Group’s abiding concern for all stakeholders of society.
Investor relation
In line with the best practices aimed at fostering improved investor relations, our
Company engaged with investors in many ways, including one on one meetings,
attendance at investor conferences, regular quarterly earnings calls and annual
analyst meet during the year. New technology, including telepresence and
webcasting enabled in our Company to reach out to a large number of investors.
our Company interacted with over 550 Indian and overseas investors and analysts
from a wide cross section of the investment universe during the year. Several
investor/analyst interactions with the Chairman & Managing Director and Business
Heads were organised during the year. our Company won top awards/ ranking in
various investor relations categories from Thomson Reuters Extel Survey for 2011
(awarded in June 2012) and from Institutional Investor, Asia, for the year 2012. A
user friendly investor relations page on the Company’s Corporate Website ensures
the benefit of easy access to relevant information for
Investors. In future we will try to give our effort and encourage to investor to
invest our company.
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Industrial relation
Our Company has focused on propagating proactive and employee centric shop
floor practices, quick grievance resolution mechanisms and alignment to overall
business
goals, thus ensuring that there was no loss of production in the Financial Year
2013. As a result of propagating employee engagement as a business imperative,
Financial Year 2013 recorded the highest production figures in the history of the
Company.
Over the last few years, your Company has placed significant emphasis on
enhancing capabilities at the shop floor, beyond merely technical skills. Operators
are trained and encouraged to generate ideas for resolving quality concerns,
reducing cost, improving safety and efficiency. For the year under review, the
workmen generated over 19 ideas per person towards this cause.
Company tracks the objectives and targets laid out in the road map of the triple
bottom line approach. Various green projects have been implemented by your
Company in the areas of abatement of air pollution, recycling and reduction of
water and Solid Waste Management in accordance with world class Green supply
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chain standards. Your Company’s commitment to the environment stems from the
Mahindra Group’s abiding concern for all stakeholders of society.
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Project Nanhi Kali:-
Nanhi Kali, which supports the education of the disadvantaged girl child, has been
the flagship programme of the K. C. Mahindra Education Trust (“KCMET”) since
1996.
The Nanhi Kali sponsorship provides underprivileged girls with academic support
classes where concepts of Maths, Science and Language are taught to the girls. In
addition, the girls are provided with material support including uniforms, school
bags, shoes, socks and stationery which allow them to attend school with dignity.
In the Financial Year 2013, 7,414 individuals and corporates donated Rs. 22.65
crores to the Nanhi Kali Project, enabling the Project to support the education of
78,338 underprivileged girls across 9 states of India. The largest donor is the
Mahindra Group, which supports the education of 29,702 Nanhi Kalis. This
initiative has had a significant impact in terms of increase in learning outcomes by
10% and curtailing drop out of girls from school to less than 10%.
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Mahindra Pride Schools:-
Every year Mahindra rise spend crore rupees to prove better education to society
which is main objective of Mahindra rise. The programmes are
Mahindra All India Talent Scholarships Instituted in 1995, Mahindra All India
Talent Scholarships (“MAITS”) are awarded to students from lower socio
economic strata to enable them to pursue a job oriented diploma course at a
recognized Government Polytechnic Institute in India. Approximately 500
scholarships are given every year to students who undergo a three year course. In
the Financial Year 2013, 550 students were awarded the MAITS leading to a
disbursement of Rs. 91.43 lakhs. MAITS has been awarded to 6,354 students till
date.
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K. C. Mahindra Scholarships for Post-Graduate studies abroad:-
In the Financial Year 2013, 44 students were awarded a scholarship of Rs. 2 lakhs
each. Recipients will be doing their post-graduation in a wide range of subjects like
Computer Science and Engineering, Mechanical Engineering, Electrical
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K. C. Mahindra United World Colleges (“UWC”) Scholarships:-
Till date 86 students have benefited from the K. C. Mahindra UWC Scholarship
enabling them to study at the United World Colleges, and in particular,
the Mahindra United World College. KCMET has disbursed a total of Rs. 655.31
lakhs in the form of these scholarships. During the Financial Year 2013,
B. Policies
Remuneration Policy:-
While deciding on the remuneration for Directors, the Board and the Governance,
Remuneration and Nomination Committee takes into consideration the
performance of your Company, the current trends in the industry, the qualification
of the appointee(s), their experience, past performance and other relevant factors.
The Board/ Committee regularly
keeps track of the market trends in terms of compensation levels and practices in
relevant industries. This information is used to review the Company’s remuneration
policy from time to time.
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II. Remuneration to Non-Executive Directors for the year ended 31st March
2013:-
Our Company promotes ethical behavior in all its business activities and has put in
place a mechanism wherein the Employees are free to report illegal or unethical
behaviour, actual or suspected fraud or violation of the Company’s Codes of
Conduct or Corporate Governance Policies or any improper activity to the
Chairman of the Audit Committee of the Company or Chairman of the Company or
Corporate Governance Cell. The Whistle Blower Policy has been appropriately
communicated within the Company. Under the Whistle Blower Policy, the
confidentiality of those reporting violation(s) is protected and they are not subject
to any discrimination. No personnel has been denied access to the Audit
Committee. Our Company has not adopted the other non-mandatory requirements
as specified in Annexure I D of Clause 49.
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Principle-wise (as per NVGs) BR Policy/policies
2: Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle.
4: Businesses should respect the interests of, and be responsive towards all
stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
6: Business should respect, protect, and make efforts to restore the environment.
9: Businesses should engage with and provide value to their customers and
consumers in a responsible manner.
The Company has a Green Supply Chain Management policy, which has been
shared with Suppliers. Under this the Company is committed to improve the
Awareness about legal compliances, enhance Eco efficiencies, packaging/logistics
improvements and employee health and safety initiatives at the supplier end, etc.
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To actualize this commitment, the Company engages with its suppliers and vendors
on a regular basis through supplier meets and training sessions. To institutionalize
sustainable practices across supply chain, the Company has institutionalized
sustainability awards for suppliers. These initiatives are at various stages of
maturity with various suppliers and hence determining the percentage of inputs
sourced sustainably is difficult.
C. Motivate employees
Our motivation to give our best every day comes from our core purpose: we
will challenge conventional thinking and innovatively use all our resources to drive
positive change in the lives of our stakeholders and communities across the world,
to enable them to Rise.
Our products and services support our customers’ ambitions to improve their
living standards; our responsible business practices positively engage the
communities we join through employment, education, and outreach; and our
commitment to sustainable business is bringing green technology and awareness
into the mainstream through our products, services, and light-footprint
manufacturing processes.
We have always sought the best people for the job and given them the freedom and
the opportunity to grow. We will continue to do so. We will support innovation
and well-reasoned risk taking, but will demand performance.
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Customer first
We exist and prosper only because of the customer. We will respond to the
changing needs and expectations of our customers speedily, courteously and
effectively.
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Quality focus
Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with
others. We will do it 'First Time Right.'
We will value individual dignity, uphold the right to express disagreement and
respect the time and efforts of others. Through our actions, we will nurture
fairness, trust, and transparency.
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Employee Social Options
Esops stands for Employee Social Options. Esops is a platform offering employees
a set of social work volunteering options. These options are created and
implemented exclusively by employees themselves based on the needs of
underprivileged communities in and around their areas of operation. In a way, it is
each employee’s CSR initiative. Esops enables the workforce to collectively donate
thousands of human hours for various social projects, in the three focused areas of
Education, Health and Environment, making social work an integral part of
everyone’s lives. In this manner
Esops enables our employees to give not just their wealth but also their time. To
fund these employee initiatives, each Sector of the Company donates 0.5% of its
profit after tax to the Central CSR fund and 0.5% to Esops. Some notable Esops
initiatives during the year were the Lifeline Express at Puri in Odisha and at
Naksalbari in West Bengal where a total of 4,219 patients were treated by
performing surgeries, giving medicines and distribution of aids and appliances free
of cost. Another notable initiative
was Mahindra Hariyali where the 1 million tree plantation target was surpassed by
planting more than 1.7 million trees. Esops Awards – 2012, Esops Star Performers
Awards, Group level Esops Champions Meet were organised to motivate
employees and ensure their maximum participation in Esops. The other Esops
activities included numerous initiatives in the fields of Education, Health,
Environment, etc. which had a
short term as well as a long term impact on the beneficiaries and society at large.
Esops is also a culture that the Mahindra Group has cultivated as an ethic. The
Esops platform and a set of structures and protocols have been created, to make it
easier and possible for every employee, who wishes to make a contribution to
society, to do so.
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Provide Employee Benefits
Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit
payable is the greater of the amount calculated as per the Payment of Gratuity Act
or the Company scheme applicable to the employee. The benefit vests upon
completion of five years of continuous service and once vested it is payable to
employees on retirement or on termination of employment. In case of death while
in service, the
The Company provides post retirement medical cover to select grade of employees
to cover the retiring employee and their spouse upto a
specified age through mediclaim policy on which the premiums are paid by the
Company. The eligibility of the employee for the benefit as
well as the amount of medical cover purchased is determined by the grade of the
employee at the time of retirement.
The Company operates a post retirement benefit scheme for a certain grade of
employees in which a monthly allowance determined on the
basis of the last drawn basic salary at the time of retirement, is paid to the retiring
employee in lieu of housing.
The Company has allotted 55,24,219 Ordinary (Equity) Shares of Rs. 10 each,
10,00,000 Ordinary (Equity) Shares of Rs. 10 each and 1,73,53,034 Ordinary
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(Equity) Shares of Rs. 5 each in the years ended 31st March, 2002, 31st March,
2010 and 31st March, 2011 respectively to the Mahindra & Mahindra Employees’
Stock Option Trust set up by the Company. The trust holds these shares for the
benefit of the employees and issues them to the eligible employees as per the
recommendation of the Compensation Committee.
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Resources allocation
"Providing the essentials needed to create detailed and intelligent factory models,
Factory CAD allowed our planners to use ‘smart objects’ to represent their factory
resources."
Anupam Patil
Factory CAD was used to create 3D plant layouts for all of the Chakan plant
production lines, including body and trim, chassis and final (TCF). “Providing the
essentials needed to create detailed and intelligent factory models, Factory CAD
allowed our planners to use ‘smart objects’ to represent their factory resources,”
says Anupam Patil, senior manager, IT and PLM, Chakan plant, Mahindra
Vehicles.
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Core purpose:-
We will challenge conventional thinking and innovatively use all our resources to
drive positive change in the lives of our stakeholders and communities across the
world, to enable them to Rise.
To unite all our companies through one common thread, we harmonized the
communication of 60 Group Companies via the unique SAP platform. This
integration of processes across core functions is helping channelize inter-company
expertise, enhance efficiency and optimize resources.
Our Company has always been aware of the need for conservation of energy and
natural resources and has been consciously making efforts year on year towards
improving the energy performance. Energy efficiency improvement initiatives have
been implemented across
all the plants and offices by undertaking various energy conservation projects.
Our Company ensures strict compliance with all the statutory requirements and has
taken several sustainable steps voluntarily to contribute towards better environment
like
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3. Reduce, reuse, and recycle of waste and eco-friendly waste disposal.
During the year, the Company has taken the following resources to manufacturing
vehicles
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Engineering Initiatives:-
Installation of heat recovery systems on Paint shop oven exhaust for hot
water generation and air preheating.
Installation of Closed Loop efficient Cooling tower in Body Shops for gun
cooling.
Installation of VFD’s at select locations.
Installation of Energy Saving Magnetic Induction Lamps for Shop and
Street Lighting.
Energy Savers for Air-Conditioners in various offices.
Replacement of inefficient compressor with energy efficient compressors.
Installation of fan less cooling tower.
Replacement of electrical heaters with gas burners in heat treatment
furnaces.
Flat belt instead of V belt for blowers.
Installation of energy efficient pumping system.
Light Pipe installation in offices.
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Process Improvement:-
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Use of resources to Awareness on Energy Consumption:-
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The strategic purpose of Human Resources in the Mahindra
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MARKET RESEARCH
India is the second fastest growing automobile market in the world after China.
The Automobile Industry in India is one of the largest and is the fastest growing
industry, world-wide. There has been a dramatic development and change
in Automobile industry, particularly for the last couple of years. With many
companies now concentrating more on customer needs and price factors, there has
been a sharp rise.
The reason behind this is simple; foremost, there is an increase in demand for more
and more usage of automobiles and second, there is a sharp rise in the percentage
of profit that the Automobile manufacturers make, contributing a considerable
income to the Indian economy as well.
The Indian Automobile Industry manufactures over 1.1 Crores of vehicles and
exports about 15 lakhs each year. The dominant products of the automotive
industry are two-wheelers that occupy a market share of around 75%. Passenger
cars have a market share of about 16% while commercial vehicles and three-
wheelers share about 9% between them.
The economic scenario is also encouraging for the buyers to buy more vehicles and
thus the demand is likely to increase. But will 2013 be a good year for Automobile
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industry in India? Our expert Astrologers has analyzed the planetary positions for
the year 2013 to forecast the future of Automobile industry in India. Here are the
findings;
The forth coming year, due to the placement of planets Saturn (signifying
profession), Jupiter(indicating money), Rahu and Ketu (Rahu & Ketu being the two
most powerful planets) in the sign Libra, Gemini, Libra and Aries respectively will
have more impact on any industry.
The planet Saturn (planet indicating profession) is in the powerful sign Libra which
is ruled by Venus (the planet indicating vehicles) during the year 2013. But, it is
going to retrograde (backward movement of planets) from February 18th 2013 to
7th July 2013.
Saturn is exalted and Jupiter (signifying money) will be transiting to the 3rd House
(indicating communication technology) in that natal chart, in the sign Gemini. So
there are bright chances for the implementation of communication technology in
the Automobile Industry.
Also, new manufactures will come up and there will be tough competition in
the automobile industry during 2013. New low cost cars and bikes will strike the
market and due to the introduction of new automobiles, manufacturers will try to
boost a considerable increase in their production, so as to compete in the heavy
competition which is much tougher. This is due to the placement of Rahu and
Saturn in the sign Libra.
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Environmental analysis :-
M&M has a global presence and its products are exported to several countries. Its
global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA
Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
Mahindra started making passenger vehicles firstly with the Logan in April 2007
under the Mahindra Renault joint venture. M&M will make its maiden entry into
the heavy trucks segment with Mahindra Navistar, the joint venture with
International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three
wheelers. It manufactures over 20 models of cars including larger, multi-utility
vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford
called Ford India Private Limited to build passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing
an aggressive product expansion program that would see the launch of several new
platforms and vehicles over the next three years, including an entry-level SUV
designed to seat five passengers and powered by a small turbo diesel engine. True
to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009,
and as of June 2009, the Xylo has sold over 15000 units.
Also in early 2008, Mahindra commenced its first overseas CKD operations with
the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto
Group. This was soon followed by assembly facilities in Brazil. Vehicles
assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and
double cab pick-up body styles as well as SUVs.
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Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in
North America through an independent distributor, Global Vehicles USA, based in
Alpharetta, Georgia. Mahindra announced it will import pickup trucks from India
in knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete
vehicles that will be assembled in the U.S. from kits of parts shipped in crates. On
18 October 2010, however, it was reported that Mahindra had indefinitely delayed
the launch of vehicles into the North American market, citing legal issues between
it and Global Vehicles after Mahindra retracted its contract with Global Vehicles
earlier in 2010, due to a decision to sell the vehicles directly to consumers instead
of through Global Vehicles. However, a November 2010 report quoted John Perez,
the CEO of Global Vehicles USA, as estimating that he expects Mahindra’s small
diesel pickups to go on sale in the U.S. by spring 2011, although legal
complications remain, and Perez, while hopeful, admits that arbitration could take
more than a year. Later reports suggest that the delays may be due to an Mahindra
scrapping the original model of the truck and replacing it with an upgraded one
before selling them to Americans In June 2012, a mass tort lawsuit was filed
against Mahindra by its American dealers, alleging the company of conspiracy and
fraud.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles.
In 2011, it also gained a controlling stake in South Korea's SsangYong Motor
Company.
Mahindra has launched its relatively heavily publicized SUV, XUV 500, code
named as W201 in September 2011. The new SUV by Mahindra has been designed
in-house and it is developed on the first global SUV platform that could be used for
developing more SUVs. In India, the new Mahindra XUV 500 comes in a price
range between Rs 11.40 lakh to Rs 15 lakh. Besides India, the company also targets
Europe, Africa, Australia and Latin America for this model. Mahindra President Mr
Pawan Goenka stated that the company plans to launch six new models this fiscal.
The company launched CNG version of its mini truck Maxximo on 29 June 2012.
A new version of Verito in diesel and petrol options was launched by the company
on 26 July 2012 to compete with Maruti's Dzire and Toyota Kirloskar Motor's
Etios.
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Other uses vehicles:-
Military Defense:-
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Provide Energy to world:-
Mahindra & Mahindra entered the energy sector in 2002, in response to growing
demands for increased electric power in India. Since then, more than 150,000
Mahindra Powered engines and diesel generator sets (genets) have been installed in
India, offering standard proper quality power, as do larger companies, in areas with
arguably less reliable grid electricity. The inverters, batteries, and genets are
manufactured at three facilities in Pune (Maharashtra), Chennai (Tamil Nadu), and
Delhi; and 160 service points across India offer 24-7 support to most key markets.
Powerol is present in countries across Latin America, Africa, the Middle East, and
Southeast Asia—and expanding into the United Arab Emirates, Bangladesh, and
Nepal. Mahindra Powerol's energy services consist mostly of power leasing and
telecom infrastructure management. In 2006, it became a major market leader in
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the telecom segment (and in 2011, its market share passed 45 percent). In 2007, it
won the Frost and Sullivan "Voice of the Customer" award for best practices in
telecom. Mahindra Clean tech Ltd specializes in eco-friendly, or 'green' power. In
response to growing acceptance of Solar Power, it formed a subsidiary, Mahindra
Solar, in 2010 to offer a range of solar solutions, both off grid and on grid,
alongside Engineering, Procurement, and Construction (EPC).
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Mahindra’s Farm equipment
Mahindra & Mahindra’s farm equipment division (Mahindra Tractors) is one of the
largest tractor companies in the world, with more than 1,000 dealers servicing more
than 1.45 million customers. Mahindra tractors are available in 40 countries,
including India, the United States, China, Australia, New Zealand, Africa (Nigeria,
Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco), Latin America (Chile,
Argentina, Brazil, Venezuela, Central America, and the Caribbean), South Asia
(Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and Eastern
Europe (Serbia, Turkey, and Macedonia. In the 2010-11 Mahindra entered in Micro
dripp irrigation with the takeover of Epc Industry Ltd, Nasik. Mahindra Tractors
manufactures its products at four plants in India, two in Mainland China, three in
the United States, and one in Australia. It has three major subsidiaries: Mahindra
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USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng)
Tractor Company (a joint venture with the Jiangsu Yueda Group).
The company has garnered the highest customer satisfaction index (CSI) in the
industry at 88 percent. In its 2009 survey of Asia’s 200 most admired and
innovative companies, the Wall Street Journal named Mahindra & Mahindra one of
the 10 most innovative Indian companies. It earned a 2008 Golden Peacock Award
in the Innovative Product/Services category for its in-house.
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COMAPRISON OF QUALITY STANDARDS OF MAHINDRA AND
MAHINDRA
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Strategy and risk management:-
M&M wide range of risk consulting services identifies areas where damage can
occur to physical property, people and information. First, identify and value your
assets from people to buildings, hardware, software, and supplies. Then M&M
assess the likelihood of various threats, including acts of war, accidents, and malign
acts, and your level of vulnerability. By comparing the impact of these threats with
the cost of countermeasures, M&M help you determine an acceptable level of risk.
Finally, M&M develop and then help you integrate security measures into your
business processes. M&M follow a human-centric approach to risk management.
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M&M information security management services include educating employees
about its importance and delineate clear steps they can take to safeguard your
critical information assets. M&M physical security advisory services implement
strategies to protect key personnel and their families, organizations, and assets.
M&M also offer you a Governance Directorate to help you achieve high standards
of good governance. Take advantage of M&M technical advisory services and
change management services if you need additional support as you navigate the
ever-changing risk management landscape.
Market Context:-
The soft tops sales, which were Mahindra’s strength, were stagnating. Hard top
vehicles like Sumo and Qualis were garnering market share. The urban market was
showing more potential for vehicle sales and UVs were gaining higher
acceptability in urban cities. The competition was getting tougher with
international UVs entering the market. And also operating in the urban market
meant competing with cars.
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The market was moving from traditional multi utility, non-luxurious vehicles to
luxurious vehicles. M&M had launched Bolero in 2000 to cater to this newly
emerging segment. However, to add to the category’s woes, it declined at the rate
of 3.1 percent in year 2001 over year 2000. UVs as a percentage of the overall
passenger car market were just 16 per cent in 2001. This simply meant that for
attaining the volumes, Scorpio needed to look beyond UVs in terms of competitive
framework to decide on a marketing strategy.
Competitive Context:-
The conventional UV market was too small in size. The UV market in urban
markets was even smaller a percentage. The trend was that the UVs operating in
the urban market were eating into the car share, primarily the cars which operated
in the same price bracket. Qualis was taking market away from midsize cars. With
these facts in place the whole of automobile market was studied in details.
In the arena of cars, A-segment cars, which have been the leaders in terms of
volumes and grew at the rate of 55.2 percent in the year 1999, were having a
reduced growth rate of 34.2 percent in the year 2001. It was found that the fastest
growing segment (growing at the rate of 42.9 per cent) in year 2001 was semi
luxurious cars or B segment cars. And the luxurious car segment i.e. C segment
cars were also growing at a healthy rate of 14.2 percent in that year. However,
super premium cars termed as segment D and E cars, were not growing at such
healthy rates and did not offer volume in terms of number of cars sold.
It was imperative for Scorpio to look beyond UVs. Apart from appealing to a
typically UV buyer, it was also necessary to appeal to a wider target audience -
prospective car buyers belonging to 5 lakh and 5 lakh+ segment. The midsize car
market (C class) which was in the Rs. Five to Seven lakh price bracket had grown
in F’00 at 36 per cent and in F’01 at 22 per cent, and small luxury car segment (B
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class) which was up to Five lakh segment was also showing a healthy growth.
Analysis showed that the volumes in the automobile industry were coming from B
and C segment cars. This meant that the mid size car market was the competitive
arena for Scorpio for it to attain the volume growth and market share it was looking
for. It was decided that the offer had to appeal to segment C buyer and should be
aspirational for segment B buyers. Therefore, an analysis of the offers of all the
segment C cars and the relevant UVs was done. The table below summarises the
analysis:
Interpretations: All the vehicle are feature packed within a price range of Rs. 6-8
Lakhs. All of them, including UVs, are with a proposition of luxury and comfort,
with no differentiation implication. With this analysis it came out clearly that the
positioning of Scorpio has to be such that it should communicate that the vehicle is
better than any of these cars and is a better buy in terms of money.
ConsumerContext:-
Having defined the competitive framework, the next task undertaken was that of
analyzing the consumer. Consumer segments of B and C category car buyers were
analyzed in terms of their expectations from a car, their perceptions about cars and
their relationship. Proprietary techniques of research, of the advertising agency
Interface Communications, like Mind & Mood, ICON and VIP were used to
understand this consumer. The findings were:
* Size matters- big size stands for status
* Consumers seek latest technology
* Imagery but at affordable prices
* The sheer thrill and passion of driving an SUV
* Power of the vehicle makes a statement
* But along with the others, luxury was a very important parameter
* International vehicles define imagery
Þ SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich
and famous
Þ Consumers aspire to own these vehicles as the imagery of these vehicles has
become very desirable
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The Key Consumer Insight that emerged from all the consumer analysis and which
was used for strategy development was “Consumers want to consume premium
imagery at prices affordable to them”
‘Car plus’
Rational benefits: World class vehicle, good looks, car like comfort, great value
Emotional benefits: Ownership experience of thrill, excitement and power
Relational benefits: Young modern, premium, city companion / extension of
lifestyle.
Brand Promise: ‘Luxury of a car. Thrill of an SUV’
This brand positioning addresses the key consumer Insight and the product delivers
the promise. The position is also a unique proposition, which will help the brand
have a distinct image in the consumers’ mind.
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Baseline “Nothing Else Will do”
The baseline captures the essence of the brand, which is superiority and
uncompromising attitude. It also summarises the spirit behind the making of the
Scorpio.
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Media Strategy
Role of Media
*Dramatic and high impact launch
* High visibility
* Push brand image even by the media vehicle
Public Relations
Pre-launch excitement and buzz was created by a full blown PR program. Media
coverage on the IDAM process, the people behind the Scorpio, the obsession, the
world class technology, etc set the tone for the hyped up launch. PR was also the
first tool used for launching the Scorpio. The coverage of the launch was massive.
It got four cover stories
Mass Media
‘While the media targets would be achieved through the right selection of the
media mix, the Scorpio media posture was to ensure that Scorpio was present on
the decided media but ‘with a difference.’ Scorpio would use media innovations to
create differentiation on the traditional media and do things in a ‘bigger and better’
manner.
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Distribution Strategy - Serve less markets at a time but serve them well
Since the Scorpio was targetted at an urban clientele it needed a stronger ditribution
presence in Metros and urban areas. Hence, the distribution channel had to focus on
providing an appealing experience for modern car buyers and on offering
international standards of auto retail.
Phased Launch
The Scorpio was launched in a phased manner - first in Metros Mumbai, Delhi,
Bangalore, Chennai. Twenty cities were included over a period of 4 months and
within a year 50 cities were covered. This ensured attention to main markets and to
ensure that initial production of the vehicle could match demand. Dealerships were
revamped prior to launch in a particular city.
Showroom Experience
The showroom revamp was centred around the intention to provide a uniform
customer experience at all the touch points and to provide the customer with a
unique “experience” and not just a “product”. Therefore the back office would
remain outside the customer’s line of vision because the customer would be
concerned with the product and not with the paperwork.
Infrastructure
Thirty-five showrooms across the country were redone entirely with the same look
and identity and a décor built around movement, technology and sportiness. The
theme focussed on giving the customer a memorable experience.
In the SUV/MUV segment, Scorpio has the second-largest awareness and has
emerged as a strong brand in the C & sub-C car segment, however as compared to
Qualis, it needed higher recall. Scorpio advertising had been able to create a good
impression on appearance and styling of the vehicle.
Scorpio managed to pull out customers from the C segment of vehicles. The
product, communication and the retail experience of the Scorpio passed the
stringent test of luxury car buyers and the buyer profile was exactly as per the
target profile. The strategy delivered with more and more small and midsize car
buyers choosing the Scorpio over the others.
Awards
Scorpio Impact
Scorpio was launched on June 19, 2002. At that time Mahindra was losing market
share and the share prices were also at an all time low at around Rs. 100. The
Mahindra share of business was largely from the semi-urban and rural market of
India and the markets where Mahindra was strong were stagnating.
With the launch of Scorpio, things started looking up for Mahindra. There was an
improvement in the bottom line as well as the return to the shareholder. The
revenue for M&M Auto Sector increased from Rs. 1827 Cr. in F 02 to Rs. 2511 Cr.
in F 03, a growth of 37 per cent. The profits before Interest and Tax (PBIT) too
zoomed up from Rs. 102 Cr. in F 02 to Rs. 147 Cr. in F 03, an increase of 43 per
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cent. In F04 the scenario has further improved. The half-yearly results show a
growth of 54 per cent in revenue and 218 per cent increase in PBIT. The share
prices have outperformed the Sensex and Share prices have zoomed from Rs. 100
to Rs. 400 by December ‘03.
As regards Mahindra image in the customers mind, the post launch study
conducted gave the following improvements (Brand track Study - Nov 2002 -
IMRB):
*The Mahindra saliency scores improved by 27 points among MUV/ SUV owners
and by 29 points among all car-owners.
*The overall positive opinion about Mahindra also moved up by 18per cent among
MUV/ SUV owners and by 11per cent among all car owners.
*Mahindra Scorpio has fared excellently in overall opinion as against its key
competitors.
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MARKET ENVIRONMENT
PEST Analysis:
Political factors:
The automotive and farm equipment industry is closely linked with the policies of
the government and hence we see both the industries dominated by players with
political powers all over the world. The automotive industry depends on various
regulations imposed by the government like emission of co2 limit, or how the
Indian government allowing 100% investment of foreign equity hassled to increase
in competition and brought in development in infrastructure in technology. The
government’s investment on infrastructure like roads and bridges affects the
automobile sales. Also the governments import/export regulations play an
important role for the globalisation of the companies. while the policies of the
government in agriculture sector is vital to the farm equipment industry. The
policies of the Indian government have mostly been conducive to growth of both
automotive and farm equipment industry.
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Economic factors:
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Social Factors:
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Technological Factors:
Innovation being one of the main criteria of growth in both the industries,
technology plays a very important role indeed. Hence, we see millions being spent
on finding new technologies by many companies to ensure progress. Also the entry
of many foreign competitors like BMW have lead to exposure for customers to new
level of technologically developed cars leading to pressure on the local players to
stay in tune with the technological developments.
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Passenger Vehicle Analysis Fiscal Year 2012-13
Most of the automotive players have plan for expending their activities in India
including new product launches. Indian automotive industry contribute 5-6% in
GDP and more than 15 million man power directly associate with auto industry.
However the overall performance is not giving good vibes for Industry. Indian
Govt should take some action for stabling fundamental sentiments of economy.
Passenger Vehicle Segment: One of the hot spot in world automotive industry is
Indian car market. Indian car industry is going thru turbulent times in now. Car
sales is down by more than 6% in FY 2012-13 compare to last year of FY 2011-12.
The main reasons are high interest rates, fuel price, high inflation, low movement
in other sectors etc. Utility vehicle segment is having maximum growth in this
segment @ 52%. Ertiga has put successful foot print this segment. This vehicle is
giving good competition to Innova. SUV segment also grown due to its fuel
economy and price combination became top choice for larger families.
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Maruti has increased market share due its better performance in UV segment
compare to FY 2011-12. Tata is still third largest car manufacture with marker
share of 15%. Tata has de-growth of 15% which is very significant. Tata need to
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revive its product position and brand value which play important role in passenger
segment.
Segment Analysis:- Tata Nano can be a good case study for product planning.
Only advertising cannot increase sales. They must fulfill all parameter and clear
picture of this target segment.
Even export came down from 3,462 units to 166 units, recording a de-growth of -
95% in FY 2012-13. ACG analyst team saw that the main reason is of heavy
marketing of Nano, Tata shall think about reducing the marketing cost, make it
more competitive and pass it the customers.
Economy car segment:- It is biggest segment in car industry of around 8-9 lacs
units. Maruti and Hyundai is dominating this segment. Fiat can be good example
for inconsistent strategy. There could be big barrier to be become successful in
market. Fiat India is having one of the quality product in its segment. Fiat is
targeting a modest 1% market share in 2013, with 100 exclusive Fiat showrooms
expected to be operational by the end of the 2013.
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ACG primary research shows that most of the Fiat customers are satisfied with its
product quality but they have dissatisfaction over after sales service. ACG team has
done this study to macro level to prepare strategy paper.
Sales and Celebrity:- Nissan Micra is one the companies who use celebrity to
increase its sales. Ranbir Kapoor is the brand ambassador for Micra. This is a miss
match between this segment car and branding strategy of Nissan.
Renault Duster has sold 39,188 units in India in FY 2012-13. Globally its sale was
256,553 units out of which 98,498 units sold in Europe. In Europe there is de
growth of this model but rest of the world it is very well accepted. Ford is also
launching its EcoSports SUV in this segment.
Luxury Car segment: Audi Beats BMW to Pole Position:- India is rapidly
emerging as a key market for global luxury car brands. All premium brands has
now having their show rooms in India. Audi, BMW, JLR, Volvo Cars and Porsche
are top performer in this segment. Mercedes Benz is still struggling to get its space
in this segment. Tata’s JLR Range Rover and Jaguar XF Sportbrake has good
enough support to have mix product portfolio to increase its sales globally.
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Significantly Audi beats BMW for top spot in luxury car segment. According to
the ‘ACG Brand Image Study’ its the strong brand value that Audi imposed into the
Indian market aided them in achieving this. And there is every chance of the gap
between the two German giants to get widen in the near future. Tata Jaguar and
Land rover has shown strong growth in FY 2012-12 with 101% growth rate.
Outlook:
ACG saw drastic changes in market this year. We are expecting to have some
market correction and growth could be around 2-3% in FY 2013-14. ACG do
forecast every qtr to qtr. We will keep watching all factors which can influence car
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industry. ACG like to see some solid initiatives from the side of Indian Gov. to
keep the India Car Market more attractive.
Hero is the market leader in Indian two wheeler segment, but witnessed a 4.24%
reduction in their sales. While Honda had marked a 14.24% rise in their sales.
Notable increment had been shown by Yamaha at 36.05% and Royal Enfield at
46.53%. Piaggio registered 149.75% increase in sales with 12,280 units sold during
q1 fy 2013-14 as against 4917 units during same period of previous financial
year. The strikes at Chakan Plant of Bajaj has adversely affected their two wheeler
production and they marked 7.57% decline in sales.
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Hero also lost some market share and now stay with 43.77% while Honda’s share
had risen to 20.36.
Motorcycles
The motorcycle segment had witnessed a 3.98% de-growth during the period q1 fy
2013-14 with 2,524,316 units sold as against 2,628,975 units for q1 fy 2012-13.
Market leader Hero had their sales cut down by 8.21% while second most selling
brand Bajaj got their sales decreased by 7.57%. Among the positives Honda had
registered 20.58% growth in sales, while Royal Enfield and Harley Davidson had
also improved their sales by 46.53% and 22.70% respectively.
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Hero contributes 54.06% of sales in motorcycle segment, while Bajaj auto has
22.65% share. Improvement has been made by Honda in this segment and raised
their share in this segment to 12.48% in q1 fy 2013-13 from 9.94% in q1 fy 2012-
13.
Scooter Segment
The Scooter segment had seen their sales grow by 14.3% during the period q1 fy
2013-14 with 785,591 units sold as against 687,333 units in q1 fy 2012-13.
Segment leader Honda registered 9.65% growth while Hero had earned an
impressive 49.98% growth in sales. The segment also witnessed Mahindra sales got
decade by 51.44%.
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Honda witnessed their share came down to 50.37% in Scooter segment, while Hero
up their market share to 20.80%.
Mopeds
The sales of TVS Mopeds have decreased by 11.06% in q1 fy 2013-14. TVS sold
180,770 units during the period as against 203,247 units in q1 fy 2012-13.
Source: SIAM
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VALUE CHAIN ANALYSIS:-
Mahindra and Mahindra have strong position in the Indian commercial taxi market.
People mostly buy’s it because it has good performance in extreme condition as
well.
STP:-
Segments:-
Mahindra and Mahindra has complete range of SUV’s and Sedan segment
for attracting their target segments.
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A6 Luxary Above 5000mm
Passenger car segment in India
Source : SIAM
We can also classify Indian passenger cars into different segments based on price
and functionality.
Segment Price
Economy Less than INR 5,00,000
Premium INR 5,00,000 – 15,00,000
Super-premium Above INR 15,00,000
Indian car segment based on price.
Target Group:-
They have find out many significant factors that customer take into account
while making purchase decisions. The various factors are as follows:-
Factors
Price
Mileage
Styling/exterior
Spaciousness
Availability of spares
Interiors
Reliability/Quality
Brand Name
Availability of Financial Schemes
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Positioning
Mahindra and Mahindra to use “RISE” as new brand positioning. Keeping with its
global ambition, homegrown farm equipment-to-auto group Mahindra and
Mahindra today said it will embark on a new brand positioning to project a singular
voice for various entities under its umbrella.
The group, which has decided to use 'Rise' as the new brand position, said it will be
spending Rs 120 crore in the next three years towards promoting the new initiative.
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PRODUCT MIX
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.
Two Wheeler’s:-
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Company’s under Two wheeler:-
Products:-
Duro-DZ
Flyte
Kine
Rodeo-RZ
Duro-DZ:-
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mileage higher than other 125 cc scooters. Greater ground clearance enables
manoeuvrability over speed breakers with ease and comfort. The longer wheelbase
and improved braking system offer you better safety & stability on the road.
Flyte:-
Affordable and convenient, the Flyte grants you the freedom to go where you want,
when you want.
The Flyte is designed for convenience, comfort, and style. We added a specially
designed fuel tank inlet on the front, so you can stay seated while you refuel.
Everything from books to clothes to shopping bags are easy to fit and easy to find
in the largest-ever 22 liter dual compartment. And the four-in-one key system
multitasks to start the ignition, open the fuel lock, lock the handle, and prevent
theft.
Kine:-
The Kine brings young drivers independence. Zip to class and to your friends’
houses in style with plenty of space for your backpack or kit bag under the
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seat. Sleek grab rails make it easy to bring along a friend, and the cushy seating
keeps you both comfortable.
Rodeo-RZ:-
The Rodeo-RZ offers superior performance. Its powerful 125 cc, 4-stroke engine
delivers a rush on the open road or in traffic. It’s telescopic suspension smoothes
rough roads. Its supercharged battery gives you a clearer horn, brighter headlamp,
and instant startup. And it’s packed with features to ensure your comfort and style.
ALFA
Price:- 1.4L-1.6L
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The Alfa is a three wheeler goods carrier designed to make the loading,
transportation, and unloading of small cargos easier.
GIO
The Gio for intra-city cargo movers who need a compact, hardy truck that can carry
small quantities of goods over rough roads. Through its reliability, function-
specific size, and superior driving experience, the Gio makes hard work easier for
the drivers who depend on it every day.
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C. TRUCK
PRICE- RS.15L
Indian roads can be more than a little challenging thanks to wide variation in
terrain, inclement weather, and a large percentage of unpaved or unmaintained
routes. To succeed, you need a transportation solution that can handle it all. We
designed Mahindra trucks from the ground-up in India to excel in Indian
conditions, so that you have a more than able partner in your business.
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The Bolero Maxi Truck has the clean lines and macho grille of the Bolero utility
vehicle, and the power and cargo space of a hard-working truck. It lifts your
livelihood—and your lifestyle.
E. GENIO
Rs. 5,06,000
We built the Genio to satisfy small and medium business transportation needs.
Built for performance, it commands the style of a utility vehicle and the comfort of
a car to make transporting goods more efficient and more relaxed. And with eye-
catching metallic colors and an aggressive grill and bumper, the Genio makes a
statement.
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F. LOADKING
Rs. 6,73,865/-
Our range of Loadking trucks offers the right transportation solution for any
business. Need to transport high-volume perishables? Try the Long-Wheelbase
4tyre. Moving big loads like boulders, cement, or sand? Use the Sherpa
Tipper. We even have a model that runs on compressed natural gas (CNG) to help
you fight global warming and fuel costs.
G. MAXIMO
The Maxximo is the most technologically advanced minitruck on the Indian roads
today. Powered by the world’s first two-cylinder CRDe engine and equipped with
double overhead camshafts and four valves per cylinder, it’s built to perform.
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H. TOURIST BUSES
PRICE – 7L to 14L
Every Tourist’s two-tone, high-back seats are well spaced out to give you plenty of
legroom, and the interior is bright and spacious. We focused on the driver’s
comfort too, putting in a cable-type gearshift with a shorter gear and an adjustable
steering column.
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PERSONEL VECHICLES
BOLERO
Rs. 5,65,566
Creating the Bolero meant challenging the existing perception of utility vehicles
(UVs). Because of their toughness, the common perception is that UVs lack
comfort and style. With the Bolero, we strive to deliver the ruggedness people
expect in a UV with the driving pleasure of a car, answering the need for function
with style.
E2O
Designed for urban use, this electric car brings clean transportation options to any
lifestyle. You can carve through city traffic easily, the green way. We’ll even send
you monthly updates on your carbon consumption with tips on how to drive more
efficiently.
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Striking, convenient, and comfortable, the e2o is the successor to the
REVAi (known in the UK as the G-Wiz) which was amongst the world’s best-
selling electric vehicles. With seating for four adults and two children, it presents a
convenient transportation solution and is perfect for city driving. It operates with
maintenance free Lithium-ion batteries delivering 100 km per charge, and reaching
a top speed of over 80 km/h.
SCORPIO
The Scorpio (known in Europe as the Goa) we started with a clean sheet of paper
and just one thing in mind-our customers. Your needs became its features, and your
destinations its motivation.
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THAR
Rs.7,08,649
The Thar has been more than 60 years in the making. Mahindra built its first utility
vehicle in 1947, when it assembled completely knocked down (CKD) jeeps in
India. Rough, uncertain driving conditions across the country led Mahindra to
design its own powerful, handle-anything UV—the MM540.
VERITO
Bold straight lines and subtle curves clearly affirm its powerful stance. The
muscular side cladding, rear spoiler and roof rails bear testimony to the car’s
Mahindra lineage. The sparkle clear head lamps, chrome rear appliqué and fog
lamps add a touch of glamour. Inside, the Verito flaunts a tastefully designed sleek
control panel with a wood finish fascia.
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XYLO
The Xylo is a sleek multi-utility vehicle (MUV) that offers tons of space, style,
and features. You can literally tell this car what to do: the pioneering Voice
Command Technology lets you control over 30 actions, just by speaking.
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ACTYON
Rs 8.00 L - 10.00 L
With a dynamic and unique style that features simple and refined lines as well as a
powerful diesel engine and four wheel drive system, the Actyon offers the style of
a sports coupe and the utility of an SUV.
ACTYON SPORTS
Price N/A
Take the best of the Actyon's style and fuse it with a pickup truck's practicality.
The result? The Actyon Sports-a Sports Utility Truck that’s ready to handle any
challenge you throw at it.The first multi-purpose SUT in Korea, the Actyon Sports
fits seamlessly into an urban lifestyle with an innovative design that suits both
work and personal needs.
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CHAIRMAN W.
Price N/A
The Chairman W burst onto the scene in 2008, it strengthened the impact the
Chairman line has had on the Korean luxury car market since 1997.
KORANDO
Rs 15 lakh
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market—and even holds the Guinness Book of World Records title as Korea’s
longest-surviving brand.
KYRON
Price N/A
The varied needs of today's customers were at the forefront of the Kyron’s new
design, which made its debut in January 2011. Today, this mid-sized, high
performance SUV is more eco-friendly, more convenient, and more dynamically
styled than ever.
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REXTON
Rs 18.69- 20.92*lakh
The Rexton for a spin and you’ll immediately understand why it is Ssangyong
Motor Company’s showcase SUV. This powerful SUV offers the best combination
of performance, fuel economy, comfort, versatility, and safety.
RODIUS
The New Rodius is Korea’s first Multi-Purpose Vehicle. It combines the best from
passenger vehicles, SUVs, and minivans with some of the most popular
technologies found in our Chairman and Rexton models.
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XUV 500
The XUV 500 knows no boundaries. Mahindra’s first global SUV platform is here.
Designed with inputs from customers across the world, it is unmatched in terms of
style, performance, technology, safety and comfort – a truly complete driving
experience.
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New Launch expected:-
L . QUANTO
Designed for the modern family, the Mahindra Quanto fuses the convenience and
practicality of a hatchback, with the space and comfort of an SUV.
A new breed of compact SUV, the Quanto is the only vehicle with 5 + 2 seating in
the sub-4m category giving it best-in-class interior space. Need a bigger boot? The
5+2 seating is adaptable to the varying needs of the modern family, and the third
row of seats folds to make more space than ever before.
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M. Mahindra compact XUV500 (Expected in October 2013)
The XUV500 has been a massive success for Mahindra however now Mahindra
plans to expand and cash in on its popularity and might bring in a mini XUV500!
Yes the XUV500 may be chopped and in a bid to get more sales the compact
XUV500 could be soon a reality. The Quanto has not been a big success primarily
because it’s not exactly great looking and not that much different from the Xylo.
Defense Products:-
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 a systematic modernization and upgrade of its military
equipment. A key component of this push is the indigenization of our defense
supplies.
We've been involved with defense systems since 1947 when a licensing agreement
allowed us to become importers, assemblers, and then adapters of the iconic Willys
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
133
national security capabilities, we want to be there providing cutting-edge
technology based on decades of experience and care.
Axe
Marksman
Mine Protected Vehicle
Rakshak
Sea Mines
Torpedo Decoy Launchers
134
Mahindra Axe:-
The Mahindra Axe Light Strike Vehicle is a high mobility combat vehicle designed
for the Indian Army and the Special Forces of foreign armies. Its 140 HP, four-
cylinder diesel engine and Mercedes-Benz transmission deliver high performance
in the roughest situations. Lightweight and high-payload, the Axe can carry six
crew with full battle loads.
Marksman:-
135
Mine Protected Vehicle:-
The Mine Protected Vehicle India (MPVI) is the first product designed and
manufactured by Defence Land Systems India, the then joint venture between
Mahindra & Mahindra and BAE Systems. Designed specifically to meet Indian
security challenges and terrain, the MPVI supports the Indian armed and
paramilitary forces in their remote security procedures. With a rugged 230 HP
engine and a 6x6 transmission system, the MPVI is ready for offroading.
Rakshak:-
136
Delhi, Andhra Pradesh and Jharkhand. It’s also used by the Paramilitary and
Security forces of Guyana and Nepal.
Farm Equipment:-
They began manufacturing tractors in the early 1960s for the Indian
market. Nearly 50 years later, we are the number one tractor company in the world
(by volume) with annual sales above 200,000 and over 2.1 million tractors sold to
date. Our products are making farms more prosperous in more than forty countries
on six continents. Following our vision of Farm-Tech Prosperity, we’ve also
expanded into farm-support services, including agri-mechanization solutions under
Mahindra AppliTrac; seeds, crop protection, as well as market linkages,
distribution, agri-support information and counseling through
the Samriddhi Initiative.
Through this network of services, we aim to empower the rural farmer and
transform rural productivity, income, and living standards. We want to improve
farm lifestyles by making hard work easier, increasing yields, and increasing
returns. All our tractor brands, ranging from the 15 HP engine to 85 HP, have been
designed in close communication with farmers about their day to day tractor usage
and farming practices. From low cost tractors that cater to farmers with marginal
landholdings, to higher performance tractors with superior features, we've
revolutionised the farm equipment space. Our farm equipment and services provide
a comprehensive support system to help farmers prosper.
Arjun
Bhoomiputra
Sarpanch
Shaan
Yuvraj
138
Arjun:-
The Arjun will take your farm from prosperity to plenty. With its high-performance
engine, technological superiority, and flashy looks, the Arjun dominates in the top-
end category of 40+ HP tractors in India.
139
Bhoomiputra:-
Exceptional reliability and value for money make the Bhoomiputra our best-selling
tractor, accounting for almost 60 percent of all tractor sales. It brings you robust
style, strength, better pick-up, and high fuel efficiency—and it’s easy to
operate. Highly dependable and low maintenance, the Bhoomiputra will transform
your farm’s productivity for years to come.
140
Sarpanch:-
Ushering in a new era of turbo technology, the Sarpanch sets a new pace for
agriculture.
The Sarpanch upgrades your style with new, modern lines and a removable front
grille. Take a look at the illuminated gauges on the dashboard, bright halogen
headlamps, and comfortable seating. With turbo power and style, the Sarpanch
helps you get more done every day.
141
Shaan:-
The Shaan is a modern multi-utility tractor with the ideal combination of looks and
performance that will help you with more than just agriculture—its multi-utility
design will help you put your entrepreneurial ideas into practice. We’ve built in a
trolley with a payload of 750 kg so you can use the Shaan for a range of activities
to suit your ambitions.
With a top speed of 40 kmph and a 23.5 HP engine, the Shaan is fast enough to be
not only a farming tractor, but also a goods or people carrier. It’s got versatile style
too, with a conventional tractor look coupled with chic features including a soft-top
canopy and windscreen with wipers. Its comfortable seat and car-style clutch,
accelerator, and gears will have you speeding through your work.
In 2007, the Shaan was recognized with the American Society for Agricultural &
Biological Engineers Award for being one of the 50 Outstanding Innovations of the
Year. From agriculture to transportation, the Shaan is ready to support you in
every business activity.
142
Yuvraj:-
The Yuvraj 215’s low cost of ownership and best-in-class fuel efficiency is
bringing mechanization opportunities to farmers with small landholdings across
India and revolutionizing earnings capabilities.
We designed the Yuvraj 215 for small farm operations. With one cylinder and 15
HP, the Yuvraj 215 is compact and easy to operate. We built it for long life and
low maintenance, durability and dependability. It offers the first water-cooled
single cylinder engine in the 15 HP segment, and its side shift gear is easy and
comfortable to use.
The Yuvraj 215 achieves a top speed of 25 kmph, the highest in its class. It can
haul up to 1.5 tons. It’s ideal for farmers ready to upgrade from bullocks or power
tillers, or for farmers who need an additional machine for specific applications like
inter-culture, power generation, or water pumping. Farmers who cultivate
vegetables, tend orchards, or raise cash crops can all benefit from the Yuvraj 215’s
strong value proposition of affordability, power, and performance.
143
What is covered in the warranty?
It covers Engine, Manual Gear Box, Front Wheel Drive, Rear Axle, Propeller
Shaft, Suspension, Steering, Clutch, Breaking system, Diesel Injection System
except for standard maintenance items, body, glass and interiors. This Warranty is
mechanical breakdown coverage. If any of the covered parts break down, then for a
period of 365 days from the date of Vehicle purchase, Mahindra First Choice
Wheels will repair or replace any such part(s) at no charge. Mechanical breakdown
coverage applies to the covered parts only.
Benefits:-
Mahindra First Choice Wheels follows a stringent 118 point check to ensure the
quality standard of every certified and offers warranty to take care of unforeseen
failure of engine & many other expensive parts over a limited period of time. For a
hassle-free ownership experience and complete peace of mind, we recommend you
to choose the warranty cards.
SERVICES
Customization Service
Design services
Mahindra Spares
144
Customization Service:-
Once you pick out your automobile, we offer you an array of customization menus
to completely revise the look and feel of your car. Change everything from details
like color and spot lamps to the structure itself by restyling the body shell, hood,
and bumpers. Overhaul the interior from carpeting to the central console to the
number and type of seats.
145
Design Services:-
Our style consulting begins with an in-depth brand analysis and the development
of a robust brand identity. We take a design through every phase from concept
design to feasibility, detail design, FMEA (failure mode and effects analysis),
DMU (digital mockup), and SOP (standard operating procedure) support. We’ve
provided two wheelers, passenger vehicles, and light and heavy trucks with part
design for BIW (Body in White), exterior and interior trim, and instrument
panels. We also handle regulatory compliance with ECE, CEE, FMVSS, and AIS
standards and ensure part manufacturing and plant process compliance.
Finally, we offer project management services. Let us take care of deadlines and
milestones management, resource and supplier management, and quality
procedures. We also provide product to market support including homologation
procedures, testing, and SOP in product plants.
146
Mahindra Spares:-
You can take advantage of our spare parts to improve the machinery you depend
on, from your scooter to your tractor to your SUV. With more than 36,000 active
parts handled by over 800 vendors through our hub and spoke model, you can rest
assured that you get the best parts and service at a reduced order-to-delivery time.
N.K.Sing (Mumbai)
147
I feel my car is in safe hands, after my car warranty expired. Prefer Mahindra First
Choice Services for taking personal care & reasonable repair charges
148
PLACE
149
The Company's outstanding manufacturing skills allow it to constantly innovate
and launch new products for Indian market. The "Scorpio", a sport utility vehicle
(SUV) won National Award for outstanding in-house research and development in
2003. It also won "Car of the Year" from Business Standard Monitoring and CNBC
Auto Car. Also, it received the "Best SUV of the Year" and "Best Car of the Year"
Awards from BBC on Wheels.
It has also launched India's first tractor with turbo technology - the Mahindra
Sarpanch 595 D1 Super Turbo. The manufacturing units of Mahindra and
Mahindra are at Jaipur, Rudrapur, Nagpur, Nashik (2 units), Mumbai (2 units) and
Zaheerabad.
January, 23, 2013: Mahindra World City (MWC), Jaipur, an Integrated Business
City reaches another milestone with the signing of Mahindra & Mahindra Ltd to set
up a distribution hub for spare parts business in 10 acres within Domestic Tariff
Area of Mahindra World City, Jaipur. The new facility will be started with an
investment of Rs. 30 Cr and will provide direct employment to over 300 people.
The spare parts business unit caters to the spare parts requirements of Mahindra
vehicles and tractors in use by customers to provide them with the best and genuine
spares through capabilities in sourcing, assembling, warehousing and distribution.
As part of its expansion strategy, the business unit plans to create hubs across India
to cater to the fast growing demand for genuine spare parts.
Today, 43 companies have already signed-up with MWCJ in various zones viz.
IT/ITeS, Engineering & Related Industries and Handicrafts, which include names
like JCB, Perto, Infosys, Wipro, Deutsche Bank, State Bank of India, ICICI Bank,
EXL, Nucleus Software, Nagarro Software, Truworth, Girnar Soft, QH Talbros,
Dynamic Cables, Poly Medicure, Gravita India, Knit Pro, and Ratan Textiles
among others.
151
Mahindra World City, Jaipur is one of 16 projects world-wide to be part of the
Clinton Climate Initiative’s (CCI) effort to create Climate Positive cities. Total
investments into Mahindra World City, to date, have crossed Rs. 1000 crores.
Mahindra Spares Business Unit (SBU) is a part of the Automotive and Farm
Equipment Sector of the Mahindra Group and caters to spares parts requirement of
Mahindra vehicles and tractors in use for repair and maintenance. SBU procures
parts from various Mahindra approved vendors and plants across India and supplies
to the market through channel partners. SBU was established in August 2002 to
provide Mahindra customers the best possible and quicker solutions to their spare
Parts needs through its abilities in sourcing, assembling, warehousing and
distribution. The total turnover handled for Financial Year 2012 is around Rs.1,300
crores. New capacity creation is being done to facilitate handling business which is
expected to reach Rs.6,000 crores by 2020. SBU supplies entire range of spares for
M & M vehicles in domestic and overseas markets. The product range is
maintained and supplied in the market not just for profitability but also for
supporting vehicles on road as per the commitment of sectors to end users.
Distribution Strategy - Serve less markets at a time but serve them well
Since the Scorpio was targetted at an urban clientele it needed a stronger ditribution
presence in Metros and urban areas. Hence, the distribution channel had to focus on
providing an appealing experience for modern car buyers and on offering
international standards of auto retail.
152
State Location Class
Madhaya Pradesh Pithampur Two wheelers
Uttarakhand Rudrapur Commercial vehicles
Karnataka Bangalore Passenger vehicles
Maharashtra Nashik Passenger vehicles
Maharashtra Mumbai Commercial vehicles
Rajsthan Jaipur spare parts
Andra Pradesh Zaheerabad tractor
Other
Factory/plant Nashik
Nasik - 422403
Maharashtra – India
153
Branch Office Raheja Chambers, First Floor, 12 Museum Road.
Bangalore - 560001
Karnataka - India
Factory/plant Nagpur
Nagpur -
Maharashtra - India
Factory/plant Jaipur
Jaipur -
Rajasthan - India
Factory/plant Igatpuri
Igatpuri -
Maharashtra - India
Factory/plant Haridwar
154
Haridwar -
Uttaranchal - India
Factory/plant Pune.
Maharashtra - India
155
Mahindra dealers in Coimbatore Mahindra dealers in Cuddalore
156
Mahindra dealers in Mandi Mahindra dealers in Mangalore
157
Mahindra dealers in Udaipur Mahindra dealers in Varanasi
PEOPLE
Name Designation
A K Nanda Director
A S Ganguly Director
158
Anoop Mathur President (Two-Wheeler Sector)
M M Murugappan Director
R K Kulkarni Director
159
Shriprakash Shukla President-Special Group Projects
160
Business Structure or Organization Structure:
CEO Secretary
161
SWOT Analysis:-
Strength:-
Mahindra has been one of the strongest brands in the Indian automobile market.
Excellent branding and advertising, and low after sales service cost.
Weakness:-
Economic Crash
Opportunities:-
Developing hybrid cars and fuel efficient cars for the future.
Tapping emerging markets across the world and building a global brand.
Growing in the market through electric car Reva (controlling stake) and entry into
two-wheeler segments.
162
Threats:-
163
BCG METRIX
BCG Matrix of
Mahindra and
Mahindra
Bolero
Mahindra Voyager
Xylo
Mahindra Quanto
(Cash Cows)
Low (Dogs)
The BCG matrix is used to know about the company position about their products
that which products giving the revenue and which gives losses.
Stars:- Mahindra and Mahindra has the XUV 500 and Scorpio as the top selling
car’s for the company. XUV 500 is the market leaders in SUV segment in India
while Scorpio is top selling and famous in rural markets of India.
Cash cows:- Bolero is the best-selling vehicle for the last 2 years crossing sale of
more than 1 lac units. In 2013 bolero crossed 1,17,000 units sold across India.
Bolero was first launched in the year 2001, and it has become a cash cows for
Mahindra for the last 13 years whereas Mahindra xylo had launched in the year
2009. It is the best MUV in India.
164
Question Marks (?):- Mahindra and Mahindra has launched the Verito Vibe the
sporty sedan car in to compete in small car segments whereas the Mahindra e2o is
the first-in-line of next-generation global Electric Vehicle.e2o is born keeping YOU
and the future in mind. We are confident the e2o will transform you into a different
world with its Future Inspired design, Technically Advanced DNA, & being the
most convenient way to travel in the city.
Dogs:- Mahindra’s voyager had a flop for Mahindra and Mahindra due to it’s price
whereas Quanto is also facing loss of opportunity because the model is not selling
as per company’s projected target. The company’s thought it will recover the
investment but due to not selling this models BEP were gone for toss atleast 10
years to recover. So, it has finally became a Dogs for the company
165
Sustainable Competitive Advantage
The Mahindra World Web site was launched in June 1996. The objective of
launching the site was to disseminate information about the organisation to all
stakeholders of the company.
Over the past year the Mahindra group has launched several e-ventures,
including automartindia.com, officemartindia.com and property martin-
dia.com (a j o i n t venture with HDFC). This represents another step in
166
the ev o lu tio n of the g ro u p ’s e-business strategy–moving from an
information based e- business model to a transactions based one.
167
vendors, material, inventory and so on, can be automated. This reduces
cycle time and administrative costs, improves inventory control and
accuracy of communications.
168
NEW RESEARCH AND DEVELOPMENT
For example, we are the first company to introduce micro-hybrid technology in the
light commercial vehicle(LCV) segment with our Bolero Maxi-Truck. The micro-
hybrid variant now accounts more than 30% of Bolero Maxi-Truck sales and
Mahindra Reva is pushing the technology of electric cars, with the largest deployed
fleet in the world.
169
DIRECTORS REPORT:-
Dear Shareholders,
The Directors present their Report together with the audited accounts of your
Company for the year ended 31st March, 2012.
The Financial Year 2011-12 was beset with challenges. Global macro risks,
stemming from sovereign debt issues in the advanced economies and turmoil in the
Middle East, remained high through the year. At the same time, a weak economic
environment at home- rising fiscal and current account deficits, persistently high
inflation, rising interest rates, a weakening currency and prolonged policy and
regulatory uncertainty - added to the risks facing domestic firms and households.
Demand as a consequence, turned sluggish and the country’s economic growth
dropped to 6.9% this year (as per advance estimates put out by the CSO),
considerably below the 8.4% growth registered in the previous two fiscals.
While the agricultural and services sectors displayed some resilience, the unsettled
global outlook and constrained domestic economic environment took a particularly
heavy toll on industrial activity during the year. Environmental hurdles, corruption
charges and slowing Government approvals brought mining activity to a standstill
which severely constrained power generation and other core infrastructure
activities in the country. Hemmed in by structural impediments and rising input
costs on the one hand and weakening domestic and external demand on the other,
manufacturing activity suffered a severe loss in momentum with volume growth
dropping from 7.7% year-on-year in the first quarter of the Financial Year 2012 to
0.2% in the fourth quarter of the Financial Year 2012. Over all, industrial
production grew a paltry 2.8% in 2011-12, in sharp contrast to the 8.2% increase
registered in the previous fiscal.
170
Financial Performance
In these challenging times, the Automotive and Farm Divisions of your Company
have secured good performance reflecting in substantial growth in the net income
of the Company by 35.3% to Rs.32,319 crores in the year under review from
Rs.23,894 crores in the previous year.
Consequent to this commendable performance, the Profit for the year before
Depreciation, Finance Costs, Exceptional items and Taxation recorded an increase
of 9.0% at Rs.4,237 crores as against Rs.3,888 crores in the previous year.
Similarly, Profit after tax clocked an increase of 8.1% at Rs.2,879 crores as against
Rs.2,662 crores in the previous year. Your Company continues with its rigorous
cost restructuring exercises and efficiency improvements which have resulted in
significant savings through continued focus on cost controls, process efficiencies
and product innovations that exceed customer expectations in all areas thereby
enabling the Company to maintain profitable growth in the current economic
scenario.
Dividend
171
Performance Review
Automotive Division:
On the domestic sales front, your Company sold 2,45,700 Passenger Vehicles
[including 2,02,217 Utility Vehicles (UVs), 25,644 Multi-Purpose Vehicles
(MPVs) and 17,839 Cars] registering a growth of 36.4% over the previous year’s
volumes of 1,80,180 Passenger Vehicles [including 1,69,205 UVs, 966 MPVs and
10,009 Cars by Mahindra Automobile Distributor Private Limited] (for a
meaningful comparison, sales numbers of Verito Car is also added in the previous
year''s sales numbers). In the commercial vehicle segment, your Company sold
1,27,029 vehicles [including 53,895 vehicles < 2T GVW and 73,134 vehicles
between 2-3.5T GVW] registering a growth of 21.4% over the previous year''s
volume of 1,04,622 commercial vehicles [including 43,717 vehicles < 2T GVW
and 60,905 vehicles between 2-3.5T GVW]. In the three-wheeler segment, your
Company sold 67,440 three- wheelers registering a growth of 8.5% over the
previous year''s volume of 62,142 three-wheelers.
With an aim to strengthen its product portfolio and enter new segments, your
Company successfully launched many new products over the past two years. As a
result, the Company’s share of the Indian Automotive market stood at 11.5% in
2011-12 as compared to 9.6% in the previous year.
In the Overseas market, your Company registered a volume growth of 70.2% over
the previous year. This growth was driven by volume growth in the SAARC
countries, Chile and South Africa. During the year under review, your Company
sold 25,628 vehicles [including 157 vehicles sourced from Mahindra Navistar
Automotives Limited ("MNAL")] and 3,548 three-wheelers in the Overseas market
as compared to 14,540 vehicles [including 305 vehicles sourced from MNAL] and
2,598 three-wheelers in the previous year.
Spare parts sales for the year stood at Rs.873.99 crores (including Exports of
Rs.55.47 crores) as compared to Rs.666.97 crores (including Exports of Rs.28.3
crores) in the previous year, registering a growth of 31.0%.
Farm Division:
Your Company’s Farm Division (including the Swaraj Division) recorded sales of
2,36,666 tractors as against 2,14,325 tractors sold in the previous year, recording a
growth of 10.4%.In the Financial Year 2012, the Indian tractor industry continued
to enjoy double digit growth. The domestic market recorded sales of around
5,35,210 tractors as compared to 4,80,377 tractors in the previous year, recording a
growth of 11.4%.
Your Company’s performance was in line with the tractor industry with domestic
sales of 2,22,944 tractors as compared to 2,02,513 tractors in the previous year
recording a growth of 10.1%. Your Company’s market share now stands at 41.4%
as compared to 42% in the previous financial year, thus completing 29 years of
leadership in the Indian tractor industry. Your Company’s tractor exports grew by
173
16.2% to reach 13,722 tractors as compared to 11,812 tractors exported in the
previous year.
Beyond agriculture, in the power generation space under the Mahindra Powerol
Brand, your Company sold 29,122 engines in the current financial year as against
27,748 engines in the previous year. The growth in volume was achieved in spite of
adverse market conditions in the Telecom Sector. Your Company, while retaining
its leadership position in the genset market catering to the telecom space, has
focused its presence in the retail segment. It strengthened its position in the
fragmented inverter/Home UPS market and sold 83,993 units against 47,217 units
in the previous year, a growth of 78%.
Mr. Anand G. Mahindra commenced his professional career with Mahindra Ugine
Steel Company Limited in 1989 and then joined the Company in 1991 as Deputy
Managing Director. He has been largely credited for the Company’s diversification
into new businesses viz. real estate and hospitality management. In April, 1997,
Mr Anand G. Mahindra was appointed as Managing Director and in January, 2001
was given additional responsibility of Vice-Chairman.
The Board has placed on record its sincere appreciation of the valuable services
rendered by Mr. Dasgupta during his tenure as a Director of the Company.
Mr. Deepak S. Parekh, Mr. A. K. Nanda, Mr. Narayanan Vaghul and Mr. R.
K. Kulkarni retires by rotation and, being eligible, offer themselves for re-
appointment.
The Board of Directors at its Meeting held on 20th March, 2012 have pursuant to
the approval of the Governance, Remuneration and Nomination Committee of the
Board and subject to the approval of the Members to be obtained at the ensuing
Annual General Meeting of the Company, re-appointed Mr. Anand G. Mahindra as
the Managing Director for a period of 5 years with effect from 4th April, 2012 to
3rd April, 2017 and Mr. Bharat Doshi as the Executive Director for a period with
effect from 28th August, 2012 to 31st March, 2015.
174
Particulars of Employees
The Company had 159 employees who were in receipt of remuneration of not less
than Rs.60,00,000 during the year ended 31st March, 2012 or not less than
Rs.5,00,000 per month during any part of the said year. However, as per the
provisions of section 219(1 )(b)(iv) of the Companies Act, 1956, the Directors''
Report and Accounts are being sent to all the Members of the Company excluding
the Statement of particulars of employees. Any Member interested in obtaining a
copy of the Statement may write to the Company Secretary of the Company.
KESHUB MAHINDRA
Chairman
175
Capital Structure (Mahindra and Mahindra)
Face Value
Period Instrument Authorized Capital Issued Capital Capital
176
1993 1994 Equity Share 90 50.33 10 36.21
177
Consolidated Balance Sheet of Mahindra
------------------- in Rs. Cr. -------------------
and Mahindra
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Sources Of Funds
178
Total Debt 18,929.49 18,005.28 13,688.15 12,189.49 10,357.08
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Application Of Funds
179
Total CA, Loans & Advances 39,829.59 27,442.99 20,207.94 19,338.24 17,300.31
180
Consolidated Profit & Loss account of
------------------- in Rs. Cr. -------------------
Mahindra and Mahindra
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Income
Expenditure
181
Preoperative Exp Capitalised -177.18 0.00 -132.59 -107.80 -157.64
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
182
Total Value Addition 16,100.30 10,374.90 10,538.27 9,794.97 8,640.81
183
Consolidated Yearly Results of Mahindra
------------------- in Rs. Cr. -------------------
and Mahindra
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
EXPENDITURE
Excise Duty -- -- -- -- --
R & D Expenses -- -- -- -- --
Exp. Capitalised -- -- -- -- --
184
Other Expenses 10,957.21 9,946.42 6,553.65 7,286.90 6,674.44
P/L Before Int., Excpt. Items & Tax 7,424.87 5,922.33 5,285.05 -- --
Net Profit/(Loss) For the Period 3,645.74 2,775.96 3,197.79 2,871.49 1,705.59
Net P/L After M.I & Associates 4,099.20 3,126.66 3,079.73 2,478.56 1,405.41
185
EPS Before Extra Ordinary
a) Pledged/Encumbered
b) Non-encumbered
186
Cap. of the company)
Notes
Mar
Mar '12 Mar '11 Mar '10 Mar '09
'08
Net Cash From Operating Activities 2734.95 2979.75 2336.49 1631.30 825.83
Opening Cash & Cash Equivalents 695.97 1753.13 1543.63 1174.62 1361.79
Closing Cash & Cash Equivalents 1188.23 614.17 1750.81 1561.83 923.88
187
Key Financial Ratios of Mahindra and
Mar Mar
Mar '11 Mar '10 Mar '09
'12 '08
Operating Profit Per Share (Rs) 64.00 58.60 53.31 47.12 48.42
Net Operating Profit Per Share (Rs) 540.47 399.79 327.20 479.84 473.09
Free Reserves Per Share (Rs) 195.40 165.14 120.24 170.32 168.36
Profitability Ratios
188
Net Profit Margin(%) 8.92 11.14 11.08 6.25 9.45
Long Term Debt Equity Ratio 0.26 0.32 0.46 0.83 0.63
189
Management Efficiency Ratios
Dividend Payout Ratio Net Profit 30.17 30.15 29.87 37.29 29.10
Dividend Payout Ratio Cash Profit 25.14 26.09 25.37 27.65 23.91
190
Cash Earning Retention Ratio 73.58 72.44 74.22 75.17 71.61
Mar Mar
Mar '11 Mar '10 Mar '09
'12 '08
191
Competition
Mah and
Maruti Suzuki Hind Motors
Mah
Sources Of Funds
192
Secured Loans 400.18 0.00 35.20
Mah and
Maruti Suzuki Hind Motors
Mah
Application Of Funds
193
Total CA, Loans & Advances 8,302.37 7,310.30 139.83
194
Recent News:
Due to decrease in sales Mahindra and Mahindra has laid off 500 temporary staff
employed at its Chakan plant near Pune. The temporary workers were employed
mainly at the company’s logistics and support division, sources told the paper.
An M&M spokesman said: "We have reduced 500 temporary workers from across
our plants due to the prevailing situation within the auto industry. We have not yet
taken any call on delaying investments but if the current situation prevails we may
have to."
The company manufactures its XUV500 and Rexton SUVs and commercial
vehicles at the plant. It also has factories in Nashik and Haridwar.
M&M posted a 7% decline in domestic sales in June to 36,207 vehicles, down from
38,951 units in the same month last year. Earlier this month, the company
announced it would stop production at its plants for up to eight days during July to
reduce inventory.
Along with other carmakers, the company has been hit by persisting weak demand
and the falling rupee, leading to an increase in manufacturing costs.
After a free fall in February, car sales in India for the month of March hit another
record low, leading to the overall car sales moving into a negative territory for the
entire fiscal, the first in a decade. Passenger car sales for March fell over 20% led
by an across-the board sharp decline posted by leading carmakers that included
Maruti Suzuki, Hyundai India, Tata Motors and Volkswagen, among others.
In April, nine car companies remained negative on sales chart, while only six
managed to increase sale in the domestic market. Major carmakers like Maruti
Suzuki, Honda Car India, Mahindra&Mahindra, Renault India posted good sales in
the domestic market, while tougher times were faced by Ford Motor, Hyundai, Tata
Motor and Toyota Kirloskar Motor whose sales dipped last month over the
previous year. This follows a 7% fall in sales for the 12-month financial year that
ended in March, raising speculation that the entire passenger car industry may be
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heading for some sluggish period in the 12-month new fiscal that started in April
this year.
Carmakers are pinning hope that the recent cut in the prices of petrol may boost
demand. Already petrol cars sales have picked up in last month and smaller micro
models like Alto, Eon and WagonR that are available only in petrol increased to
47,800 units sold in April 2013 from 44,380 cars of April 2012.
Analysts tracking the auto industry remained skeptical of an early recovery and
hoped that new car launches and an upbeat festive period could only bring any
turnaround in sales. But, cautioned that before that the auto industry would have to
face four months of monsoon when sales generally remain bleak across India
The automobile industry is among the sectors that have been hit most by the
recession. Demand for cars fell sharply, accentuating the difficulties of excess
production capacity already faced before the crisis and deepening the economic
downturn in major car-producing countries. Relative to the general downturn, the
decline in car sales was nonetheless not deeper than what was observed in the past.
This chapter considers the role of the automobile industry in the current cycle. It
first examines the role of the industry in the economy, before analysing the relation
between the automobile and business cycles. After casting some light on the
sources of the collapse in car sales at the start of the crisis, the chapter discusses the
policy measures, in particular car scrapping programmes, put in place to support
the automobile industry. Finally it investigates the short and medium-term
prospects for the automobile industry.
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The main results are the following:
The size of the automobile industry relative to overall activity is small, but because
of its strong linkages with other parts of the economy, the final impact of a shock in
the industry on the broader economy is sizable.
The automobile and business cycles usually move in line with each other but the
amplitude of the cycle is higher in the automobile industry. The volatility of the
automobile industry is also higher than that of the manufacturing industries as a
whole.
Evidence for the United States and Canada suggests that the reduction in car sales
since mid-2008 has been magnified by the lack of access to credit, leading many
households to postpone their car purchases. This implies that continued
improvement in financial market conditions could provide an impetus to car sales.
The automobile industry1 represents a relatively small share of the overall size of
OECD economies in terms of value added and employment but this hides large
variation across countries. The automobile
Input-output tables allow the quantification of the size of multiplier effects from the
automobile industry to the rest of the economy. These multipliers combine
information on both domestic and import inter-sectoral linkages. They are
estimated to be close to three in G7 countries, i.e. a $1 increase in the value added
delivered by the automobile industry would increase output by $3. This level of
multiplier is at or close to the top of what is observed in other industries, and
always stronger than the average across industry (which is estimated to be at
Focusing on domestic linkages would lead to smaller multipliers but, with the
exception of the United Kingdom and Canada, the automobile industry would
continue to display stronger multipliers than the average across industry.
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CURENT STATUS OF INDIAN AUTOMOTIVE INDUSTRY
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NEED FOR A COMPREHENSIVE AUTOMOTIVE POLICY
The extant policy has drawn many overseas companies into India but needs to be
more investor friendly, address emerging problems and be WTO compatible. The
Indian car market is full of possibilities; but present demand profile inhibits volume
production, saves by a few, and conduces contention rather than competition.
World over, the majors have consolidated to elevate technology, enlarge product
range, access new markets, cut costs and in graft versatility. They have resorted to
common platforms, modular assemblies and systems integration by component
suppliers and E-Commerce. The automotive industry is in the midst of a major
structural transformation in today's globalized scenario. "System Supply" of
integrated components and sub-systems is becoming the order of the day, with
individual small components being supplied to the system integrators instead of the
vehicle manufacturers. In the process, most of the SSI units manufacturing smaller
individual components are on their way to become tier 2 and tier 3 suppliers, while
the larger companies including most MNCs are being transformed into tier 1
companies, which purchase from tier 2 & 3, and sell to the auto manufacturers. 5.3
Indian auto sector needs to grow collaterally and in harmony with world industry.
India has the potential to be a global automotive power. However, concerted efforts
will be required to take auto manufacturing to a self-sustaining level where they
shall have volumes, generate requisite technology and meet evolving emission
requirements. 5.4 Volume is important for any manufacturing enterprise. However,
it is more important for automobile sector, both for the manufacture of vehicles as
well as auto components. Lack of volume will not only inhibit efficient
manufacture but also R&D and introduction of new models. The investment and
fiscal policies should create an environment for volume production and indigenous
capability for innovation for small cars and auto components. It should be possible
to achieve an export target of US $ 1 billion by 2005 and US $ 2.7 billion by 2010.
The would require three pronged marketing strategy: exports through OEMs for
their global sourcing requirements, export to tier I manufacturers as a part of their
international supply chain and direct exports to aftermarket. The main challenges
are lower volume – low scale, fragmentation, inadequate R&D/technology support,
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lower productivity levels, limited resources for international marketing and
establishment of an efficient supply chain.
Initiatives relating to investment, tariffs, duties and imposts will be the instruments
to achieve the Policy objectives. These path government’s economic reform and are
in harmony with the commitments made to WTO. Increased resource allocation to
the highways sector to ensure collateral upgradation and development of road
infrastructure in step with the increase in the population of vehicles. 6.3 An
appropriate regulatory framework for smooth movement of traffic, safety and
environmental aspects.
IMPORT TARIFF
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as per Public Notice issued by the Director General Foreign Trade (DGFT) having
regard to environment and safety regulations. Used vehicles imported into the
country would have to meet CMVR, environmental requirements as per Public
Notice issued by DGFT laying down specific standards and other criteria for such
imports. Appropriate measures including anti-dumping duties will be put in place
to check dumping and unfair trade practices.
EXCISE DUTY
The ownership of cars in India is just 6 per thousand of population as against 500 in
the developed economies. The contribution of the auto sector to the GDP and
employment is likewise low. Expansion of local demand holds great potential and
is vital to install scale volumes of production. Domestic demand mainly devolves
around small cars not exceeding 3.80 meters in length. Small cars occupy less of
road space and save on fuel. These capture more than 85% of the market. India can
build export capability and become an Asian hub for export of small cars. The
growth of the segment needs to be spurred. Multi Utility Vehicles 9.2.1 MUVs are
an important mode of economical mass transport in rural India due to poor road
infrastructure and lack of good State transport system. They are the first vehicle
purchased by a number of farmers, traders, small businessmen in rural and semi-
urban markets. The Government will endeavor to provide fiscal incentives to the
sector. Commercial Vehicles presently excise duty on commercial vehicles sold by
a manufacturer whether as a chassis or with a complete body is 16%. However, no
duty is levied on the body that is built by an independent body builder on chassis
bought from a manufacturer. The dispensation inveigles production of the complete
trucks and buses by the chassis manufacturer and is detrimental to safety standards.
The duty imposed on the construction of bodies by an independent body builder,
small or organized sector, shall be equal to that of bodies built by a chassis
manufacturer. The Government will encourage fabrication of bus body on bus
chassis designed for better passenger comfort instead of truck chassis as is the
current practice. The Government will promote the use of multi-axle vehicles for
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carriage of goods as they cause reduced environmental pollution and lesser wear
and tear on road surface in comparison to the existing 2-axle trucks.
Traffic on roads is growing at a rate of 7 to 10% per annum while the vehicle
population growth for the past few years is of the order of 12% per annum. Poor
road infrastructure and traffic congestion can be a bottleneck in the growth of
vehicle industry. A balanced and coordinated approach will be undertaken for
proper maintenance, upgradation and development of roads by encouraging private
sector participation besides public investment and incorporating latest technologies
and management practices to take care of increase in vehicular traffic. 10.2 For the
convenience of traveling public the Government shall also promote multi-modal
transportation and the implementation of mass rapid transport systems.
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approval. Allocations to automotive cess fund created for R&D of automotive
industry shall be increased and the scope of activities covered under it enlarged.
ENVIRONMENTAL ASPECTS
The automotive and oil industry have to heave together to constantly fulfill
environment imperatives. The Government will continue to promote the use of low
emission fuel auto technology. The Government after considering the
recommendations of the Expert Committee on Auto Fuel Policy headed by Dr.
R.A. Mashelkar, have approved a road map for implementation for the auto fuel
quality consistent with the required levels of vehicular emissions norms and
environmental quality. The Government will formulate a comprehensive auto fuel
policy covering the other related aspects and ensure availability of appropriate auto
fuel/fuel mixes at minimum social costs across the country. Suitable institutional
mechanism will be put in place for certification, monitoring and enforcement of
different technologies/fuel mixes. Appropriate fiscal measures will be devised to
achieve milestones in the roadmap for implementation of auto fuel policy. In the
short run, the Government will encourage the use of short chain hydrocarbons
along with other auto fuels of the quality necessary to meet the vehicular emissions
norms. There is prime need to support the development and introduction of
vehicles propelled by energy sources other than hydrocarbons by promoting
appropriate automotive technology. Hybrid vehicles and vehicles operating with
batteries and fuel cells are alternatives to the conventional automobile, which in
their early beginnings, lie in treasured. As an impetus for the development of such
vehicles, an appropriate long-term fiscal structure shall be put in place to facilitate
their acceptance vis-à-vis vehicles based on conventional fuels. Internationally, the
practice is to levy higher road tax on older vehicles in order to discourage their use.
In India, the road tax on vehicles varies in nature and quantum among the states.
Lifetime road tax is also in vogue. The endeavor will be to move to the
international model. 13.6 In order to facilitate faster upgradation of environmental
quality, the Govt. will consider having a terminal life policy for commercial
vehicles along with incentives for replacement for such vehicles.
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SAFETY
Government will duly amend the Central Motor Vehicles Rules, Bureau of Indian
Standards (BIS) and other relevant provisions and introduce safety regulations that
conform to global standards. Testing and certification facilities need to be revised
and strengthened in accordance with safety standards of global order. Government,
in partnership with industry, will tend to the requirement.
With the growth of vehicles, smooth traffic movement has come under severe
strain. The problem has been aggravated because of inadequate provision of
parking facilities generally. Starting with metropolitan and important towns, the
Government will pursue with State Governments and Local bodies amendments to
by laws for upward revision of the parking norms for new residential buildings,
construction of common parking for existing residential areas besides parking
upgradation in all commercial areas. Multi-storied parking shall also be
encouraged.
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The “Yuvraj -215”
CASE STUDY
About 80%+ of India’s farmers are marginal or small farmers who cultivate land
holdings that are small and not amenable to mechanization. Productivity from these fields are low.
For Indian agriculture to progress, it is vital that yields from these fields are raised and farm incomes
grow.
Mahindra’s Farm Equipment Sector had a brainwave : Why not develop a tractor
that costs as much a pair of Bullocks traditionally used to work the land, thereby enabling a
quantum leap in farm productivity? Thus was born the “Yuvraj-215”, a tractor that is driving
unheard of increase in farm productivity on these small plots of land in rural India
However, the task of developing such a tractor was formidable – the cost of the
tractor had to be kept low enough to make it affordable while at the same ensuring that farmers get
the performance levels they expect. Mahindra’s R&D team took up this challenge. They captured
farmer’s insights and conceptualized a product which stands apart in terms of power, speed, fuel
consumption, aesthetics, position and draft control and a small turning radius.
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And in a market where an indigenous 9 HP (Horse Power) Tractor costs Rs.2.0
lakhs (~$4,500), the Yuvraj-215, a 15 HP tractor, introduced a year ago costs Rs.1.75 lakhs
(~$4,000). The response to the tractor has been so overwhelming that it is proving to be extremely
challenging to meet demand.
The Yuvraj-215 is a much awarded product and has been honored with the
“Golden Peacock Award
The Yuvraj-215 is a shining ability of our ability to think alternatively and make a
difference to the lives of our customers
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CONCLUSION
Mahindra & Mahindra Ltd. and Ssangyong Motor Company Limited (SYMC) have
signed a definitive agreement containing information related to securing outside
investment, the establishment of principal management, repayment of rehabilitation
claims to protect the interests of creditors, such as creditors and shareholders, and
establishing a foothold for SYMC normalization.
The total cost of acquisition is US$ 463 million with US$ 378 million in new stock
and US$ 85 million in corporate bonds. Mahindra will acquire a 70% stake, and the
deal is expected to be concluded by March 2011.
The agreement was signed in Seoul by Mr. Yooil Lee and Mr. Youngtae Park, Joint
Receivers of SYMC and Dr. Pawan Goenka, President, Automotive & Farm
Equipment Sectors, M&M, in the presence of key staff and advisors to both groups.
SYMC has been undergoing a corporate rehabilitation process since February 2009
and the court receivership will conclude upon court approval and the termination of
corporate rehabilitation process.
The labour union of SYMC, M&M and SYMC have also signed a Tripartite
Agreement which contains provisions for employment protection, long-term
investment and commitment for no labor dispute.
"The securing of a solid partner who has both financial capability and is engaged in
diverse markets will allow Ssangyong to emerge as a global SUV player through
the strengthening of R&D, investments in product development, better business
competitiveness and global sales expansion", said Mr. Yooil Lee.
The definitive agreement also encapsulates terms and conditions related to the
process of acquiring new stock and corporate bonds, down payment and deposit
guidelines, repayment of rehabilitation claims, employment guarantees, and other
covenants. M&M has already deposited 10 percent of the final purchasing price per
terms of the definitive agreement, with the remaining balance to be deposited three
days prior to SYMC’s stakeholder meeting. SYMC will update its corporate
rehabilitation plan to include reference to repaying liabilities with cash-in from the
deal, and will be required to receive approval from creditors and the court on the
updated plan. After completing all the acquisition procedures and the repayment of
rehabilitation claims, the corporate rehabilitation process is likely to be finished by
March, 2011.
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WEBLIOGRAPHY:-
http://www.moneycontrol.com/news_html_files/news_attachment/2013/M&M_IDi
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http://www.mahindra.com/#
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Companies-in-India-nid-138575-cid-3.html
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