MAHINDRA & MAHINDRA COMPANY

GENERAL INFORMATION:

The Company deals in automotive and farm equipments. It was founded in 1945 and it has head quarters in Mumbai, India. Keshub Mahindra (Chairman), Anand Mahindra (Vice-Chairman &

Managing Director) are the key people. Their net income is Rs. 2,871.49 crores. They have more than 1,00,000 employees around the globe. Currently, M & M is the leader in utility vehicle segment in India.

Core Business Activities:

It has acquired plants in China and the United Kingdom, and has three

assembly plants in the USA. Mahindra Tractors is number one in sales in India - the largest tractor market in the world and it has been the market leader since 1983. Its sales are predominantly in the states of Gujrat, Haryana, Punjab, Maharashtra and the Southern States. Its sales in Gujarat are under the label Mahindra Gujarat and its sales in Punjab are under the label Swaraj.

 With strategically-priced launches like the Xylo, M&M had a dream

run in FY-10. The company posted a growth of 40 per cent in revenues and a whopping 120 per cent in profits over the previous year. The growth this year (2010-11) is expected to moderate to 12-13 per cent, according to SIAM (Society of Indian Automobile Manufacturers). The current market price of Rs 638, offers an attractive entry point. At this price, the stock trades at about 17 times its trailing twelve month standalone earnings, at a discount to the BSE Auto Index .

FIRMING UP Uvs:

M&M ended FY-10 with 63 per cent market share, a gain of 6

percentage points over FY-09. &M has launched the Gio and Maxximo, both sub-one- tonne trucks, the market for which is huge, going by the demand for vehicles. GOING GREEN: In May this year, the company bought 55 per cent stake in the electric car company, Reva. M&M has developed an in-house micro hybrid technology that saves fuel.

BRIGHT PROSPECT FOR TRACTORS: M&M has become the largest tractor maker in the world in terms of volumes. M&M had a dream run in FY-10, doubling its operating profit margins to 16 per cent. PROFITABILITY CONCERNS: The company has faced production losses of about 6,500 vehicles since January. M&M expects global vehicle sales to contribute to about 20 per cent of its total business by 2012 (about five per cent in 2008-09). The company expects to hedge 50 to 60 per cent of its projected exports brings in some comfort.

Factors determining elasticity of demand in Mahindra and Mahindra cars:

Nature of commodity Availability of substitute Number of uses Habits and customs Level of income Possibility

 Time Element

Availability of substitutes
Availability of resources Objectives of the business firms Change in cost of production

 The Chakan plant is one of the most modern plants in India and

is said to create new benchmarks in automotive excellence. Rakesh Kalra, managing director, Mahindra Navistar Automotives Ltd., said, The launch of the MN25 truck is a major step in the direction of making us a full range commercial vehicle player. M & M and Navistar entered into a JV to manufacture light, medium and heavy commercial vehicles for India as well as global markets.

 Renault and Mahindra would create a greenfield site with

capacity of 500,000 units per year within five years. M&M Enters 7.5 Tonne Segment with Tourister32 Mahindra & Mahindra announced its maiden entry into the 7.5 tonne commercial vehicle segment with the launch of the Tourister, a 32-seater bus. It offers users maximum speed of 100 km/hr, with better pickup and grade ability than its competitors.

Mahindra Renault Logan GLS 1.6 Rs. 6,50,507

Mahindra Renault Logan DLE 1.5 Rs. 6,92,557

Mahindra Renault Logan GL 1.4 Rs. 4,89,182

Mahindra Scorpio 2.6SLX 7-Seater Diesel

Rs.9,48,988 Mahindra Scorpio 2.6 LX 7-Seater Rs.8,15,224

 Net income climbed to 5.7 billion rupees, or 9.57 rupees a

share, in the three months ended in March, from 4.18 billion rupees, or 5.41 rupees. Mahindras spending on materials increased 34 percent to 31.2 billion rupees in the quarter while wage costs fell 2.3 percent to 2.66 billion rupees. The automaker rose 3.3 percent to 545.95 rupees yesterday in Mumbai. The stock is little changed this year.

 Mahindra Xylo Price Rs 6,35,300* - Rs 8,56,400*

Mahindra Xylo E8 Price Rs 8,07,000

Mahindra Xylo E8 ABS Price Rs 8,24,900

Mahindra Xylo E8 ABS Airbag Price Rs 8,45,400

Mahindra Xylo Celebration Edition Price Rs 8,31,600

 Mahindra's auto division saw 8-10 per cent production loss in

the June quarter due to shortage of spare parts. The production of the company's tractor division also suffered by 7-8 per cent due to component supply issues. VE Commercial Vehicles (VECV) had said it is currently incurring a production loss of up to 20 per cent for its Eicherbranded trucks and buses due to shortage in supply of components.

M&M Standalone results The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th June 2010 is Rs.5663.5 crores as against Rs.4711.8 crores during the corresponding period last year a growth of 20.2%. In the current quarter the company continued its dominant position in the UV market with a market share of 59.4%. In Q1 F2011 the company sold 47,916 tractors under the Mahindra & Swaraj brands as compared to 42130 nos. in Q1 last year a growth of 13.7%.

 The Gross Revenues and Other Income for the quarter ended

30th June 2010 grew by 9.4 % to Rs. 8,576.2 crores (USD 1.8 billion) from Rs.7,841.4 crores (USD 1.7 billion) in last year. On a comparable basis the Gross revenues and Other Income of the Group for the current quarter is Rs 9218.7 crores (USD 2.0 billion) a growth of 17.6% over Q1 last year. As on 30th June 2010, the Group comprised of 103 Subsidiaries, 5 Joint Ventures and 11 Associates.

Outlook: Given its strong focus on cost controls, product innovation, and customer delight, the company is confident of meeting these challenges adequately. About The Mahindra Group:
Mahindra embarked on its journey in 1945 by assembling the Willys

Jeep in India and is now a US $7.1 billion Indian multinational.

Mahindra is also one of the few Indian companies to receive an A+ GRI

checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.