MAHINDRA RISE

NAME-SHIVANSHI DWIVEDI
PGDM-19264
ROLL NO.-19185
SEC-D
MENTOR-Mrs.ASHIMA SAXENA
 INDEX

CHAPTER 1 HISTORY
CHAPTER 2 MISSION
CHAPTER 3 BUSINESS VENTURES
CHAPTER 4 CORPORATE INTERACTION
CHAPTER 5 MAJOR COMPETETORS
CHAPTER 6 PESTLE ANALYSIS
CHAPTER 7 SWOT ANALYSIS
CHAPTER 8 SUMMARY
CHAPTER 9 CONCLUSION
CHAPTER 10 REFERENCE
 MAHINDRA RISE

CHAPTER-1

Introduction to sector/company
1.1 History

Mahindra & Mahindra was incorporated as Mahindra & Mohammed in 1945 by the brothers J.
C. Mahindra and K. C. Mahindra and Malik Ghulam Muhammad in Ludhiana, Punjab to trade
steel. Following the Partition of India in 1947, Malik Ghulam Muhammad left the company and
emigrated to Pakistan where he became the first finance minister of the new state (and later
the third Governor General in 1951). In 1948, K. C. Mahindra changed the company's name to
Mahindra & Mahindra.

Building on their expertise in the steel industry, the Mahindra brothers began trading steel with
UK suppliers. They also won a contract to manufacture Willys Jeeps in India and began
producing them in 1947. By 1956, the company was listed on the Bombay Stock Exchange, and
by 1969 the company had entered the world market as an exporter of utility vehicles and spare
parts.[5] Like many Indian companies, Mahindra responded to the restrictions of the Licence
Raj by expanding into other industries. Mahindra & Mahindra created a tractor division in 1982
and a tech division (now Tech Mahindra) in 1986. It has continued to diversify its operations
ever since through both joint ventures and greenfield investments.[6]

By 1994, the Group had become so diverse that it undertook a fundamental reorganization,
dividing into six Strategic Business Units: Automotive; Farm Equipment; Infrastructure; Trade
and Financial Services; Information Technology; and Automotive Components (known internally
as Systech).[7] The new Managing Director, Anand Mahindra, followed this reorganization with
a new logo in 2000 and the successful launch of the Mahindra Scorpio (a wholly indigenously
designed vehicle) in 2002. Together with an overhaul in production and manufacturing
methods, these changes helped make the company more competitive,[8] and since then the
Group's reputation and revenues have risen noticeably. Currently, Mahindra & Mahindra is one
of the 20 largest companies in India[9] In 2009, Forbes ranked Mahindra among the top 200
most reputable companies in the world.[10]

In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify
Mahindra's image across industries and geographies.[11] The brand positions Mahindra
products and services as aspirational, supporting customers' ambitions to 'Rise.'

In April 2012, the Mahindra Group showed interest in purchasing the bankrupt automobile
company Saab, and placed several bids for Saab, though was outbid by Saab's new owner
National Electric Vehicle Sweden.[12]

1.2 CORE PURPOSE

Our Core purpose is derived from the Mahindra Group's purpose: We will challenge
conventional thinking and innovatively use all our resources to drive positive change in the lives
of our stake holders and communities across the world, to enable them to Rise.

1.3 About MAHINDRA

Mahindra & Mahindra to use 'Rise' as new brand positioning

Keeping with its global ambition, home grown farm equipment-to-software group Mahindra &
Mahindra today said it will embark on a new brand positioning to project a singular voice for
various entities under its umbrella.

WHAT IS MAHINDRA GROUP?

The Mahindra Group is an Indian multinational conglomerate holding company headquartered in

Mumbai, Maharashtra, India. It has operations in over 100 countries around the globe. The group
has a presence in aerospace, agribusiness, aftermarket, automotive, components, construction
equipment, defense, energy, farm equipment, finance and insurance, industrial equipment,
information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. It
is considered to be one of the most reputable Indian industrial houses with market leadership in
utility vehicles as well as tractors in India.

1.4Community initiatives
The Mahindra Group is extensively involved in philanthropy and volunteering. It is considered
an active participant in the Indian Corporate Social Responsibility field and received the Pegasus
Award for CSR in 2007.[16] Mahindra engages in philanthropy primarily through the KC
Mahindra Trust, which serves as the CSR arm of the group (although many subsidiaries have
their own CSR initiatives, notably Tech Mahindra and Mahindra Satyam).[17] Founded in 1953
by K.C Mahindra, the trust focuses primarily on fostering literacy in India and promoting higher
learning through grants and scholarships.[18] Mahindra operates several vocational schools as
well as the Mahindra United World College.[19] The KC Mahindra Trust’s primary project
however is Project Nanhi Kali, which targets the education of young Indian girls.[20] The
foundation currently supports the education of approximately 51000 underprivileged girls.[21]
Other initiatives include Mahindra Hariyali (a 1 million tree planting campaign)[20] as well as
sponsorship of the Lifeline Express, a mobile hospital train. Mahindra employees also plan and
lead their own service projects through Mahindra’s Employee Social Options Plans. In 2009,
more than 35,000 employees participated.[22]

The Mahindra Group was responsible for the creation of Mahindra United World College, a
UWC campus located in Pune.

Mahindra also supports the Mahindra Excellence in Theatre Awards to recognize Indian theater
talent, the Mahindra Indo-American Film Festival, and the Mahindra Lucknow Festival. In 2011,
it held the first annual Mahindra Blues Festival with guests like Buddy Guy, Johnny Lang, and
Shemekia Copeland at the Mehboob Studios in Mumbai.[23] Mahindra also partners with the
NBA and Celtic Football Club to bring grassroots basketball and football to India.[24]

1.5Leadership
Keshub Mahindra, the Chairman Emeritus of Mahindra & Mahindra, is a graduate of Wharton
Business School, University of Pennsylvania, USA. He joined the company in 1947 and became
the chairman in 1963.

During his career he has also been 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 Institute
for Management Development (1984–89)

His awards include: Companion - British Institute of Management(1985), Chevalier de la Légion

d'honneur (1987), Business India - Businessman of the Year(1989), Honorary Fellowship of All
India Management Association (1990), Institute of Company Secretaries of India (ICSI) Lifetime
Achievement Award for Excellence in Corporate Governance (2004), Lakshya Business Visionary
Award - NITIE (2006), ICFAI Business School (IBS) Kolkata Lifetime Achievement Award
presented by the Institute of Chartered Financial Analysts of India (ICFAI)(2007)[25]

At the time of the Bhopal Disaster he was managing director of Union Carbide India Ltd.( In
2010 he was charged and indicted for causing death due to negligence and sentenced to 2
years' imprisonment and Rs 1 Lakh fine. He was granted bail shortly after being sentenced.[26]
[27]

Anand Mahindra is Chairman and Managing Director of Mahindra & Mahindra. He graduated
from Harvard University and earned his MBA from Harvard Business School in 1981.[28] He
joined the Mahindra Group in 1981 as an Executive Assistant to the Finance Director of the
Mahindra Ugine Steel Company. [29]
CHAPTER 2

MISSION OF MAHINDRA RISE

Mahindra Foundation is the Corporate Social Responsibility (CSR) arm of Mahindra. It was set
up in 2007 as a Section 25 Company (referred to as Section 8 Company in the Companies Act,
2013), with a vision of Empowering through Education, and a mission encapsulated in the words
below:

Educated, skilled and able women and men are a country’s true strength. We aspire to see
children who are purposefully engaged, youth that is constructively employed and a society that
provides equal opportunities to people with different abilities. Through its corporate social
responsibility initiatives, the Mahindra Group commits itself to this.

The key focus areas for Corporate Social Responsibility at Mahindra Foundation are:

• Empowerment of girls/women

• Empowerment of people with disabilities

• Corporate volunteering
These three areas are cross cutting themes for all our projects and programmes at Tech Mahindra
Foundation. The Foundation works with the mandate that 50% of its beneficiaries are women and 10%
are Persons with disabilities.

2.1 Vision of Mahindra rise

The vision of the company is to be the ‘Leading independent player in the global Gears &
Transmissions Space’.

This we wish to achieve through a two pronged approach of developing a portfolio of products
thereby being able to provide a differentiated product offering to our customers and extensive
focus on operational excellence thereby improving internal efficiencies in the system.

2.2 Core Purpose

Our Core purpose is derived from the Mahindra Group’s 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
2.3 Core Values

We are governed by the Core values of the Mahindra Group. They are an amalgamation of what
we have been, what we are and what we want to be. These values are the compass that guides
our actions, both personal and corporate. They are:

Good Corporate Citizenship: We will continue to seek long term success in alignment with the
needs of the communities we serve. We will do this without compromising on ethical business
standards.

Professionalism: 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.

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.

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.'

Dignity of the individual: 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.

2.4 PRODUCT AND SERVICES

The group has a presence in aerospace, agribusiness, aftermarket, automotive, components,

construction equipment, defence, energy, farm equipment, finance and insurance, industrial
equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two
wheelers.
CHAPTER 3

Major business ventures

*Aerospace

Mahindra Aerospace

*Aftermarket

Mahindra First Choice Services

Mahindra First Choice Wheels

*Agribusiness

Mahindra Agribusiness Division

EPC Mahindra

*Automotive

Mahindra & Mahindra

Mahindra Truck & Bus

Mahindra Reva

SsangYong Motors

*Mahindra Two Wheelers

GenZe

Pininfarina

Automobili Pininfarina

Peugeot Motocycles

Jawa Motocycles

*Components
Engines Engineering

*Mahindra Castings
Mahindra Composites

Mahindra Engineering

Mahindra Gears and Transmissions

Mahindra Forgings

Mahindra Hinoday Ltd

Mahindra Intertrade

Mahindra Sona Ltd.

*Mahindra Steel Service Centre

Mahindra Systech

Mahindra Ugine Steel

Metalcastello S.p.A

*Consulting
Mahindra Integrated Business Solutions

Mahindra Consulting Engineers

Mahindra Logisoft

Mahindra Special Services Group

*Defence
Mahindra & Mahindra - Military Defence Division

Defence Land Systems

*Education
Mahindra United World College of India

Mahindra École Centrale

*Energy

Mahindra & Mahindra - Energy Division

Mahindra Solar One

Mahindra Susten Pvt. Ltd., formerly (Mahindra EPC Services Pvt. Ltd.)
*Farm EquipmentMahindra & Mahindra - Farm Equipment Division
Mahindra USA Inc

Mahindra Yueda (Yancheng) Tractor Co

Mahindra Tractors

Erkunt Tractor

Gromax Agri Equipment Ltd. (erstwhile Mahindra Gujarat Tractor Ltd)

Mahindra Swaraj

Jiangling Tractors

*Financial Services
Mahindra & Mahindra Financial Services Limited

Mahindra Insurance Brokers

Mahindra Rural Housing Finance

Mahindra Mutual Fund[13]

*Hospitality
Mahindra Holidays and Resorts

*Industrial Equipment
Mahindra Conveyor Systems

*Information Technology
Tech Mahindra

Mahindra Com viva

*Bristlecone
Canvas M

*Logistics
Mahindra Logistics
Smart Shift

*Luxury Boats
Mahindra Marine Private Limited

*Ecommerce
M2ALL - Official Mahindra e-store

*Real Estate
Mahindra Life spaces

Mahindra World City

*Retail
Mahindra Retail

*Sports
Mahindra United FC

Mahindra Racing

Mahindra-NBA Partnership

Mahindra-Celtic Football Club Partnership

*Defunct
Mahindra Satyam

Mahindra Renault
 CHAPTER 4
Corporate Information

Mahindra & Mahindra Limited

Type Public
 BSE: 500520
 NSE: M&M
Traded as
 BSE SENSEX Constituent

Industry Automotive
02 October 1945; 73 years ago
Founded
Jassowal, Ludhiana, Punjab, India
J. C. Mahindra
Founders K. C. Mahindra
M. G. Muhammad
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Anand Mahindra
(Chairman)
Key people
Pawan Kumar Goenka
(MD)
Automobiles, commercial vehicles,
Products
two-wheelers
₹105,806 crore
Revenue
(US$15 billion)[1] (2019)
Operating ₹8,870 crore
income (US$1.3 billion)[1] (2019)
₹6,016 crore
Net income
(US$870 million)[1] (2019)
₹163,391 crore
Total assets
(US$24 billion)[1] (2019)
Number of
42,875[2] (2019)
employees
 Parent Mahindra Group
 Pininfarina (76.06%)
 Mahindra 2 Wheelers
 Ssangyong Motors
(74.65%)
Subsidiaries  B.S.A Company
 GenZe
 Mahindra Reva
 Peugeot Motocycles (51%)

4.1 BRAND ANALYSIS

Parent Company: Mahindra

Category: Sedans, SUV’s, Two-wheelers

Sector: Automobiles

Tagline/ Slogan: Rise; Every 2 minutes a Mahindra is born.

USP: Mahindra SUV’s have a stronghold in the Indian commercial taxi market which have good
performance o tough terrains.

4.2 STP OF MAHINDRA RISE

Segment: Complete automobile segment including sedans & SUV’s

Target Group: Young executives from the upper-middle income bracket

Positioning: A brand which promotes new thinking accepts no limits and drives positive change.

4.3 FOUR I’s of Mahindra rise:

*INNOVATIONS.

*INFRASTRUCTURE.

*INVESTIMENT.

*INSTITUTIONS.

INNOVATIONS: Mahindra Rise is one of the top industries in India. The director of the
Mahindra & Mahindra, Anand Mahindra, and put innovation is the core of its growth strategy.
The radical innovation is successful in managing the balance between the structured processes
and the creation of an environment.

According to this Mahindra group:

Innovation should start with the insight about customer, which the Mahindra & Mahindra group
found by going to fields and observing the lives of farmers. And this group found that the
tractors were used for personal use.

The Mahindra & Mahindra group encourages the experiments.

The new inventions should add value to company’s bottom line that is nothing but profit.

The important point is that great products should have great design.

Thus Mahindra & Mahindra took this initiative and made the culture of innovation.

INFRASTRUCTURE: The Mahindra & Mahindra infrastructure is a JV between Mahindra

Group and International Finance Corporation. It works close association with global companies
to bring world class technologies and practices. It mainly focus on ownership, development and
management of infrastructure projects. It is becoming the leading infrastructure developer in the
country.

INSTITUTIONS: The Mahindra & Mahindra group is placed in all sectors like

Telecommunications and it is named as Tech Mahindra.

Software, Mahindra & Mahindra came to software field after buying Satyam Company and it is
named as Mahindra Satyam

Mahindra & Mahindra also has its recognition in the Infrastructure and it is named as Mahindra
Infrastructure Developers. In this it also have holiday resorts it named as Mahindra Holidays and
Resort LTD (MHRIL)

Mahindra & Mahindra is one of the top industries in India for automobiles and it is the starting
point of Mahindra & Mahindra Company. Mahindra & Mahindra also involved in financial
sector and its name is Mahindra & Mahindra Financial Service LTD. Mahindra & Mahindra
Group also have Mahindra Special Services which was established in 2001 as a separate division
in Mahindra & Mahindra. Mahindra & Mahindra also have Mahindra Defense Systems which
oversees the requirement of India’s Defense and Security forces.
INVESTIMENTS: Mahindra & Mahindra group have shares in many companies. Presently
Mahindra & Mahindra Group want to acquire Ssangyong and expand its business in international
market. But on other hand, its investors are quite suspicious regarding the investment. In the past
Mahindra & Mahindra Group made many Joint Ventures and acquisitions and it has forayed into
different sectors of automobiles like light, medium and heavy commercial vehicles it also
ambitious to acquire two wheelers also.

4.4 MARKET SHARE

M&M Income Statement Analysis

Operating income during the year rose 9.9% on a year-on-year (YoY) basis.

The company's operating profit increased by 23.2% YoY during the fiscal. Operating profit
margins witnessed a fall and down at 14.4% in FY18 as against 12.8% in FY17.

Depreciation charges and finance costs increased by 16.6% YoY and 9.3% YoY, respectively.

Other income declined by 13.6% YoY.

Net profit for the year grew by 96.5% YoY.

Net profit margins during the year grew from 4.8% in FY17 to 8.6% in FY18.

M&M Income Statement 2017-18

No. of Months Year Ending 12 Mar-17* 12 Mar-18* % Change

Net Sales Rs m 837,731 920,940 9.9%

Other income Rs m 7,301 6,310 -13.6%

Total Revenues Rs m 845,032 927,250 9.7%

Gross profit Rs m 107,348 132,261 23.2%

Depreciation Rs m 28,127 32,799 16.6%

Interest Rs m 36,485 39,871 9.3%

Profit before tax Rs m 50,038 65,901 31.7%

Tax Rs m 22,997 23,677 3.0%

Profit after tax Rs m 40,505 79,578 96.5%

Gross profit margin % 12.8 14.4

Effective tax rate % 46.0 35.9

Net profit margin % 4.8 8.6

* Results Consolidated

Interim results exclude extraordinary / exceptional items Source: Company Reports, Regulatory
Filings, Equity master

M&M Balance Sheet Analysis

The company's current liabilities during FY18 stood at Rs 491 billion as compared to Rs 398
billion in FY17, thereby witnessing an increase of 23.4%.

Long-term debt stood at Rs 338 billion as compared to Rs 301 billion during FY17, a growth of
12.2%.

Current assets rose 23% and stood at Rs 591 billion, while fixed assets rose 21% and stood at Rs
305 billion in FY18.

Overall, the total assets and liabilities for FY18 stood at Rs 1,372 billion as against Rs 1,147
billion during FY17, thereby witnessing a growth of 20%.

Current Liabilities Rs m 398, 325491, 49523.4

Long-term Debt Rs m 301, 245338, 09212.2

Total Liabilities Rs m 1,147,4221,372,10919.6

Current assets Rs m 478, 778590, 76023.4

Fixed Assets Rs m 252, 680304, 51420.5

Total Assets Rs m 1,147,4221,372,10919.6

Interim results exclude extraordinary / exceptional itemsSource: Company Reports, Regulatory

Filings, Equitymaster

M&M Cash Flow Statement Analysis

M&M's cash flow from operating activities (CFO) during FY18 stood at Rs 7 billion, an
improvement of 272.4% on a YoY basis.

Cash flow from investing activities (CFI) during FY18 stood at Rs -55 billion on a YoY basis.

Cash flow from financial activities (CFF) during FY18 stood at Rs 63 billion, an improvement of
3% on a YoY basis.

Overall, net cash flows for the company during FY18 stood at Rs 15 billion from the Rs 4 billion
net cash flows seen during FY17.

M&M Cash Flow Statement 2017-18

Particulars No. of months 12, 12% Change

Year Ending Mar-17Mar-18

Cash Flow from Operating Activities Rs m 1,831 6,819 272.4%

Cash Flow from Investing Activities Rs m -58,754 -54,679 -

Cash Flow from Financing Activities Rs m 61,080 63,145 3.4%

Net Cash Flow Rs m 4,158 15,291 267.8%

* Results Consolidated

Interim results exclude extraordinary / exceptional items Source: Company Reports, Regulatory
Filings, Equity master

Current Valuations for M&M

The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.0, an decline
from the EPS of Rs 74.8 recorded last year.

The price to earnings (P/E) ratio, at the current price of Rs 932.5, stands at 24.0 times its trailing
twelve months earnings.

The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to
sales ratio stands at 1.5 times.

The company's price to cash flow (P/CF) ratio stood at 11.4 times its end-of-year operating cash
flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*

Sales per share(Unadj.) Rs 1,546.3 740.8

TTM Earnings per share Rs 74.8 64.0

Diluted earnings per share Rs 32.6 64.1

Price to Cash Flow x 8.5 11.4

TTM P/E ratio x 10.5 24.0

Price / Book Value ratio x 2.4 3.8

Market Cap Rs m 505,210 1,158,337

Dividends per share (Unadj.) Rs 13.0 7.5

* Results Consolidated
Interim results exclude extraordinary / exceptional items Source: Company Reports, Regulatory
Filings, Equity master

Ratio Analysis for M&M

Solvency Ratios

Current Ratio: The Company’s current ratio improved and stood at 1.2 x s during FY18, from 1.2
x s during FY17. The current ratio measures the company's ability to pay short-term and long-
term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.7x
during FY18, from 2.4x during FY17. The interest coverage ratio of a company states how easily
a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 21.6% during FY18,
from 13.6% during FY18. The ROE measures the ability of a firm to generate profits from its
shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 20.3%
during FY18, from 16.7% during FY17. The ROCE measures the ability of a firm to generate
profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.7% during FY18,
from 6.7% during FY17. The ROA measures how efficiently the company uses its assets to
generate earnings.

Key Ratio Analysis

No. of Months Year Ending 12 Mar-17* 12 Mar-18*

Current ratio x 1.2 1.2

Debtors’ Days 31 34

Interest coverage x 2.4 2.7

Debt to equity ratio x 1.0 0.9

Return on assets % 6.7 8.7

Return on equity % 13.6 21.6

Return on capital employed % 16.7 20.3

* Results Consolidated

Interim results exclude extraordinary / exceptional items Source: Company Reports, Regulatory
Filings, Equity master

To see how M&M has performed over the last 5 years, please visit here.

M&M Share Price Performance

Over the last one year, M&M share price has moved up from Rs 695.7 to Rs 932.5, registering a
gain of Rs 236.8 or around 34.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,172.7 (down 0.1%). Over the last one
year it has moved down from 24,323.1 to 24,172.7, a gain of 150 points (down 0.6%).

Overall, the S&P BSE SENSEX is up 18.8% over the year.

 CHAPTER 5 MAJOR COMPETITORS

1 TATA MOTORS

2 ASHOK LEYLAND

3 EICHER

4 HONDA

5 NISSAN

6 BHARAT BENZ

7 FORD

8 VOLKSWAGEN

9 TOYOTA

10 SKODA

11 FIAT

12 MITSUBISHI

13 MARUTI SUZUKI
 CHAPTER-6

6.1. PESTLE ANALYSIS

Many factors in the environment that affect the organization are:

 Tax changes.
 Trade barriers.
 Government policy changes.

These are the some of the macro changes. Thus to analyse these factors we categorize them using
PESTEL analysis. The PESTEL analysis includes Political, Economic, Social, Technological,
Ecological, Legal factors.

Political Factors: This is a Government policy which includes what are the goods and services
does a Government want, to what extent the government can subsidize firms and its priorities in
political decisions and business support. The factors related to Mahindra & Mahindra group: For
Mahindra tractor industry the Government laid stress on mechanism of agriculture to boost food
grain production. Change in Taxation policy. Regaining “Agricultural dynamism” is the key goal
in eleventh Five year plan.

Economic Factors: The Economic factors which includes taxation change, inflation, interest
rates, economic growth and exchange rates. Cost of tractors in India is cheaper when compared
to other countries. 95% of tractors are on credit based. For agriculture inputs less interest rate
charged by the banks.

Social Factors: As the population increases the demand on goods get increased. Thus there will
be demand for firm products and industry. As there is increase in awareness in farmers there is a
need technology and thus there is a requirement of tractors and farmers can buy tractors on credit
bases. To meet the farmers demand the mechanized operations are preferred to eliminate delay,
also labour shortage. The other main important thing which Mahindra & Mahindra do for its
long-term sustainability is CSR (Corporate Social Responsibility). Mahindra & Mahindra group
spend Rs.1.3crore it is head donation in its annual report. Its activities include K. C. Mahindra
Education Trust which provides education at various levels. There is another program for helping
unprivileged girl child at the Mahindra foundation it is nanhi. This is the main things which are
done by Mahindra & Mahindra group for its long-term sustainability. The Mahindra & Mahindra
also have its own foundation as Mahindra Foundation which was set up with a specific objective
that to provide medical relief to poor people.

The Mahindra foundation always very responsive to any major disasters whether it has been
taken as tsunami or the Gujarat earthquake, it provided support either by financially or by
sending vehicles, supplying manpower or material.

Technological Factors: Increase in new Technology can create new products and process which
can reduce the cost, improve the quality, lead to innovation and also reduce the life cycle of the
product. This technology will benefit consumers as well as organizations.

Effect of Continuous technological innovation:

Continuous improvement in technology will reduce use of Renewable energy development.

Ecological Factors: It include weather and climate change. The major climate changes occurring
due to Acid rain, Green-house effect, Global warming thus it is becoming significant for the
firms. Thus because of this impact environmentally friendly products and processes have more
demand and also creating business opportunities.

Global Warming: Mahindra group is trying to release electric cars to reduce the pollution and
also reduce the usage of renewable goods.

Legal Factors: Legal factors are related to legal environment. In recent years the developing
countries changed the Legal factors which affected the firm’s in other countries due to
globalization.
CHAPTER-7
7.1 SWOT ANALYSIS FOR THE ORGANISATION

SWOT ANALYSIS
SWOT (Strengths, Weakness, Opportunities, Threats) of Mahindra & Mahindra group

Strengths of Mahindra & Mahindra group:

Mahindra & Mahindra is one of the top players in the world in terms of number of tractors sold.
This itself shows that Mahindra & Mahindra market share is the biggest strength of the company.
It also have highest domestic share. The some other strengths of Mahindra & Mahindra group:

Product portfolio of Mahindra & Mahindra got extended from 20hp to 30hp.

There is government support for Mahindra & Mahindra Group.A

Availability of technically skilled people from JTC (Jiangling Tractor Company).

For its next stage of expansion Mahindra & Mahindra have a strategy. It not only focus on new
products, it also have a programme of intensive management development to establish its leader
for future.

The major strength of Mahindra & Mahindra is it have ability to introduce new products and
process in to the market and also can generate sales for those new products.

Weakness of Mahindra & Mahindra group:

The production is non-competitive because of high interest costs and overheads.

Infrastructure of this group is Bottle neck. The company’s passenger cars are based upon 3rd and
4th generation platform. In this group there is lack of efficiency for new plant layout. Another
weakness of Mahindra & Mahindra is multi franchise. In Mahindra & Mahindra there is no
effective dealership.

The M&M is mainly dependent on rural sector, the rural sector mainly depends on monsoon.
Thus if there is bad monsoon for two consecutive years which leads to adverse impact on
demand for tractors.
Opportunities of Mahindra & Mahindra group:

Rural demand is increased. Income level is increasing. Ban for overloading of commercial
vehicles. With the support of local partners there is an easy entry to Chinese market. The
Mahindra & Mahindra will be more competitive in Chinese market if they provided after sales
service. To get more demand the Mahindra & Mahindra group should export Chinese range
tractors to India and Indian range tractors to China. Mahindra also entered in to software field
after buying satyam and renamed it as Mahindra Satyam.

Threats of Mahindra & Mahindra group:

Input cost got increased. Competition also increasing. The most important threat of Mahindra &
Mahindra is legal consideration. In China the Banking facilities are undeveloped.

The M&M also involved in different fields like holidays, telecom industry, financial services and
resort etc. Which should have good subsidiaries from time to time if these are unmanageable this
will divert the company’s attention from its business which leads to destruction of shareholders
value.

Mahindra & Mahindra will face more competition if the foreign players enter in to the tractor
segment because these foreign players are technically more competitive when compared to
Mahindra.
CHAPTER-8

8.1 SUMMARY
1. However, in 1997 as a part of becoming focused conglomerate, M&M chopped-off businesses
that were non-core, such as Otis.

2. Mahindra & Mahindra Limited, as a Holding Company, owns the outstanding stocks of many
national and international companies. For example, it has acquired 70% of Korean Company
Ssangyong internationally and 51.1% of Satyam Computers Limited, nationally Mahindra &
Mahindra is also into its manufacturing and trading interests.

3. For information, Tech Mahindra was incorporated as a joint Venture between Mahindra &
Mahindra and BT plc in 1986 under

54 CASES IN MANAGEMENT

The name of ‘Mahindra-British Telecom’. Later, the name was changed to ‘Tech Mahindra’, in
order to reflect the diversification and growth of the client base and the increased breadth of the
company’s service offerings

4. The number of employees in Satyam Computers Limited was also alleged to have been
inflated prior to exposure of scam to show fictitious expenses and capabilities. Thus, the number
of employees is a not definite.
CHAPTER-9

9.1 CONCLUSION
Thus according to research on Mahindra & Mahindra Group it shows that the company uses the
Strategic Key points in the external environment for long-term sustainability and sustained
success. It is the one which encourages the new ideas and also have plan to sale the new product
in the market. This company is the one which try to develop new products for consumers.
Mahindra & Mahindra Company is also socially responsible it give 1.3crore only from its annual
report for helping poor and unprivileged girls. Which shows that the company not only think
about its profits but also feel the responsible about our country India. It is that which also do
international trading with other countries. It also has a clear vision and goal which shows the
dedication of the company. The mission itself says that it is not thinking about profits but it want
develop ourselves. Mahindra and Mahindra try to develop the new products which do not harm
the environment and save the renewable resources example MAHINDRA REVA which is an
electric car. According to research it shows that Mahindra & Mahindra is one company which is
respected and trusted by customers and it is the top industry of India.
CHAPTER-10

10.1 REFERENCE
Anjum Zaffer (2012). The resurgence of Satyam Noida, India: Random House India.

Business Line Bureau. (2010, November 23). M&M inks Ssangyong deal; buys 70% for $ 463
m. The Hindu Business Line. Retrieved September 29, 2012, from
(http://www.thehindubusinessline.com /todayspaper/article1010139.ece)

Business Standard Reporter. (2009, April 14). Tech Mahindra snaps up

Satyam. Business Standard. Retrieved September 29, 2012, from

ENS Economic Bureau. (2009, June 22). Satyam, the name’s ‘Mahindra

Satyam’. The New Indian Express.

Gopalan, M. (2012, May 31). M&M on course with Ssangyong

turnaround. The Hindu Business Line.

Kazmi, A. (2008). Strategic Management and Business Policy. New

Delhi: Tata McGraw-Hill Publishing Company Limited.

Krishnamurthy, G. (2011, August 8). Mahindra bets on “India Rising”.

The Hindu Business Line. Retrieved September 29, 2012.