MAHINDRA PARTNERS SECTOR:

RETAIL BUSINESS CASELET

Mahindra Partners is the internal venture capitalist, nurturing new businesses of the
Mahindra Group such as Logistics, Luxury Boats, Retail, Industrial Equipment, Energy
and other new ventures . This caselet pertains to the Mahindra Retail business.
BUSINESS BACKGROUND
Estimated at INR. 10,000 crores in 2006, the Mother & Child Care Market in India did
not have a single organized retailer to address the needs of mother and child under one
roof. Only those Indians who travelled abroad had access to specialized mother & infant
products from well-known international brands. Local brands and unorganised stores
were the only choices and the Indian mother and her baby had signicantly lesser
choice that her western counterparts had. The Mahindra Group saw the opportunity to
ll this gap with a specialty retail chain for Mother & Child, while also bringing the
Mahindra brand to every young & aspirational household, woman and child. Mahindra
Retail was created to bring love, joy and a sense of well-being to all mothers and
children and has the following operations today:
MOM&ME STORES: With differentiated, innovative products and high standards of
service, Mom&Me aspired to be a guide through the journey of motherhood, being the
one-stop shop for an expecting mother and her childs needs. It was everything together
that was to be The Mom & Me experience - a celebration of Motherhood.
Mom&Mes 5S model makes it unique, without a clear comparable competitor:
SHOP CONCEPT: Mom&Mes product range caters to -9 to +9 - from a pregnant
mother to the time kids are old enough to be on their own; most competitors do not
cover this range of products both in width and depth.
SHOPPING EXPERIENCE: The shopping experience and value added services make it
pleasurable and convenient for mothers to shop with more aisle space, high visual
merchandising standards, a feeding area for infants and toddlers while shopping, kids
play area, free mineral water, nappy change areas, reading lounge, web-kiosk etc.

SELECTION: The selection of brands, chosen from among the best world-wide,
catering to discerning customers, starved of such quality products in the past.
STAFF: Specially trained Sales staff, who undergo a 21-day intensive training on all
stages of pregnancy and motherhood, the needs of mothers in different life stages,
product knowledge and customer service skills. Among the sales staff are also
parenting advisors - the super-moms with experience and expertise to guide rst-time
moms with all that they need.
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SERVICES: The stores conduct customer forums on topics like pre-natal training, yoga,
nutrition, story-telling for children, safety etc. to enable sharing of knowledge and
customer experiences in the stores. The Mom&Me website too offers an extensive
knowledge base on parenting, enabling customers to blog their experiences and
network.
The rst Mom&Me store in January 2009 and has expanded to over 100 company-
operated and 15 franchise-operated stores, with an average size of 3000 sq. ft. across
52 cities and towns in India. Mom&Me stores sell products across 10 departments
Womens Maternity Apparel (Western & Ethnic), Womens Fashion Apparel (Ethnic),
Mothers Wellness, Baby Wellness, Infant Essentials, Fashion Apparel & Accessories
(0-2 years), Kids Fashion Apparel & Accessories (2-9 years), Kids Footwear, Toys &
Games, Nursery (Furniture & Furnishing), and, Travel & Safety.

BEANSTALK STORES: Mahindra Retail has also created Beanstalk, a network of 25
specialized Toys stores, across mostly South India catering to children in the 2 to 15
years age group.
DISTRIBUTION SBU: Mahindra Retails Distribution SBU holds exclusive import &
distribution rights for many well-known international brands and sells to other retailers &
large format stores across the country.
PRIVATE LABELS: Mahindra Retail has developed the following private labels known
for quality and value: Kriti, a range of maternity and non-maternity western & ethnic
wear for moms-to-be, with comfortable cuts even after pregnancy; m&m Infant apparel
with fabrics meeting International safety standards for new-borns to children up to 3
years; Beanstalk for Kids from 2 to 9 years; BabyPure range of babies & mothers
wellness products such as diapers, wipes, breast pumps, bathing, feeding and other
wellness products; Cots & More range of furniture sourced from the Far East; The Lil
Wanderers range of Strollers & Car Seats designed with advance cushioning systems
for a babys comfort & light weight materials for a mothers convenience; Playnation
range of toys such as like tricycles, scooters, ride-ons and remote-controlled playmates.
Mahindra Retail vows to be the preferred choice of every mother and child and to
delight them with world class products, personalized services and extraordinary love
and care. With a nominal online presence, Mahindra Retail expects the next round of
growth ofine, through franchising of both Mom&Me and Beanstalk brand stores.
LIVE CHALLENGE: STRATEGY TO GROW 10X IN THE NEXT 5 YEARS
Having served over 1.2 million customers in the last 5 years, Mahindra Retail aspires to
be a Billion Dollar (INR. 6000 Crore) company by 2019, through an omni-channel
strategy encompassing all the current business lines as follows:
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Broadvision Perspectives Client Condential Page 1 of 1
1. Expand to more than 1000 innovative concept stores of sizes from 500 sq. ft to 3000
sq.ft, across Mom&Me CoCo, Mom&Me FoFo, Beanstalk Toys CoCo, Beanstalk Toys
FoFo, Beanstalk Apparel FoFo, Kriti Apparel FoFo and Babypure Wellness FoFo
stores (in smaller cities), targeting a revenue of INR. 2000 crores.
2. Supply of Private Lables to over 10,000 doors across the country, grossing INR. 2000
crores
3. Improve sales through e-commerce through own website and those of market places
such as Amazon and Flipkart, realizing INR. 1000 crores with estimated target of 5
million annual transactions.
4. Acquisition of other mother & child care retailers in the online segment.

Having crossed the milestone of reaching 1 Million customers, Mahindra Retail now
dreams of reaching a 10 Million Customer Base.

Is Mahindra Retail right in following its vision & going all out in achieving its
target of over 10 times growth in the next 5 years? If yes, suggest the means of
achieving it. If not, suggest an alternative vision & strategy for Mahindra Retail,
and, the means of achieving the same.
Mahindra War Room 2014 Retail Business Caselet
Broadvision Perspectives Client Condential Page 1 of 1