CHAPTER-1

INTRODUCTION

Introduction of the
Company

M a h i n d r a & M a h i n d r a
L i m i t e d

Mahindra Rise
Type

Public

Traded as

BSE: 500520
BSE SENSEX Constituent

I n d u s t
r y

Automotive

F o u n d e 1 9 4 5
d
( L u d h i a n a )
H e a d q u a r t e Mumbai, Maharashtra, India
rs
A r e a
s e r v e d

W
d

o
e

K e y
p e o p l e

Anand Mahindra (MD)

P r o d u c
t s

Automobiles, commercial
vehicles, two-wheelers

R e v e n u
691 billion (US$12 billion)
e
(2012)
Net income

41 billion (US$690 million)

(2012)

Total assets

712 billion (US$12 billion)

(2012)

E m p l o y e 3 4 , 6 1 2
e s
2 0 1 3 )

( M a r -

Parent

Mahindra Group

Subsidiaries

Mahindra Two Wheelers limited

SsangYong Motor Company

W e b s i t Mahindra.com
e

Mahindra & Mahindra Limited (M&M) is an Indian multinational

automobile manufacturing corporation headquartered in Mumbai. It is
one of the largest vehicle manufacturers by production in India and

the largest seller of tractors across the world. It is a part of Mahindra

Group, an Indian conglomerate.
It was ranked as the 10th most trusted brand in India, by The Brand
Trust Report, India Study 2014.It was ranked 21st in the list of top
companies of India in Fortune India 500 in 2011.
Its major competitors in the Indian market include Maruti
Suzuki, Tata Motors, Ashok Leyland, Toyota, Hyundai, MercedesBenz (Merc) and others.

History

Mahindra & Mahindra was established on October 2, 1945 when K.C.

Mahindra visited the United States of America as Chairman of the
India Supply Mission. He met Barney Roos, inventor of the rugged
'general purpose vehicle' or Jeep and had a flash of inspiration:
wouldn't a vehicle that had proved its invincibility on the battlefields
of World War II be ideal for India's rugged terrain and its kutcha rural
roads. Swift action followed thought. The Mahindra brothers joined
hands with a distinguished gentleman called Ghulam Mohammed.
And, Mahindra & Mohammed was set up as a franchise for
assembling jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra &
Mohammed changed its name to Mahindra & Mahindra. Ghulam
Mohammed migrated to Pakistan postpartition and became the first
Finance Minister of Pakistan.
Mahindra & Mahindra is the only Indian company among the top
three tractor manufacturers in the world. The Group has a leading
presence in key sectors of the Indian economy.The Group employs
over 50,000 people and has several stateoftheart facilities in India
and overseas.
Mahindra & Mahindra has comprehensive manufacturing facilities
with high level of vertical integration. Catering to the Sector's diverse
customer base spanning rural and semi urban customers, defence
requirements and luxurious urban utility vehicles or SUVs. These
manufacturing plants keep abreast with the latest technology to meet
the growing market expectations. These manufacturing facilities have
some of the best technologies and equipment in India and provide for
a very challenging and satisfying work environment. Its plants in
Mumbai and Nasik manufacture multiutility vehicles and engines are
produced at the Igatpuri plant. Utility Vehicles, Light commercial
vehicles and 3 wheelers are manufactured at the Zaheerabad plant in
Andhra Pradesh and threewheelers at the Haridwar plant.
The business area of the company spreads to:
Automotive sector
The company manufactures & markets utility vechicles, light
commercial vechicles that includes three wheeler vechicles,namely;
Scorpio, Bolero, Champion and many more. The company also

exports its products to several countries in Europe, Africa, South

America, South Asia and the Middle East. M&M has a tie up with
Renault for production & marketing of Logan. Mahindra International
is into producing trucks and buses.The company has entered into a
joint venture with Navistar for production of disel engines & trucks.
Farm equipment
M&M's farm equipment segment has presence in six continents and
has a worldwide network of 800 dealers .Its total combined
production capacity is 1,50,000 tractors a year from countries like
India, USA, China and Australia. The company is also into agri
business.
Trade, Retail & Finance
Mahindra Intertrade Division provides steel & steel related services.
It offers steel raw materials, metals, ferro alloys, etc. It also processes
Cold Rolled Grain Oriented (CRGO) and Cold Rolled Non Grain
Oriented (CRNGO) steels that are required for transformers &
compressors.Mahindra Retails is into distribution business and has tie
up with big names like Lego, Disney, Mattel and others. Mahindra
Finance is into financing of tractors and other vehicles and is also into
Insurance broking.
Infrastructure
M&M has also entered Infrastructure development that operates in
real estates, SEZs, hospitality, project engineering and design.Under
this it has created Mahindra Holiday & Resorts, Mahindra Lifespaces
& Mahindra World City.
Information Technology
Tech Mahindra provides solutions & services to telecommucation
majors namely Alcatel, AT&T, BT, Convergys, Ericsson and O2,
among others. It is also into business process and technology
consulting services through Bristle.
Systech

It is into supply of automotive components.It produces forged and

forged / machined components, gears and composities.
Speciality Business
Under this division it has companies like Mahindra Defence,engaged
in manufacturing defence related vehicles & Mahindra Ashtech.

Trade, & Retail and Logistics Retail Mahindra Retail

Ferro Alloys and Metal Scrap Steel and Steel Related
Services Technical Products And Services Toys and
Apparel Corporate People Movement Supply Chain
Management Service Centre for Automotive and Electrical
Steels
Information Technology

Dealership Management

Facility Management

Software Solutions

Infrastructure Development

Development of Infrastructure Projects

Engineering consultancy

Integrated Business Cities

Lifetime holidays

Living Spaces and Working Spaces

Systech

Composites

Engineering Services

Forgings

Gears

Sourcing of Auto Components

Stampings and Steel

Speciality Business

Ash Handling Euipments for Power Plants

Defence Vehicles

Information Security Consultancy

Milestones:

1945: 2nd October, Mahindra & Mohammed established.

1948: The Company was renamed Mahindra & Mahindra

Limited (M&M).Steel trading business commenced, in association
with suppliers in UK.

1949: Jeep assembly commenced.

1950: The first business with Mitsubishi Corporation
commenced and 5000 tons of wagonbuilding plates from Yawata
Iron & Steel were supplied.

1953: Otis Elevator Company (India) was established.

1954: Technical and Financial Collaboration with Willys

Overland Corporation to assemble Jeeptype vehicles.

1956: Shares listed on the Bombay Stock Exchange. Dr. Beck

& Company established a joint venture with Dr. Beck &
Company, Germany.

1957: Mahindra Owen established a joint venture with

Rubery Owen & Company Limited, UK.

1958: Machine Tools Division commenced operations.

1960: Mahindra Sintered Products Limited established a joint

venture with Bir Field (GKN Group, UK).

1962: Mahindra Ugine Steel Company established a joint

venture with Ugine Kuhlmann, France.

1963: International Tractor Company of India established a

joint venture with International Harvester Company, USA.

1965: Manufacture of light commercial vehicles

commenced. Vickers Sperry of India Limited established a joint
venture with Sperry Rand Corporation, USA.

1969: The Company entered the world market with export of

utility vehicles and spare parts.

1970: Mahindra Engineering & Chemical Products Limited

commenced operations.

1971: International Harvester collaboration ended.

1975: Mahindra Engines developed an indigenous diesel engine

for its vehicles to beat the fuel crisis.

1977: International Tractor Company of India merged with

Mahindra & Mahindra to become its Tractor Division.

1979: License from Automobiles Peugeot, France, for

manufacture of XDP 4.90 Diesel Engines.

1982: Mahindra brand of tractors launched.

Limited established.

1983: Mahindra & Mahindra became market leader in the

Indian tractor market, a position it has retained till date.

1984: Mahindra Hellenic Auto Industries S.A. established a

joint venture in Greece to assemble and market utility vehicles in
Europe.

1986: Tech Mahindra (formerly known as Mahindra British

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

Siro Plast

1987: Acquired International Instruments Limited.

1989: Automotive Pressing Unit (now Mahindra Ugine Steel

Company Limited) acquired from GKN.

1991: Introduction of Commander Range of

vehicles. Mahindra Financial Services Limited established as a
wholesale fund provider.

1992: Merged diverse activities of Steel, Machine Tools and

Graphics into Intertrade Division.

1993: Incorporation of Mahindra British Telecom International

Inc., USA, a wholly owned subsidiary of Mahindra British
Telecom.

Mahindra Steel Service Centre Limited established in

association with Mitsubishi Corporation and Nissho Iwai
Corporation of Japan.

Mahindra Acres Consulting Engineers Limited established a

joint venture with Acres International Limited(Canada) to provide
multidisciplinary engineering consultancy services.

Armada range of vehicles launched.

1994: Reorganisation of the Group creating six Strategic

Business Units: Automotive, Farm Equipment, Infrastructure, Trade
& Financial Services, Information Technology(earlier known as
Telecom and Software) and Systech(earlier known as MSAT).
Mahindra Realty & Infrastructure Developers Limited established.
Mahindra USA Inc. established for distribution of tractors in the
USA. EAC Graphics (India) Limited established in collaboration
with The East Asiatic Company Limited A/S, Denmark. Mahindra
Allwyn Nissan Limited merged with the Company.

1995: Mahindra Holding & Finance Limited became a

subsidiary of Mahindra & Mahindra to carry out business as an
investment company.

Technical collaboration with Mitsubishi / Samcor to

manufacture the Mitsubishi L300.

1996: Mahindra Ford India Limited established a joint

venture with Ford Motor Company, USA, to manufacture passenger
cars.

The Company made a Foreign Currency Convertible Bond

(FCCB) issue of US$ 115 million.

Mahindra Holidays & Resorts India Limited established.

Mahindra Consulting (now Bristlecone) established.

1997: Inauguration of the Mahindra United World College of

India. Mahindra World City Developers Limited established to set
up integrated townships.

1999: Launch of Bijlee, a batteryoperated, environmental

friendly 3wheeler.

The largest online used vehicle website in India launched by

Mahindra Network Services.

The Company acquired a major stake in Gujarat Tractors and

renamed it Mahindra Gujarat Tractors Limited.

Mahindra & Mahindra Financial Services Limited became a

subsidiary of Mahindra & Mahindra.

Mahindra Logisoft Business Solutions Limited established.

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

2000: The Company adopted a new logo.

Mahindra Auto Specialties Limited established a new 100%

subsidiary.

Mahindra & Mahindra set up its first satellite tractor plant at

Rudrapur.

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

Bolero GLX (a utility vehicle) launched in response to the needs

of urban consumers.

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

Mahindra MaXX launched, a multiutility vehicle positioned

with the caption 'Maximum Space, Maximum Comfort'.

Mahindra & Mahindra tied up with Renault for Petrol Engines.

A separate division established to provide Defence Solutions.

Mahindra Special Services Group established to provide

Information Security.

Mahindra Infrastructure Developers Limited established for

development and management of infrastructure projects.

Mahindra Lifespaces Developers Limited established for

development of corporate property.

2002: Scorpio launched, a new generation, worldclass sports

utility vehicle that redefined the SUV market and lived up to its
positioning: 'Nothing else will do'.

2003: Invader launched a sporty open top vehicle.

A second tractor assembly plant set up in USA.

MaXX Pik Up launched.

India's first Turbo tractor launched Mahindra Sarpanch 595 DI

Super Turbo.

Mahindra & Mahindra ventured into Industrial engine business.

An alliance formed between Mahindra Defence & Lockheed

Martin Information Systems, UK, for defence products.
Mahindra Engineering Services established.

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

International market.

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

developing components as well as offering engineering
services.

Bolero and Scorpio launched in Latin American, Middle East

and South African markets.

Signed MoU to enter into joint venture with Jiangling Motor

Company Group (JMCG) of China, to acquire tractor manufacturing
assets from Jiangling Tractor Company, a subsidiary of Jiangling
Motor Company Group.

Mahindra & Mahindra became the first Indian company to

achieve sales of one million tractors.

2005: Acquired 51% stake in SAR Transmission Private

Limited, a company engaged in manufacture of gears and
transmission shafts.

Farm Equipment Sector launched operations in Australia.

Mahindra & Mahindra became the first Indian auto

manufacturer to launch the Common Rail Diesel Engine (CRDe),
offering it in the Scorpio.

Acquired 80% stake in the joint venture with Jiangling Motors

i.e. in Mahindra (China) Tractor Company.

Mahindra Renault Limited established a joint venture with

Renault to manufacture and market Logan, a midsized sedan, in
India.

Mahindra International Limited established a joint venture

with International Truck and Engine Corporation to manufacture
trucks & buses in India.

2006: Announced plans to set up a 3000 acres Special

Economic Zone in Jaipur.
The Mahindra United football team