MAHINDRA & MAHINDRA

Presented by- Aamir Khan -02

deepti Nair -04
Subir Singh -06
Vikas Yadav -07
Mayank Agarwal-12
 Overview
 It was established in 1945
 It is the US$ 6.7 billion group
 Its market capitalization is 289651.06 ( Rs in
million)
 It has a total revenue of 2905.42 (USD in
millions)
 It has a net profit 8367.8 million
 Core business activities

 Automotive sector
 Farm equipment sector
 Information technology
 Infrastructure development
 Trade and logistics
 Retail sector
 3Q 2010 Revenues
Sales in Billion
Automoive
9% 2% 5%
36% Farm Equipments
2%
IT Services
2%
Infrastructure

17% Hospitality

systech

28% Trading

Finacial services
 HISTORY
 Born around the same time as independent India

 0n October 2nd, 1945, 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.
 Since then Mahindra & Mahindra has grown in size
and stature and evovoled into a group that occupies
a premiere position in all sectors of the economy
 Mahindra a Global time line

 In 1969 – Mahindra
established its export
division with its first
order of 600 jeeps for
the Yugoslavian
market.
 In 1970’s – Mahindra begins exporting vehicles to
Nigeria and other African countries.

 Today, the company has a presence in almost 15

markets in Africa.
 In 1970’s
 Mahindra begins exporting vehicles to Nigeria and
other African countries.
 Today, the company has a presence in almost 15
markets in Africa.
 It was also during the 70’s that Mahindra
concluded exports of about 3300 units, mainly to
Indonesia and Yugoslavia
In 1980’s

Mahindra exports its

CJ5 Model to Iran
where it sold under
the brand name of
Sahara
 In 1990’s
 Mahindra begins exporting to Nepal in the early
90’s .

 Today, the mountain kingdom is one of Mahindra’s

key markets in neighbouring countries CBU
exports in Ro-Ro shipment was made to Ceylon ,
Kenya , Namibia, Mozambique in Africa .
 In 2000
 The Bolero was launched, further transforming the
image of the company with its contemporary looks
and style.

 Mahindra increased its global aspirations and

expanded further field. It was during this decade
that Mahindra’s export division gained further
momentum.
 In early 2000’s M&M made its presence in
Tanzania , Sri Lanka, Congo, Madagascar,
Mozambique, Ethiopia , Rwanda, Burundi and
Nigeria.
In 2002 - a milestone year
 M&M achieved a major milestone with the launch
of its first indigenous SUV, the Scorpio A runaway
hit from the day of its launch
 In 2004
 A significant year for Mahindra
 The company open its first office outside India
marking its presence internationally
 An SKD (Semi Knocked Down) facility was set up in
Uruguay for manufacture of the Bolero Pik- Up which
is locally sold under the brand name of Cimarron
 Mahindra South Africa, a JV company, was also set
up in South Africa for sale of the Scorpio and Bolero
Pik Up.
 In 2005
 Mahindra Europe was established in Italy with the
launch of the Scorpio (known as the Mahindra
Goa), and Bolero Pik Up.

 Mahindra also made a foray in the French market

in the same year.
 In 2006

 M&M launches a
product solely for
the overseas market,
the Mahindra Pik
Up which was built
on the Scorpio
platform.
 Mahindra announced its entry in Spain at the
Madrid Auto Show.

 M&M’s debut in the country was led by the

Mahindra Goa, the Mahindra Pik-Up and the
Bolero Pick up range of vehicles.
 In 2007
 Mahindra consolidates its position in neighbouring
countries including Bhutan.
 The company soon forays into Sudan Morocco,
Algeria and Ghana, consolidating its position in the
African continent.
 It also ventures into Chile in South America with
the introduction of the Mahindra Pik Up.
 In 2008
 M&M’s first overseas CKD (Completely Knocked
Down) operations are established in Egypt with the
launch of the Scorpio.

 This was soon followed by CKD operations in

Brazil for manufacture of the Scorpio SUV and Pik
Up range.
 M&M has been increasing its global footprint and
has established itself in markets across the world as
one of the world’s most prestigious auto brands.

 The emphasis is now on establishing a solid local

presence in different countries.
 International operations

International CAGR
14000
operations 12359
12000
has ever
10000
since 8021 8501
8000
enjoyed a
6000 5534
healthy
CAGR (64% 4000 3046

from 03 to 2000 1061 1607

08) 0
2003 2004 2005 2006 2007 2008 2009
 Further, we aspire to be the first automaker in
USA. Today thousands of people use Mahindra
vehicles every day and perceive the Mahindra
badge as a symbol of trust, reliability, durability,
style and innovation.

 The journey has just begun…

 Why South Africa

1. Sound economic polices

2. Access to the market
3. Industrial capability
4. World class infrastructure
5. Gate way to Africa
6. Cost of doing business
7. Competitiveness
 Sound economic policies

 Taxes reduced
 Tariffs lowered
 Fiscal deficit brought under control
 Implementation of the strategy – such as
investment in infrastructure
 Access to the market
 SA is ideally positioned for access to the 14
countries comprising the Southern African
Development Community (SADC) – with a
combined market of over 250-million people – as
well as the islands off Africa's east coast, and even
the Gulf States and India.
 It also serves as a trans-shipment point between the
emerging markets of Central and South America and
the newly industrialised nations of South and Far
East Asia.
 Major shipping lanes pass along the South African
coastline in the South Atlantic and Indian oceans,
 Its seven commercial ports form by far the largest,
best equipped and most efficient network on the
continent.
 These ports are the hubs for traffic to and from
Europe, Asia, the Americas and the east and west
coasts of Africa.
 Industrial Capability
 South Africa's industrial production growth is well
above the average for developing markets.

 The country's manufacturing output is increasingly

technology-intensive, with high-tech
manufacturing sectors – such as machinery,
scientific equipment and motor vehicles – enjoying
a growing share of total manufacturing production
since 1994.
 SA technological research and quality standards are
world-renowned.

 The country has developed a number of leading

technologies, particularly in the fields of energy
and fuels, steel production, deep-level mining,
telecommunications and information technology.
 World class Infrastructure
 It includes a modern transport network, relatively
low-cost and widely available energy, and
sophisticated telecommunications facilities.
 These are being significantly upgraded and
expanded in preparation for the 2010 Fifa World
Cup.
 The government has identified massive infrastructure
projects as key to boosting the country's economic
growth rate and creating employment.
 Gate way to Africa
 It is a minimum requirement for accessing other
sub-Saharan markets.

 The country borders with Namibia, Botswana,

Zimbabwe, Mozambique, Swaziland and Lesotho

 Its well-developed road and rail links provide the

platform and infrastructure for ground
transportation deep into sub-Saharan Africa.
 SA has the resident marketing skills and
distribution channels imperative for commercial
ventures into Africa.

 The country plays a significant role in supplying

energy, relief aid, transport, communications and
outward investment on the continent.
 Cost of doing Business
 SA exchange rate makes it one of the least expensive
countries for foreigners to live and do business in –
with a first-world infrastructure and high living
standards ensuring good value for money.
 South Africa's energy costs are still among the lowest
in the world
 the country compares favourably for petroleum prices,
with private sector and multinational oil companies
refining and marketing nearly all imported petroleum
products in southern Africa.
 Competitiveness
 A number of industrial support measures have been
introduced since 1994 to enhance the competitiveness
of South Africa's industrial base.

 SA unit labour costs are lower than those of other key

emerging markets, including Mexico, Hungary,
Malaysia and Singapore

 The country’s labour productivity has improved

markedly in recent years.
 South Africa's corporate tax rate – down to 28% for
2008/09 – compares favourably against a number
of developing companies, and the prospects of
further reductions are good.

 South Africa was ranked 44th out of 130 countries

– ahead of Italy and India – in the World Economic
Forum's Global Competitiveness Index for 2007/08
 Mahindra in South Africa
 Mahindra & Mahindra entered SA in October 2004

 It went into partnership with the local company

African Automotive Investment Corporation
(AAIC)

 M&M LTD had 92% stake and AAIC had 8% stake

 Incorporation
 Mahindra South Africa was incorporated in 2006
and based in Highveld SA

 M&M LTD has a 51% stake in it

 It was formed as a subsidiary of Mahindra &

Mahindra LTD.
 Infrastructure
 Previously the port capacity Durban had one berth
and 6500 parking bays

 Now there are three berths and 14000 parking bays

 This enables car unit to handle 500000 units a year.

 Distribution
 The company has dealers in all nine provinces of
south Africa
 Dealers are equipped with fully-fledged facilities
 MSA also has a very powerful network
 It has have collaborated with Berco, a renowned
logistics and distribution company
 It has more then 40 dealers
 Distribution
 MSA has also expanded into other sub-Saharan
countries.
 Currently exporting vehicles to-
 Zimbabwe
 Zambia
 Botswana
 Swaziland
 Namibia
 Distribution / Sales
 Mahindra SA is also well represented on the
agricultural front with a range of tractors currently
available in the country.

 Since its establishment in October 2004, and since

then, the company has sold a total of approximately
11 000 vehicles.
 New vehicles
sales(excl.exports) - SA

Market Oct 2009 Nov 2009 Dec 2009

Passenger 20,828 19,304 16,075
Light CV < 3500 kg 9,198 9,194 9,430
Medium CV 3501 – 8500 kg 627 535 551
Heavy CV 8501 – 16500 kg 280 265 270
Extra Heavy CV > 16500 kg 566 517 413
Bus > 8500 kg 93 144 211
31,592 29,959 26,950
 VEHICAL POPULATION IN SA ( END OF
2008)

Market Population at the end of 2008

Passenger 5,039,596
Light CV < 3500 kg 2,423,005
Medium CV 3501 – 8500 kg 135,874
Heavy CV 8501 – 16500 kg 83,658
Extra Heavy CV > 16500 kg 100,255
Bus > 8500 kg 14,896
7,797,284
 COMPARITATIVE PASSENGER CAR SALES
DATA

PASSENGER SALES YEAR SALES

Total Sales January 2010 23,768

Total Sales January 2009 20,618

Total Sales December 2009 16,075

Total Sales December 2008 19,653

 Comparative Passenger Car Sales (S.A)
Jan 2010.
LAMBORGHINI 1
CHANA 4
MASERATI 5
MAHINDRA 28
PORSCHE 75
SUBARU 100
FIAT GROUP 187
VOLVO CARS 194
TATA 218
PCSA (Puegot & Citreon) 232
SUZUKI AUTO 293
CHRYSLER SA 366
JAGUAR LAND ROVER 429
RENAULT 578
HONDA 606
NISSAN 744
GMSA (Cadillac, Chevrolet, Hummer & Opel) 1904
FMCSA (Ford & Mazda) 2203
MERCEDES-BENZ SA 3028
BMW GROUP 3057
VW (Audi & VW) 4680
TOYOTA 4836
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Passenger Car Sales – South Africa
(Dec ’09 – Jan ‘10)
 Daihatsu, Hyundai, Kia, SsangYong, Chery and
Foton reported sales by major segment as
follows -

SEGMENT VOLUME

SMALL CARS (CUBIC

CAPACITY 1400CC OR LIGHT COMMERCIAL VEHICLES 722
LESS) 1595

MEDIUM CARS (CUBIC 4X4 RECREATIONAL/SUV 942

CAPACITY 1400CC -
2500CC) 549
LARGE CARS (CUBIC CAPACITY 2500CC OR GREATER) 154
LARGE CARS (CUBIC
CAPACITY 2500CC OR
GREATER) 154 MEDIUM CARS (CUBIC CAPACITY 1400CC - 2500CC) 549

4X4 SMALL CARS (CUBIC CAPACITY 1400CC OR LESS) 1595

RECREATIONAL/SUV 942
0 200 400 600 800 1000 1200 1400 1600
LIGHT COMMERCIAL
VEHICLES 722
TOTAL 3962
 New launch 2009
 Mahindra launched Xylo in SA
 The range consist of two variants-
 The luxury model E8
 The people model E2
 Mahindra SA offers
VEHICAL SA PRICE RAND INR COVERT IN
(RAND) CONVERT TO RAND
INR
XYLO Rs 6,23,900 – Rs
8,33,500

BOLERO R89,995 Rs 5,45,304  Rs 5,38,989

SCORPIO R106900- Rs 6,47,736- Rs Rs 7,91,560 - Rs

R234900 14,23,322 10,13,953
 Future plans...
 The company has robust plans to launch new
products and business in SA
 Mahindra are also looking into opportunities in
various sectors in South Africa, through their
subsidiaries.
 Club Mahindra, a time-share company
 Tech Mahindra, which supplies
telecommunications software solutions
 Mahindra Finance.
THANK YOU………!