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Mahindra and Mahindra.ppt

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					Mahindra and Mahindra Limited
Content
 Market Overview
 Mahindra and Mahindra
       History
       Product Line
       Marketing & Business Strategy
       Financial
       CSR Initiatives
     Growth drivers for the
     Indian automotive industry
                                                                          Overall economic
                                                      Government           growth
                                                        Policies          Lower duties & taxes




                                                                                   Increasing      Growth in
   Contemporary             New product
    products                                     Indian Automotive                 consumer         Income levels
                             launches
                                                      Industry                     demand          Easier financing
   Shorter life cycle




                          Export
                           Competitiveness
                          Reduced cost
                                                  Cost Competitiveness
                           to consumer
                          India emerging as a
                           manufacturing hub
Players: Indian auto industry
Global     Indian OEM
OEM        Tata Motors                     Indian
                                            Auto
GM         Mahindra &                     Industry

Toyota     Mahindra          Global                      Indian
Ford       Bajaj Auto         OEM                         OEM

Hyundai    TVS Motors
Honda      Hero Honda
Skoda      Bajaj Tempo
Volvo      Ashok Leyland     Global                      Indian
                            Suppliers                   Suppliers
Mercedes    Global
            Suppliers                   Engineering &
            Delphi                      Development
                                         Companies
            Visteon
            Bosch
            Denso
            Thyssen Krupp
Vehicle sales in INDIA
Auto components industry has
also grown at a rapid pace ...
Exports are rising - India has the
potential to become the global
outsourcing hub
Indian Automotive Industry
 The industry has grown at a CAGR of
  14% p.a over the last 5 years
 With potential to emerge as one of the
  largest in the world. Presently, India is
      2nd largest two wheeler market in the world
      4th largest commercial vehicle market in the
       world
      11th largest passenger car in the world and is
       expected to be the 7th largest market by
       2016
 The industry has emerged as a key
  contributor to the Indian economy
HISTORY OF M&M
JC Mahindra           KC Mahindra       G.Mohammad




   Keshub Mahindra             Anand Mahindra
        Chairman-07                 Vice Chairman,MD- 07
MILESTONES OF M&M
 M&M established its business connections in
  the USA through Mahindra Wallace.

 It started steel trading     on   behalf   of
  European suppliers

 M&M was converted into a public limited
  company on June 15,1955

 Machine Tools division was started.
Contd...
 Mahindra    Engineering   &   Chemical
  Products Ltd. (MECP) was formed.

 M&M became the market leader in the
  Indian tractor segment-1983

 Mahindra British Telecom (MBT) was
  formed as a joint venture with British
  Telecommunication plc (BT), UK-1986
MISSION & VISION
 “We don’t have a group-wide mission
  statement. Our core purpose is what makes all
  of us want to get up and come to work in the
  morning”        -Anand Mahindra

 Indians are second to none in the world. The
  founders of our nation and of our company
  passionately believed this. We will prove them
  right by believing in ourselves and by making
  M&M Ltd. known worldwide for the quality of
  its product and services.
CORE BUSINESS ACTIVITIES
   Automotive
   Farm Equipment
   Trade & Financial Services
   Infrastructure Development
   Information Technology
   Systech
   Specialty Businesses
M&M AUTOMOTIVE
COMPETITION
BUSINESS AND
 MARKETING
 STRATEGIES
BUSINESS STRATEGIES

   Restructuring of the company.
   E-business Initiatives
   Joint ventures.
   Foreign competition.
MARKETING STRATEGIES
 USP – ruggedness and performance.
 Products that redefined the market.
 Network of dealers, sales offices, service
  stations etc.
 Strong market base in the urban and
  semi-urban areas.
M&M FINANCIALS
Current Financial Health
 August Sales
     Total sales grew by over 30% over the
      corresponding period last year.
     Domestic sales grew by 34% but exports
      declined by 21%
 Q1 FY2008 results
     M&M results:
  Gross revenue grew by over 16%
  PAT grew by 14%
     Group results:
  Gross revenue grew by over 40% while PBT grew
     by over 11%
Sector Performance
 Outgrew industry in UV sector
Registered a growth of 23.6% vs. industry
  8.9%
 Commands an UV market share of 50%
  as compared to 43.7% in the same
  period previous year.
 Scorpio volumes grew by 16%, Bolero
  volumes grew by 35%
Contd...
 Large 3-wheeler segment industry
  volumes declined by 46%. M&M arrested
  slowdown to 37%, market share of 53%
 Small 3-wheeler segment growth of
  74% and market share of 18%
 Exports grew by 83% over the
  corresponding period last year.
Important Financials
Particulars      FY 2006    FY 2007     % variance


 Sales Income       9,347      11,363          21.56


 Expenditure        8,380      10,100           20.5


  Gross Profit       1089       1525             40


      PAT            857        1068           24.65


    GPM%            10.54      11.71            1.17


                                        Money figures in Rs. crore
Important Financials
 Mahindra scrip trading at Rs 715 per
  share
 EPS of 39.33
 P/E ratio of 18.22
 Market capitalization of Rs 17,431 crores
 Slow down expected on blue-chip auto
  stocks due to increase on interest on auto
  loans and prices have gone up due to
  increase in raw material like steel, rubber,
  etc.
Key Investments
 Production plant in Chennai
   Signed MOU with Renault-Nissan
   M&M holds 50% stake, the rest is shared
    between Renault and Nissan.
   Earmarked $908 million for investment
   Expected to begin production in early 2009.
   Installed capacity of 400,000 units
Contd...
 Acquisition of 67.9%      stake   in   Jeco
  Holdings of Germany
   Jeco has production capacity of 100,000
    tonnes of forged components across its 3
    plants.
   Jeco manufactures forgings for gear
    boxes, engines, axle parts, hubs, gears
    and piston heads.
Corporate Social
 Responsibility
CSR
“CSR has always been an integral part of
  M&M group’s vision and the corner stone
  of our core value of good corporate
  citizenship”
– Keshub Mahindra
 Education
 Environment
 Health
FUTURE PLANS

   Plans to enter US market.
   Expand operations in Germany
   New plant
   Mahindra Axe
   Marketing JV with Nissan
CONCLUSION
 Performance.
     Both domestically and overseas
     Ability to deliver as per consumer demands
     JV in non expertise segments
 Potential in the market
     CAGR 19%
     Potential buyers (300 million+ middle class)
 Past performance and potential in the
  market implies the expected growth of
  the company
References
   www.mahindra.com
   www.wikipedia.com
   www.icfai.com
   www.indiatimes.com
   Strategy and Business (June 07)
   The Hindu
   Auto India
THANK-YOU