Mahindra

Mahindra & Mahindra LimitedFrom Wikipedia, the free encyclopedia

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Mahindra & Mahindra Limited

Type

Public Company

Founded

1945

Headquarters Mumbai, India

Keshub Mahindra (Chairman), Anand Key people Mahindra (Vice-Chairman & Managing Director)

Industry

Automotive Farm Equipment US$ 3 billion (2008)[1] 16,000 plus[2]

Revenue

Employees

Website

Mahindra.com/

Mahindra & Mahindra Limited is part of the Mahindra Group, an automotive, farm equipment, financial services, trade and logistics, automotive components, after-market, IT and infrastructure conglomerate[3]. The company was set up in 1945 as Mahindra & Mohammed.[4] Later, after the partition of India, Ghulam Muhammad returned to Pakistan and became that nation's first finance minister. Hence, the name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948.[5] Initially set up to manufacture general-purpose utility vehicles, Mahindra & Mahindra (M&M) was first known for assembly under licence of the iconic Willys Jeep in India. The company later branched out into manufacture of light commercial vehicles (LCVs) and agricultural tractors, rapidly growing from being a manufacturer of army vehicles and tractors to an automobile major with a growing global market. At present, M&M is the leader in the utility vehicle (UV) segment in India with its flagship UV, the Scorpio (known as the Mahindra Goa in Italy).[6] M&M is India's largest SUV maker.[7]y

Business

Mahindra Scorpio Second Generation

Mahindra Scorpio First Generation

Mahindra Scorpio Pick Up

Mahindra Jeep CJ 340

Mahindra AXE

Mahindra Pick Up (old version) Mahindra & Mahindra grew from being a maker of army vehicles to a major automobile and tractor manufacturer. It has acquired plants in China[8] and the United Kingdom[9], and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France[10] and International Truck and Engine Corporation, USA. M&M has a global presence[11] and its products are exported to several countries.[12].Its global subsidiaries include Mahindra Europe Srl. based in Italy [13], Mahindra USA Inc., Mahindra South Africa[14] and Mahindra (China) Tractor Co. Ltd. M&M is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India [15] with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Mahindra Tractors(China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the

USA and other western nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market. M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture.[16] M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA.[17] M&M's automotive division makes a wide range of vehicles including MUVs, LCVs and three wheelers. It offers over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero. At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine.[18] True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 models.[19] Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt[20], in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs.[21] The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.[22] Mahindra is currently gearing up to sell the Scorpio SUV and pickup starting in the Fall of 2009 in North America, through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia.[23]

[edit] Awards1. 2. 3. 4. Bombay Chamber Good Corporate Citizen Award for 2006-07 [24] Businessworld FICCI-SEDF Corporate Social Responsibility Award 2007 Deming Prize [25] Japan Quality Medal in 2007[26]

[edit] Modelsy

y

Mahindra Bolero o Mahindra Bolero Camper o Mahindra Bolero Inspira o Mahindra Bolero Stinger Concept Mahindra Scorpio o Mahindra Scorpio Getaway o Mahindra Scorpio First

y y y y y y y y

Mahindra Xylo Mahindra Legend Mahindra MM550 XD Mahindra-Renault Logan (in cooperation with Renault)[27] Mahindra Axe Mahindra Major o Mahindra Souvenir Concept Mahindra Commander Mahindra Cab Chassis[28]

[edit] Mahindra Group[edit] Core Business Activitiesy y y y y y y y y y

Automotive Farm Equipment Systech Financial Services Information Technology Infrastructure Development After-Market Two-wheelers Mahindra Partners Division Specialty Services

[edit] Community Initiativesy y y y

Mahindra United World College of India Mahindra United, a football club based in Mumbai, Maharashtra Mahindra Foundation K. C. Mahindra Education Trust: Nanhi Kali

[edit] Notes1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. ^ Annual Report, Mahindra ^ Annual Report, Mahindra ^ Mahindra company profile, on Yahoo Business ^ "Milestones to success". Mahindra. http://www.mahindra.com/Heritage/milestonesyearwise.htm#1945. Retrieved 2007-04-16. ^ ICMR India on M&M. ^ [1], Economic Times Report. ^ BNET on M&M, additional text. ^ Mahindra in China,. ^ Mahindra buys UK company. ^ Mahindra-Renault Launch the Logan,. ^ M&M in Ghana,.

12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

24. 25. 26. 27. 28.

^ Mahindra exports to South East Asia, . ^ Mahindra Acquires Italian Auto Design Firm. ^ Mahindra Scorpio in SA, . ^ The Equity Profile of Keshub Mahindra, additional text. ^ Mahindra-Renault Launch Logan, additional text. ^ The Hindu on Mahindra International,. ^ Mahindra Looking for Expansion,. ^ http://www.dnaindia.com/money/report_m-and-m-net-soars-152pct-as-xylo-picks-upspeed_1278579 ^ M&M in Egypt, . ^ in Brazil, Egypt,. ^ International Business Times on Indian Companies in Reputation Institutes Rankings, additional text. ^ "Mahindra Heading Stateside in 2009?". The Auto Writer. http://thearticlewriter.com/autowriter/mahindra-heading-stateside-in-2009/. Retrieved 2008-0614. ^ MoneyControl.com, additional text. ^ Hindu Business Line ,. ^ The Machinist on M&M winning the Japan Quality Medal, additional text. ^ India PR wire (April 2, 2007). "Mahindra Renault Launches Logan". Press release. http://www.indiaprwire.com/pressrelease/auto/200704042443.htm. Retrieved 2007-04-16. ^ PressPortal (December 2, 2008). "2009 Mahindra Cab Chassis Variant Launches - (Australia)". Press release. http://www.pressportal.com.au/news/858/ARTICLE/3896/2008-12-02.html. Retrieved 2008-12-02.

[edit] References .................................................................................................Mahindra & Mahindra Limited (M&M) engages in the manufacture of a range of automotive vehicles, agricultural tractors, implements, and industrial engines, as well as in property development and construction activities. The company offers various multi utility vehicles, light commercial vehicles, threewheelers, and tractors as well as spare parts and related services.... see more| More Mahindra & Mahindra research

Your Connections to Mahindra & MahindraTo see how youre connected: Join Now or Sign In

Popular Profiles at Mahindra & Mahindra y y y y y Vijay Nair, Head HR Xiaojie Wang, Deputy Manager-Corporate Strategy Vinay kukreja, Manager - Human Resource (Talent Aquisition) Dhruv Dhingra, Manager, Mergers and Acquisitions Sohini Roy, Manager

New Hires and Recent Promotions at Mahindra & Mahindra y Ranjeev Lodha, Vice President - Group Accounts was Sr GM - last month y Satish Karandikar, General Manager - Strategy was GM - Zonal Business ( West) - 5 months ago y Abhishek Ravra, Asst. Area Manager was Senior Territory Manager - last month y Nitin Sachdeva, Dy. Manager - R&D was Assistant Manager - R&D - 2 months ago y Srijith Jagdish, Brand Manager - Scorpio (SUVs) was Manager - Sales - 3 months ago

..

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Press ReleasesBack Tech Mahindra and Mahindra Satyam strengthen their boards with executive leadership appointments o Sanjay Kalra CEO, Tech Mahindra

o C.P. Gurnani CEO, Mahindra Satyam o S. Durgashankar CFO, Mahindra Satyam Mumbai, India, June 23, 2009: In a landmark development, Tech Mahindra Limited and Satyam Computer Service Limited announced the executive appointments of Sanjay Kalra as CEO, Tech Mahindra, CP Gurnani as CEO, Mahindra Satyam (the new brand identity of Satyam Computer Services Limited) and S. Durgashankar as CFO, Mahindra Satyam. These industry veterans in their executive roles will be instrumental in driving their respective companys growth. Speaking on the new appointments, Mr. Anand Mahindra, Chairman, Tech Mahindra Limited said, I am delighted to announce the appointment of Mr. Vineet Nayyar as the Executive ViceChairman for Tech Mahindra and Mahindra Satyam, and the induction of Sanjay Kalra and CP Gurnani as the respective CEOs of Tech Mahindra and Mahindra Satyam. These executive appointments will help the respective companies leverage their immense global experience across different verticals, in their quest to take an unassailable lead. Both CP and Sanjay are accomplished leaders, with extensive experience in managing global business operations. In their executive roles, they will ensure swift and effective execution of the go to market strategy envisaged by both organisations. I am also delighted to announce the appointment of Durgashankar as CFO of Mahindra Satyam, who brings a wealth of financial experience to his new role, commented Vineet Nayyar, Executive Vice Chairman of Mahindra Satyams Board of Directors. I would like to thank Mr. A. S. Murthy for his outstanding leadership and wise counsel during a most difficult time. His efforts have been vital to the companys recovery, and he will continue to play a crucial role on Mahindra Satyams leadership team, Nayyar added. Sanjay Kalra commented, Tech Mahindras single focus and innovation in the Telecom ecosystem has served us well to date and made us a leader in the domain. We will continue to serve our clients and partners with new solutions and offerings. We are excited about Mahindra Satyams capabilities and will synergise them with Tech Mahindras proven governance practices, financial rigour and business discipline. C. P. Gurnani, commenting on his appointment, said Mahindra Satyam has four immediate priorities: to strengthen corporate governance, enhance customer delight, regain market share, and build the brand. I am delighted to have the opportunity to lead the organization toward those objectives, and I am confident we will succeed. We have a clear vision, world-class leadership, the industrys most talented professionals, ample resources, and an unswerving drive to succeed. Vineet Nayyar

Vineet provides strategic direction and road map for Tech Mahindra. An accomplished leader, Vineet has led several organizations across industries, creating high performance teams and successful businesses. In a career spanning over 40 years, he has worked with the Government, international multilateral agencies and the corporate sector (both public and private). Vineet started his career with the Indian Administrative Service and has held a series of senior positions in the government. He worked with the World

Bank for over 10 years and was successively the Chief for the Energy, Infrastructure and the Finance Divisions for East Asia and Pacific. Vineet was also the founding Chairman and Managing Director of the state owned Gas Authority of India and has served as the Managing Director of HCL Corporation Ltd and as the Vice Chairman of HCL Technologies Ltd. He was a co-founder and Chief Executive Officer of HCL Perot Systems. Vineet Nayyar has a masters degree in development economics from Williams College, Massachusetts. Sanjay Kalra

Sanjay Kalra, 46, is the President Strategic Initiatives, Tech Mahindra and has spearheaded the BT relationship and business transformation services at Tech Mahindra. In a career spanning 20+ years, Sanjay has leveraged offshore delivery to create new products and business lines and nurtured start-ups and led high growth businesses. Prior to joining Tech Mahindra, Sanjay was the chief executive officer, DSL Software (a joint venture between HCL and Deutsche Bank) and has served as President, HCL Technologies Europe. Sanjay has also held global roles in Schlumberger and Tata Unisys and led the creation and incubation of Cisco's first outsourced R&D center outside North America with around 1000 engineers. An IIT Delhi Alumnus, Sanjay was the recipient of the Alumni award for National Development in 2007. C.P.Gurnani

Gurnani, 50, is the head of Tech Mahindras global operations, sales and marketing functions, and leads the development of Tech Mahindras competency & solution units. In a career spanning over 26 years, Gurnani has held several leading positions with HCL Hewlett Packard Limited, Perot Systems (India) Limited and HCL Corporation Ltd. Prior to joining Tech Mahindra, Gurnani was the Chief Operating Officer and a co-founder of Perot Systems (India) Limited, initially set up as HCL Perot Systems. Gurnani has extensive experience in building international business, start-ups, turnarounds, joint ventures and mergers & acquisitions. Gurnani received a chemical engineering degree from the National Institute of TechnologyRourkela. He takes a keen interest in community work and was nominated by Ernst & Young for the Entrepreneur of the Year Award in 2007. In addition to his responsibilities at Tech Mahindra, Gurnanis principal

directorships include serving as a director on the boards of directors of CanvasM Technologies Limited, CanvasM (Americas) Inc., Mahindra Logisoft, Servista Limited and the Tennenbaum Institute at the Georgia Institute of Technology. S. Durgashankar

Mr. Durgashankar is currently the Senior VP, Mergers & Acquisitions at M&M Ltd. Prior to this, role he was the Group CFO, KSK Energy Ventures Limited. Before joining KSK Energy Ventures Ltd,, he played a pivotal role in setting up the in-house investment banking activities for the Mahindra Group and spearheaded various domestic and international acquisitions. Durgashankar brings about 26 years of experience in Investment Banking Advisory M&A, Corporate Strategy, Corporate Treasury and International Investor Relations. Durgashankar has held several leading positions as Vice President, Corporate Strategy with M&M, as Treasurer, M&M and Zonal Manager, Chennai Zone at ICICI. Durgashankar holds a Bachelors degree in Commerce from ACA. About Tech Mahindra Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc. With total revenues of Rs 4464.7 crores in the year ended March 31, 2009, Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and systems integrators. Tech Mahindra solutions enable clients to maximize returns on IT investment by achieving fast time to market, reduced total cost of ownership and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, proven innovative delivery models and approach to off shoring. Assessed at SEI-CMMi Level 5 and PCMM Level 5, Tech Mahindra's track record for value-delivery is supported by 25000 professionals who provide a unique blend of culture, domain expertise and in-depth technology skill-sets. Its development centres are ISO 9001:2000 & BS7799 certified. Tech Mahindra has principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada & Australia. About Mahindra Satyam Mahindra Satyam (the new brand identity of Satyam Computer Services Ltd. - NYSE: SAY), a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in numerous industries across the globe. Mahindra Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company's professionals excel in engineering and product development, supply chain management, client relationship management,

business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities. Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations. Safe Harbor Statements contained in this press release regarding future events or actions and all other statements in this release other than recitation of historical facts are forward-looking statements. Words such as expect, intend, may, will, and similar expressions are intended to identify such forwardlooking statements. Forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements of events or actions to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the competitive environment in the information technology services industry and competitive responses to the proposed acquisition; and whether the companies can successfully provide services/products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. This document does not constitute an offer to purchase or to sell securities in any jurisdiction. Additional Information In connection with the Offer for certain equity shares of Satyam Computer Services, Ltd., Venturbay Consultants Private Limited, and Tech Mahindra Limited have filed tender offer documentation with regulatory authorities including the Securities and Exchange Board of India and the United States Securities and Exchange Commission (SEC). The Offer is subject to various terms and conditions included in these materials. Investors and Satyam shareholders are strongly encouraged to read these materials including, for investors in Satyam's American Depositary Shares, the tender offer statement and related documents filed with the SEC, because they will contain important information. Documents filed with the SEC are available for no charge on the SEC's website at http://www.sec.gov/. For further information, contact: Ms Roma Balwani VP & Head - Corporate Communications Mahindra & Mahindra Ltd. Phone: 022 24901441 Fax: 022 - 2490 0830 Email: [email protected] Ms. Pooja Sabharwal / Mr. Ashish Arora Genesis Burson- Marsteller Mobile No.: +91 9833362466/ +91 9820024293 Email: [email protected] / [email protected] Back Top

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Mahindra & Mahindra Ltd. - Research Center500520 MNM Group (A) BSE data Add to Portfolio | Watch List | GameQuantity Cost/Share DateDD

Goes above Rs Goes below Rs

View Tips Add to : Portfolio | Watchlist | GameQuarterly Half yearly Annual Balance sheet P&L Cash flow

Results

Statement

More

Dividend Bonus Share holding Capital structures Ratio

(Rs crore)

Balance sheetMar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of fundsOwner's fund

YYYY

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Equity share capital Share application money Preference share capital Reserves & surplus 272.62 239.07 238.03 233.40 116.01 -

4,959.26 4,098.53 3,302.01 2,662.14 1,881.93 617.26 106.65

Loan fundsSecured loans Unsecured loans Total 981.00 216.68 336.82 715.80 3,071.76 1,969.80 1,529.35 666.71

9,284.64 6,924.66 5,176.05 3,778.92 3,050.56

Uses of fundsFixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 4,893.89 3,552.64 3,180.57 2,859.25 2,676.51 12.09 12.47 12.86 13.33 14.32 2,326.29 1,841.68 1,639.12 1,510.27 1,335.56 2,555.51 1,698.49 1,528.59 1,335.65 1,326.63 646.73 649.94 329.72 205.46 133.93 5,786.41 4,215.06 2,237.46 1,669.09 1,189.79

Net current assetsCurrent assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 5,081.20 3,816.41 3,916.94 2,805.04 2,356.41 4,797.76 3,468.77 2,854.20 2,254.37 1,980.58 283.44 12.55 347.64 13.53 1,062.74 550.66 17.55 18.05 375.83 24.38

9,284.64 6,924.66 5,176.05 3,778.92 3,050.56 4,305.50 1,429.16 1,515.23 1,419.01 1,047.67 3,218.81 7,669.90 10,285.25 2,030.85 240.83 1,220.39 985.35 1,008.27 946.36 758.14 2334.00 1116.48

Notes:Book value of unquoted investments Market value of quoted investments Contingent liabilities

Number of equity sharesoutstanding (Lacs) 2726.16 2390.73 2380.33

Shareholding

Mahindra & Mahindra Ltd. - Research Center500520 MNM Group (A) BSE data Add to Portfolio | Watch List | GameQuantity Cost/Share Date

Goes above Rs Goes below Rs

View Tips Add to : Portfolio | Watchlist | GameQuarterly Half yearly Annual Balance sheet P&L Cash flow

Results

Statement

More

Dividend Bonus Share holding Capital structures Ratio

Share holdingShare holding pattern as on : 30/06/2009 31/03/2009 31/12/2008 Face value 10.00 No. Of Shares Indian Promoters Foreign Promoters 68629786 12111525 10.00 % Holding 10.00 No. Of Shares 69289026 12125386 % Holding No. Of Shares % Holding

Promoter's holding 24.61 4.34 24.85 4.35 56199371 12284352 21.73 4.75

DD

YYYY

No. Of Shares Sub total 80741311

% Holding 28.96

No. Of Shares 81414412

% Holding 29.20

No. Of Shares 68483723

% Holding 26.49

Non promoter's holding Institutional investors Banks Fin. Inst. and Insurance FII's Sub total Private Corporate Bodies Govt Others Sub total General public Grand total 63436258 62665145 136835800 15883312 22.75 22.48 49.08 64201007 67213794 138095418 11972505 1971845 221066 19013716 33178932 26132303 278821065 23.03 24.11 49.53 4.29 0.71 0.08 6.82 11.90 9.37 100.00 59986317 62524677 131596993 12994719 1972604 221066 18347784 33536173 24952476 258569365 .. 23.20 24.18 50.89

Other investors 5.70 0.62 0.08 6.39 12.79 9.17 100.00 5.03 0.76 0.09 7.10 12.97 9.65 100.00 NRI's/OCB's/Foreign Others 1717008 235376 17829690 35665186 25578768 278821065

Capital structureFrom Year 2008 2007 2006 2005 2004 2003 2002 2001 To Class Of Year Share Equity 2009 Share Equity 2008 Share Equity 2007 Share Equity 2006 Share Equity 2005 Share Equity 2004 Share Equity 2003 Share 2002 Equity Authorized Capital 600.00 375.00 275.00 275.00 175.00 175.00 175.00 175.00 Issued Capital 278.82 245.74 238.03 233.40 116.01 116.01 116.01 116.01 Paid Up Paid Up Shares (Nos) Face Value 278821265 245741813 238032707 233399584 116008599 116008599 116008599 116008599 10 10 10 10 10 10 10 10 Paid Up Capital 278.82 245.74 238.03 233.40 116.01 116.01 116.01 116.01

From Year 2000 1999 1997 1996 1995 1994 1994 1993 1992 1991 1987 1984 1983 1979 1977 1973 1969 1967 1958 1955

To Class Of Year Share Share Equity 2001 Share Equity 2000 Share Equity 1999 Share Equity 1997 Share Equity 1996 Share Equity 1995 Share Equity 1995 Share Equity 1994 Share Equity 1993 Share Equity 1992 Share Equity 1989 Share Equity 1985 Share Equity 1984 Share Equity 1980 Share Equity 1979 Share Equity 1974 Share Equity 1973 Share Equity 1968 Share Equity 1967 Share 1958 Equity

Authorized Capital 175.00 175.00 175.00 175.00 175.00 92.80 92.80 90.00 90.00 90.00 45.00 45.00 45.00 20.00 10.00 10.00 7.50 4.00 4.00 1.25

Issued Capital 110.48 110.48 103.37 101.79 101.79 58.80 58.80 50.33 36.21 35.34 19.26 19.26 19.08 11.45 5.72 4.42 4.41 3.17 1.32 0.55

Paid Up Paid Up Shares (Nos) Face Value 110484380 110484380 103367553 101794033 101793723 2800000 56004912 50331156 36206162 35337047 19264046 19264046 19075880 11445528 5722764 4424562 4410825 3168000 1320000 550000 10 10 10 10 10 1 10 10 10 10 10 10 10 10 10 10 10 10 10 10

Paid Up Capital 110.48 110.48 103.37 101.79 101.79 0.28 56.00 50.33 36.21 35.34 19.26 19.26 19.08 11.45 5.72 4.42 4.41 3.17 1.32 0.55

From Year 1954 1954 1953 1945

To Class Of Year Share Share Equity 1955 Share Equity 1955 Share Equity 1954 Share Equity 1953 Share

Authorized Capital 0.15 1.10 0.50 0.15

Issued Capital 0.02 0.15 0.15 0.12

Paid Up Paid Up Shares (Nos) Face Value 16809 3000 3000 2400.

Paid Up Capital 0.02 0.15 0.15 0.12

10 500 500 500

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SUMMAR BULLS BEARS

QUOTE AND NEWS

819.80 1.75 (0.21%)as of S p 11, 3:59 PM IST

S OCK CHAR

i

Mahindra & Mahindra Ltd (BOM:500520)

Day

813.05 - 844

52 Wk Vol 239.47K

Avg Vol P/E 0

Mkt Cap0

M: Monsoon blues Business Standard Sep 9 Comment The Mahindra and Mahindra stock has had a strong run, gaining 164 per cent between March and now, compared with a rise of 87 per cent for the Sensex. However, over the past months, the price has remained more or less flat. Thats mainly because of...

M&M may soon be worlds No. 1 tractor co The Economic Times Sep 7 Comment Mahindra and Mahindra (M&M) will end this fiscal year as the worlds number one tractor company by volumes, a company official said.

Mahindra sees good tractor sales; monsoon a concern Reuters Jul 30 Comment India's Mahindra & Mahindra Ltd posted a quarterly profit that more than doubled from a year ago and blew past market estimates, helped by its takeover of Punjab Tractors and strong sales of utility vehicles, but it said the weak monsoon was a... M&M sees strong tractor sales growth Reuters Jul 30 Comment

Mahindra Sees U.S. Truck Sales in 2010 Wall Street Journal May 22 Comment India's Mahindra & Mahindra plans to start selling pickup trucks in the U.S. in 2010.

Mahindra sales up 16.6 percent The Economic Times May 1 Comment Mahindra and Mahindra Ltd has posted a 16.6 percent increase in its domestic sales last month at 22,617 vehicles as against 18,447 units in April 2008.

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Joy Tuscano

With revenues of Rs 12,894.94 crore, Mahindra & Mahindra Ltd (BOM:500520) is the third largest tractor [1] manufacturer in the world and the largest in India. It has a market share of over 40% in Indian domestic tractor [2] market. It is also the largest manufacturer of utility vehicles in India with a market share of over 42%.[3] Amongst the [4] hard top and pick up sub-segment, it has a market share of over 51% and 77%. It is the second largest player in the [3] light commercial vehicles segment and has a market share of 27%. Over the past five years the revenues and net profit have grown at average annual growth rate of 23.62% and 54.14% respectively. The Company identifies niche markets for its automotive products throughout the world, especially in geographical areas that have similar sales, distribution and marketing conditions as India.[5] In F 2008,it launched vehicles in Australia, Chile and Sudan. Also Completely knocked down units assembly plants were set up in Egypt and Brazil.[5] The company entered passenger car market in India with a joint venture with Renault. The Mahindra-Renault venture [6] has launched Logan in India and holds around 2% market share in the passenger vehicles category. It has also

formed a joint venture with ueda ueda Group to form Mahindra ueda ancheng Tractor Company (M addition to Mahindra China Tractor Company Ltd (MCTCL) to exploit the opportunities in China.[7]

Business Overview[edit]Mahindra & Mahindra Limited (MNM) manufactures a range of automotive vehicles, agricultural tractors, implements, [8] and industrial engines. The company offers multi utility vehicles, light commercial vehicles, three-wheelers, and [8] tractors. It also provides services related to financing, leasing, and hire purchase of automobiles and tractors.[8] In addition, the company operates in the real estate, special economic zones, the hospitality industry, infrastructure [8] development, and project engineering consultancy and design industries. It provides telecommunication products [8] and services and information security services. The company has made forays to enter foreign markets.From F 2005 to F 2008, the company introduced its vehicles into new countries including Europe, Middle East, South America and South-East Asia by adapting unique business models for each country.[5] The company also entered in a joint venture with Navistar International's operating company, International Truck and Engine Corp, to produce and market light, medium, and heavy commercial vehicles for India and export markets.[9] It has four main manufacturing plants.[10] Three in Maharastra and one in Andhra Pradesh. The units in Mumbai, Nasik and Igatpuri in Maharastra, deal with multi-utility vehicles and engines.[10] The plant in Andhra Pradesh deals with the manufacture of light [10] commercial vehicles and three wheelers. In addition to these the company has plants planned in Chakan, Maharashtra and Orgadam, outside Chennai in Tamil Nadu; both of which are to become operational in 2010.[11]

Business and Financial Metrics[edit]

Mahindra & Mahindra Ltd revenues and net profit

[12]

TCL) in

Mahindra & Mahindra Ltd Operating margin and net profit margin from Dec 2007 to Dec 2008

[13]

From F 2004 to F 2008, sales revenues have grown from Rs 5,914.54 crore to Rs 11,503.48 crore, at average annual rate of over 23.62%.[14][15] In the same period, net profit grew from Rs 348.54 crore to Rs 1,103.37 crore by [14][15] .In F 2008, due to general economic slowdown, the sales of MNM in over 54.14% average annual growth rate. the quarter ending December fell by 24.36% as compared to the same quarter in F 2007.[13] With the fall in sales, the operating margin fell from 9.95% to 1.53% and the net profit margin fell from 12.02% to 0.05%.[13].

Contents1 Business Overview 1.1 Business and Financial Metrics 1.2 Business segments 2 Key Trends and Forces 2.1 Economic slowdown resulting in adverse impact on the sales 2.2 Raw material price fluctuations directly affect the operating margin and net profit margin 2.3 Currency and exchange rate fluctuations and its adverse effects on the earnings 3 Competition 3.1 Market share 4 References

The long term debt to equity ratio has gone up from 0.4 to 0.62 due to investments in capacity expansion. On 16 March 2009, the company announced the reduction in capacity expansion plans by around Rs 500 crore. The company had originally planned to invest around Rs 4000 crore in its Chakan plant in Maharashtra.[17] Share holding pattern: The promoters namely, Mahindra family owns 21.73% of MNM. FII's own 24.18% while banks financial institutions and Insurance companies own another 23.2%. SBI Magnum Contra Fund , SBI Magnum Tax Gain Scheme, SBI Blue Chip Fund and Franklin India Flexi Cap Fund are some of the mutual funds invested in the firm, with 0.33%, 0.19%,0.18% and 0.10% ownership respectively.[18] The government retains a minor share of [3] 0.09% in the company.Mahindra & Mahindra Ltd share holding pattern [3]

[16]

Entity

Percentage

FII's

24.18%

Banks Fin. Inst. and Insurance

23.20% 21.73%

Mahindra Family

General Public

9.65%

FII's

8.82 %

Others

7.1%

Private Corporate Bodies

5.03%

Foreign Promoters

4.75%

Government

0.09%

NRI's/OCB's/Foreign Others

0.76%

Business segments[edit]Automotive (62% of revenues): MNM competes in the Light Commercial Vehicle (LCV) segment through its joint venture subsidiary MIL, and in the passenger car segment through another joint venture subsidiary Mahindra Renault [19] Pvt. Ltd (MRPL). In F 2008, a total of 234,688 vehicles (including 34,556 three wheelers, 11,079 LCVs for MIL and 26,653 cars for MRPL) were produced,with a growth of 31.1 % over the previous year.[19]The market share of MNM in the domestic MUV sub segment increased to 51.5% from 46.6%.[4] This was due to successful launch of newer [4] versions of Scorpio and the Bolero models. In the pick up segment, volumes registered a growth of 17% in spite of an industry de-growth of 4% in the sub segment.[4] The innovative small pick up model, Maxi Truck helped achieve the growth.[19] In F 2008 44,957 LCVs were sold registering a growth of 4.3% over F 2007.[19] In LCVs,MNMs [4] market share increased from 20.1% in 2007 to 23.1% in 2008. The company has planned development of products for the higher end of the LCV segment as well as larger commercial vehicles.[4] Farm Equipment (35% of revenues): The Indian Tractor market is the largest in the world, in terms of sales volume.[20]MNM competes in this segment through its subsidiary Farm Equipment Sector (FES), which designs,

develops, manufactures and markets tractors for Indian and overseas markets. It is the largest manufacturer of tractors in India.[21] The tractor market is segmented by horsepower into the low horsepower 25 HP segment, the mid segment of 35 HP and the high segment of above 45 HP.[20] FES competes in all the segments. In March 2007, MNM acquired 43.3% controlling stake in Punjab Tractors.[22] The combined market share of FES and Punjab Tractors is over 40% in the domestic tractor market.[21]In F 2008, 90,509 tractors were sold in the domestic market as against [21] 95,006 tractors in F 2007. Additionally, 8,533 tractors were exported in F 2008 against 7,525 tractors in [21] F 2007. On the global front FES has a strategic joint venture in China, the Mahindra (China) Tractor Company Ltd. (MCTCL).[20] MNM entered the USA tractor market through MCTCL by launching its 25HP product in the USA [20] [20] market. MCTCL has also made inroads in South Asia by penetrating markets like Bangladesh and Sri Lanka. Others (3% of revenues): As of March 2008, MNM had 85 Subsidiaries, 4 Joint Ventures and 10 Associates in various businesses.[23] Dividend income from other subsidiary companies like Tech Mahindra Limited, Mahindra & Mahindra Financial Services Limited, Mahindra Holidays and Resorts India Limited, Mahindra Lifespace Developers Limited comprises this segment.[23] The Groups major IT subsidiary, Tech Mahindra Limited, grew by 31.87 % with total income increasing from Rs. 2935.02 crores in F 2007 to Rs.3870.50 crores in F 2008.[23] The profit after tax increased by 25.59 %.[23]The Groups Finance company, Mahindra & Mahindra Financial Services Limited achieved a [23] 45.73 % growth in its total income from Rs. 841.84 crores in F 2007 to Rs. 1226.80 crores in F 2008. It is one of the leading NBFCs in financing of four wheelers and its profit after tax grew by 33.22 % in the same period.[23]Mahindra Holidays and Resorts India Ltd on the other hand grew by 55.84% from Rs. 240.65 crores in [23] F 2007 to Rs. 375.04 crores in F 2008.

[20]

Key Trends and Forces[edit]Economic slowdown resulting in adverse impact on the sales[edit]Automobile industry is a cyclical industry. It is substantially affected by general economic conditions. The demand is influenced by factors including the growth rate of the economy, easy availability of credit, increase in disposable income, interest rates and oil prices.[24] Lack of vehicle finance availability, lower growth on GDP and/or increases in fuel prices lead to a decline in the demand for automobiles. The Indian economy has shown a sharp decline in GDP from 7.1% in the 2nd quarter of F 2008-09 to 5.3% in 3rd quarter of F 2008-09.[25] The performance of the rural economy has a direct relation with the sales of MNM as about 60% of the utility vehicles sales happen in rural India [26] also tractor sales are dependent on the rural economy. Decrease in agricultural commodity prices and poor rainfall can affect the agriculture dependent rural economy and reduce MNM sales. In 2008, India recorded normal rainfall of [27] around 98% of the long period average. Despite the 62% decline in the international gasoline prices, the gasoline prices have dropped by only 10% in India.[28]

Raw material price fluctuations directly affect the operating margin and net profit margin[edit]

!

!

!

"

!

!

!

!

"

!

! !

World steel prices in USD/tonne

[29]

Rubber Prices in sen/Kg

[30]

Raw material costs comprises of about 70.41% of the price of the finished products. Any price increase of the raw materials have a direct bearing on the overall operating margin. As can be seen from the Amex steel index and the world steel price index, there is high degree of volatility in the steel prices. This volatility not only affects the operating margin but also the inventory management of the steel required for production.[32] In August 2008 steel prices peaked [33] to over 1100$/tonne 40% higher then the steel price in January 2008. Whereas on the other hand in March 2009,

[31]

the steel prices have fallen to 4 year low of $473/tonne. Tyres are also an important part of the raw material required for manufacturing. Tyre prices are correlated to the rubber prices. The chart above shows the volatility present in the rubber market. The rubber volatility also affects the operating margin and consequently the net profit margin.

[34]

Currency and exchange rate fluctuations and its adverse effects on the earnings[edit]

The value of the Indian Rupee(INR) compared to the U.S. dollar impacts the profit margin of exports. A strengthening INR adversely impacts the export earnings of MNM.The Companys exports constitute 25% of the revenues [35] . Moreover MNM has operations in China and USA through MCTCL. All the dividend earnings from this subsidiary are exposed to the currency risk. MNM undertakes steps to hedge the currency risk for its operational requirements, but a weakening of the rupee against the dollar or other major foreign currencies can lead to significant losses in cases where the hedging has not been done. In Jan 2009, MNM reported Rs 93 crore forex loss in its 3rd quarter result which resulted in to 93% dip in net profit.[36]

Competition[edit]Utility Vehicles: Tata Motors -Based in Mumbai, India, Tata Motors Limited is a part of Tata Group. It manufactures commercial and passenger vehicles primarily in India. It offers passenger cars, multi-utility vehicles, and pickups; medium and heavy commercial vehicles, such as rigid trucks, tractor trailers, and tippers; intermediate, light, and small commercial trucks; buses; and defense related vehicles. The company, through its subsidiaries, also provide engineering and automotive products; manufacture of construction equipment; automotive vehicle components manufacturing and supply chain activities; and provision of machine tools and factory automation products, as well as offers high-precision tooling, and plastic and electronic components for automotive and computer applications. In addition, it provides automotive retailing and services, as well as financing for the vehicles sold by the company. The company markets its products in Europe, Africa, the Middle East, south Asia, south east Asia, and Australia.[37]

Toyota - Headquartered in Toyota City, Japan, Toyota Motor Corporation operates in the automotive industry worldwide. It designs, manufactures, assembles, and distributes passenger cars, recreational and sportutility vehicles, minivans and trucks, and related parts and accessories. It also offeres hybrid vehicles. Its products also comprise conventional engine vehicles, including subcompact and compact cars, mini-vehicles, passenger vehicles, commercial vehicles,auto parts, mid-size models and luxury models.In addition, Toyota offers sports and specialty vehicles, recreational and sport-utility vehicles, pickup trucks, minivans and cab wagons, trucks and buses. Further, the company provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. Additionally, it is also involved in the design and manufacture of prefabricated housing and information technology-related businesses, including intelligent transport systems and an e-commerce marketplace, called Gazoo.com.[38]

Force Motors (FORCEMOT-BY) -The Group's principal activity is to manufacture and market utility and light commercial vehicles, agricultural tractors and diesel engines. Its plant are located at Bombay Pune road, Akurdi, Pune and Pithampur, District Dhar, Madhya Pradesh.[39]

With technical collaboration of MAN AG, Germany,[40]

Force Motors has a range of heavy commercial vehicles with a payload capacity ranging from 16 to 50 tonnes. Light Commercial Vehicles: Tata Motors -Same as above

Eicher Motors (EICHERMOT.EQ-IN) -Headquartered in New Delhi, Eicher Motors Limited manufactures and markets trucks, buses, motorcycles, automotive gears, and components in India. It operates in four segments: Commercial Vehicles, Two Wheelers, Components, and Others. The Commercial Vehicles segment offers CNG trucks, cruiser buses, buses on HCB platform, and tippers. The Two Wheelers segment provides motorcycles and bikes. The Components segment offers gears, gear boxes, construction and earthmoving equipment, and forklifts. The Others segment provides engineering products to automotive, aerospace, heavy engineering, consumer durables, power generation, and other segments. Eicher Motors has a joint venture agreement with Volvo AB.[41]

Force Motors (FORCEMOT-BY) -Same as above

Swaraj Mazda - Headquartered in Nawanshahar district, Punjab, the Company's principal activity is to manufacture and sale of commercial vehicles and spares for both goods and passenger applications.[42] The company has inked a technical assistance agreement with Isuzu Motors, Japan on Jun. 30, 2006. The agreement is for the expansion of vehicle production capacity, new assembly line for Isuzu vehicles and also setting up of in-house facilities for the manufacture of luxury buses based on existing Mazda and Isuzu chassis.[43]

Financial Comparison of the competitors: Financial metrics FY2007 Name Tata Motors Toyota[45] [44]

Revenue in Rs Crore Net Profit Margin Operating Margin 28,738 14,31,096[46]

6.96% 5.80% -8.02% 2.81%

10.44% 8.64% -5.04% 5.85%

Force Motors

930 2,218

Eicher Motors

[47]

Swaraj Mazda

[48]

671

3.75%

7.80%

Market share[edit]

Market share of Utility vehicles in India

[49]

Market share of Light commercial vehicles in India

[50]

References[edit]1. 2. 3. 4. Mechanist, Mahindra ueda ancheng Tractor Company inaugurated in China Farm trader, In the industry, Mahindra and mahindra limited3.0 3.1 3.2 3.3

Indian auto sector,DBS cholomandalam securities, Utility Vehicles market Mahindra and Mahindra Ltd, Annual report 2007-08, M&M Performance,The Automotive

4.0 4.1 4.2 4.3 4.4 4.5

Sector 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.5.0 5.1 5.2

Mahindra and Mahindra Ltd, Annual report 2007-08, Page 23

Dance with shadows, Renault and Mahindra set up $165 million Indian venture Mahindra, ueda ueda Groups joint venture in China8.0 8.1 8.2 8.3 8.4

linkedin, company profile,Mahindra & Mahindra Ltd

Trailer body builders,Navistar completes joint venture with Mahindra & Mahindra of India10.0 10.1 10.2

Automobile India, Mahindra & Mahindra

Top news.in,Mahindra & Mahindra to pump Rs 1500 crore more in Chakan facility Rediff money,Mahindra & Mahindra Ltd, annual result13.0 13.1 13.2 14.0 14.1

rediff money, Mahindra & Mahindra Ltd, quarterly results

Average Annual Growth is calculated by dividing the past four years revenue increase by the

number of years 15. 16. 17. 18. 19.15.0 15.1

rediff money, MNM, Annual results

Mahindra & Mahindra Ltd, ratios Auto india, Mahindra & Mahindra cuts capital expenditure plan by Rs.500 Crore Money control, Mahindra & Mahindra Ltd , MFs invested in MNM19.0 19.1 19.2 19.3

Mahindra and Mahindra Ltd, Annual report 2007-08, Industry Developments, The

Automotive Sector 20.20.0 20.1 20.2 20.3 20.4 20.5

Mahindra and Mahindra Ltd, Annual report 2007-08, Industry Developments,The

Farm Equipment Sector 21.21.0 21.1 21.2 21.3

Mahindra and Mahindra Ltd, Annual report 2007-08, M&M Performance,The Farm

Equipment Sector 22. 23. Huliq news,Mahindra agrees to acquires 43.3% stake in Punjab Tractors23.0 23.1 23.2 23.3 23.4 23.5 23.6

Mahindra and Mahindra Ltd, Annual report 2007-08, Consolidated Financial

Position of the M&M Group

#

#

#

#

24. 25. 26.

Tata Motors, SEC filing, Risk associated with Our Business and the Automotive Industry, Page 10 Times of India, GDP growth at 6-year low scribd, stock select,Quantum Information Services Private Limited,Mahindra & Mahindra Ltd,Strengths in the UV and tractor segments

27. 28. 29.

press information bureau,Review of Southwest Monsoon 2008 Indian express, Petrol to go cheaper by Rs 5 from Wednesday steel on the net, MEPS Steel Product Price Levels across 2007 - 2008, Current prices & historic pricing levels.

30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Malaysian rubber board, monthly average prices Rediff money, Mahindra & Mahindra ltd, Ratios, Component ratios One steel, steel and tube holdings limited,chairman's address High Beam, Builders Feel Squeeze as Steel Prices Jump Purchasing, Steel-market prices reflect lack of demand at OEM, service center levels & Mahindra Ltd ,Organisation Profile,eSangathan international conference Live mint, Forex loss hits Mahindra and Mahindra, Q3 net dips 93% Linkedin company profile, tata motors Linkedin, Toyota Wright reports, company profile, Force motors Linkedin company profile, force motors Linkedin company profile, Eicher Motors Alacra store, Swaraj Mazda Swaraj Mazda Limited, business profile,myiris rediff money, maruti suzuki profile Google finance, Toyota motor company rediff money, force motors Eicher motors rediff moneyt rediff money, Swaraj Mazda Indian auto sector,DSB cholamandalam securities limited, utility vehicles market Indian auto sector,DSB cholamandalam securities limited, Light commercial vehicles market

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