MAHINDRA & MAHINDRA

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

26.60%

20.80%

12.20%

1.20%1.21%

6.40%1.40% 4.03%

Sales in Billion

Automoive

Farm Equipments

IT Services

Infrastructure

Hospitality

systech

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 operations has ever since enjoyed a healthy CAGR (64% from 03 to 08)

2003 2004 2005 2006 2007 2008 20090

2000

4000

6000

8000

10000

12000

14000

106116073046

5534

8021

12359

8501

CAGR

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 polices2. Access to the market3. Industrial capability4. World class infrastructure 5. Gate way to Africa6. Cost of doing business7. 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

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.

Distribution / Sales

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

TOYOTA VW (Audi & VW)

BMW GROUP MERCEDES-BENZ SA

FMCSA (Ford & Mazda)GMSA (Cadillac, Chevrolet, Hummer & Opel)

NISSAN HONDA

RENAULT JAGUAR LAND ROVER

CHRYSLER SA SUZUKI AUTO

PCSA (Puegot & Citreon)TATA

VOLVO CARS FIAT GROUP

SUBARU PORSCHE

MAHINDRA MASERATI

CHANA LAMBORGHINI

48364680

30573028

22031904

744606578

429366

293232218194187

1007528541

Comparative Passenger Car Sales (S.A)Jan 2010.

Passenger Car Sales – South Africa

(Dec ’09 – Jan ‘10)

SEGMENT VOLUME

SMALL CARS (CUBIC CAPACITY 1400CC OR LESS) 1595

MEDIUM CARS (CUBIC CAPACITY 1400CC - 2500CC) 549

LARGE CARS (CUBIC CAPACITY 2500CC OR GREATER) 154

4X4 RECREATIONAL/SUV 942

LIGHT COMMERCIAL VEHICLES 722

TOTAL 3962

SMALL CARS (CUBIC CAPACITY 1400CC OR LESS)

MEDIUM CARS (CUBIC CAPACITY 1400CC - 2500CC)

LARGE CARS (CUBIC CAPACITY 2500CC OR GREATER)

4X4 RECREATIONAL/SUV

LIGHT COMMERCIAL VEHICLES

0 200 400 600 800 1000 1200 1400 1600

1595

549

154

942

722

Daihatsu, Hyundai, Kia, SsangYong, Chery and Foton reported sales by major segment as follows -

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)

RAND CONVERT TO INR

INR COVERT IN RAND

XYLO Rs 6,23,900 – Rs 8,33,500

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

SCORPIO R106900- R234900

Rs 6,47,736- Rs 14,23,322

Rs 7,91,560 - Rs 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………!