Sample CC- M&M

1

Overview (Basic Company Profile)

MAHINDRA & MAHINDRA LIMITED

Company Capsule

2TABLE OF

CONTENTS

Executive Summary

Background

History, Year of Incorporation & other details

Demographics

Location, Branches, Employee details

Legal structure

Ownership, M&A / JV/ Acquisitions

Subsidiaries & Associated companies

Organisational Structure

Leadership, Organizational chart

Operational Profile

Products /Services /Solutions

Financial Summary

Historical revenue growths

Stocks Performance

Company Initiatives & Strategy

Annexure

Company in the press

3EXECUTIVE

SUMMARY Formerly known as Mahindra & Mohammad, Mahindra & Mahindra Ltd was established by

Mahindra brothers & Ghulam Mohammad in 1945 and is headquartered in Mumbai, India,

M&M today is a US $6 billion group which enjoys a leadership position in utility vehicles & tractors. The Group's principal activities are to manufacture and distribute automobiles and farm equipment. The Group also provides IT, Financial, trading and management services and have a presence in diverse segments including Automotive, Farm equipment, IT services, Financial services, Infrastructure, Hospitality, Systech and Others.

M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA.

Company employs over 100,000 people across the globe.

M&M’s global strategy to focus on mix of mergers, acquisitions & JVs has strengthen its core product area & helped it enter new niche markets both domestic & international.

Group is acquiring firms in both domestic and international markets in order to gain low-cost, global scale facilities with access to international markets, as well as to absorb the high end technologies and competencies of global firms.

Since 1992, M&M has made 15 acquisitions, stakes in 15 companies & 13 divestitures which also helped group to enhance its dealer base and service network.

Company has recently acquired Satyam Computer Services Ltd, Jiangsu Yueda Yancheng Tractor Manufacturing Co Ltd and Punjab Tractors Ltd.

Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra has recently won Japan Quality Medal & is the only tractor company to win the Deming Price.

4EXECUTIVE

SUMMARY The Board of Directors of the company has, as its members, eminent persons from industry,

Finance, investment and other branches of business, who bring diverse experience and expertise to the Board.

M&M is currently managed under the leadership of Mr. Keshub Mahindra who is designated as chairman of the group. Mr. Mahindra is a well-known philanthropist who redefined corporate governance by effectively channelizing funds into the social sector & sas contributed immensely to the cause of building ethical corporations in India.

Group’s product catalogue includes a wide variety of products and services representing various industry segments.

Company is continuously engaged in numbers of activities & initiatives to improve the profitability of business by optimum utilization resources. As a result of their continuous R&D company has developed products powered by alternate energy like CNG & electricity to provide lower polluting products for better environment.

Company is also engaged in numbers of CSR initiatives to bid their role in the enhancement of society & environment. For instance: Company’s new initiative ‘Samriddhi’ which aims at bringing the latest innovative farming technologies within the reach of Indian farmers.

5 BACKGROUND

The US $6 billion Mahindra group is amongst the top 10 industrial houses in India.

On October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling Jeeps from Willys, USA.

In 1948 Mahindra & Mohammed changed its name to Mahindra & Mahindra Limited when Ghulam Mohammed migrated to Pakistan post-partition .

M&M grew from being a maker of army vehicles to a major automobile and tractor manufacturer.

Group's principal activities are to manufacture and distribute automobiles and farm equipment.

M&M is one of the leading tractor brands in the world and the largest manufacturer of tractors in India with sustained market leadership of over 25 years.

M&M is the leader in the utility vehicle (UV) segment in India and offers over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero.

M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture

The Group also provides IT, Financial, trading and management services and has a presence in Automotive, Farm equipment, IT services, Financial services, Infrastructure, Hospitality, Systech and Other market segments.

M&M has a global presence and its products are exported to several countries.

Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

M&M registered a growth of 0.5% and 31% in vehicle sales and three-wheeler sales respectively in FY 2008-09 over 2007-08.

M&M enjoys a leadership position in utility vehicles & tractors.

Mahindra Finance- leader in rural financing.

Tech Mahindra- leader in telecom software.

Mahindra Holidays- Leader in ‘Time Share’.

6 BUSINESS SECTORSTHE MAHINDRA GROUP HAS PRESENCE ACROSS 7

BUSINESS SECTORS

Only Indian Company among the top tractor brands in world.

Recently won Japan Quality Medal.

Only tractor company to win the Deming Price.

Ranked among top 10 Indian companies by US based Reputation Institute in its Global 200: The World’s Best Corporate Reputation List.

Automotive

Farm Equipments

Information Technology

Trade, Retail & Logistics

Financial Services

Infrastructure Development

Systech

7 DEMOGRAPHICS

Mahindra Group has ambitious global aspirations and has presence in over 80 countries in 5 continents

It has acquired plants in China and UK, and has three assembly plants in the USA and has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA.

Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

Mahindra Group is headquartered in Mumbai with its regional offices across the globe in Delhi, Pune, Bangalore, Gujarat, Raigad, Germany, London, Itlay, South Africa, USA, Sharjah.

M&M has one tractor manufacturing plant in China and three assembly plants in the USA.

Company employs over 100,000 people across the globe.

8LEGAL STRUCTURE

M&A / JV

With greater exposure to markets abroad and increased competitiveness, corporates have successfully faced the challenges of competing on foreign turf and have matured and grown in self-confidence.

For the Mahindra Group, which is fast establishing its international footprint, M&As are at the core of the growth strategy. While M&As were earlier need and opportunity based, they have now become a continuous process.

The group’s global strategy to focus on mix of mergers, acquisitions & JVs has strengthen its core product area & helped it enter new niche markets both domestic & international.

M&M underwent a major change in mindset and is now acquiring firms in both domestic and international markets in order to gain low-cost, global scale facilities with access to international markets, as well as to absorb the high end technologies and competencies of global firms.

Since 1992, Mahindra & Mahindra Ltd. has made- 15 acquisitions stakes in 15 companies 13 divestitures

Last year-and-a-half has seen the pace of M&A activity within the Group accelerating even further. For instance, it has witnessed international M&As such as the formation of a tractor JV in China, the acquisition of the largest automobile forging company in the UK, etc.

In December 2009, the Company through its wholly owned unit Mahindra Aerospace Pvt. Ltd. and jointly with Kotak Private Equity, acquired the 75.1% stake each in aircraft maker Gippsland Aeronautics and parts supplier Aerostaff Australia.

Domestic M&As include the acquisition of the second largest forging unit, the acquisition of an engineering and aircraft design company, the formation of a gear manufacturing JV, the formation of Renault and International JVs and the reorganization and merger of various Group companies.

Other recent M&A involves- acquisition of Satyam Computer Services Ltd, Jiangsu Yueda Yancheng Tractor Manufacturing Co Ltd and Punjab Tractors Ltd.

9ORGANISATIONAL STRUCTURE

B OA R D O F D I R E C T O R S

Name Designation

Mr. Keshub Mahindra Chairman

Mr. Anand G. Mahindra Vice Chairman and MD

Mr. Deepak Shantilal Parekh Director

Mr. Nadir Burjorji Godrej Director

Mr. M. M. Murugappan Director

Mr. Bharat Narotam Doshi Exec. Director & Group CFO

Mr. Arun Kumar Nanda Exec. Director

Mr. Narayanan Vaghul Director

Dr. Ashok Sekhar Ganguly Director

Mr. R. K. Kulkarni Director

Mr. Anupam Pradip Puri Director

Mr. Arun Kanti Dasgupta Nominee of LIC

The Board of Directors of the company has, as its members, eminent persons from industry, Finance, investment and other branches of business, who bring diverse experience and expertise to the Board.

10ORGANISATIONAL STRUCTURE

M R . K E S H U B M A H I N D R A , C H A I R M A N

B.Sc. graduate from Wharton, University of Pennsylvania, USA.

Joined Mahindra Group in 1947

Became the Chairman in 1963.

A well-known philanthropist who redefined corporate governance by effectively channelizing funds into the social sector.

Has contributed immensely to the cause of building ethical corporations in India

Part of numerous prestigious organizations and committees like Prime Minister’s Council on Trade & Industry, ASSOCHAM, Indo-Hellenic Friendship League etc.

Appointed by the Government of India to serve on a number of Committees including the Sachar Commission on Company Law & MRTP, Central Advisory Council of Industries etc

On the Board of Directors of the various organizations including Member of the Foundation Board - International Management Institute, Geneva, Business Advisory Council - International Finance Corporation, Washington, Mahindra Holdings Ltd., Housing Development Finance Corp. Ltd. Etc.

Awarded with various prestigious awards for his contribution to the industry including Giants International Business Leadership Award, NIF-Mody Enterprises Man of the Year Award, Business India - Businessman of the Year, Shiromani Award, FIE Foundation - Rashtra Bhushan Award, Lakshya Business Visionary Award – NITIE, Ernst & Young Entrepreneur of the Year Lifetime Achievement Award, SIAM Award for ‘Lifetime Contribution to the Automotive Industry, CNBC TV18 India Business Leaders Lifetime Achievement Award 2008 etc.

11 PRODUCTS PROFILE

3/ 4 wheelers Pick-Ups LCVs SUVs UVs

Automotive Farm Equipments

Tractors Farm Implements Engines

Auto Loans Mutual Funds Insurance Risk Management Services

Finance Systech Forgings Composites Gears Stamping & Steel Sourcing of Auto

components

12 PRODUCTS PROFILE

Software solutions Information security consultancy Application development & Management Managed services

IT

Retail, Trade & Logistics

Mahindra retail Corporate people

movement Supply chain management Dealership management Facility management

Infrastructure Infrastructure

Development Engineering Consultancy Integrated Business City Lifestyle Spaces Mahindra Holidays

13 FINANCIAL SUMMARYYEAR- ON- YEAR

For FY ended 2009 M&M revenue increased by 10% & net income decreased by 11% .

FES division clocked an overall growth of 7.3% y-o-y in net sales however sales volume of tractors declined by 18.6%.

Net income was offset by an increase in consumption of raw materials, rise in staff costs, an increase in interest expenses and higher provision for depreciation & amortization charges.

Source: www.moneycontrol.com

14FINANCIAL SUMMARY

Q3 2009 RESULTS

For Q3, FY2009 M&M clocked Net Sales of Rs2,519cr, which was above expectations.

Growth was aided by 9% y-o-y while core business Volumes were down by 21.7%.

EBITDA Margins witnessed a sharp 760bp y-o-y decline owing to higher Raw Material costs, which increased by 453bp y-o-y and accounted for over 71.9% of Sales (67.4% in 3QFY2008).

Reported Net Profit stood at Rs1.2cr during the quarter.

Net Profit post adjusting for Exchange loss on FCCBs and ECBs to the tune Rs30.4cr stood at Rs31.6cr, a decline 86.3% yoy.

Company recorded a volume growth of 73.4% in the UV segment against an industry growth of 66.2% in Q3, 2009.

In the Pick-up segment, company registered a volume growth of 60% & posted a market share of 78%.

During Q3, 2009, the domestic tractor sales grew strongly by 37% as compared to same period during last year.

M&M suffered exchange loss of Rs181.9cr (Rs120cr net of tax) due to Rupee depreciation.Source: www.moneycontrol.com

15 FINANCIAL SUMMARYSTOCKS PERFORMANCE

In Nov 2009 M&M reported robust year-on-year volume growth, of 75.8%; month-on-month however, volumes declined 20.8%.

Market is optimistic about M&M’s volume growth in the rest of FY10 and expect residual growth of 20%.

Source: www.moneycontrol.com

16COMPANY INITIATIVES &

STRATEGY 

Company maintained strong focus on reducing cost & increasing efficiency of operations to face increasing competition and managing the risk of currency fluctuations.

M&M Financial Services Ltd will offer the products to alleviates the effect of tightening credit disbursal for vehicles and increasing interest rates.

Company has developed products powered by alternate energy like CNG & electricity to provide lower polluting products for better environment.

Company introduced fuel-smart technology on its Scorpio and Bolero SUVs.

Company plans to bring in the incremental capacity from its new plant in Chakan, Pune , phase wise to save itself from risk of demand fluctuations.

Company launched Mahindra Xylo & refreshed Scorpio to maintain company’s sales momentum.

Company took over Punjab Tractors Ltd which know operates as part of FES as its Swaraj Division. Strong brand equity and nationwide dealer network of Swaraj complements company’s existing network, sound financial fundamentals & dedicated and experienced workforce.

Company’s new initiative Samriddhi aims to bring the latest innovative farming technologies within the reach of Indian farmers.

Company plans to launch an ultra-cheap entry level tractor next year to further increase tractor penetration.

Company has introduced several initiatives in order to minimize their energy consumption during operations.

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Mahindra launches Maxximo at an unbeatable price …………

03.02.10

Mahindra records highest ever domestic auto sales …………

01.02.10

Mahindra launches the Scorpio automatic in Egypt …………

27.01.10

Mahindra Bolero tops the charts for customer

………… 14.01.10

Mahindra announces nation-wide Mega Service Camp

………… 11.01.10

Mahindra’s auto & 2 wheeler sectors receives top …………

11.01.10

ANNEXURE

18

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