SHREY_UJ

Submitted in partial fulfillment for theAward of degree of

Master of Business Administration

(2009-2011)

Submitted by: Submitted to:Shrey ujjainwa l Mrs.UmakhandelwalMba:2nd year Sr.lecturer

Alwar Institute of Engineering & Technology(AFFICATED BY RAJASTHAN TECHNICAL UNIVERSITY)

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PREFACE

Marketing activities can be regarded as lifeblood of all

business concern. In order to enhance the performance of

marketing department and overall success of a business concern,

study of consumer behavior and their satisfaction, sales and

distribution channels, advertisement and competitive advantages.

The performance of a company very much depends on marketing

department. These activities are very much important for an

organization.

No study can be termed complete if there is no practical

experience. Hence need for training has become a real necessity.

Practical exposure no doubt has contributed a significant amount

of knowledge to me along with real l ife experience & was an ideal

combination of academic knowledge & practical experience.

MAHINDRA & MAHINDRA Is infects a very ideal location to

gain practical experience. The experience gained in short duration,

I am sure will go a long way in all my future endeavors.

SHREY UJJAINWAL.

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DECLARATION

I, SHREY UJJAINWAL Student of M.B.A., ALWAR Institute of Engineering & Technology, MIA , Alwar (Rajasthan) hereby declare that all the information facts and figures produced in this report is based on my own experience and study during my open market research in analyzing the “LOST SALES ANLYASIS .”

I further declare that all the information and facts furnished in

this project report are based on my intensive research findings.

They are first hand and original in nature.

And I trying my best effort to do a good work of company for future help and put my best value in the project.

SHREY UJJAINWAL

Student of M.B.A. II ndYe, Place: Alwar Institute of Engineering & Technology,

MIA, Alwar

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ACKNOWLEDGEMENT

The research work I undertook was an attempt to over comes the boundaries of books before I take up this as my profession and start my carrier as a practicing Manager.

My sincere thank to all those gentlemen who by their experience

enriched my knowledge of working in Mahindra. I would like to

thanks my staff members who give me an idea to go ahead with

this research topic.

I express my sincere thanks to my project guide, Mrs.uma khandelwal

Designation Lecturer, Deptt Management., for guiding me right form the

inception ti l l the successful completion of the project. I sincerely

acknowledge him/her/them for extending their valuable guidance,

support for l i terature, crit ical reviews of project and the report and

above all the moral support he/she/they had provided to me with all

stages of this project.

I would also l ike to thank the supporting staff Management Department, for their help and cooperation throughout our project

And very special thanks all the consumer’s of TATA and MAHINDRA &MAHINDRA and also local people of ALWAR (RAJASTHAN).

With sincere regards,

SHREY UJJAINWAL

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TABLE OF CONTENT

SL.NO TOPIC PAGEN NO.

1. Industry profile

2. Company profile

Introduction

History of co.

Major Milestones

Profile of M&M

Purpose &values

Mission & vision statement

M&M Brand

M&M Overview

Board of directors

Plant Location

MAHINDRA & MAHINDRA special service group

Corporate governance

Products

Welfare centers

Coordinates

Business segments

Financial position of company

End Products

Ingenious Rishtey

Introduction of JS4wheel

Distribution system of JS4wheel

Management & Manpower util ization

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3 Lost sales analysis (introduction).

4 Reasons for L .S . A .(LOST SALES ANALYSIS).

5 Why study L.S.A.

6 Objectives of project.

7 Research methodology.

8 Comparative analysis.

9 Findings.

10 Project a glance.

11 Result & conclusion.

12 Interpretation.

13 Recommendation.

14 Bibliography.

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INDUSTRY PROFILE

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 mil l ion vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 mil l ion every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 mil l ion in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world , with an annual production of more than 3.7 mil l ion units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three mil l ion units in the course of 2011-12. [ 4 ] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.

As of 2010, India is home to 40 mil l ion passenger vehicles and more than 3.7 mil l ion automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 mil l ion vehicles by 2015 and more than 9 mil l ion by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 mil l ion vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies l ike General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant, Halol again with General Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

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HISTORY

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A util ity vehicles under l icense from Willys. The company soon branched out into the manufacture of l ight commercial vehicles (LCVs) and agricultural tractors.

Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the l icense raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were stil l a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog . A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic l iberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

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Following economic l ibera l iza t ion in Ind ia in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors , Marut i Suzuk i and Mahindra

and Mahindra , expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant Ind ia -specific investment by multinational automobi le manufac turers . In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will l ikely be the limiting factor.

SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and international, in India.

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Product and service segmentation

The automotive industry of India is categorised into passenger cars, two wheelers, commercial vehicles and three wheelers, with two wheelers dominating the market. More than 75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold were motorcycles and about 12% were scooters. Mopeds occupy a small portion in the two wheeler market however; electric two wheelers are yet to penetrate.

The passenger vehicles are further categorised into passenger cars, util ity vehicles and multi-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall under passenger cars. Tata Nano , is the world’s cheapest passenger car , manufactured by Tata Motors - a leading automaker of India. Multi-purpose vehicles or people-carriers are similar in shape to a van and are taller than a sedan, hatchback or a station wagon, and are designed for maximum interior room. Util ity vehicles are designed for specific tasks. The passenger vehicles manufacturing account for about 15% of the market in India.

Commercial vehicles are categorised into heavy, medium and light. They account for about 5% of the market. Three wheelers are categorised into passenger carriers and goods carriers. Three wheelers account for about 4% of the market in India.

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Exports

Mahindra Scorpio Jeep in service with the Italy 's CNSAS .

India's automobile exports have grown consistently and reached $4.5 bil l ion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Netherlands and South Africa . India's automobile exports are expected to cross $12 bill ion by 2014.

According to New York Times , India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facil it ies of several automobile companies like Hyundai Motors , Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 mill ion. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 bill ion worth auto components from India.

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In July 2010, The Economic Times reported that PSA Peugeot Citroen was planning to re-enter the Indian market and open a production plant in Andhra Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in the operation. PSA's intention to util ise this production facil ity for export purposes however remains unclear as of December 2010.

A Tata Safari on display in Poznan, Poland.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in India, which China does not allow.

In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line.

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Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric version of its low-cost car Nano in Europe and the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market.

Bajaj Auto is designing a low-cost car for the Renault Nissan Automotive India , which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project.

While the possibil it ies are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly l inked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.

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Indian automotive companies

Chinkara Motors : Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster

Hindustan Motors Ambassador

ICML : Rhino Rx

Mahindra : Major, Xylo, Scorpio, Bolero, Thar, Verito, Genio

Premier Automobiles Limited : Sigma, RiO

San Motors : Storm

Tata Motors : Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Venture, Safari, Xenon

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Key Competitors

Tata Motors

Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of USD 14 bill ion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has winning products in the compact, midsize car and util ity vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 mill ion vehicles in India.

Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two British brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets.

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In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.

With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Util ity Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which signifies a first for the global automobile industry. Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at USD 2,200 or Rs.100,000 (excluding VAT and transportation cost). The Tata Nano has been subsequently launched as planned, in India in March 2009.

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Maruti Suzuki India

Market Share: Passenger Vehicles 46.07%

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estil lo and sedans DZire, SX4 and Sports Util ity vehicle Grand Vitara.

Since inception in 1983, Maruti Suzuki India has produced and sold over 10 mill ion vehicles in India and exported over 500,000 units to Europe and other countries. The company’s revenue for the fiscal 2010-2011 stood over Rs 375,224 mill ion and Profits After Tax at over Rs. 22,886 mill ion. [ 1 4 1 ]

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Hyundai Motor India

Market Share: Passenger Vehicles 14.15%

Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment.

Hyundai Motor, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 559,880 vehicles in the year 2009, an increase of 14.4% over 2008. In the domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863 units, while overseas sales grew by 10.7%, with export of 270,017 units. Hyundai Motor currently exports cars to more than 110 countries across European Union, Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger car of the country for the sixth year in a row.

In a litt le over a decade since Hyundai has been present in India, it has become the leading exporter of passenger cars with a market share of 66% of the total exports of passenger cars from India, making it a significant contributor to the Indian automobile industry. In 2009, in spite of a global slowdown, Hyundai Motor India’s exports grew by 10.7%. In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports to Australia are expected to be in the region of 15,000 per annum.

Mahindra & Mahindra

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Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%

Mahindra & Mahindra is mainly engaged in the Multi Util ity Vehicle and Three Wheeler segments directly. The company competes in the Light Commercial Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the previous year.

The company’s domestic Multi Util ity Vehicle sales volumes increased by 3.3%, as against a decline of 7.4% for industry Multi Util ity Vehicle sales. A record number of 153,653 Multi Util ity Vehicles were sold in the domestic market in 2009 compared to 148,761 MUVs in the previous year.Hence, Mahindra & Mahindra further strengthened its domination of the domestic Multi Util ity Vehicle sub-segment during the year, increasing its market share to 57.2% over the previous year’s market share of 51.3%.

Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market.

Ashok Leyland

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Market Share: Commercial Vehicles 16.47%

Against the backdrop of the sharp slump in demand for commercial vehicles, during 2008-09, Ashok Leyland registered sales of 47,118 medium and heavy commercial vehicles (M&HCV), 37.5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8.7% and 46.3% less than in the previous year.

The company lost 1.8% market share in the Indian medium and heavy commercial vehicle market during the financial year 2008-09, mainly due to loss of sales in the truck segment. This was because the Eastern Region, where the Company’s presence had been historically weak, was relatively stable, whilst the market declined sharply in other regions.

While total industry volume of the medium and heavy duty buses declined by about 8.7%, the Company’s market share grew marginally and Ashok Leyland retained its number one position in this segment.

The Company sold 6,812 vehicles in the overseas markets during 2008-09. This represents a decrease of approximately 6.5% over the previous year. Total industry volume related to overseas markets to which the Company exports (such as Sri Lanka, the Middle East) witnessed a reduction of about 25% over the previous year.

To combat the impact of decline in CV sales, the Company focused on non-cyclical businesses in the portfolio.

The Company produced in all 54,049 vehicles during the year. To contain costs and conserve cash, the Company worked only about 50% of the working days in all its manufacturing units during the second half of the year.

Hero Honda Motors

Market Share: Two Wheelers 41.35%

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Hero Honda has been the largest two wheeler company in the world for eight consecutive years. The company crossed the 15 mil l ion unit milestone over a 25 year span. Hero Honda sold more two wheelers than the second, third and fourth placed two-wheeler companies put together.

As one of the world's technology leaders in the automotive sector, Honda has been able to consistently provide technical know-how, design specif ications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has took the responsibil i ty of creating world-class manufacturing facil i t ies with robust processes, building the supply chain, sett ing up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Honda bikes on this country's roads than the total population of some European countries.

Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Honda has built two world-class manufacturing facil i t ies at Dharuhera and Gurgaon in Haryana, and

Hero Honda was the torchbearer for the two-wheeler industry during 2008-2009. It sold more two-wheelers during the year than the combined volumes of the second, third and fourth placed competitor. Overall, the company sold 3.72 mil l ion two-wheelers, [ 18 ] growth of 12% over previous year. Motorcycle sales in the domestic market, which account for more than 95 per cent of Hero Honda's sales, were up by 11%. The company posted sales of USD 2.4 bil l ion and profits after tax of USD 256.40 mil l ion during the year 2008-2009. During the year under review, your Company exported 81,194 two-wheelers, a decline of 10%. Its third and most sophisticated manufacturing plant at Haridwar has just completed a full year of operations.

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During the year, the company also turned in a roll icking performance with its scooter portfol io, with a 49% growth in domestic sales to 156,210 units. This performance allowed Hero Honda to increase its share in the domestic scooter market by more than three percentage points. Hero Honda's performance in the two-wheeler industry was the only standout performance during the year amongst the large players. Without Hero Honda's numbers, the two wheeler industry growth would have been marginal.

Bajaj Auto

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Market Share: Two Wheelers 26.70%, Three Wheelers 58.60%Bajaj Auto is ranked as the world's fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Despite fall ing demand in the motorcycle segment, the company has succeeded in maintaining an operating EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 13.6% of net sales and other operating income. From 1.66 mill ion motorcycles in 2007-2008, the company’s domestic sales fell by 23% to 1.28 mill ion units in 2008-2009.

Bajaj Auto is the country’s largest exporter of two- and three-wheelers.During 2008-2009, Bajaj Auto’s international sales achieved an all-time high of 772,519 units of two and three wheelers, representing a growth of 25% over the previous year.The growth was driven by the export of two-wheelers, which increased by 31% over 2007-2008 to achieve sales of 633,463 units in 2008-2009. The company expanded its footprint in Africa and Middle East, where the region’s share rose from 30% of the export business in 2007-2008 to 43% in 2008-2009. The total value of exports was USD 528 mill ion, representing a growth of 29%.

The company’s domestic sales of three wheelers in 2008-209 were 12% lower compared to the previous year, and stood at 135,473 units. Exports of three wheelers grew at 2% to 139,056 units

COMPANY PROFILE

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Introduction

The Mahindra Group is an Indian multinational conglomerate company headquartered at Mahindra Towers in Mumbai, India , with over 100 countries across the globe. The group has a presence in aerospace, agribusiness, aftermarket, automotive, components, construction equipment, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. It is considered to be one of the most reputable Indian industrial houses with market leadership in util ity vehicles as well as tractors in India. The Mahindra Group has a global presence with operations on every continent except Antarctica .

Automotive Division of Mahindra & Mahindra Ltd. is in the business of manufacturing and marketing Util ity Vehicles, LCVs and services for last 52 years. It is the market leader in this segment enjoying more than 50% of the market share. M&M brand denotes Ruggedness, Durability, Reliability, Easy Maintainability and Operational Economy. The customer profile primarily includes individuals, traders, entrepreneurs, contractors, tour operators, taxi owners, car hire companies, government departments and institutions Army etc.

The continued deregulation & liberalization of Indian Economy has provided an impetus to rapid growth. India is expected to become a major export base for auto components and aggregates. Global automobile giants are entering the Indian market. Increasing GDP growth rate, multi-motorization and envisaged higher investment in infrastructure is expected to give further boost to the Indian automobile industry. The Company is gearing itself to meet these challenges through rapid up gradation and expansion of manufacturing technologies through additional investment. This would be supported by modern, elegant and efficient distribution network with consumer friendly work ethics.

The Automotive Division has util ity vehicles manufacturing plants at Kandivli (Mumbai) , Igatpuri, Nashik in the State of Maharashtra and LCV assembly plant at Zaheerabad, in the State of Andhra Pradesh, together employing more than 12,000 employees. The

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productivity (vehicles per person per annum) of the Division has been showing upward trend over last three years. All the divisions of the Company plants are certif ied ISO9002. We are gearing ourselves for QS 9000

The Division has embarked upon Business Process Re-engineering since 1994 in order to util ize its resources more efficiently and enhance customer service level. The re-engineering of operations was primarily necessitated due to intense domestic competition, entry of global players in the segment and enhanced customer expectations.

The spread of the product is uniformly distributed in North, South and West regions of India and has marginal presence in East. Nearly 70% of the Company's products are sold in semi-urban and rural markets. With models like, the Armada and its planned new versions, the Company plans to cater to the niches in urban market. The distribution is managed through a network of more than 150 Dealers spread across the Country, which is supported by Company’s 18 Area Offices. Apart from this, the vehicles are serviced through 30 Authorized Service Centers and 60 Stockiest for meeting the need of genuine spare parts.

The marketing strategy of the Division revolves around rationalizing models, delivering value for money, increasing safety features, incorporating fuel efficient engine, improving the quality of after sales service and maintaining low price product image. For high end market, the strategy adopted is to offer products with more comfort level with option of accessories to meet special needs of individuals.

Currently the Export focus is on African, South American, South Asian and Middle East Markets, where the need and use of vehicles is akin to India. The Company has set itself target to export 15% of the output within next three years.

The Division has a separate R&D Center at Nashik with a team of 147 engineers & 108 support staff. Cross-functional and concurrent engineering teams are working on Integrated Design & Manufacturing (IDAM) to design a product to suit specific requirements of the customers through quick product development. A sports util ity vehicle Scorpio is in the pipeline with all new aggregated and in stated for debut in Auto Expo 2000. The current role of R & D is to design products that meet all the customer needs as well as the legal requirements in terms of various norms

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for CMVR, safety & emission. Thus, emphasis is given on designing a product that has a level of quality built into it (through specifications) & which is easy to manufacture. R & D also lends its support during the entire life cycle of a product by associating closely with Service department.

R&D has a Design Center with a state of the art CAD Center having 60 workstations with specialized analysis software like Adams & Nastran & Hypermesh, Styling software: Alias, PDM software Metaphase & Solid Modeling software, SDRC Ideas, Catia, etc. that are being used for designing & analyzing various aggregates going into the vehicle. All designs are validated in Testing Centre having laboratories for Engine Testing, Metrology, Metallurgy, Polymer, Oil & Fuel, Acoustic Testing, Vehicle Testing and Fatigue Testing.

A new Mahindra Research Valley is being developed at a Greenfield location at Thane near Mumbai. This is a 120 acre site & investment of Rs. 2,000 mill ion is planned for this facility.

Community Initiatives

Basketball and soccer to India. The Mahindra Group is extensively involved in philanthropy and volunteering. It is considered an active

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participant in the Indian Corporate Social Responsibil i ty f ield and received the Pegasus Award for CSR in 2007. Mahindra engages in philanthropy primarily through the KC Mahindra Trust, which serves as the CSR arm of the group (although many subsidiaries have their own CSR initiatives, notably Tech Mahindra and Mahindra Satyam). Founded in 1953 by K.C Mahindra, the trust focuses primarily on fostering l i teracy in India and promoting higher learning through grants and scholarships. Mahindra operates several vocational schools as well as the Mahindra United World College . The KC Mahindra Trust’s primary project however is Project Nanhi Kali, which targets the education of young Indian girls. The foundation currently supports the education of approximately 51000 underprivileged girls. Other initiatives include Mahindra Hariyali (a 1 mill ion tree planting campaign) as well as sponsorship of the Lifeline Express , a mobile hospital train. Mahindra employees also plan and lead their own service projects through Mahindra’s Employee Social Options Plans. In 2009, more than 35,000 employees participated.

The Mahindra Group was responsible for the creation of Mahindra United World College , a UWC campus located in Pune.Mahindra also supports the Mahindra Excellence in Theatre Awards to recognize Indian theater talent, the Mahindra Indo-American Film Festival, and the Mahindra Lucknow Festival. In 2011, it held the first annual Mahindra Blues Festival with guests like Buddy Guy, Johnny Lang, and Shemekia Copeland. Mahindra also partners with the NBA and Celtic Football Club to bring grassroots.

Leadership

Keshub Mahindra, the Chairman of Mahindra & Mahindra, is a graduatefrom Wharton, University of Pennsylvania, USA. He joined the company in 1947 and became the chairman in 1963.

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During his long career he has held many key posit ions, served on the Board of Directors of several organizations, and been a member of many organizations and committees. He has also held many other important posit ions, such as Chairman of Bombay Chamber of Commerce and Industry (1966–67), President of ASSOCHAM (1969–70), Chairman of the Indian Institute of Management, Ahmedabad (1975–85); Member of the Foundation Board - International Management Institute, Geneva (1984–89); Chairman, India Nominating Committee 'Single Nation Programme', Eisenhower Exchange Fellowships, USA (1998–2005).

Over the years, he has also received numerous awards, including: NIF-Mody Enterprises Man of the Year Award (1980), Giants International Business Leadership Award (1972–82), Madras Management Association Business Leadership Award (1983), Companion - Brit ish Institute of Management(1985), Chevalier de la Légion d'honneur (1987), Business India - Businessman of the Year(1989), Honorary Fellowship of All India Management Association (1990), Institute of Company Secretaries of India (ICSI) Lifetime Achievement Award for Excellence in Corporate Governance (2004), Lakshya Business Visionary Award - NITIE (2006), Indian Business School (IBS) Kolkata Lifetime Achievement Award presented by the Institute of Chartered Financial Analysts of India (ICFAI)(2007)

Mr. Keshub is a "philanthropist who redefined corporate governance by effectively channelising funds into the social sector," notes the group's website.A blip to the prestigious l i fe and career is the chapter of Union Carbide India Ltd. (of which he was then the chairman) and the Bhopal Gas Tragedy. After the Bhopal Gas Tragedy he was charged and indicted (2010) for causing death due to negligence and sentenced to 2 years' imprisonment and Rs 1 Lakh fine. He was granted bail shortly after being sentenced.

Anand Mahindra is Vice Chairman and Managing Director of Mahindra & Mahindra. He graduated magna cum laude from Harvard University and earned his MBA from Harvard Business School in 1981. He joined the Mahindra Group in 1981 as an Executive Assistant to the Finance Director of the Mahindra Ugine Steel Company. His leadership has helped make Mahindra a global

28

company and strong competitor since India's economic liberalization in 1991. Anand is a notable public figure with a considerable following on Twitter and serves on many boards and committees.

Biography

Mahinda grew up at Vid isha , the residence of his mother and became a monk at the age of 20 with Moggal ipu t ta -T issa , his father's spiritual teacher, guiding him and was well-versed with the Tr ip i taka . Mahinda together with

29

fel low monks I t th iya , Ut t iya , Sambala , Bhaddasa la and Saamanera Sumana (who was the son of Sanghami t ta ) were sent to Sr i Lanka to spread Buddhism , fol lowing the Thi rd Buddh is t Counc i l , upon the recommendation of Moggaliputta-Tissa. He was also accompanied by a lay disciple Bhankuka , who was a maternal grandson of his aunt. The party left from Vedasagiri v ihara , believed to be modern day Sanch i .

Mahavamsa and Dipavamsa, the chronicles of Sri Lanka, record the arrival of the party on the full moon of Jet tha , a national festival at the t ime. At the t ime, King Devanampiyat issa was partaking in a hunting expedit ion in the Mih in ta le hi l ls. It is said that Asoka and Devanampiyatissa were previously acquainted and on good terms, having exchanged royal gifts upon their respective ascensions to the throne. Upon meeting the shaven-headed monks Devanampiyatissa was taken aback by their appearance and inquired as to who they were. After exchanging greetings, Mahinda preached the Chulahat th ipadopama

Sut ra , and the royal hunting party converted to Buddhism. The party was subsequently invited to Anuradhapura , the seat of the throne for a royal reception and to give further dharma talks. Mahinda subsequently gave two public talks sanctioned by Devanampiyat issa , in the Royal Hall and in the Nandana garden in the Royal Park, leading to the start of the public embrace of Buddhism in Sri Lanka. The royal park Mahamegha was then set aside as the residence for Mahinda's party, and in later t imes became the Mahav ihara , the earl iest centre of Buddhist culture and scholarship Sri Lanka. The Chet iyag i r iv ihara monastery was then established in Mih in ta le .

Mahinda then sent for his sister Sanghami t ta from Magadha, who was a nun , to start a female Buddhist order after local women had expressed a desire to join the Sangha . Mahinda also arrainged for a bodh i sapling from the original tree in Bodh Gaya to be sent to Sri Lanka, where it was planted in the grounds of the Mahavihara and is sti l l visible today.After a month spent delivering discourses to Sri Lankans who had ventured to the capital, Mahinda retreated to Mih in ta le to spend the vassa

during the monsoon season. As a result, a second royal funded monastery was built there. Later, Mahinda organised for a stupa to be constructed, and a part of the bodily relics of Gautama Buddha were transferred from the Maurya Empire to Sri Lanka. Mahinda then had Ar i t tha , Devanampiyatissa's nephew, a bh ikkhu , to expound the Vinaya

monastic code of discipline to further Buddhism in Sri Lanka.

Mahinda outl ived Devanampiyatissa, and died at the age of 80 in Sr i

Lanka . King Ut t iya , who succeeded his brother, organized a state funeral for Mahinda and constructed a s tupa to house his relics at Mih in ta le .

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Significance and Legacy

The 20th century Sri Lankan monk Walpo la Rahu la described Mahinda as "the father of Sinha lese l i terature" as he had translated and written commentary for the Tripitaka in Sinhalese, turning it into a l i terary language. He was also credited with introducing the culture of the Mauryan empi re to the island, along with its architecture.

Mih in ta le , the mountain where Mahinda supposedly f irst encountered King Devanampiyatissa and the site of his funerary s tupa , is an important pilgrimage site in Sri Lanka. Pilgrimages are tradit ionally undertaken in the month of June (Poson in the old Sinhala calendar), when Mahinda is believed to have arrived in Sri Lanka on the full-moon night of the month, a t rad i t iona l t ime for

Mahindra tractor

Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold worldwide across six continents. Mahindra is also among the top three tractor manufacturers in the world. Mahindra has a huge consumer base

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in India, China and America and a growing base in Australasia. The company builds more tractors in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In 1963, M&M formed a joint venture with International Harvester to manufacture tractors carrying the Mahindra nameplate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M developed its first tractor, the B-275. Mahindra compact tractors and util ity tractors are some of the toughest, most durable on the planet. Mahindra Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing tractor market in China, Mahindra acquired majority stake in Jiangling. To raise awareness about Mahindra in the US, Mahindra USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is participating with a #23 Mahindra Tractors Chevrolet. The car will be driven by Robert Richardson, Jr. Mahindra USA, Inc. announced a 17-race primary and 18-race associate sponsorship for the 2009 NASCAR Nationwide Series. With this sponsorship, Mahindra was the first Indian company to sponsor a car in NASCAR. In 2008, Mahindra was a sponsor of the McDonald Motorsports team which ran the #81 car in the NASCAR NationwideSeries.

Mahindra Tractors operates in 10 countries and has a fairly large customer base in the United States, Australia, Chile, Serbia, Indian Subcontinent, Iran, Syria and a major part of the African continent among many more. Mahindra operates in China, North America and Australasia through its subsidiaries, Jiangling, Mahindra USA and Mahindra Australia. These subsidiaries are also responsible for sales. It also operates in some Indian states through its subsidiaries namely, Mahindra gujrat and swaraj.

Mahindra Tractors is number one in sales in India - the largest tractor market in the world.[8] and it has been the market leader since 1983. Its sales are predominantly in the states of Gujrat, Haryana, Punjab, Maharashtra and the Southern States. Its sales in Gujarat are under the label Mahindra Gujarat and its sales in

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Punjab are under the label Swaraj. In 1999, Mahindra purchased 100% of Gujarat from the Government of Gujarat ?? and Mahindra purchased a 64.6% stake in Swaraj. in 2004.

In 1994, the company entered the American market as Mahindra USA, and in the few years since, its tough, dependable tractors are being sold and serviced by hundreds of leading tractor dealers throughout the country. Mahindra USA, a subsidiary of Mahindra Tractors, is responsible for sales in the North American continent. In the United States, the company performs final assembly and conducts a 51 point pre-delivery inspection, including dynamometer and road testing. Mahindra has three assembly plants in the US. One assembly plant is at its North American headquarters in Houston, Texas, another in Red Bluff, California and the latest assembly and distribution center moved from Calhoun, Georgia to Chattanooga, Tennessee at the end of 2009.

In addition to building their own tractors, Mahindra also sources tractors from other manufacturers. For the USA market, Mahindra has bought tractors from Mitsubishi and Tong Yang Moolsan .

Based in Brisbane, Mahindra Australia is a branch of Mahindra & Mahindra Ltd. In 2005, the company entered the Australian market with the launch of its assembly & customer support centre in Acacia Ridge, QLD. Currently, the company’s products are sold and serviced by 40 dealers throughout Australia. Mahindra Australia is also responsible for sales in New Zealand and the rest of Australasia. The Company's products are distributed in Fiji by Carpenters Motors. In Western Australia and South Australia, Mahindra tractors are distributed by McIntosh Distribution.

JianglingIn 2004, seeing an opportunity to enter the growing tractor market in China, Mahindra purchased an 80% stake in Jiangling Tractors from Jiangling Motor Company. Mahindra also has a factory in China.

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In 1963, International Tractor Company was established in India as a joint venture with International Harvester of the United States to manufacture IH-based tractors in India. The collaboration with International Harvester continued until 1971. In 1977, International Tractor Company merged with Mahindra & Mahindra to become its tractor division, and Mahindra-branded tractors were introduced in 1982.

In addition to building their own tractors, Mahindra also sources tractors from other manufacturers. For the USA market, Mahindra has bought tractors from Mitsubishi and Tong Yang Moolsan to cover selected product ranges

HISTORY OF MAHINDRA

Mahindra & Mohammed was originally incorporated in 1945 by the brothers JC and KC Mahindra and Ghulam Mohammad in Ludhiana, Punjab to trade steel. Following the Partit ion of India in 1947, Malik

34

Ghulam Muhammad left the company and emigrated to Pakistan where he became the first finance minister of the new state. In 1948, KC Mahindra changed the company's name to Mahindra & Mahindra.

Building on their expertise in the steel industry , the Mahindra brothers began trading steel with UK suppliers. They also won a contract to manufacture Willys Jeeps in India and began producing them in 1947. By 1956, the company was listed on the Bombay Stock Exchange , and by 1969 the company had entered the world market as an exporter of uti l i ty vehicles and spare parts. Like many Indian companies, Mahindra responded to the restrictions of the Licence Raj by expanding into other industries. Mahindra & Mahindra created a tractor division in 1982 and a tech division (now Tech Mahindra) in 1986. It has continued to diversify its operations ever since through both joint ventures and greenfield investments .

By 1994, the Group had become so diverse that it undertook a fundamental reorganization, dividing into six Strategic Business Units: Automotive , Farm Equipment , Infrastructure , Trade and Financial Services , Information Technology , and Automotive Components (known internally as Systech). The new Managing Director, Anand Mahindra , followed this reorganization with a new logo in 2000 and the successful launch of the Mahindra Scorpio (a wholly indigenously designed vehicle) in 2002. Together with an overhaul in production and manufacturing methods, these changes helped make the company more competitive, and since then the Group's reputation and revenues have risen noticeably. Currently, Mahindra & Mahindra is one of the 20 largest companies in India In 2009, Forbes ranked Mahindra among the top 200 most reputable companies in the world.

In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify Mahindra's image across industries and geographies. The brand positions Mahindra products and services as aspirational, supporting customers' ambitions to 'Rise.'

Historical Sources

The Dipavamsa and the Mahavamsa , Sri Lanka's two great religious chronicles, contain accounts of Mahinda travelling to Sri Lanka and converting King Devanampiyat issa . These are the primary sources for accounts of his l ife and deeds. Inscriptions and literary references

35

also establish that Buddhism became prevalent in Sri Lanka around the 3rd century BCE, the period when Mahinda lived.

1947: October, first batch of seventy-five Util ity Vehicles

(UVs) imported in CKD condition from Willys overland

Export Corporation.

1949: Lease of 11071 Sq. yds at Mazagaon from British India

Steam navigation. The first Willys Overland Jeep built in

India at the Assembly Plant , Mazagaon, Bombay.

1954: Phased manufacture of Vehicles undertaken in

collaboration with Kaiser Jeep Corporation and

American Motors Corporation.

1962: Indigenous content of Jeep goes uptown 70%. 137

acres of land purchased at Kandivli to centralize

manufacturing operations.

1965: FC 150 Petrol Trucks introduced.

1967: Two wheel drive Util ity Vehicles introduced. 101" wheel

base and Metal Body UVs introduced. Indigenous

content goes up by 97%.

1969: Export of vehicles started, export of total 1200 UVs

together with spare parts to Yugoslavia. Exports also

made to Ceylon, Singapore, Philippines and Indonesia.

1970: Contracts concluded to export of 3304 vehicles, mainly

to Yugoslavia and Indonesia.

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1971: Separate R&D section set up.

1974: Maxi miller campaign launched to conserve fuel. CJ 4A

introduced with new transmission and axle ratio.

Collaboration agreement with Jeep corporation

(subsidiary of AMC, Detroit).

1975: FC 260 Diesel l ight truck introduced. CJ 500 D Diesel

introduced with MD 2350 Diesel Engine.

1979: Government of India approves in principle, the technical

collaboration with Peugeot, France for the manufacture

of XDP 4.90 Diesel Engine.

1981: Nasik Trucks Assembly Plant formally inaugurated.

Peugeot Engine Assembly Plant at Ghatkopar

inaugurated. NC 665 DP Mini Truck rolls out from Nasik

Assembly Line.

1983: FJ 460 model introduced with 4 speed gear box. Engine

plant at Igatpuri was formally inaugurated by Mr. Jean

Boillot, President of Automobiles Peugeot of France for

the manufacture of 25000 Peugeot and Petrol engines.

1985: New Mahindra Vehicle-MM 540 launched in Bombay. NC

640 DP with 4 speed gear box introduced. Mahindra MM

440 introduced.

1986: CJ 640 DP Vehicle introduced.

1987: MM 540 DP metal Body Wagonette introduced.

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1988: M&M signed a Memorandum of Understanding with

Hyderabad Allwyn Nissan Limited to form Mahindra

Nissan Allwyn Ltd., as its associate company with LCV

operations in Andhra Pradesh.

1989: CJ 340 DP model introduced. M&M and Peugeot

announced their tie up for the manufacture of Peugeot

504 pick up truck, BA 10 gear boxes and latest XD 3

diesel engines. M&M acquired automotive pressing unit

at Kanhe, from Guest Keen Will iams Ltd.

1991: Introduction of CJ 500 DI model with MDI 2500 A direct

injection diesel engines. M&M bags order to export

10000 CKD kits. Commander range of models: 650 DI,

750 DP/HT were launched with tremendous market

response.

1993: Mahindra Armada launched. M&M was the only

manufacturer to withstand the demand recession, with

increasing sales.

1995: Mahindra Nissan Allwyn Ltd. (MNAL) merged with M&M

and Zaheerabad LCV operations becoming part of

Automotive Sector. FJ series of LCVs were shifted from

Nasik to Zaheerabad.

Business Process Re-engineering Project initiated in the

Division. Igatpuri Engine Plant received ISO 9002

certif icate from TUV of Germany. Single Cab/Double

Cab project was initiated.

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1996: New LCV model Cabking DI 3150 & Mahindra Classic

vehicles were launched. New Commander 5 Door Hard

Top was introduced.

The company was the first automobile manufacturer to

get all the engine types approved for the new emission

norms effective from 1st April, 96. IDAM (Integrated

Design & Manufacturing) set up for designing entirely

new vehicle with the help of internationally renowned

consultants.

1997: Commercial production of Ford Escort commenced at

Nasik Plant. License & Technical Assistance Agreement

was signed with Mitsubishi Motors Corporation for

Manufacture of SL Body at Zaheerabad (Voyager with

XD 3 and BA 10). Soft/Hard top versions of CL/MM 550,

8 seater Armada, Commander 650 DI with longer wheel

base and MM 540/550 XDB models were introduced.

Kandivli and Nasik plants received ISO 9002 certif icate

from RW-TUV.

1998: Die shop Inauguration at Nashik Plant 2-8/8/97. Voyager

launched by the Chairman at Zaheerabad Plant on

12/11/97. Complete localisation of Cabking model at

Zaheerabad plant. Change over from 3-Speed to 4-

Speed Transmission. 400 nos. Army order successfully

executed at Kandivli Plant in Mar'98.

Major Milestones

1945: On October 2, Mahindra & Mohammed formed.

39

1948: The Company was renamed Mahindra & Mahindra Limited

(M & M) Steel Trading business was started in association

with suppliers in U.K

1948: Business connections in USA through Mahindra Wallace

1949: Wallace Steel trading on behalf of European suppliers

Jeep Assembly commenced

1950: The first business with Mitsubishi Corporation (for 5000

Tons) for wagon building plates for supply from Yawata

Iron & Steel

1953: Otis Elevator Co. (India) established

1954: Technical & Financial Collaboration with Willys Overland

Corporation

1956: Shares listed on the Bombay Stock Exchange Dr. Beck &

Co. formed - a JV with Dr. Beck & Co., Germany

1957: Mahindra Owen formed - a JV with Rubery Owen & Co.

Ltd., UK

1958: Machine Tools Division started.

1960: Mahindra Sintered Products Ltd. (MSP) formed - a JV with

the GKN Group, UK.

1962: Mahindra Ugine Steel Company (MUSCO) formed - a JV

with Ugine Kuhlmann, France

1963: International Tractor Co. of India (ITCI) formed - a JV with

International Harvester Co., USA

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1965: Vickers Sperry of India Ltd. a JV with Sperry Rand

Corporation, USARoplas (India) a collaboration with

Rubery Owen, UK Manufacture of Light Commercial

Vehicles commenced.

1970: Mahindra Engineering & Chemical Products Ltd.(MECP)

commenced operations.

1971: International Harvester collaboration ended

1975: Switch over to diesel vehicles in-house development.

1977: ITCI merges with M&M, to become its Tractor Division

1979: License from Automobiles Peugeot, France for

manufacture of XDP 4.90 Diesel Engines

1982: License from KIA for manufacture of 4 Speed

Transmissions

"Mahindra" brand of tractors born, Siro Plast formed

1983: M&M becomes market leader in Indian Tractor Market.

(Position retained ever since)

1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in

Greece to assemble and market util ity vehicles in Europe

1986: Mahindra British Telecom (MBT) formed - a JV with British

Telecommunications plc (BT), UK

1987: Acquired International Instruments Ltd.

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1989: Automotive Pressing Unit (now MUSCO Stampings)

acquired from GKW

1991: Introduction of Commander series.

1992: Triton Over water Transport Agency Ltd., formed

Implementation of the Service Center project at Kanhe

Merged diverse activities of Steel, Machine Tools,

Graphics into Intergrades Division

1993: Mahindra Steel Service Centre Limited formed in

association with Mitsubishi Corporation and Nissho Iwai

Corporation of Japan. Mahindra Acres Consulting

Engineers Ltd. (MACE) formed - a JV with Acres

International, Canada Incorporation of MBT International

Inc., USA, a wholly owned subsidiary of MBT The

Company’s maiden international offering – the US$ 75m

GDR issue. Introduction of Armada.

1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL)

formed Mahindra USA Inc., formed, for distribution of

Tractors in the USA EAC Graphics (India) Ltd., formed in

collaboration with The East Asiatic Company Ltd. A/S,

Denmark Reorganization of the Group creating six

Strategic Business Units MSL Division (Auto Components)

hived off to form Mahindra Sona Ltd Mahindra Nissan

Allwyn Limited merged with the Company..

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1995: Mahindra Holding & Finance Ltd.(MHFL) becomes a

subsidiary of M & M to carry out business as an

investment company Technical collaboration with

Mitsubishi / Samcor to manufacture L300.

1996: Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor

Co. USA to manufacture passenger cars The Company

made a Foreign Currency Convertible Bond (FCCB) issue

of US$ 115 mill ion.

1997: A new die shop was inaugurated at Nasik Inauguration of

The Mahindra United World College of India.

1999: Launch of ‘Bij lee’ a battery-operated, 3-wheeler

environmental-friendly vehicle. The largest online used

vehicle website in India launched by Mahindra Network

Services. The business of Intergrades Division and

Mahindra Exports Ltd. combined and renamed Mahindra

Intergrades Ltd.

The Company acquired major stake in Gujarat Tractors.

Mahindra & Mahindra Financial Services Limited becomes

a subsidiary of M&M

2000: The Company unveils new logo. Mahindra Auto

Specialties Ltd. a new 100% subsidiary is formed. M&M

sets up its first satell ite tractor plant at Rudrapur. The

Company launches New Age Tractor, the Mahindra Arjun

605 DI (60 HP tractor). The Company launches Bolero

GLX a Util ity Vehicle a response to needs of urban

consumer.

43

2001: A 3-wheeler diesel vehicle "Champion" is launched. The

Company launches Mahindra MaXX a MUV positioned with

the caption Maximum Space, Maximum Comfort. M&M ties

up with Renault for petrol engines. M&M established a

separate division to provide Defenses Solution.

2002: M&M launches Scorpio - the new generation Sports

Utility Vehicle

2003: Scorpio - Recipient of prestigious Awards -

"Car of the Year" Award from Business Standard Motoring

"Best SUV of the Year" and "Best Car of the Year" Awards

from BBC on Wheels

"Car of the Year" Award from CNBC Auto Car

M&M launches the "Invader" - a sporty open top vehicle.

M&M opens a second tractor assembly plant in USA.

M&M launches MaXX Pik Up.

M&M Tractors awarded the prestigious Deming Prize for

excellence in Quality - the first tractor company in the

world to receive the award.

M&M launches India's first Turbo tractor - Mahindra

Sarpanch 595 DI Super Turbo.

Scorpio wins National Award for R&D.

M&M ventures into Industrial Engine business

Mahindra Defence & Lockheed Martin Information

Systems, UK, strike an alliance for Defence Product.

2004: Launched the Mahindra World Tractor - a 75 HP tractor in

the overseas market. Formed a new Sector, Mahindra

44

Systems and Automotive Technologies (MSAT), to focus

on developing components as well as offering engineering

services. Launched "Bolero" and "Scorpio" in Latin

American, Middle East and South African markets. Signed

MOU to enter into JV with Jiangling Motor Co. Group

(JMCG) of China to acquire tractor manufacturing assets

from Jiangling Tractor Company, a subsidiary of JMCG.

M&M becomes the first Indian company to achieve sales

of one mill ion tractors.

2005: Acquired 51% stake in SAR Transmission Private Limited,

a company engaged in manufacture of gears and

transmission shafts. M&M Farm Equipment Sector launch

operations in Australia. M&M becomes the first Indian

auto manufacturer to launch the Common Rail Diesel

Engine (CRDe), offering it on the Scorpio. Acquired 80%

stake in the JV with Jiangling Motors i.e. in Mahindra

(China) Tractor Company. M&M and Renault enter into a

JV to manufacture of the mid-sized sedan, Logan, in

India. M&M and International Truck and Engine

Corporation enter into a JV to manufacture Trucks &

Buses in India The first tractor from the JV, Mahindra

(China) Tractor Co. Limited, rolled out on 2 July 2005

PROFILE OF MAHINDRA & MAHINDRA

Mahindra & Mahindra Limited (M&M) is the flagship company

of US $ 2.59 bill ion Mahindra Group, which has a significant

45

presence in key sectors of the Indian economy. A consistently high

performer, M&M is one of the most respected companies in the

country.

Set up in 1945 to make general-purpose util ity vehicles for

the Indian market, M&M soon branched out into manufacturing

agricultural tractors and light commercial vehicles (LCVs). The

company later expanded its operations from automobiles and

tractors to secure a significant presence in many more important

sectors. The Company has, over the years, transformed itself into

a Group that caters to the Indian and overseas markets with a

presence in vehicles, farm equipment, information technology,

trade and finance related services, and infrastructure development.

The Company has recently started a separate Sector, Mahindra

Systems and Automotive Technologies (MSAT) in order to focus on

developing components as well as offering engineering services.

M&M has two main operating divisions:

The Automotive Division manufactures util ity vehicles, l ight

commercial vehicles and three wheelers. The Company has

recently entered into a JV with Renault of France for the

manufacture of a mid-sized sedan, the Logan, and with

International Truck & Engine Corporation, USA, for manufacture of

trucks and buses in India.

The Tractor (Farm Equipment) Division makes agricultural

tractors and implements that are used in conjunction with tractors,

and has also ventured into manufacturing of industrial engines.

The Tractor Division has won the coveted Deming Application

Prize 2003, making it the only tractor manufacturing company in

the world to secure this prize.

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M&M employs around 11,600 people and has eight

manufacturing facil it ies spread over 500,000 square meters. It has

49 sales offices that are supported by a network of over 780

dealers across the country. This network is connected to the

Company's sales departments by an extensive IT infrastructure.

M&M's outstanding manufacturing and engineering skil ls

allow it to constantly innovate and launch new products for the

Indian market. The "Scorpio", a SUV developed by the Company

from the ground up, resulted in the Company winning the National

Award for outstanding in-house research and development from

the Department of Science and Industry of the Government in

2003. In the tractor market, the Company launched India's first

tractor with turbo technology - the Mahindra Sarpanch 595 DI

Super Turbo.

M&M's commitment to technology-driven innovation is

reflected in Company's plans of setting up of the Mahindra

Research Valley, a facil ity that will house the Company's

engineering research and product development wings, under one

roof.

The M&M philosophy of growth is centered on its belief in

people. As a result, the Company has put in place initiatives that

seek to reward and retain the best talent in the industry. M&M is

also known for its progressive labour management practices.

In the community development sphere, the company has

implemented several programs that have benefited the people and

institutions in its areas of operations. On the occasion of its 60th

47

anniversary, the Company announced a range of CSR activities

supported by a commitment of 1% of Profit after Tax for its CSR

initiatives

Purpose &values

Our motivation to give our best every day comes from our core purpose: we will  challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world—to enable them to Rise.   

48

Our products and services support our customers’ ambitions to improve their l iving standards; our responsible business practices positively engage the communities we join through employment, education, and outreach; and our commitment to sustainable business is bringing green technology and awareness into the mainstream through our products, services, and light-footprint manufacturing processes. This commitment to sustainability—social, economic, and environmental—rests upon a set of core values.   They are an amalgamation of what we have been, what we are, and what we want to be.  These values are the compass that guides our actions, both personal and corporate.   They are: 

Good corporate citizenship

We will continue to seek long term success in alignment with the needs of the communities we serve.  We will do this without compromising on ethical business standards. 

Professionalism We have always sought the best people for the job and given them the freedom and the opportunity to grow.  We will continue to do so.  We will support innovation and well reasoned risk taking, but will demand performance. 

Customer first

We exist and prosper only because of the customer.  We will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

Quality focus

Quality is the key to delivering value for money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others.  We will do it 'First Time Right.' 

Dignity of the individual

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We will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others.  Through our actions, we will nurture fairness, trust, and transparency

Global Plans

Clearly, even here Mr Mahindra’s global plans are

evident.”The first dealer meet for the Scorpio at Nasik saw dealers

from Malaysia, Indonesia, Nepal. There is great interest in these

countries. Another potential country I see are participating is CIS

countries. There could be a huge potential in Latin America. We

are clearly not trying to explore across the world, but we may look

at all ies for distribution. I know Latin America could be a goldmine,

there could be opportunities wherein strong distributors come in

but for the moment in our own resources what we will dedicate to

will be these markets Russia, CIS countries, Indonesia, Malaysia,”

elaborates Mr Mahindra. The company is also looking at assembly

lines in Russia, Georgia, as of now. All these involve partnerships

or aligning with people who have facilit ies there. “We believe in

partnerships as a business model,”

he says.Interestingly, the last fiscal saw the company’s

turnover from its automotive division equal that of its FES division.

This is also reflected in Mr Mahindra’s vision.

The company is in the process of setting up a subsidiary in

Europe by April this year which will initially market tractors and

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later assemble them from components imported from India. M&M

also plans to set up branch offices in eastern Europe to facil itate

tractor marketing in the region. “We will in all probability base the

subsidiary in Spain. But more importantly, I am looking at the

business potential in the region, “ emphasises Mr Mahindra.

The talks with Korean tractor major Tong Yang Moolsan

(TYM) for the joint development of transmission for its new range

of tractors indicates how serious M&M is on the issue. The new

range , Horizon IV, is currently under development and will be

commercially produced in another two years’ time, according to a

senior M&M official.

The new range will be in the above 100 HP category and will

be part of the company’s efforts to graduate to higher categories

upto 200 HP.

“While we have a large research and development team, this

will enable us to expedite the development process,” according to

the official. M&M currently has the Horizon III range of tractors,

which along with the Arjun range is exported to the United States,

which is the primary tractor export market for the company. The

51

joint venture will be mainly targeted at product development for the

export market. The company has sold over 4,000 tractors in the US

and also sells in the neighbouring countries like Nepal and

Bangladesh. M&M also exports to African countries through its

trading partners.

Yet, Mr Mahindra is very clear that exports would not be at

the cost of domestic market. Ask him, why despite there being a

demand for the petrol variant of Bolero in the Gulf countries, the

company is yet to develop a petrol version, Mr Mahindra is

emphatic in his reply, “If you look at robust export strategies -if

you look at Japan, Korea, a lot of these robust business strategies

are based on products leveraging on strong domestic market. The

strongest domestic market for UVs has been diesel. It makes

sense to actually develop your strengths along very strong

domestic markets. So the strength of India, l ike Japan, is that we

have a huge domestic market. This ultimately makes us potentially

much more competitive exporters. Unlike Singapore or Malaysia,

India’s export strength is going to be most robust when you can

actually stave off the strength of your domestic market.”

However, with the APM dismantling, petrol is becoming more

popular. As a result of that, M&M has decided to have a Renault

engine for the Scorpio. “Now we are free to import, with

liberalisation, and thus it is easier to become a global player.

Scorpio can easily have a wonderful Euro 3 compliant engine

around the world. To me that is a much more risk mitigated

strategy,” he adds.

52

Banking on the brand

Flanking its strategy to become a global player, M&M is

banking on its key brand attributes which essentially signify three

basic things: trust, reliability, and last but most important, value-

for-money. “We are not a Rolls Royce - which is fine with us - as

ultimately what the Indian consumer wants is value-for-money,”

reiterates Mr Mahindra.

The overall marketing gameplan involves a strategy around a

bouquet of three brands - Scorpio, Bolero and Maxx. These are the

three brands which will be M&M’s future brand platform. Bolero will

be one hub, while Scorpio will be one upmarket hub. There will

definitely be a number of variants, Mr Mahindra promises. Two

years ago, the group had carried out a study on the Mahindra

brand-not at the corporate level, however. The key element of the

business which emanated from the study was “trust” as the core

attribute of the brand. The study was recently updated to plan the

launch of Scorpio.

“A study was also done as to how Bolero altered the

Mahindra brand, and we certainly anticipate that Scorpio will

further refine the brand perception. Of recently there has been a

greater refinement and awareness of the Mahindra brand,” says Mr

Mahindra.

In line with this, the group has also become very conscious of

the Mahindra brand. “We have become far more conscious about

the need to centralise what we call brand custodianship. In fact,

my view is that the CEO is the ultimate brand custodian. He has to

53

be responsible for what is happening to the brand whether it is

being eroded or is it being enhanced. In order to be a good

custodian this is one area where too much decentralisation is not

necessary, because there’s only one person who has an overall

view on the brand - as to how it can be affected by a move made in

one part of the group which can affect the other part of the view,”

elaborated Mr Mahindra.

According to him, a brand custodianship is really a corporate

centre’s function. One has to be very possessive and finicky about

it, and set out guidelines on not just the aesthetics on the use of

logo and brand also for the criteria under which it will e used, and

more importantly for what it will not be used. “In that sense, we

have become conscious. We have a highly structured manual for

the use of the logo or the brand, which was a study we did a year

ago.

Every group company has certain regulations under which the

brand and logo can be used, certain colour schemes they can use

it,” he says.

The management board which meets every month and

consists of the presidents and the executives, is an extended arm

for brand custodianship. Nothing is used without going to the

management board, which acts as the watchman.

Why has the brand consciousness become important for the

group? “The brand is a good thing. We are a group with more than

one sector. These can be put in three clusters. So, riding a strong

brand is one of the benefits of the corporate centre. There is a

process established for brand custodianship,” opines Mr Mahindra.

54

Continuing the restructuring

The group had in the mid-90s undergone a major change

management process, essentially in the farm equipment sector. It

underwent a business process reengineering, shopfloor up. The

idea was to become an efficient, lean competitor towards achieving

its goals of globalisation. Being a brick and mortar company, M&M

required an efficient shopfloor. The need was felt to continue the

process of transforming the organisation to be an efficient

competitor. In that trajectory of change, the company reengineered

both the FES and the auto sector - it was called Operation

Sahayog in FES and Operation Fast Forward in Auto.

Along with that comes right sizing. “The VRS in blue-collared

workforce will continue ti l l our manufacturing strategy continues to

get more and more refined and more efficient.

We are not going to exit manufacturing but we are going to

have the most lean and efficient manufacturing structure where the

right products are available at the right price,” he says.

The company is now undertaking rightsizing of the white

collared workforce. “The reality is if we have to survive we have to

be a lean organisation. Yet it is a very difficult process,” he

justifies. Meanwhile, M&M has roped in Ambit Corporate Finance

to undertake a financial restructuring programme, involving

delayering the group’s subsidiaries.

McKinsey had given M&M a vision to become the world’s

leading tractor manufacturer by 2005. Mr Mahindra says the

company, which is currently fourth largest tractor maker in the

55

world, is on track with this vision. “There are three elements about

the group. If you look at the brand, the M&M name really stands for

entrepreneurship plus leadership. In any field we’ve entered we

have been the pioneers or leaders. Whether it is tractors, we are

leaders, in UV, despite the onslaught of competition we stil l own

48 per cent of the market, in Automart, we are pioneers and

leaders,” he says.

Even in small companies like Mahindra Sinters Products,

M&M has 80 per cent share. If you look at alloy steel, M&M is stil l

the leaders in Mahindra Ugine. Under Club Mahindra, they are the

leaders in time-share business. Thus the group has a true

entrepreneurial attribute and a leadership quality. Mahindra British

Telecom is the pioneers in telecom software and it continues to be

leaders. Mahindra Consulting is leader in SAP implementation.

“We are not just also ran, we are second to nobody.

That is something from a group’s prospective we carry

forward,” as Mr Mahindra puts it. Be it the Scorpio launch, its

brand attribute or its global vision, M&M is definitely on an

overdrive

56

Mission Statement

It give 70 Lacs Delux Bus.

35 to 100 ton trucks.

Its main mission to increase the market share above 75% in

the automotive section.

It provide better service & vehicle to every body.

It mission to develop their business in forner country.

57

Vision Statement

In 2020 it wants to see itself a large manufacturer four wheeler company in Asia.

58

Various Mahindra Brands

There are various kinds of brands of Pepsi are available in the

Indian Market as well as foreign market they are listed as

following: -

59

Bolero scorpio

Maxx pic up bolero invader

Marshal buses

Tempo Truck

60

Mahindra Pick Up Chesis Tractor

Mahindra & Mahindra on An Overdrive

Namrata Singh and Subhadip Sircar

In the midst of a slowdown, a serene feel good factor seems

to have crept in for Mahindra & Mahindra Ltd (M&M). The ray of

hope: the cool launch of the much touted ‘Scorpio’ in the summer

61

month of May this year. The Rs 4,353 crore auto and farm

equipment services (FES) major has just held a preview of Scorpio

with its dealers. “I’m feeling good because they’re (dealers) feeling

good. The vehicle was beyond their expectation and their reaction

would be on our expectations.

BOARD OF DIRECTORS

Mahindra & Mahindra Limited mainly Belongs to Twele

Members in their Organizational structure:

For over five decades, Keshub Mahindra has enabled Mahindra and its people to rise.   He joined Mahindra & Mahindra in 1947 and became Chairman in 1963.  He continues to be involved with the day-to-day activit ies of the company today and has l i terally been the backbone of the company. 

62

 Keshub is a philanthropist who redefined corporate governance by effectively channeling funds into the social sector.   From building ethical corporate organizations in India to serving on prestigious boards and committees, Keshub’s immense contribution to Indian business has established him as an inspirational business leader and an iconic corporate cit izen. Over the years, Keshub has been a member of organizations and committees l ike:

Anand Mahindra started off at Mahindra in 1981 when he joined Mahindra Ugine Steel Co (MUSCO), a major producer of specialty steels, as Executive Assistant to the Finance Director.   In 1989, he was appointed President and Deputy Managing Director of the company. While at MUSCO, Anand spearheaded Mahindra’s growth and diversif ication into new business areas l ike real estate and hospitality management.  In 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra, the country’s leading producer of tractors and off-road vehicles.   He init iated a comprehensive change program to make the company an eff icient and aggressive competitor in the new liberalized economic environment in India.   In 1997, he was promoted to Managing Director, and in 2003 he also became Vice Chairman.

63

Bharat Doshi

Executive Director

Bharat joined Mahindra & Mahindra in 1973 as an Executive. He served as Executive Vice President (Corporate Affairs) of Mahindra & Mahindra Limited from July 1991 to August 1992, when he joined the Board of the Company as Executive Director in charge of Finance & Accounts, Corporate Affairs, and Information Technology. In addition, he was the President of the Trade & Financial Services Sector from December 1994 to October 2007.  He was redesignated as Executive Director of Mahindra & Mahindra and Group CFO in 2007.

Arun Dasgupta

Director

Arun joined the Board of Directors in 2008.   Currently the Managing Director of the Life Insurance Corporation of India (LIC), he joined LIC in 1977 and has contributed immensely to the company in several key capacit ies over the years. Arun received his Bachelor of Science with Honors in Physics from DHSK College, Dibrugarh University, Assam.   He continued on to earn his postgraduate diploma in Personnel Management and Labor Welfare.  Arun is also l icensed by the Insurance Institute of India, Mumbai and is a Certif ied Associate of the Indian Institute of Bankers (CAIIB).

64

Dr. Ashok Ganguly

Director

Ashok joined the Board of Directors in 1997. Currently the Chairman of Firstchoice Solutions and the media house ABP Pvt Ltd, Ashok has contributed to many leading companies over his distinguished career.   Ashok is also a member of Parl iament. Ashok received his BS in Chemistry from Jai Hind College, Mumbai, and his Masters and PhD from the University of I l l inois, USA. Over the course of his career, Ashok has held senior posit ions with Hindustan Lever, ICI India, Brit ish Airways, Wipro, Tata AIG Life Insurance Co, Hemogenomics, and Firstsource Solutions.   He also advises the Microsoft Corporation’s operations in India, the Blackstone Group, and Dr. Reddy’s Laboratories.   He has also served on several government committees, including the Science Advisory Committee to the Prime Minister, the Investment Commission, and the National Knowledge Commission to the Prime Minister, among others.

  Nadir Godrej Director

Nadir joined the Board of Directors in 1992.   He is currently the Managing Director of Godrej Industries, India’s leading manufacturer of oleochemicals, edible oils, vanaspati, and bakery fats. Nadir earned his Bachelor of Science in Chemical Engineering from the Massachusetts Institute of Technology (MIT), Boston.   He attended Stanford University for his Masters in Chemical Engineering and received his MBA from Harvard University as a George F. Baker Scholar.

65

Ravindra Kulkarni

Director

Ravi joined the Board of Directors in 1997.   Since 2005, he has been a Senior Partner at the legal f irm Khaitan & Co, Mumbai.   Ravi received his B.S. from Ramnarain Ruia College, University of Mumbai and his LL.B. from the University of Law, where he also received the Sir Charles Sergeant Memorial Award

M.M. Murugappan

Director

M. M. Murugappan joined the Board of Directors in 1992.   He is currently Chairman of Carborundum Universal, Tube Investments of India, and Wendt India. M. M. Murugappan received his Bachelor of Technology in Chemical Engineering from the University of Madras, India. He attended the University of Michigan, USA for his Master of Science in Chemical Engineering.

66

Arun K. Nanda

Director

Arun joined the Board in 1992.   He resigned as Executive Director in 2010 to focus on the social sector and was immediately reappointed as non-executive director.   The Founder, Director, and Chairman of Mahindra Holidays & Resorts India (MHRIL), Arun has contributed more than 30 years to Mahindra in a series of key posit ions in Compliance, Corporate Governance, Investments, Strategic Planning, Corporate Communications, and identifying new business opportunit ies.  

  Deepak Parekh

Director

Deepak joined the Board in 1990.   He began his career with Ernst & Young Management Consultancy Services in New York City.   After three years each with Grindlays Bank and Chase Manhattan Bank, Deepak joined HDFC in 1978 and worked his way to the Executive Chairmanship of HDFC.   He also serves as the Non-Executive Chairman of GlaxoSmithKline Pharmaceuticals, Infrastructure Development Finance Company (IDFC), Lafarge India and Siemens India.

67

Anupam Puri

Director

Anupam, known as Tino, joined the Board of Directors in 2001.   Over a thirty year career with McKinsey & Company, Tino worked with international corporate cl ients across several industries on strategy and organizational issues and served several governments and multi lateral institutions on public policy. Tino holds a Bachelor’s degree in Economics from Delhi University, a Master’s degree in Economics from Ball iol College, Oxford University, and a Master of Philosophy degree in Economics from Nuffield College, Oxford University.

Narayanan Vaghul

Director

Narayanan joined the Board of Directors in 1996.   Currently Chairman of the Board of ICICI Bank, he has also served as its CEO and on the Boards of Directors of both the Central Bank of India and the Bank of India. Narayanan earned his Bachelor’s in Commerce with honors from Loyola College, University of Madras.Narayanan’s contribution to f inancial institutions is extensive and signif icant. As the Chairman and member of several committees and task forces created by the Government and the Reserve Bank of India over the years

Plant Location

68

Mahindra Special Services Group (MSSG)

69

Mahindra Special Services Group (MSSG) helps

organizations develop customized Information Security strategies

to derisk their businesses and to protect their competitive

advantage.

MSSG's service offerings help to identify, mitigate and

manage the risk exposure of the organization irrespective of its

industry and the nature of the business. Our ability to look at

Information Security from a 'people & process' perspective rather

than an IT centric approach has helped organizations to protect

their short and long term business strategies and objectives thus

preventing loss of hundreds and thousands of dollars every year.

MSSG's clientele include MNC's, banks, corporate, shipping,

pharmaceuticals, financial / manufacturing organizations, training

establishments, contact centres and state security agencies .

Corporate Governance

70

The goal of any system of governance would be to

achieve the best performance within the overall content of the

prevalent economic environment so as to secure the maximum

benefit for all the stakeholders. For this to be achieved,

governance has to be an integral part of the beliefs, values,

culture and ethics of an organization, an interplay between

individual aspirations and corporate goals, ultimately leading

to the cornerstones of transparency and accountability, which

is what good governance is all about.

In the recent past, corporate India has been flooded with

several prescriptive principles of governance, the result of intense

deliberations of eminent commissions. Ironically, the corporate

failures in developed countries regulated by highly disciplined

capital markets have only brought home the stark reality that good

governance can never acquire a luster of its own if it is mandated

by legislation - it might only turn into a farce.

Our shareholders are aware that Mahindra companies have

been associated with good governance even before corporate were

faced with legislation and a set of regulations. The Company has

recently formally enunciated its own governance practices by way

of a Code of Corporate Governance. This Code seeks to serve as

a reminder of the underlying principles governing the conduct of

our businesses. They are a reiteration of the fundamental precept

that good Corporate Governance must and will always remain an

integral part of the fabric that makes up our ethos.

Products of M & M

71

High Mobil i ty Multi Role Vehicle-MM 550XDB Mahindra Field Ambulance

Versati le Multi Role Vehicle Bulletproof and Up Armoured Vehicles

Bullet Proof Vehicle "RAKSHAK Mobile Surveil lance Vehicle

Cash in Transit Van "CITV"   Rapid Intervention Vehicle "RIV"

72

Welfare Centers

M&M's welfare centers run several programmers and projects

in the spheres of education, health and social welfare. Education:

A variety of initiatives are in place to help the company's

employees and their family members. The children of deceased

employees are given educational assistance, and educational

programmers are conducted to help employee self-development

and encourage a higher standard of l iving.

The welfare centre also conducts various career guidance

programmers for the children of employees.. Parents are given

counseling on topics such as effective parenting, understanding

the handicapped child.

Healthcare: There are diverse health-related services offered by

the company's welfare centers.. Family planning and sex-education

programmers are conducted, and blood-donation drives are a

regular feature. There are lots of social awareness programmers

on topics such as family welfare, cancer, AIDS-awareness, heart-

care, diabetes, etc. Special yoga classes are conducted and health

check-ups are a periodic affair for all employees. Overall welfare:

For M&M, the overall development of employees and their families

is as important as their physical well being. Programmers are

conducted for retiring employees and their spouses, covering

aspects like adjustment to a new role, finance management, diet

and health.

The company's community service programmers also include free

medical check-ups for women and children living in the vicinity of

an M&M facility, and schemes aimed at generating income for

economically weaker sections of women

73

Co-ordinates

Our main activities:

We keep ourselves tuned in to the Company's performance,

strategies, vision and day to day happenings and provide a single

window for interaction with investors, fund managers and research

analysts seeking updates and information with the Company by

way of personal meetings, conference calls etc.

We hold periodical analysts' conferences to give updates on our

operational and financial performances.

We make available press releases on important and strategic

events / announcements. We periodically participate in local as

well as overseas investor conferences.

We strive to keep in touch with our overseas investors at

least once a year by undertaking trips to their destinations.

We organize periodical plant visits for the analyst community.

And - we have the 'Investors' l ink on our homepage to keep all

those who are interested in the Company abreast of information

and macro happenings in the Company.

74

BUSINESS SEGMENT

1 AUTOMATIVE

2 FINANCE & TRADE SECTOR

3 INFRASTRUCTURE

4 IT (information technology).

5 TELECOME & SOFTWARE SECTOR

6 FARM EQUIPMENT SECTOR

7. MAHINDRA SYSTEM & AUTOMOTIVE TECHNOLOGIES

75

Automotive

AutomotiveMahindra & Mahindra Limited

Mahindra Scorpio First Generation.

Mahindra Jeep CJ 340.

Mahindra AXE

Mahindra Pick Up (old version)

Mahindra & Mahindra is a major automobile manufacturer of uti l i ty vehicles, passenger cars, pickups, commercial vehicles, and two wheelers. Its tractors are sold on six continents It has acquired plants in China and the United Kingdom, [ 10 ] and has three assembly plants in the USA. M&M has partnerships with international companies l ike Renaul t

SA , France and In ternat iona l Truck and Eng ine Corpora t ion , USA.

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.

76

M&M made its entry into the passenger car segment with the Logan in Apri l 2007 under the Mahindra Renault joint venture. M&M wil l make its maiden entry into the heavy trucks segment with Mahindra Nav is tar , the joint venture with In ternat iona l Truck , USA.

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-uti l i ty vehicles l ike the Scorp io and the Bolero . It formerly had a joint venture with Ford called Ford Ind ia Pr iva te L imi ted to build passenger cars.

At the 2008 Delh i 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 f ive passengers and powered by a small turbodiesel engine. [ 18 ] True to their word, Mahindra & Mahindra launched the Mahindra Xy lo in January 2009, and as of June 2009, the Xylo has sold over 15000 units.

Also in early 2008, Mahindra commenced its f irst overseas CKD operations with the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by assembly facil i t ies in Braz i l . 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 .

Mahindra plans to sell the diesel SUVs and pickup trucks starting in late 2010 in North America through an independent distributor, Global Vehicles USA, based in Alphare t ta , Georg ia . Mahindra announced it wil l import pickup trucks from India in knockdown k i t (CKD) form to circumvent the Chicken tax . CKDs are complete vehicles that wil l be assembled in the U.S. from kits of parts shipped in crates. On 18 October 2010, however, i t was reported that Mahindra had indefinitely delayed the launch of vehicles into the North American market, cit ing legal issues between it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earl ier in 2010, due to a decision to sell the vehicles directly to consumers instead of through Global Vehicles.

77

However, a November 2010 report quoted John Perez , the CEO of Globa l

Veh ic les USA , as estimating that he expects Mahindra’s small diesel pickups to go on sale in the U.S. by spring 2011, although legal complications remain, and Perez, while hopeful, admits that arbitration could take more than a year. Later reports suggest that the delays may be due to an Manindra scrapping the original model of the truck and replacing it with an upgraded one before sell ing them to Americans .

In 2010, India's Mahindra & Mahindra Limited was named as the preferred bidder to acquire the bankruptcy-protected SsangYong Motor Company. Mahindra is expected to gain a controll ing stake in the company by March 2011 and the planned acquisit ion has been approved by South Korea's Free Trade Commission

Farm Equipment

M&M is one of the leading tractor brands in the world by volume. It is also the largest manufacturer of tractors in India [ 30 ] with sustained market leadership of over 25 years. It designs, develops, manufactures, and markets tractors as well as farm implements. Mahindra Trac tors (China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market.

Banking & Finance

Kotak Mahindra Bank

The Kotak Mahindra group is a f inancial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's f lagship company was given the l icense to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the f irst company in the Indian banking history to convert to a bank. The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive Vice Chairman & Managing Director. Shankar Acharya is the chairman of board of Directors in the company. The Bank has its registered off ice at Nariman Bhavan, Nariman Point, Mumbai.

78

Mahindra Financial Services

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of 's leading non-banking finance companies focused on providing finance for uti l i ty vehicles, tractors and cars in the rural and semi-urban sector. Mahindra Finance currently has the largest network of over 436 branches . It has entered into more than 600,000 customer contracts and has disbursements of around Rs. 21000crore since inception.

Information Technology

Tech Mahindra

Tech Mahindra specializes in solutions for communications industry is a telecom-focused system integration and IT solutions company from India.

Mahindra Satyam

Mahindra Satyam is a leading global business and information technology services company

Bristlecone

It provides a range of services focused on the entire supply chain spectrum, including strategy and process consult ing, systems implementation and business process outsourcing, to leading companies globally. mahindra is generaaly a low base company it gets his roots from the asian companies

Club Mahindra Holidays

Mahindra Holidays commenced its operations in 1996, offering family l i festyle holidays in India and abroad, though a vacation ownership product. The company is a Business Superbrand '08 and its brand Club Mahindra, a consumer validated Superbrand '09.

79

Mahindra Defence

Mahindra Special Services

Mahindra Special Services Group was established in 2001 as a separate division under Mahindra & Mahindra and since then has been a leading player in the field of information security. Mahindra Special Services Group helps organisations retain and enhance competit ive advantage through information security & de-risking strategies.

Mahindra Defence Systems

Mahindra Defence Systems belongs to the Specialty Businesses of the Mahindra Group. Mahindra Defence Systems oversees the requirements of India's defence and security forces

Mahindra Aerospace

Main article: Mahindra Aerospace

It is the f irst Indian private f irm to make smaller civi l aircraft for the Indian general aviation market. [ 31 ]

Gippsland Aeronautics Aerostaff Australia

Infrastructure & Real Estate

A pioneer of Special Economic Zones (SEZ) in India, Mahindra Wor ld C i ty

has the distinction of creating India’s f irst Integrated Business City and also Corporate India’s f irst operational Special Economic Zone.

80

Agriculture Farm Components

Mahindra for long has been into farm implements but recently it took its implement business to new levels by making a separate division for it named 'APPLITRAC'. As a matter of fact Mahindra Applitrac wil l be f irst organised farm implement manufacturer in the country.Mahindra plans to take farm mechanization in India to all new levels by offering complete crop specif ic crop solution . some of the crop specif ic implements introdeced by mahindra recently in Indian market are: Rice transplanter for paddy. Sickle sword and cane thumper for sugarcane. besides their are a range of other implements including Combine Harversters,baler,rotavators and seed dri l ls. Mahindra have also launched its range of construction implements which includes loader,dozer and back hoe.

Healthcare

This section is empty. You can help by add ing to i t .

Awards

1. Bombay Chamber Good Corporate Cit izen Award for 2006-07 [ 32 ]

2. Businessworld FICCI-SEDF Corporate Social Responsibil i ty Award – 2007

3. Deming Pr ize [ 33 ]

4. Japan Quality Medal in 2007 [ 34 ]

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Models

Mahindra MM540DP , Mahindra MM550DP , Mahindra Armada , Mahindra Commander , Mahindra

Marsha l , Mahindra Major , Mahindra Legend , Mahindra Thar , Mahindra Invader , Mahindra

Bo lero , Mahindra Xy lo , Mahindra Scorp io , Mahindra Logan car (in association with Renaul t ).

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FINANCIAL POSITION AT A GLANCE(Rs. In Millions)

2005 2004 2003 2002 2001

Gross Fixed

Assets28,104 25,593 24,891 24,168 22,315

Net Fixed Assets 14,749 13,916 14,661 15,372 14,825

Intangible Assets - - - - -

Investments 11,898 11,112 8,623 8,001 7,100

Inventories 7,598 4,998 4,568 4,690 5,525

Debtors 5,115 4,005 5,171 6,478 6,320

Other Current

Assets10,460 6,248 6,396 6,155 5,291

Misc. Expenditure

not written off244 96 397 - 2,236

Borrowings - Long

Term9,414 6,520 10,719 11,918 7,909

Borrowings - Short

Term1,112 7,780 679 1,853 3,430

Current Liabilit ies

& Provisions17,518 13,292 10,948 10,507 9,270

Deferred Tax

Liabilit ies (Net)1,898 2,033 1,771 1,379 -

Capital - Equity 1,160 1,160 1,160 1,160 1,105

Reserves 18,963 16,590 14,538 13,880 19,583

Net Wor th 20,123 17,750 15,698 15,040 20,688

Book Va lue per share

(Rupees)168.35 149.15 130.56 128.26 165.50

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Rs. In Millions

END PRODUCT

84

Growth of Sales

0

5000

10000

15000

20000

25000

Year

Sal

es Year

Sales

Year 2001 2002 2003 2004 2005

Sales 4000 7000 10000 15000 20000

1 2 3 4 5

The end products of the project are Armada, Marshal, Mahindra

Classic, Mahindra Commander.

INGENIOUR RISTHEY (RELATION)

85

We have chosen to be a customer-centric organization.

Customer Aathithi Devo Bhava.

It is easy to say, but difficult to practice. It requires not just a

charge in attitude. It requires a change in processes.

This is coaching manual deals primarily with the

changing process because, as Indians, we are not very familiar

with following processes. Practice makes us perfect. But we

must know what we should practice. Hence this manual.

The matter of attitude is a lot simpler. As Indians all of us

known how to treat our guests and relatives. It is in our nature to

be hospitable to them.

What is the attitude with which you would take are of a

relation of yours who visits your showroom or service center?

All of us know, instinctively. We do not need to be told. It’s

just that we have never really seen our customers as a person with

whom we have a lifelong rishtaa (relationship)

It’s actually a rishtaa that goes beyond the lifetime of a

vehicle by keeping our brands up-to-date the same family will be

our rishtadaars (relatives) for generations to come. They will

because our “Brand Champions” and recommend that more of their

own friends and relatives become our rishtadaars.

86

Our relationship with a customer goes beyond a sale. If the

customer sees himself or herself to be part of the Mahindra family

he or she will keep coming back to our service center, keep

recommending our products to his or her friends and relatives.

The message on attitude is simple. Treat every prospect as

a “Relative-to-be”. Treat every customer as you would treat

your own relative.

The message on processes is a lot more difficult. We have to

got it right, every time. The slightest mistake leaves us with an

unhappy relative.

But even there, it might be a matter of attitude. The

Dabbawallah of Mumbai get it right because they would not want to

let down their our customers, their own extended family.

As we are all extended family of Mahindra, “LET US TREAT

EVERY CUSTOMER LIKE A RELATIVE AND PROVIDE AN

EXPERIENCE BEYOUND EXPECTATIONS”.

87

JS Fourwheel Motors Limited was incorporated in 1985 and

started functioning as Mahindra & Mahindra Dealership at Alwar

since September 1985. It initially represented the Automotive

Divisions for the district of Alwar, Bharatpur and Dholpur in

eastern Rajasthan.

The company after making steady progress also took

dealerships of LML Scooters, Avanti Mopeds, Sriram Honda

Gensets and Enfield Motor Cycles. Now the Company is having a

turn over of Rs. 40 crores employed with 100 persons on regular

role.

88

In 1987, the company was also allocated the Jhunjhunu and

Churu districts in Rajasthan for Automotive sector of Mahindra &

Mahindra Ltd. For its effective.

In June 97 dealership was selected by the Farm Equipment

section of Mahindra & Mahindra Limited for dealership of its

tractors in Alwar district.

The company has own exemplary performance in the field of

Sale and has been recognized by almost all its principals for

outstanding sales and service performance and providing only

genuine spares to the customers.

Mr. Nikunj Sanghi is the Managing Director fo the company

and he is assisted by Mrs. Sunita Sanghi and Mr. Mahesh

Chandgothia.

The various awards received include :-

1. L M L awarded the dealership for outstanding

overall performance in 1989 and then declared

it as its best showroom in 1995.

2. Kelvinator of India declared the company as a

“GOLD STAR DEALER” for being the highest

selling dealer in the country for moped in 1983.

3. Honda Power Products recognized the company

as its best service dealer in Rajasthan in 1995.

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4. M & M declared the company as a runner up in

an all India competition in the year 1997 for

overall performance in all f ields of sales, spared

and after sales service, in the state of

Rajasthan.

J S Foursheel Motors Limited in one of the 2 dealer in

Rajasthan who have been short l isted by Mahindra &

Mahindra for implementation of ISO – 9002 (1994-Quality

System)

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MANAGEMENT AND MANPOWER UTILISATION

The company shall be professionally managed. All the department

heads will be professionally qualified having good experience. For

various other positions local talent will be attracted. At present the

company is working on these lines and recruitments of personnel

is under process the top management of the company consists of

thirteen Directors. The hierarchy of other management personnel

and staff is as under.

CEO

MR

HOD HOD HOD HODSALES SPARES SERVICES ACCOUNTS

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DISTRIBUTION SYSTEM

Participation of M & M In the project will ensure firm and

committed support in sales promotion, advertising and publicity,

introduction of innovative concepts and the Company will be able

to draw on their international expertise in marketing and technical

Know-how. The present set up at Jaipur will be distributing their

products through marketing companies. These marketing

companies will distribute the products to the distributors appointed

in various towns. The distributors in turn will be playing their own

vehicles in their respective market and distribute the full range of

products to the retailer who in turn will sell it to the customers.

92

The Sales pattern of the products is likely to be as under.

MONTH %AGE OF ANNUAL SALE

January 2%

February 3%

March 10%

April 12%

May 20%

June 18%

July 10%

August 7%

September 7%

October 5%

November 3%

December 3%

TOTAL 100%

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LOST SALES ANALYSISTechnological advancement, galoblization & change in customer

demand and preference had increase stability & also probability of

LOST SALES ANALYSIS.

Introduction:

when a particular firm is slowly-slowly coverage the market share

and also directly effect the customer’s need but after sometime

aone or more firm come into the market with one or more product

and so on the firm lost its before sales and now it has too much

hard to it to stable in market. And than the compition become know

too much hard to the first firm.

EXMPALE

Mahindra & Mahindra company’s product pick-u and champion

tampo slowly-slowly coverage the market share so to their against

TATA MOTORS have launch the product tampo ACE as four

wheeler.

94

REASONS FOR L.S.A

Globlization

Free trade policy

Liberlization :

Policies of W.T.O

Customer’s regularly changing demand

The world’s entered into new economy

.

Changing need of the markert.

Product hatrogeneous & differentition.

Due to the market compition.

Customer become the top of the priorty

.

Environmental change.

95

Why study the L.S.A

In Mahabharta lord shri Krishana told shri Arjun in ‘Geeta’ that

whithout the accurate study of power of the enemy we can’t able to

beet them so same as in this today’s corporate world there is also

need for study the whole power & weekness of other competitors.

These all things including in L.S.A when we analysis about our lost

sales analysis than we find several points :-

What is the todays market trends.

About the desire of today’s customer.

Factors that effect on customers.

Weekness & strongness of cusomer’s psychology.

Some our weeknes like Low area coverage .

1. low activities of selling department.

2. low promotional activities of sales.

3. Accurate abilit ies of firm.

Some weeknes related to product

1. May be related to average.

2. engine mistake.

3. Chesis failure.

4. Power breaks related mistake.

What is the futureious demand in market

96

OBJECTIVE OF THE PROJECT

In modern sense the nature of L .S .A is too much closer to

consumer. And shows how we act & react that we make new

customers.

To find out reasons that why customer is moving

outsides.

Customer satisfaction level & maintains factors.

Others basic factors that shows how we are lost our

sales.

To anlysis those factors that improve the inner abilit ies

of the MAHINDRA dealership.

To help the sales department of MAHINDRA dealership

for better sales & service.

97

RESEARCH METHODOLOGY

Mainly three approach for conducting the research work:

1. Observation method

2. Survey method

3. Experimental method

The method that I use.

1. Direct interviews2. Phone interviews3. Market survey4. Through question

Among of all these methods market survey and

direct interviews is the best method of data collection so I use

95% research with the help of this method.

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DATA COLLECTION

The study involved collecting primary data. The details are as follows:

SOURCE OF DATA

The primary data was collected from the customers directly by the use of questionnaires.

TOLLS FOR DATA COLLECTION

The tolls for collecting data from customers were structured questionnaires containing both open ended and close-ended questions.

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SAMLING

For both purpose of study the sample is collected from ALWAR (RAJASTHAN)

1. Sampling Techniques: The techniques used for collecting the sample was the convenience sampling.

2. Sampling Area: Sampling area to be covered was ALWAR

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FINDINGS & ANALYSIS

Demand of the Tampo ACE of the basis of different occupation.

For booking use. 50%

For personal use & agricultural also. 15%

For traders. 13%

Professionals. 11%

Company employees. 07%

Others. 04%

Chart showing the demand of the TAMPO ACE on the basis

of difference occupation.

101

Reasons for the rejection of Mahindra TAMPO CHAMPION .

Maintains 55%

Average 25%

Pick-up + looking 10%

Engine + loading 10%

102

Demand of the TAMPO ACE on the basis of different age

groups .

18 –24 ------------------ 22%

25 –29 ------------------ 28%

30 –34 ------------------ 30%

35 –39 ------------------ 15%

^ 40 ------------------ 5%

103

Customer’s experience with TATA TAMPO ACE

Very satisf ied Satisf ied Average Not Total ly Satisfied disapoint60 8 20 10 2

40 20 22 12 6

45 25 12 10 8

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Availability:

Service: -

Spares Parts: -

C

ustomer goes outsides, when what did he purchased. ( those first

also contact MAHINDRA dealership).

ACE (TATA PRODUCT)----------- 45%

Minidoor (BAJAJ)------------------ 19%

Vicram ------------------------------- 16%

Piaggio Ape - ----------------------- 15%

Others ------------------------------ 05

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Table showing age vs they have another vehicle except TATA

ACE.

Age/own a vehicle Yes NO Total

18 - 30 Years 50% 15% 65%30 - 40 years 18% 3% 21%

40 Years & above 12% 1% 13%Total 80% 19% 100%

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As expected the young middle age segment of market is the major

consumer for four wheeler .

Table age vs type of vehicle owner .

Age /type Scooter Motorbike Moped 4 wheeler NoBetween 18 - 30 8% 35% 5% 2% 0%

30 - 40 8% 8% 3% 9% 1%40 above 1% 6% 5% 4% 3%

total 17% 50% 13% 15% 4%

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Persons are too much attracted towards motorbike while 4wheel

market is sti l l down .

Table showing most influencing person in decision making.

Influenced by FrecuencyHimself 35%

Wife 5%Children 10%Family 12%

Relatives / family 20%Sales person 15%

Others 3%

Total

100%

108

Chart showing most influencing persons.

Himself and the family persons are the most influencing persons .

Table showing time taken to decide for the model to be purchased.

Time taken Frequency1 - 4 week 68%2 - 3 month 15%3 - 6 month 12%more than 6 month5%total 100%

109

Chart showing time taken to decide for the model to be purchased.

Because:-

Wide variety of models to chose.

Availability of financial schemes.

Table showing choosing the TATA ACE ( reason ).

Reasons FrequencyFour wheel 35%Looks 12%Maintenance 10%Brand image 13%Stabil i ty 6%Durabil i ty 6%Saftey 7%Mileage 8%Others 3%Total 100%

110

Chart showing choosing the TATA ACE.

As seen that first four points plays the most important role for

deciding factors.

Table showing choice of brand in ALWAR (consumer’s view).

TATA MAHINDRA BAJAJ VICRAMPIAGGIO APE

31% 21% 19% 12% 10%

Chart showing choice of brand in ALWAR (consumer’s view).

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It means demand of TATA TAMPO ACE is much higher than other

brands.

COMPARATIVE ANALYSIS

Features. TATA

ACE

M&M

Champion..

BAJAJ

TAMPO.

VICRAM

Minidoor.

PIAGGIO

APE

Engine

type

2cylender

4SW-C

Single

4S W-C

Single

4S W-C

Single

4S W-C

Single

4S W-c

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Engine

power

16 @

3200

2.6 @

2400

2.1 @

2200

2.5 @

2400

8 @

3600

Engine

capacity

700 510 416 499 395

Oil

changed

9000kms 3000kms 5000kms 2500kms 3000kms

Oil sump

Capacity

2.2 2.3 1.7 1.75 1.75

Fuel tank

capacity

30Lts 10Lts 8Lts 16.5Lts 10.5Lts

wheel 2100 2050 2050 2492 1920

Front over

hang(mm)

980 570 N.P N.P N.P

Turning

radius(mm)

4300 4300 2750 4250 2750

Ground

clearness

160 160 190 140 165

Average 20-22 24-25 18-20 24-25 <25

FINDINGS

The data collection in my research is based on primary

data .

1. Personally contact.

2. phone contact

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The main focus I gives on TATA TAMPO ACE and after

that l itt le focus on TATA SUMO, VICRAM TAMPO, BAJAJ

TAMO, PIAGGIO APE.

MAHINDRA & MAHINDRA’S main competitors is TATA

so totally focused on TATA prodoct ACE (TAMPO).

After launching the product of TATA ACE the sales of

MAHINDRA product TAMPO CHAMPION and MAX PICK-

UP is fall down.

They lose 26% and more than 26% customers after

launching the TATA TAMPO ACE.

I made a self questionaries for my research and

company also gives me some instructions for this.

41.50% customers of TATA ACE have no Knowledge of

MAHINDRA & MAHINDRA product CHAMPION (same

range).

While 58.50% have Knowledge of the product of same

range.

Among them 17% customers also visit to M&M dealership

for their queries & information. They approach for the vehicle.

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More than 90% customers take advice from anybody

before taking a decision of purchasing a vechile.

Most of them are their relatives & nearest friends.

65% customers.

15% customers.

20% customers.

YES NOT

Knowledge of product.

Also visit the MAHINDRA & MAHINDRA dealer.

Take advice any body.

(adviser) relatives & friends.

Dealer contact & attract them.

Direct go to dealer.

41% 58%

20% 80%

90% 10%

65% 45%

15% 85%

20% 80%

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Those take advice from friends & relat.

Dealer contact & attract them.

Direct go to dealers & purchase vechile.

Purchase vehicle on finance.

Financer ICICI.

KILASH financer.

SHRI RAM financer.

Others

Total customers give EMI in advance.

100% 0

81% 19%

6% 94%

7% 93%

7% 93%

100% 0

Total customer paid fi le charges to the financer.

Finance arranged by the financer.

Customer arranged finance own self.

Customer satisfied with the service of the dealer.

Customer satisfied with product & date of

purchased.

Customer gives proper attention also M & M dealer.

If they contact them in future.

Customer contact M & M dealer when they

purchased another vehicle in future.

100% 0

96% 4%

4% 96%

83% 17%

79% 21%

100% 0

21% 70%

Top qualities that customers of TATA ACE told us about

me of TATA TAMPO ACE .

Four wheel tempo came into market first time so we

purchased.

Average is good.

They gives the priority of the name of TATA & brand of

TATA. “TATA KA NAAM CHALTA HAI ”.

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This TAMPO is too much able to handle loading &

booking.

Attractive to see this product.

2 slender engines.

16 hoarse power.

Idi based engine.

Kabin is beld to chasis.

750 kg se pass ho chukka hai.

Front and back side kamini pata with leef spring.

Today is too much demand of four wheel tampo.

Too much able to handle in looding.

Successful in rural area because three wheeler is not

able in too way road while four wheel is able.

Also able to handle the work of MAX PICK-UP.

In every field like milk van, school booking, sawari

booking, long tour booking, paint van, vegetable loading

and many more.

Setting facil it ies are like as MARUTI VAN.

Perfect in every field.

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SMALL IS BIG .

“Product specification are current and are

subject to change as the company policy is of

continuous improvement.” { TATA MOTORS }

TATA TAMPO ACE was launching in RAJASTHAN 25

jan 2006 in jaipur KALARKS AMER hotel sanganer.

Before two year ago this product was launch in

BOMBAY it gave success result so it is launch in all

over India.

But stil l not launch in U.P, M.P and other states.

TATA motors also know the mind state of customer &

people about four wheeler through their D.S.E and then

launch

PROJECT AT A GLANCE

1. Name of the industrial concern Mahindra LIMITED (ALWAR)

2. Constitution Limited Company

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3. Registered/Head Office Mahindra Towers, Worli Road No.13, Mumbai-400018

4. Factory JS4Wheel Motors Limited Delhi Road, Alwar (Rajasthan)

5. Name of the directors Mr. R.K. Jaipuria

Mr. K. Shankar

Mr. C.K. Rastogi

Mr. K.K. Mudgil

Ms. Devyani jaipuria

6. Industry Automobiles

7. Product - Four Wheeler

- Three Wheeler

8. Area of operation Jaipur, Ahemdabad,

Banglore,

Bhopal Bhubaneshwar,

Chandigarh, Chennai,

Cochin, Hyderabad, Kolkata,

Lucknow, Mumbai, New

Delhi, Patna, & Pune

13. No. Of working days 336 days p.a.

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18. Net sales Rs.75657.82 Mill ions

. (In 2005 year)

19. Net profit after tax Rs. 5126.72 Mill ions

(In 2005 year)

21. Brand name of product Car, Tempo, Truck,

Bus,

Tractor

SWOT ANALYSIS

STRENGTH

The products are very Good.

The products are extremely Certif ied.

The plant is ISO 9001- 2000 and HACCP certif ied

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WEAKNESSES

Employees turn over

Low capacity uti l ization

Unorganized labour contractors

Lack of HR development

OPPORTUNITIES

New product development & Better manpower uti l ization

Benchmarking HR practices

Sharing HR practices with other Locations

Introduction of new HR init iatives

THREATS

Surrounded by sick industries

There is always a possibil i ty of a competitor entering the market.

Labour cases

RESULT AND CONCLUSION

It has been found that TATA ACE is mostly preferred by

middle class & mostly related to self own business of

booking & loading.

Four wheel tempo came into market first time so people

are too much attract towards this.

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It has also been seen that this tempo is more valuable

than others branded tempos.

The sales coverage of M & M product is less than TATA

ACE so it become more popular.

Low maintenance, high value ability & 2cylender engine,

idi engine, high engine horse power, driving

performance, good looking and average such reasons

for selection of this tempo.

Maintenance high, three wheeler, tough compition and

low market coverage is reasons for rejection of M&M

tempo.

High price rate & tax rate of max pick-up is the main

reason that consumer goes TATA ACE.

Too much able for loading & booking purpose is another

reason for selection of TATA ACE.

Bigger tyres.

Better road grip

Excellent road handling

More cargo space & safest vehicle.

Longer wheelbase.

More speed, more trips, more business, more profit.

INTERPRETATION

` Majority of persons used it for loading + booking

purpose.

This is a common thinking that this tempo is a small truck.

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Only white co lour launched by company & this co lour is too much liked by the customers & other people.

The main reason for selecting TATA ACE is four wheel & low price rate rather than other loading four wheels.

The main problem of M & M product CHAMPION is its shape and high maintains while MAX PICK-UP is high price & tax rate on road.

Very less persons were satisfied with the service of M & M CHAMPION.

New launching product is also reason of the sales of TATA ACE.

RECOMMANDATION

The factors, which influence the consumer buying behavior in today’s TAMPO market.

1. It should be four wheels.2. Good average due to high rate of diesel.3. Maintains.4. Stability & durability.5. Brand image.6. Safety.7. Looks & comfort.

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8. Speed.9. Pick – up.10. Long run cost.

So MAHINDRA & MAHINDRA should focus and follow these points.

Since the measures are of dissatisfaction by the M & M CHAMPION and MAX PICK – UP.

1. Low market coverage of sales person in tempo segment.2. IN high loading the average is down of tempo.3. High price and tax rate of MAX PICK – UP.

So the company is recommended to: -

Launch a four-wheel tempo. Focus on informative advertising. Dealer should also attach with local TAMPO repairer &

gives subsidy to them in parts. Improvement in after sales services. Improvement in finance & other schemes for customers. More expenditure should be spent on sales promotion

activities & advertising.

My personal view to company to follow the concept of four A’s.Availability. Access.Affordability. Awareness.

BIBILIOGRAPHY

Miss. Nidhi Sharma (Sr. Executive – HR)

M & M, Alwar

Mr. Mukesh Sharma (Marketing & Sale)

M & M, Alwar

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Mr. Rishi Sheth (Marketing & Sale)

M & M, Alwar

Khushbu Daga (Workshop Manager)

M & M, Alwar

www.teammahindra.com

www.mahindra.com

Satish Kr. Gupta (Friend)

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