AN ORGANIZATIONAL STUDY ON MAHINDRA AND MAHINDRA LIMITED
BY MEGHA B G 1CR19MBA46 Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI In partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under Guidance of
MS. NAMITHA P KONNUR Assistant Professor Department of Management Studies CMR Institute of Technology Bangalore
Department of Management Studies and Research Centre, CMR Institute of Technology, #123, AECS Layout, IT Park Road, Bangalore – 560037
BATCH OF 2019-2020
ACKNOWLEDGEMENT
It is gratitude and great pleasure to thank the beloved once for helping and motivating me for doing this internship report a successful one.
I would like to express my sincere thanks to Dr. Sanjay Jain, principal of CMR Institute of Technology, Bengaluru for his valuable support and guidance throughout the course of organization study.
I would firstly like to thank CMRIT, Mr. Sandeep kumar M HOD department of management studies for encouraging in doing the internship by seeing that all the formalities are being followed. And, to my internal guide Ms..Namitha P Konnur assistant Professor, Department of management studies, for guiding me and clarifying the doubts has helped me in doing the internship successfully.
Place: Bangalore Name: MEGHA BG USN: 1CR19MBA46 TABLE OF CONTENT
Chapter Title Page No. No
Executive Summary 1 Introduction 1-8 Introduction about Organization Industry Profile
2 Organization Profile 9-20 Background Nature of Business Vision, Mission and Quality Policy Workflow Model Product/Service Profile Ownership Pattern Achievements/Awards Future Growth and Prospects
3 McKensy’s 7S Framework and 21-31 Porter's Five Force Model McKensy’s 7S Framework Porter's Five Force Model
4 SWOT Analysis 32-35 5 Analysis of Financial Statements 36-45 6 Learning Experience 46 Bibliography 47
LIST OF TABLES Table Title Page No. No. 1.1 Ownership pattern 16 1.2 Balance sheet 36-41 1.3 Cash flow statement 41-42 1.4 valuation 42-43 1.5 Annual income statement data 43
LIST OF CHARTS Chart Title Page No. No. 2.1 Workflow model 14 2.2 Shareholding pattern 17 2.3 Mckeny’s 7s framework 21 2.4 Structure of Mahindra and Mahindra 24 2.5 Porter’s five force model 28
EXECUTIVE SUMMARY
For the organizational study I have choose Mahindra and Mahindra ltd company which is market leader in multi-utility vehicles in India. It is also a leader by far in commercial vehicle and the second largest in the passenger vehicle market. The company is the world’s sixth largest medium and heavy commercial vehicle manufacturing.
The report covers the following topics:
The introduction and the history of the company, strategic planning of the company like vision, mission statement. The report also covers nature of the business and which industry it belongs too. The list of the models of the auto mobile which is manufacture in Mahindra and Mahindra company. It also covers the profile of the organization. Report also includes workflow model of the company. It also covers the profile of the product they manufacture for sale. The company’s ownership pattern. Achievements and awards received by the company for various field. This report also covers the mckensy’s 7s framework and porter’s five force model about the company. This report also covers the SWOT analysis of the company. This report covers about the Mahindra and Mahindra company’s four I’s and also the quality policy they have maintain all these years for the product they produce and sell in market. The report also covers the strategies the company use for promoting their products in the market. It also covers the company’s future projects and future plans in the automobile industry and it also covers about Mahindra and Mahindra ltd engage in different field in the industry. It also covers about the financial holdings and distribution of the company. It also covers the five years financial statement and financial analysis of the company. CHAPTER-1
INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY
Mahindra and Mahindra (M&M), the market leader in multi-utility vehicles in India. The company started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial vehicles and the second largest in the passenger vehicle market. The company is the world’s sixth largest medium and heavy commercial vehicle manufacturing.
Mahindra is best known for utility vehicles and tractors in India. Its automotive division, the company’s oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger “auto rickshaws,” but utilitarian delivery and flatbed incarnations). M&M’s farm equipment sector, formed in 1963 during India’s green revolution, manufacturers tractors and industrial engines. M&M also produces military vehicles. The company has facilities located throughout India.
Mahindra & Mahindra limited is an Indian multinational vehicle manufacturing corporation headquartered in Mumbai, Maharashtra, India. It was established as Muhammad & Mahindra and later renamed as Mahindra and Mahindra. It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. It is a part of the Mahindra Group, an Indian conglomerate. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018.Its major competitors in the Indian market include Maruti Suzuki and Tata Motors.
1 INTRODUCTION ABOUT THE INDUSTRY
Every time the society needed us, we stepped in and helped create a new industry. In 1945, our journey commenced with us getting into the steel business, and over time, we expanded to 22 key industries. A need for change in the agricultural practices pushed us to foray into that sector right before the agriculture revolution began in India. We became one of the key torch-bearers of the IT revolution in our country. Our focus now lies in developing alternate energy sources because we believe energy conservation will play a huge role in ensuring a better future – for not just our country and communities, but the entire world.
Mahindra & Mahindra is an automobile industry. Mahindra & Mahindra, brands its products as "Mahindra", produces SUVs, saloon cars, pickups, lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles and tractors. Mahindra maintains business relations with foreign companies like Renault SA, France.
M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe S.r.l. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. In 2015, Mahindra re-entered the Philippine market after a brief presence in 1990s
Mahindra began assembling the Jeep CJ3 in 1954, and light commercial vehicles in 1965. In 1979 the licensed assembly of Peugeot diesel four-cylinder engines and transmissions began, and in 1982 a tie-up with Kia Motors to build their four-speed KMT90 transmission and transfer case was announced. Mahindra's MM range was a mainstay of the lineup and was eventually also offered with a 1.8-liter Isuzu petrol engine in addition to International and Peugeot diesels. Mahindra started making passenger vehicles firstly with the Logan in April 2007 under the Mahindra Renault joint venture. M&M made its maiden entry into the heavy trucks segment with the Mahindra Truck and Bus Division, the joint venture with International Truck, USA.
Mahindra produces a wide range of vehicles, including MUVs, LCVs and three-wheelers. It manufactures over 20 models of cars, including larger, multi-utility vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build passenger cars.
List of Mahindra models
Military defence The company has built and assembled military vehicles, commencing in 1947 with the importation of the Willys Jeep that had been widely used in World War II. Its line of military vehicles include the Axe. It also maintains a joint venture with BAE Systems, Defence Land Systems India.
2 Farm equipment Mahindra began manufacturing tractors for the Indian market during the early '60s. It is the top tractor company in the world (by volume) with annual sales totalling more than 200,000 tractors. Since its inception, the company has sold over 2.1 million tractors. Mahindra & Mahindra's farm equipment division (Mahindra Tractors) has over 1,000 dealers servicing approx. 1.45 million customers.
Mahindra tractors are available in 40 countries all around the world. Mahindra Tractors manufactures its products at four plants in India, two in Mainland China, three in the United States, and one in Australia. It has three major subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).
In addition to tractors, Mahindra sells other farm equipment. It has expanded its product-line to include farm- support services via Mahindra AppliTrac (farm mechanisation products), Mahindra ShubhLabh (seeds, crop protection, and market linkages and distribution), and the Samriddhi Initiative (farm counselling and information services).
The Mahindra Automotive and Farm Equipment Sectors (AFS), is one of the largest contributors to the Mahindra Group revenue and includes 27 businesses, 18 subsidiaries and 9 companies.
The Farm Equipment department also provides irrigation, fertilization, seeds through varied agriculture and allied businesses.
AEROSPACE Airplanes speed up mobility, ensuring help is received when it’s most required. Our planes act as air ambulances, supporting in rescuing animals and putting out wildfires, apart from serving as aircraft for adventure. We also make airframe parts and assemblies for reputed aircraft platforms. So, the next airplane you board may have Mahindra parts in it!
3 AFTERMARKET Why shouldn't a used vehicle guarantee the quality of a new one? Mahindra Aftermarket represents our pioneering efforts to professionalise the pre-owned car and car service industry. Our range of offerings, from financing and exchange platforms, maintenance and repair, and other services meet nearly every automotive need.
AGRI INDUSTRY We empower farmers with the most relevant technology and agricultural know-how, and link them to the market, so they get better returns. Our agricultural inputs, advisory services, and output procurement businesses equip them to deliver continued Farm Prosperity, while our Farm-to-Fork model ensures stringent quality checks throughout the supply chain.
4 AUTOMOTIVE We wanted to make the commute from point A to B, smoother. So, we introduced to India its first utility vehicle. Our desire to keep identifying ways to enhance the automotive experience, pushed us to foray into electric vehicles, pickups, and commercial vehicles. Today, we are preferred for delivering on durability, reliability, environment-friendliness, and fuel-efficiency.
BOATS The best way to explore open seas and water bodies is through our watercrafts. As India’s first boat builder in the organised sector, we offer a bespoke fleet of state-of-the-art personal and commercial crafts that effortlessly combine modern luxury with stellar performance. Having created a new standard for watercrafts, we’ve now established an ISO 9001:2008 certified by TUV Austria facility to manufacture our sizeable fleet.
CLEAN ENERGY We see tremendous opportunity for producing clean energy by harnessing the abundant sunshine India receives. Mahindra Susten, our solar energy business is already a leader in the Solar EPC space, offering extensive expertise in Solar PV EPC; both Utility Scale and Distributed, Build Solutions, Operations and Maintenance and other Innovative offerings.
5 CONSULTING With the aim to positively impact our partners, they offer world-class consulting services in three key verticals: information security and risk management, engineering consulting, and business process management. We also work to better protect the information assets, strengthen physical security and reduce risk for organisation, while offering BPM and advisory services.
CONSTRUCTION EQUIPMENT Our foray into this industry comes on the back of seven decades of experience in making tough, rugged and durable utility vehicles, and tractors. Manufactured at our state-of-the-art facility at Chakan, Pune, the Mahindra EarthMasterTM embodies our promise of providing world-class construction equipment and services, backed by our famed and extensive dealer-network.
DEFENCE We aim to protect those who protect us. Our gamut of defence offerings encompasses land systems, naval systems, defence electronics and security consulting. Aligned to the Government of India’s defence policy, making our forces self-sufficient is a key pillar for us. To this end, we’re aggressively scaling up our capabilities to meet the requirements of a nation on the rise.
6 HOSPITALITY We entered the Hospitality industry in 1996 to offer Indian families fun-filled and affordable vacations in some of the most exotic locations in the country. Two decades later, we are amongst the largest vacation ownership brands in the world. With over 46 resorts in India and abroad, we aim to keep this number growing and extend this experience to more families.
FARM EQUIPMENT Farm prosperity remains at the heart of all our agri-related endeavours. Our tough and durable tractors and implements raise productivity in farms across all continents on earth. The world's largest selling tractor brand by volume, and India's no.1 tractor maker for over three decades, we are the only tractor company to have won the Deming Prize and Japan Quality Medal
LOGISTICS As one of India’s largest 3PL solutions providers, we operate in two distinct business segments, Supply Chain Management (SCM) and corporate People Transport Solutions (PTS). We service 400+ customers across Automotive, Engineering, Consumer Goods, Pharmaceuticals, Ecommerce, Bulk sectors for SCM and IT, ITES, Manufacturing, Banking, Financial Services and Insurance (BFSI), Consulting businesses for the PTS business.
7 TWO WHEELERS From bringing back the iconic JAWA, to paving a more sustainable route to shared mobility, with Scoot, we are working to enhance the two-wheeler experience for our customers. Since the inception of this industry in 2008, they have built a range of two-wheelers that offer distinctive styling, great mileage and superior ride quality on tough Indian roads.
TRUCKS & BUSES Indian highways are notorious for their rough terrain, unpredictable weather, and unpaved paths. So, they build our trucks and buses in India, for India. Combined with European safety standards and state-of-the-art M- Power engines, our trucks and buses come in many shapes and sizes, but with an unchanging promise: the goods will be delivered.
VEHICLE & EQUIPMENT FINANCE
By offering Vehicle and Asset Finance to rural Indians, we continue to empower millions of customers across the country. We finance the purchase of new and pre-owned tractors, commercial vehicles, construction equipment and two wheelers, and also provide specialised assistance for hassle-free documentation and quick disbursal of loan amounts.
8 CHAPTER-2
ORGANIZATION PROFILE
BACK GROUND
Mahindra & Mahindra was founded as a steel trading company on October 2, 1945 in Ludhiana as Mahindra & Muhammed by brothers Harikrishnan and Jayakrishnan and Jagdish Chandra Mahindra along with Malik Ghulam Muhammad. Anand Mahindra, the present Chairman of Mahindra Group, is the grandson of Jagdish Chandra Mahindra. After India gained independence and Pakistan was formed, Muhammad emigrated to Pakistan. Muhammad acquired Pakistani citizenship and settled in Lahore, and in 1948 became Pakistan's first finance minister. Thereafter, the company changed its name to Mahindra & Mahindra in 1948. It eventually saw a business opportunity in expanding into manufacturing and selling larger MUVs, starting with the assembly under licence of the Willys Jeep in India. Soon, the company was established as the Jeep manufacturer in India, M&M later commenced manufacturing light commercial vehicles (LCVs) and agricultural tractors.
K. C. Mahindra is the person who established Mahindra and Mahindra when he visited United States of America as Chairman of the India Supply Mission. When he met Barney Roos who invented general purpose vehicle or Jeep who was the inspiration for K. C. Mahindra.
The Company was Incorporated and converted into Public Limited in 1955 at Mumbai. The Company Manufacture Jeep type vehicles, petrol industrial engines, industrial process control instruments and flow meters. Trading in steel and manufacture of professional grade electronic components. Jeeps are manufactured under a license and an agreement with Willys Motors Inc., Toledo, Ohio, U.S.A., for whom the Company also acts as exclusive distributors for the whole of India for their entire range of vehicles including utility vans, cargo/personnel carriers and pick-up trucks. In 1958 - The Company entered into an agreement with Birfield Ltd., to form Mahindra Sintered Products Private Limited for the manufacture of a wide range of self lubricating bearings. In 1968 - The Instrumentation & Electronics Division came into existence as a result of merger of the wholly- owned subsidiary of Mahindra Engineering Co. Ltd., with the Company with effect from 1st April 1968. The activities of the merged company were being carried on in this division. - The Company acquired the whole paid-up capital of Mahindra Electro-Chemicals Products Ltd. Company.
In 1947, the company started its business from assembling jeeps and slowly moved on to making utility vehicles and agricultural tractors. With in no time M&M as emerged as one of the leading brand’s in India. Today M&M is a diversified group employing more that 65,000 people directly. M&M has substantial presence in sectors like automobile, equipment for farms, financial services, automobile components, after- market, IT and infrastructure. 9
M&M is one of the India’s most respected and reputed business groups. Reputation Institute declared M&M as one of the most reputed companies in the world. M&M is also only one of the ten Indian companies to get featured in the prestigious Forbes magazine.
Few of the core values of the M&M are Good Corporate Citizenship, Professionalism, Customer First, Quality Focus and Dignity Of The Individual.
Over the past few years, the company has taken interest in new industries and in foreign markets. They entered the two-wheeler industry by taking over Kinetic Motors in India.
M&M took a 55% stake in the REVA Electric Car Company in 2010 and renamed it to Mahindra Electric in 2016 following taking 100% ownership.
NATURE OF BUSINESS
Mahindra & Mahindra Ltd. is an India-based mobility products and farm solutions provider. The Company’s segments include Automotive, Farm Equipment, Financial Services, Real Estate, Hospitality and Others. Automotive segment comprises of sale of automobiles, spares, mobility solutions and construction equipment. Its Farm Equipment segment comprises of sale of tractors, implements and spares. Financial Services segment comprises of offering financial products ranging from retail and other loans, housing finance, mutual funds and insurance broking services. Real Estate segment comprises of projects, project management and development, and operating of commercial complexes. Its Hospitality segment comprises of sale of timeshare and vacation ownership. Its Others segment include after-market, defense and steel trading. It provides taxi service through its subsidiary Meru Travel Solutions Pvt Ltd.
VISION
• We will listen to our Customers and team members. We will ask questions (not assume) seeking to understand specific needs, desires, and expectations. We will seek to understand before we will seek to be understood.
• We will work in an environment of mutual trust and respect. We will be caring and responsive to requests while being honest and timely, avoiding false expectations.
• We will think in terms of exceeding Customer expectations while doing what is fair; i.e. striving to go the extra step that transforms Customer Satisfaction into Customer Enthusiasm.
• We will make it happen. Speed is essential in creating a win-win culture for the Customer and Capital.
• We will follow-up with the Customer to ensure that the Customer’s expectations were met or exceeded.
10 • We will seek to continually improve our skills and the quality of our products and services in the eyes of our Customer.
• We will be proactive by anticipating the needs of our Customers and team members.
Indians are second in the world in manufacturing automobiles. The founders of our nation and our company passionately believed by us. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services. And its new innovations.
The important goal of Mahindra &Mahindra is to provide highly technological innovative product and services.
MISSION
Our mission is to earn our Customer’s loyalty by delivering sales and service experiences with high quality, excellent value, integrity and enthusiasm. We will function as a team, work ethically, and focus on meeting and striving to exceed the expectations of our Customers.
Mission of Anand Mahindra
“We don’t have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning”.
FOUR I’s of Mahindra and Mahindra
• INNOVATIONS. • INFRASTRUCTURE. • INVESTIMENT. • INSTITUTIONS.
INNOVATIONS: Mahindra & Mahindra is one of the top industry in India. The director of the Mahindra & Mahindra Anand Mahindra put innovation is the core of its growth strategy. The radical innovation is successful in managing the balance between the structured processes and the creation of an environment.
According to this M&M group:
11 Innovation should start with the insight about customer, which the Mahindra & Mahindra group found by going to fields and observing the lives of farmers. And this group found that the tractors were used for personal use.
The Mahindra & Mahindra group encourages the experiments.
The new inventions should add value to company’s bottom line that is nothing but profit.
The important point is that great products should have great design.
Thus Mahindra & Mahindra took this initiative and made the culture of innovation.
INFRASTRUCTURE: The Mahindra & Mahindra infrastructure is a JV between Mahindra Group and International Finance Corporation. It works close association with global companies to bring world class technologies and practices. It mainly focus on ownership, development and management of infrastructure projects. It is becoming the leading infrastructure developer in the country.
INSTITUTIONS: The Mahindra & Mahindra group is placed in all sectors like
Telecommunications and it is named as Tech Mahindra.
Software, Mahindra & Mahindra came to software field after buying Satyam company and it is named as Mahindra Satyam
Mahindra & Mahindra also has its recognition in the Infrastructure and it is named as Mahindra Infrastructure Developers. In this it also have holiday resorts it named as Mahindra Holidays and Resort LTD (MHRIL)
Mahindra & Mahindra is one of the top industry in India for automobiles and it is the starting point of Mahindra & Mahindra company.
Mahindra & Mahindra also involved in financial sector and its name is Mahindra & Mahindra Financial Service LTD.
Mahindra & Mahindra Group also have Mahindra Special Services which was established in 2001 as a separate division in Mahindra & Mahindra.
Mahindra & Mahindra also have Mahindra Defence Systems which oversees the requirement of India’s Defence and Security forces.
12 INVESTIMENTS: Mahindra & Mahindra group have shares in many companies. Presently Mahindra & Mahindra Group want to acquire Ssangyong and expand its business in international market. But on other hand, its investors are quite suspicious regarding the investment. In the past Mahindra & Mahindra Group made many Joint Ventures and acquisitions and it has forayed into different sectors of automobiles like light, medium and heavy commercial vehicles. It also ambitious to acquire two wheelers also.
QUALITY POLICY
Quality is of prime importance. It has been integrated into everything the Company does and stands for. Each operation-centre of the Group adheres to the some values, offering Quality that's backed by rigorous and multi- dimensional Quality Assurance Systems and Programmes. The most vital aspect treasured by the Company- Customer care and Customer relationship.
The quality control policy of our company aims at achieving consistent performance and profitable growth by offering services that continue to satisfy the expectations and needs of our customers. Our policy primarily provides a framework for taking relevant decisions and actions that confirm and improve the overall standards of quality in all the departments of the company.
Every staff member is committed to ensure the quality of work which directly involved in carrying out the decisions in the policy. Such a group effort eventually results in a continuously improving working atmosphere for the company.
“ customer first and quality focus are our core values. For this, we shall respond to the charging needs and expectation of the customers speedily and effectively”
13
WORKFLOW MODEL (2.1)
14 PRODUCT / SERVICE PROFILE
Mahindra & Mahindra Ltd. manufactures different range of automotive vehicles, agricultural tractors, implements and industrial engines. It is the flagship company of the Mahindra group, operating in the global tractor industry and the Indian utility vehicles market. Through its subsidiaries, the company operates in industries such as aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. The company’s portfolio comprises of a wide spectrum of vehicles from two wheelers to heavy trucks, SUVs to school buses. Its services include maintenance and repairs, customization, providing spares, and manufacturing and engineering. The company specializes in consulting on automotive style, engineering, computer-aided engineering, and project management. It also offers concept definition for two wheelers, passenger vehicles, and light and heavy trucks. The company manufactures a wide range of light commercial vehicles and heavy commercial vehicles that are rugged, reliable, environmentally friendly and fuel- efficient. Through a joint venture with Navistar Inc, it produces diesel engines for medium and heavy commercial vehicles in India. The company operates through two segments: Business and Secondary. The Business segment consists of following segments. The Automotive Segment comprises of sales of automobiles, spare parts and related services. The Farm Equipment Segment comprises of sales of tractors, spare parts and related services. The IT Services comprises of services rendered for IT and Telecom. The Financial Services comprise of services relating to financing, leasing and hire purchase of automobiles and tractors. The Steel Trading and Processing comprises of trading and processing of steel. The Infrastructure comprise of operating of commercial complexes, project management and development. The Hospitality comprises of sale of Vacation ownership. The Systech comprises of automotive components and other related products and services. The Others comprise of Logistics, After-market, Two wheelers, Investments etc. The Secondary Segment consist of two segments: Domestic and Overseas. The Domestic segment includes sales to customers located in India and service income accrued in India. The Overseas segment includes sales and services rendered to customers located outside India. The company was founded by Jagdish Chandra Mahindra and Kailash Chandra Mahindra on October 2, 1945 and is headquartered in Mumbai, Ind
15 Various companies of automotive under Mahindra Group:1) Mahindra and Mahindra Automotive Division 2) Mahindra Graphic Research Design 3) Mahindra Navistar Automotive 4) Mahindra Navistar Engines 5) Mahindra Reva Electric Vehicle 6) Mahindra Vehicle Manufacturer 7) SSANGYONG Motor Company 8) Mahindra Trucks and Buses 39 VECHICLE MANUCATURING
OWNERSHIP PATTERN (1.1)
Holder's Name No of Shares % Share Holding
No Of Shares 1243192544 100%
Promoters 234058774 18.83%
Foreign Institutions 400131970 32.19%
N Banks Mutual Funds 123016353 9.9%
Central Govt 2051910 0.17%
Others 47189085 3.8%
General Public 113233580 9.11%
Financial Institutions 209045177 16.82%
Foreign Promoter 845344 0.07%
GDR 113620351 9.14%
16
Shareholding Pattern of top ten Shareholders(other than Directors, Promoters and Holders of GDR and ADRs) (2.2)
ACHIEVEMENTS/ AWARDS
• Bombay Chamber Good Corporate Citizen Award for 2006–07.
• Business world FICCI-SEDF Corporate Social Responsibility Award 2007.
• The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand in its India Study 2014 survey (from 20,000 brands analyzed).
• Its Farm Equipment division received the Deming Prize in 2003.
• Its Farm Equipment division received the Japan Quality Medal in 2007.
• The US based Reputation Institute ranked M&M amongst the top Ten Indian companies in its 'Global 200: The World's Best Corporate Reputations' list for 2008.
• Bluebytes News rated M&M as India's second Most Reputed Car Company (reported in their study titled Reputation Benchmark Study) conducted for the Auto (Cars) Sector in 2012.
• 'Golden Peacock Award for Excellence in Corporate Governance' by the Institute of Directors
• .'National Award for Excellence in Corporate Governance' by the Institute of Company Secretaries of India.
• 'Best Companies to Work For' award by Business Today in 2016 in the 'Engineering & Automotive' category.
• AON Hewitt Award for Top 10 Global Companies for Leaders.
17 • TOI Social Impact Award (2015) for K. C. Mahindra Education Trust's project Nanhi Kali in the 'Corporate - Education' category.
• 'Manufacturer of the Year' by CNBC Overdrive Awards 2016.
• Keshub Mahindra honoured with the Lifetime Achievement Award from ASSOCHAM (The Associated Chambers of Commerce and Industry of India), in recognition of his stellar contribution to Indian industry over the past five decades.
• Yuva Unstoppable Gratitude Award 2020 – Yuvaunstoppable
• fDi Global Free Zones of the Year 2019 – bespoke award in Sustainability – fDi
• Construction World Architect & Builder Awards 2018: One of India’s Top Builders in 2018
• The Mahindra Samriddhi India Agri Awards have now become an established national platform for recognizing agricultural achievements. Now in its 9th edition, MSIAA 2019 received 63,758 nominations from across the country for nine categories.
AWARD RECEIVING
FUTURE GROWTH AND PROPECTS
Mahindra’s plans for the electric future! Electric is the future and all of us know that! Mahindra has some great plans for the coming electric future. We have seen that automakers have started developing electric vehicles but all of them are of the private segment. Mahindra, for the first time, has shared its plans for the electric mobility for the fleets!
18 Mahindra XUV300 Electric SUV Expected To Debut At Auto Expo
Mahindra XUV300 electric SUV has been in the making since long. If you remember, Mahindra promised the launch of the all-electric XUV300 in mid-2020 when they launched the IC engine counterpart of thesame car. We have already seen the electric variant of the KUV 100 in the auto expo 2018. What does Mahindra have on cards for its launch? We still don’t have a clue!
Mahindra XUV300 BS6 Petrol Launched! Mahindra has finally launched its first BS6 compliant vehicle-the XUV300. The homegrown auto manufacturer has started preparing for the future and this is the first step towards it!
The XUV300 petrol variant with a 1.2l turbo engine has been made BS6 compliant. The starting price for this car model has been set to Rs.8.30 lacs and goes upto Rs.11.84 lacs for the top variant W8. The BS6 variants of the Mahindra XUV300 have been priced Rs. 20,000 more than its BS4 counterparts.
19 2020 Mahindra TUV300 Facelift Spied Testing! Mahindra seems to be gearing up for something big as much recently one of the company’s most awaited compact SUV: the 2020 TUV300 was spotted hitting the test roads. As seen in the spy shots captured, the new 2020 Mahindra TUV300 features some out of the box cosmetic and mechanical tweaks.
Mahindra also plans to transform the three-wheeler market and currently offers the e-Alfa Mini and Treo in the electric three-wheeler range. The automaker has also planned two-wheelers to go electric. They already produce such products at one of their facilities in Madhya Pradesh which is exported as the Peugeot e-Ludix. Let’s see if they bring this to India as well! Mahindra electric scooters might not be sold in the Indian market. Instead, they will be exported.
The premium that these electric scooters will demand might not be justified in the local market. What we will get though are Peugeot electric scooters. Mahindra recently completed the acquisition of the brand. The scooters are likely to have Peugeot design but then the powertrain will likely be localised. With the premium image of Peugeot, Mahindra should not have a problem retailing them at the cost decided by the company and not by the market. There could be separate dealerships for Peugeot electric two-wheelers in India.
20 CHAPTER- 3 MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE MODEL WITH SPECIAL REFERENCE TO ORGANIZATION UNDER STUDY
Mckensy’s 7s framework of Mahindra and Mahindra limited (2.3)
STRATEGY Marketing strategy Strategy used for variation in range of products The company emphasized on the manufacturing of different car models by keeping in mind the preferences of the customers. Most of the customers search for varieties in the models as well as the features of the automobiles which can help the customers by giving better performance and improved facilities from the company as compared to the other automobile manufacturing companies.
21 The company gave significance to the better quality parts for structuring the cars. All models of the company are different from one another and its spectacular designs and sturdy models made it famous and trustworthy brand among the customers.
Strategy used for prioritizing on choice, quality and budget
A lot of customers buy automobiles without having the exact knowledge on the different specifications and the current technologies which the companies use for the purpose of manufacturing its products. A lot of automobile companies have the tendency to sell their products without giving proper knowledge to the customers regarding the model they want to buy. Mahindra and Mahindra have always maintained its good image in this filed and respected the faith of the customers.
Customers expect best in class quality products as they are paying huge amounts for buying the product. This strategy of the company has helped in upholding the strengths, as a result, it has gained huge popularity.
Strategy used on market ideas
Every customer these days are aware of the upcoming new and improved technologies which most of the companies use in manufacturing their products. In order to fulfill the increasing demand of the customers, the company has always tried to come up with variations in the car models and its features. This strategy helped the company in winning the hearts of its customers as a result the company became famous among the people as well as in the automobile market.
Strategy used on campaigning
The mind-blowing advertising and campaigning strategies brought outstanding results and immense success to the company. The campaigns brought about many familiar faces from the entertainment industry. They have taken various steps for the purpose of promoting the vehicles across the world. The company took help of the print as well as visual media to promote their company.
22 In the year 2011 Mahindra launched Kareena Kapoor Khan as the brand ambassador who is a popular face in the Bollywood industry. She became the brand ambassador for two-wheelers advertisement. This engaging campaign reflected the charming side of Kareena Kapoor while she enjoys her ride.
Mahindra & Mahindra advertises very smartly and adequately. Mahindra & Mahindra’s “Live young, Live free “campaign became popular in 2012. Mahindra & Mahindra follows an aggressive promotional strategy in its marketing mix. It showed Mahindra’s portfolio of vehicles in tough terrains of different parts of India. They made Varun Dhawan as their brand ambassador to target the younger audience. The advertisement made with the actor had great content and complimentary music. Their advertising strategy is not confined to just television. Mahindra & Mahindra do a lot of print, digital and media advertising as well. They host on ground events like the Mahindra adventure initiative. Mahindra & Mahindra has a huge fan base on social media. Various events and contests like the Dubsmash & win KUV100 contest are played on the social media to create buzz and for customer engagement. It has around 17 million fans across various brands and over 40 million views on different videos on YouTube.
Strategy used on pricing
Mahindra & Mahindra has targeted different market segments with their different vehicles. XUV 500 is for the cosmopolitan population with international quality car and advance technology and style. Bolero is more for more price conscious, middle class consumers in smaller towns. Therefore, the pricing strategy in the marketing mix of the automobiles is done keeping the market segment and the competitors in mind. The automobiles in the product portfolio ranges from as low as 4.54 lakhs to 40 lakhs. Mahindra Scorpio ranges from Rs.8.11 lakhs to Rs.15.05 lakhs. Different versions of XUV500 can be bought from Rs.12 lakhs to Rs. 17.9 lakhs. Mahindra Thar ranges from 5.22 lakhs to 8.38 lakhs. Mahindra Rexton is the premium range SUV with superior features in the price range from 20.94 lakhs to 24.74 lakhs. Mahindra & Mahindra’s commercial vehicles are very popular for their ruggedness and toughness. Mahindra Truxo ranges from 17 lakhs to 22 lakhs. Mahindra & Mahindra follows competitive pricing as its price range is very similar to its competitors. In fact, some commercial vehicles are priced marginally lower than the competitors.
23 STRUCTURE (2.4)
The organization structure of Mahindra & Mahindra is hierarchical with managers and directors heading companies around the world. Changes necessary for expansion include formation of mergers with fellow competitors. STYLE But first the greenhorns had to make the M&M management committee buy the idea. That was made easy because the brass was willing to hear them out. Not in a casual or ambivalent way, but in a serious and structured way. Anand Mahindra, vice-chairman and managing director, Mahindra Group, wanted to "hear the voice of the young". So, in 2003, he added a new circle in the organisation structure of Mahindra companies to give young managers a voice at the highest levels of decision-making. 'Shadow boards” it was called.
Seven promising young managers, all below the age of 35, were hand-picked in each Mahindra company/division and were asked to think of themselves as another management committee. They were asked to choose three to four subjects, anything at all, deliberate on them for two years and make recommendations. Those recommendations might be implemented, junked or filed away, but the assurance was given that the senior management would take them all up. Some of the recommendations made by the Mahindra shadow boards have found their way into
24 the group’s business: the diversification into commercial vehicles, a round-the-clock helpline, a more personal approach to distributing increments, even a leap into a bold acquisition.
Many of the young managers who have spent time on shadow boards have seen their careers fast-tracked. Back in 2004, Mr Karandikar was the brand head for a utility vehicle, Bolero. Today, he heads product development and marketing for the group’s international business. Harish Chavan, 40, heads M&M’s tractor division in China. Anirudhha Haldar, 34, is currently the chief marketing officer at Mahindra Holidays. Says Prince Augustine, EVP-human capital, automotive and farm equipment sectors: “There are at least 15 others in the 31-45 bracket who graduated out of shadow boards and are currently occupying key positions.” Years ago, Unilever and General Electric introduced the concept of shadow boards, but they found it difficult to sustain it, as their senior managements didn’t get involved. At the Mahindra group, the senior management — especially chairman Keshub Mahindra and Anand Mahindra — threw its weight behind the concept, and got the senior management involved.
At the outset, the Mahindra group roped in senior managers to act as mentors to the shadow boards. Typically, the pool of mentors for a shadow board comprises the company’s MD and the functional heads. So, for instance, Ramesh Iyer, managing director, Mahindra Finance, will mentor a shadow board of the company. In addition, the shadow board can also access, say, the HR or finance heads on matters concerning their respective areas. Mentors help sharpen good ideas or weed out the bad ones. More often than not, the ideas are good, but the mentors find more appropriate ways for the company to take them on. For instance, the idea for the group to enter retail came from a shadow board, but the company chose a small-store format (Mom & Me, for infants). The mentors at M&M say that at least 50% of the ideas coming from shadow boards are based on what the Mahindra business is planning. Shadow boards have made a case for, among other things, Mahindra Finance increasing its exposure to second-hand vehicle financing as it was a natural business extension, the Mahindras diversifying into healthcare as people saw it as a brand they could trust, making Mahindra Holidays a $1-billion company by market capitalisation by 2015.
25 STAFF
To keep large companies running, with a high number of employees, involvement of the workmen in decision making is necessary
Employee satisfaction survey
We conduct employee engagement surveys at the management level as well as the workmen level, to assess the employee morale and to bring to light any issue that he/she might be facing. For work-men the frequency of survey is once in two years. These surveys are conducted on an online system, set up by corporate team, where all levels of employees input their preferences on a 70 question long survey. The results not only helps us gauge the satisfaction level of the employees, but also work as a performance report for leadership effectiveness. Over the last few years, we have managed to get a consistent 4 star rating (on a 5 pointer scale) which translates into almost 80 percent employee satisfaction. Not only this, we wish to work on improving this number year-on-year, with an action plan being made every quarter based on the feedback received.
Young Mahindra Program Our workforce consists of 50 to 60 percent of Gen X and Y. Hence, keeping the Millennials engaged is of prime importance. Young Mahindra Program is the forum where youngsters participate to form a parallel governing council. Here, they debate on company issues and come up with solutions, while also participating in cultural programs and conduct initiatives. Their recommendations are communicated through various programs that we run and are duly noted by senior management.
Rise i4 Ideation Program Mahindra has a Rise i4 ideation program where teams and workmen are encouraged to give ideas on improvement under the parameters of PQDSM (P-Productivity, Q-Quality, D- Delivery, S-Safety and M-Moral). Every week, two hours are especially allotted for ideation for all teams where they can brainstorm and discuss about how to bring about better productivity, reduce cost, increase safety at their stage and sustainable operations. Points are given on the basis of these parameters and there is a central competition for the best ideas given. There is a visible projection of the participants in front of the entire sector which serves as a great recognition platform. There is also an encouraging rewards and recognition program for
26 the workmen inside Mahindra Group, where they are awarded on the basis of their ideas by Sr. Management.
Man of the Month & Man of the year On a monthly, quarterly, 6-monthly and yearly basis, each product unit has a ‘Man of the Month’ which is an employee that stands out. The achievements of this individual are highlighted with the team and his/her family is invited to join in the celebra-tion. This recognition is not just limited at plant level but also at the sector level where we ensure to felicitate his/her spouse too for their success. Hence this doubles up not only as a recognition platform but also as a family engagement opportunity for Mahindra.
Employees at Mahindra & Mahindra Automotive & Farm Equipment Sectors are given ample freedom at work and opportunity to innovate. Employees have an opportunity to learn from the organisations’ diverse businesses. Employees take pride in the organisations’ brand name and its focus on innovation and developing low-cost products. Management is open to ideas and suggestions and employees are heard. Employees have appreciated the various benefits and allowances offered to them. SKILLS Mahindra regularly upgrades the skills of the employees
Business no longer has an infinite life. To keep large companies running, with a high numbers of employees, involvement of the employees (both blue and white collar) and their ownership is necessary. We have seen a number of examples where companies cease to exist as they are unable to take this crucial step into consideration for their growth. We need to train our employees and make sure they have the right skills for the job. Every employer needs to ensure the safety and security of their employees and does not necessarily need government or union interventions for the same. As an organization, taking into account the thoughts and ideas of employees is as important as their technical skills. We need to develop an environment where the employee not just focuses on his work but also contributes to the growth of the company and hones his/her own skills. To this end, engagement of the workforce is of prime importance and we run a number of programs to bring it to life. Few of them are enumerated hereunder:
The homegrown manufacturer Mahindra & Mahindra Ltd. (M&M Ltd.) today signed a memorandum of understanding (MoU) with Automotive Skills Development Council (ASDC), a skill development council for the automotive sector. Under this, India’s leading SUV maker
27 Mahindra and ASDC will offer skill development training program to generate employment opportunities in Indian auto sector.
Mahindra has a vast network of 30 training centers, spread across 16 states, catering to technical training needs of 30,000 dealers manpower across India.
Companies have found that investment in human capital in the form of training and development yields high returns. The ones that recognize the value of their employees and place a new emphasis on education and training are becoming more competitive, successful, and profitable as a result. Training can be broadly divided into 2 categories: Behavioral Training: This training is given to employees to improve their softskills and inculcate managerial qualities in them.Functional Training: It is job-related training. It focuses on the work to be done. It systematically uses selected, structured and documented workplace experience, combining theory with practice, and is guided by clearly defined objectives. Functional training is very important in manufacturing industry as it helps employees in ensuring their safety while working on machines, upgrade them with latest manufacturing practices and improve the productivity of company.
PORTER’S FIVE FORCE MODEL (2.5)
28 The porter 5 forces model would assist in gaining insights into the Porter's 5 Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution industry and determine the probability of the success of the alternatives, which has been considered by the management of the company for the purpose of dealing with the emerging issues related to the minimizing membership rate of clients.
1. Intensity of rivalry
It is to notify that the Porter's Five Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution is a part of the multinational entertainment industry in the United States. The business has been taken part in providing the services in more than ninety nations with the video as needed, products of streaming media and media provider.
The market where the Porter's Five Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution has actually been running since its beginning has lots of market gamers with the considerable market share and increased earnings. There is an extreme level of competition or competition in the media and show business, compelling companies to make every effort in order to keep the current customers via offering services at economical or reasonable costs. Porter's Five Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Help has been facing fierce competitors from the rival business using as needed videos, standard broadcaster and merchants selling DVDs. The primary direct competitor of Porter's 5 Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Help is Amazon, given that both of these business use DVDs on lease, hence competing in this domain for the comparable target audience.
2. Threats of new entrants
There is a high cost of entrance in the media and entrainment market. The entertainment industry requires a big capital quantity as the companies which are taken part in supplying entertainment service have larger start-up expense, which includes:
29 legal cost.
Marketing expense.
Distribution cost.
Licensing cost.
In contrast, the existing entertainment service provider has been thoroughly dealing with their targeted sections with the particular expertise, which is why the hazard of new entrants is low.
Another essential factor is the intensity of competition within the key market gamers in the market, due to which the brand-new entrant think twice while participating in the market. Also, the technology and trends in the media market are progressing on constant basis, which is adjusted by market competitors and Porter's 5 Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution. Despite the fact that, the brand-new entrant can quickly duplicate business design but what supplies edge to market competitors and Porter's Five Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution is convenience and series of offered material. Getting such competitive benefit would need supplier contracts, capital investment and networking which would not be easy for the new entrants to follow.
3. Threat of substitutes
The hazard of replacements in the market pose moderate threat level in media and the entertainment industry. The company is facinga strong competitors from the competitors using comparable services through online streaming and rental DVDs. The standard media material company is one of the example of the alternative items. The customer might likewise take part in other leisure activities and source of information as compared to enjoying media content and online streaming.
4. Bargaining power of buyer
The dynamics of media and entertainment market allows the consumers to have high bargaining power. The low expense of switching allows the clients to seek other media service companies and cancel their Porter's 5 Forces of Mahindra And Mahindra: Leveraging Indias
30 Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Solution subscription, thus increasing the company hazard.
5. Bargaining power of suppliers
Given that Porter's Five Forces of Mahindra And Mahindra: Leveraging Indias Size For Global Scale In Tractors - A Profile Of One Of Indias Pioneering Multinationals Case Help has been completing against the traditional distributor of entertainment and media, it requires to show greater flexibility in agreement as compared to the standard organisations. The items is innovation based, the dependence of the companies are increasing on continuous basis.
31 CHAPTER- 4 SWOT ANALYSIS Mahindra and Mahindra Limited is the flagship of the large Mahindra Group which is a conglomerate of over 14 different businesses. M&M is the world’s largest tractor manufacturer and is one of the largest producers of commercial as well as passenger vehicle in India.
Strength in the SWOT Analysis of Mahindra & Mahindra Ltd.
Market leader in multiple automotive segments: Mahindra & Mahindra has leading market share in a tractor as well as in the utility vehicles segment. Also, the company has strong market share in the commercial vehicle as well as passenger vehicle segment. Strong market share provides a competitive advantage to the company and allows the company to focus on innovation.
32 Strong Research & Development (R&D): M&M has a highly focused R&D department constantly focusing on developing new products and technologies. M&M majorly focuses on Value addition and Value engineering (VAVE) approach, designing modularity, use of alternate materials etc.
Excellent products according to Indian road conditions: Mahindra & Mahindra’s SUVs are suited perfectly to Indian road conditions especially, Mahindra Scorpio which has been an outstanding performer for many years.
Low after sale cost: M&M has a competitive advantage on after sale cost since it is lower than the industry average and also have high availability of spare parts to different parts of the country.
Weaknesses in the SWOT Analysis of Mahindra & Mahindra Ltd.
Geographic dependence: M&M is depended for the majority of its revenue (over 60%) from India, which would affect its business in case of any economic slowdown or high inflation.
Overdependence on Automotive industry: M&M’s major part of revenues come from its automotive business which makes it vulnerable to any breakthrough in the industry or slowdown in the market.
Product Recalls affects brand image: M&M has had to recall many of its products in the recent past. For instance, In February 2015, M&M recalled XUV500 manufactured before July 2014. Such incidents affect the brand image of the company and consequently affect sales.
Opportunities in the SWOT Analysis of Mahindra & Mahindra Ltd.
Growth in Indian automotive industry: The Indian automotive industry is growing year on year with over 12% growth from the previous 3 years. The industry is expected to grow at a CAGR of 13% in the next 4 years. This growth can be beneficial for M&M.
Increasing Demand for Hybrid Electric Vehicles: There is an increasing demand for Hybrid Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to grow at a
33 CAGR of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set to be benefited by the growing demand.
Emerging nations: M&M should look forward to tapping the emerging nations around the world which have high potential. M&M should build over its global footprint to tap the emerging markets.
Threats in the SWOT Analysis of Mahindra & Mahindra Ltd.
Competition in the automotive industry: M&M faces intense competition from various automotive companies such as Tata Motors, Ford, Volvo and General Motors etc. This can affect M&M’s market share and put pressure to constantly innovate on M&M.
Competition in other businesses put pressure on M&M: Mahindra group faces strong competition in other businesses as well. For example, its IT business faces competition from IT giants such as Infosys. This reduces market share and increases competitive pressure.
Stringent Regulations: M&M is subject to strict regulations by the government and environmental agencies in terms of emission levels, noise levels etc. Such regulations keep changing and thus increase compliance costs for the companies.
MAHINDRA AND MAHINDRA SWOT ANALYSIS
Mahindra and Mahindra strengths
Below are the Strengths in the SWOT Analysis of Mahindra & Mahindra: 1. Mahindra has been one of the strongest brands in the Indian automobile market 2. Mahindra group give employment to over 110,000 employees 3. Excellent branding and advertising, and low after sales service cost 4. Sturdy SUV’s good for Indian roads and off-road terrain Mahindra and Mahindra weakness Here are the weaknesses in the Mahindra & Mahindra SWOT Analysis: 1. Mahindra’s partnership with Renault did not live up to international quality standards through their brand Logan
34 Mahindra and Mahindra opportunities Following are the Opportunities in Mahindra & Mahindra SWOT Analysis: 1. Developing hybrid cars and fuel efficient cars for the future 2. Tapping emerging markets across the world and building a global brand 3.Fast growing automobile market 4.Growing in the market through electric car Reva (controlling stake) and entry into two- wheeler segments Mahindra and Mahindra threats The threats in the SWOT Analysis of Mahindra & Mahindra are as mentioned: 1. Government policies for the automobile sector across the world 2. Ever increasing fuel prices 3. Intense competition from global automobile brands 4. Substitute modes of public transport like buses, metro trains etc
35 CHAPTER-5
ANALYSIS OF FINANCIAL STATEMENTS
BALANCESHEET OF MAHINDRA AND MAHINDRA LTD Rs (cr) (1.2)
BALANCE SHEET OF MAR 20 MAR 19 MAR 18 MAR 17 MAR 16 MAHINDRA AND MAHINDRA (in Rs. Cr.)
12months 12months 12months 12months 12months
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 596.52 595.80 594.97 296.81 296.32
TOTAL SHARE 596.52 595.80 594.97 296.81 296.32 CAPITAL
Reserves and Surplus 33,871.32 33,613.43 29,699.07 26,488.56 22,126.85
TOTAL RESERVES 33,871.32 33,613.43 29,699.07 26,488.56 22,126.85 AND SURPLUS
TOTAL 34,467.84 34,209.23 30,294.04 26,785.37 22,423.17 SHAREHOLDERS FUNDS
36 NON-CURRENT LIABILITIES
Long Term Borrowings 2,032.03 2,031.78 2,195.90 2,233.99 1,495.42
Deferred Tax Liabilities 1,408.17 634.13 277.24 0.00 460.08 [Net]
Other Long Term 698.22 604.92 464.55 490.21 620.34 Liabilities
Long Term Provisions 922.98 882.93 861.81 824.45 656.24
TOTAL NON- 5,061.40 4,153.76 3,799.50 3,548.65 3,232.08 CURRENT LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 900.00 448.54 668.47 538.88 348.13
Trade Payables 6,785.83 9,678.15 8,603.40 6,881.08 6,674.71
Other Current Liabilities 2,691.43 3,518.71 3,383.95 1,648.61 2,412.94
Short Term Provisions 595.56 688.67 667.39 565.48 408.54
TOTAL CURRENT 10,972.82 14,334.07 13,323.21 9,634.05 9,844.32 LIABILITIES
TOTAL CAPITAL 50,502.06 52,697.06 47,416.75 39,968.32 35,499.57 AND LIABILITIES
37
ASSETS
NON-CURRENT ASSETS
Tangible Assets 7,980.76 7,614.71 6,507.95 6,536.72 6,545.73
Intangible Assets 2,413.83 2,467.04 1,351.46 1,234.32 1,050.26
Capital Work-In- 1,196.68 706.77 1,079.72 409.78 231.53 Progress
Other Assets 0.00 0.00 0.00 0.00 0.00
FIXED ASSETS 14,404.05 12,501.54 10,988.12 9,811.44 9,158.14
Non-Current 17,748.48 19,032.07 16,645.48 14,301.70 11,161.42 Investments
Deferred Tax Assets 0.00 0.00 0.00 254.84 0.00 [Net]
Long Term Loans And 138.86 37.55 43.01 34.12 1,223.55 Advances
Other Non-Current 3,069.18 3,054.84 3,265.67 2,958.22 2,320.78 Assets
TOTAL NON- 35,360.57 34,626.00 30,942.28 27,360.32 23,863.89 CURRENT ASSETS
CURRENT ASSETS
Current Investments 2,189.65 2,983.96 3,937.49 3,606.70 2,385.98
38
Inventories 3,400.91 3,839.27 2,701.69 2,758.01 2,687.93
Trade Receivables 2,998.98 3,946.30 3,172.98 2,938.84 2,511.64
Cash And Cash 4,236.51 3,731.66 2,893.73 1,687.48 2,287.03 Equivalents
Short Term Loans And 512.02 673.40 975.16 506.51 486.76 Advances
Other current assets 1,803.42 2,896.47 2,793.42 1,110.46 1,276.34
TOTAL CURRENT 15,141.49 18,071.06 16,474.47 12,608.00 11,635.68 ASSETS
TOTAL ASSETS 50,502.06 52,697.06 47,416.75 39,968.32 35,499.57
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 5,233.59 5,622.13 4,124.73 5,268.73 4,475.89
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.00 0.00 0.00 0.00
Stores, Spares And 0.00 0.00 0.00 0.00 0.00 Loose Tools
39
Trade/Other Goods 0.00 0.00 0.00 0.00 0.00
Capital Goods 0.00 0.00 0.00 0.00 0.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign 1,096.90 1,005.75 823.62 794.20 838.15 Currency
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In ------Foreign Currency
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods ------2,427.92
Other Earnings 2,237.45 3,063.06 2,504.98 2,455.87 --
BONUS DETAILS
Bonus Equity Share 481.41 481.41 481.41 170.61 170.61 Capital
NON-CURRENT INVESTMENTS
40 23,044.04 42,340.50 40,819.79 29,769.04 4,801.44 Non-Current Investments Quoted Market Value
Non-Current 16,635.21 14,591.94 12,034.50 10,977.76 7,612.90 Investments Unquoted Book Value
CURRENT INVESTMENTS
Current Investments 1,718.34 2,194.69 2,802.26 2,297.92 44.68 Quoted Market Value
Current Investments 471.31 789.27 1,135.23 1,308.78 2,341.30 Unquoted Book Value
CASH FLOW OF MAHINDRA AND MAHINDRA LTD Rs (in crores)(1.3)
Particulars Mar'20 Mar'19 Mar'18 Mar'17 Mar'16
Profit Before Tax 5130.01 6354.74 5668.76 4174.15 4215.72
Net Cash Flow from Operating Activity 3677.83 4923.87 7027.08 3710.00 5470.50
Net Cash Used in Investing - - - - - Activity 2575.72 2548.71 5110.42 2781.83 3537.93
Net Cash Used in Financing - - - - - Activity 1015.46 1555.22 1033.31 1161.49 2007.20
41 Net Inc/Dec In Cash and Cash Equivalent 85.93 819.63 884.06 -233.23 -74.80
Cash and Cash Equivalent - Beginning of the Year 2237.58 1417.95 533.89 767.12 917.11
Cash and Cash Equivalent - End of the Year 2323.51 2237.58 1417.95 533.89 842.31
VALUATION(1.4)
Fiscal 2018 2019 2020 2021 2022 2023 Period: March
Capitalization1 781 671 732 032 310 002 646 634 - -
Entreprise 742 002 704 620 275 061 615 515 597 386 570 009 Value (EV)1
P/E ratio 20,3x 16,8x 25,6x 23,2x 17,0x 14,9x
Yield 1,02% 1,26% 0,82% 0,97% 1,33% 1,57%
Capitalization / 1,55x 1,32x 0,66x 1,54x 1,31x 1,17x Revenue
EV / Revenue 1,47x 1,27x 0,58x 1,47x 1,21x 1,03x
EV / EBITDA 11,9x 10,6x 4,74x 11,5x 8,79x 7,47x
Price to Book 2,90x 2,35x 0,99x 1,94x 1,79x 1,64x
42
No of stocks (in 1 057 885 1 086 263 1 087 917 1 074 233 - - thousands)
Reference price 739 674 285 602 602 602 (INR)
Last update 05/29/2018 05/29/2019 06/12/2020 08/18/2020 08/18/2020 08/11/2020
1 INR in Million
Rs (in Crores)
Annual Income Statement Data(1.5)
Fiscal 2018 2019 2020 2021 2022 Period: March
Net sales1 504 814 553 030 471 556 419 842 493 603 004
EBITDA1 62 240 66 396 57 981 53 423 67 959 357
Operating profit 47 446 47 792 35 754 29 574 42 558 (EBIT)1
Operating Margin 9,40% 8,64% 7,58% 7,04% 8,62% 63%
Pre-Tax Profit 61 024 63 250 31 160 42 063 56 140 (EBT)1
Net income1 43 560 47 960 13 306 31 673 42 344
Net margin 8,63% 8,67% 2,82% 7,54% 8,58%
EPS2 36,5 40,1 11,1 25,9 35,3 40,4
43 CASH FLOW ANALYSIS OF MAHINDRA AND MAHINDRA LTD
While analyzing the above cash flow statement of Mahindra and Mahindra company’s cash flow is usually dividend into 3 categories :- operating activities, investment activities and financial activities.
1. Operating activities:- principal revenue generating activities of the company. Cash flow generated from operating activities help the firm to maintain its operating capabilities, repay the loans they have borrowed and make investments without accessing to external alternative source of financing. The cash flow generated from operating activities in the year 2015-2016 is 5470.50 crores and in the year 2016-2017 the cash flow from the operating activities got reduce from 5470.50 to 3710.00 crores when compare to the 2015-2016 cash flow generated from the operating activities. This indicates there must be less sale of the vehicles in the market which reduce the cash in flow in the company. In the year 2017-2018 the cash flow from operating activities got increase from 3710.00 to 7027.08 crores which means there is a increase in 47.21% of cash flow in the company. In the year 2018-2019 the cash flow got reduce from 7027.08 to 4923.87 crores which got reduce to 30% of cash flow for the company. In the year 2019-2020 again there is a decrease in the cash flow from the operating activities that is from 4923.87 to 3677.83 crores. From the year 2019 the cash flow is declining which means there is a less sale in the market of their product.
2. Investment activities :- acquisition and disposal of long term assets and other investments. Cash flow generated from investing activities is a key indicator of the extent to which organization has made expenditure for resources intended to generate future income and cash flows. The cash flow used in investing activities in the year 2015-2016 is 3537.93 crores and in the year 2016- 2017 the cash flow they used in the investment activities as been reduce from 3537.93 to 2781.83 crores which means they invested less amount approximately 21.37% from previous years investments. In the year 2017- 2018 the cash flow used for investment activity by the company is 5110.42 crores which means there is a increase in the cash flow for the investment activities compare to the previous year that is approximately 45.57% more they have cash flow they have used for investment activities. In the year 2018-2019 the cash flow used for investment activities got reduced from 5110.42 to 2548.71 crores which means they reduced 50.13%. In the year 2019- 2020 the cash flow used for investment activities is slightly increase from 2548.71 to 2575.72 crores which is there is a increase in only 1.05%.
3.Financial activities :- change in the size and composition of the owner’s capital and borrowings. Cash flow generated from financing activities helps in predicting the claims of fund providers on future cash flows. The cash used in financing activities in the year 2015-2016 is 2007.20 crores and in the year
44 2016-2017 the cash flow used in the financial activities as been reduced approximately 42.13% that is 2007.20 to 1161.49 crores. in the year 2017-2018 there is a slight reduction in the financial activities the cash flow is used in the financial activity got reduce again to 11.04% that is from 1161.49 to 1033.31 crores. In the year 2018-2019 the cash flow used in the financial activities got increase to approximately 33.56% that is from 1161.49 to 1555.22 crores. In the year 2019-2020 again it got reduce to 34.71% that is from 1555.22 to 1015.46 crores.
45 CHAPTER-6 LERNING EXPERIENCE
I have taken Mahindra and Mahindra ltd for my organizational study even though it was a secondary data it was great experience learning more in-dept about the company and acquired quite knowledge about the company. Learnt about the company’s background and their functions. Their vision and mission statement of the company. Mahindra and Mahindra company as their four I’s for the company I learnt even about that. The workflow model of the company. I Learned about the Mahindra and Mahindra company’s operations in different sectors. I Learned about their innovation in automobiles. Their involvement in other fields. I Learned about the awards and rewards received by the company. What policy they have maintain for the quality of the product. The profile of the organization. Their future growth in automobile industry and their innovation made in automobiles. Their marketing strategies in promoting their company’s products. Learned about their strength and weakness in the industry. I learned even about the opportunities and threat in the market. And also learnt about the Mckeny’s framework of the company. Even learnt about the porter’s five model of the company. The ownership pattern followed by the company. The list of the models of vehicles they have producing in the company. The financial statement and financial analysis of the company.
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BIBLIOGRAPHY www.moneycontrol.com www.ambitionbox.com www.mahindra.com www.managementparadise.com www.ukessays.com
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