REIGNITE REINVENT eREBOOT CRISIS
MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 REIGNITE REINVENT e REBOOT CRISIS When crisis strikes, what matters is not the crisis,
In 2009, when the Indian IT industry plunged into a confidence crisis, with the promoter of Satyam confessing to an accounting fraud, Mahindra saw an opportunity and the rest is At Mahindra, history. Today, Tech Mahindra is one of the top 5 IT service providers in India.
The COVID-19 crisis brings out The current regulatory requirement of migrating to BS6 compliant engines, could have meant a pandemic is a true crisis for diesel engines because of the costs involved, but instead spurred our innovation ‘Black Swan’ event the spirit of Rise capacities and led us to develop cost competitive BS6 compliant engines which would enable – unprecedented, in each of us. us to hold our own in the future against petrol players. exacting a heavy Cultivated over the years, we have now integrated this ability – human toll – and is Built over the years in our systems, Anti-fragility empowers us not only far from being fazed by disruptions, we tend to see challenges as having a severe impact opportunities. The current situation is a highly improbable 'Black Swan' on the economy. to resist shocks and recover from them, but also to deliver. event, but we are using this crisis to Reboot, Reinvent and Reignite – think newer, do better, dream bigger, and ultimately emerge stronger. Our businesses have prospered for 75 years exactly because of anti-fragility and our philosophy of Rising We are helping the nation in its fight against the pandemic, by manufacturing personal through crises. In the 1970s, we combated the oil crisis, protective equipment in record time, assisting the Government in building temporary care which sent petrol prices zooming and jeep demand facilities, and providing assistance to the disadvantaged sections of society. We are crashing, by adapting our tractor diesel engines to be Reinventing processes to rise to the challenge. We are bolstering our businesses by selling our used in our passenger vehicles, in record time. This vehicles online, firming up our farm sector plans, and Rebooting and redistributing resources ingenious innovation, born out of necessity, became a to create more value, as we adapt to a new post-COVID era. We are Reigniting our dreams of long-term demand driver and a source of competitive building a more environment-friendly, inclusive, and equal world. advantage for us. Like the light that shines in the darkness, Mahindra Rises in crisis. In true Mahindra spirit, we Our Powerol business which today generates revenue of are inspired, more than ever before, to help our customers, stakeholders, and the society at over B1,500 crore, grew out of the imperative to use the large, to Rise. excess capacity in the tractor engine plant, generated by a cyclical slowdown in 2002. Similarly, the Scorpio grew out of the challenge to develop a world class SUV, at a Because if ever there was a time to put our Rise philosophy in action, it is now. fraction of the cost of such development in the West. If ever there was a time to drive positive change proactively, it is now. If ever there was a time to press the re-set button in our work and in our lives, it is now. Anand Mahindra MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 01
C O N T E N T S UNDERSTANDING THE REPORT Understanding the Report 01 A N N O U N C E M E N T How to Read the Report | Performance Highlights We embarked on our journey of Integrated Reporting in F17 in keeping with our Company Overview 03 commitment towards The Company Profile | Chairman Emeritus and Board of Directors transparency and the highest HOW TO READ standards of corporate Group Executive Board | Core Purpose | Our Core Values THE REPOR T governance. The following Powered by Good Governance | Reigniting Value Creation year, to present our Global Footprint | R&D Facilities | Manufacturing Plants in India shareholders with a more Integrated Report
COMPANY OVERVIEW PERFORMANCE HIGHLIGHTS
Financial Other Highlights - F20 Highlights - F20 (M&M+MVML) THE GROUP Extended Tractor Domestic Leadership Market share increased The Mahindra Group is a USD 19.4 billion federation of companies that is providing innovative mobility solutions, Revenue by 1% to 41.2% in F20 driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. £Crore from 40.2% in F19
44,866 Total CV (Commercial Vehicle) Tractor Volume Market share increased by 3.1% to 27.7% in F20 from 24.7% in F19 EBITDA 3,01,915 (Includes domestic sales and exports. £ World's Enjoys a leading Strong presence Headquartered Crore Includes Mahindra, Swaraj & Trakstar Brands) Total Energy Saved largest position in utility in renewable energy, in India, 63,038 GJ in F20 Mahindra vs 54,755 GJ in F19 tractor vehicles, information agribusiness, logistics, 6,351 company technology, nancial and real estate employs over by volume services, and vacation development 2,56,000 Trees Planted ownership in India people across 1.32 million in F20 100 countries PAT (before EI) vs 0.95 million in F19 £Crore Total Automotive Volume Mahindra XUV300 3,577 The highest 5-Star Safety Mahindra & Mahindra Ltd., a mobility products and farm solutions provider, is the agship Rating from Global NCAP Company of the Mahindra Group. Since assembling our rst vehicle in 1947, we have grown 4,71,141 rapidly. Today, we offer a wide range of products and solutions ranging from SUVs to electric EBITDA Margin (Includes domestic sales and exports) The rst-ever Indian car to Maintained at 14.2% receive Global NCAP's vehicles, pickups, commercial vehicles, tractors, two-wheelers and construction equipment. 'Safer Choice' award We commenced our exports in the 1960s, and today, our vehicles and tractors can be found in all six habitable continents of the world. Investment in R&D SAFEST CAR IN INDIA Rose to £2,975 cr in F20 from £2,642 cr in F19
Mahindra Electric 11 22 150+ Achieved EBITDA SECTORS INDUSTRIES COMPANIES breakeven in F20 The Mahindra Group's operations are in the key industries that form the foundation of every modern economy. The sectors along with the industries, where we are transforming lives and shaping the modern world through our presence, have been outlined in the next page. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 04 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 05
CHAIRMAN EMERITUS AND BOARD OF DIRECTORS 11 Sectors 22 Industries
HOSPITALITY AUTOMOTIVE Aerospace Rethinks the vacation Challenges convention to build paradigm by making premium Aftermarket award-winning vehicles that holiday experiences accessible deliver unmatched quality and to more people value for money Agri Business
Automotive FARM EQUIPMENT MOBILITY Boats SER VICES SECTOR Builds high quality tractors and Mr. Nadir B. Godrej Dr. Vishakha N. Desai implements, and provides Independent Director Independent Director Newest sector of the group, Clean Energy services to help farmers thrive created by merging logistics, and ultimately drive rural after-market and shared mobility prosperity Construction Equipment businesses to leverage the changing business landscape Consulting Mr. Vikram Singh Mehta Mr. T. N. Manoharan AGRI BUSINESS Independent Director Independent Director Defence Empowers farmers with the FINANCIAL latest and most relevant Farm Equipment SER VICES advances in farm technology and Helps change the face of rural agricultural know-how with a vision to deliver farm prosperity Hospitality Mr. M. M. Murugappan Mr. Haigreve Khaitan India by enabling Indians to Independent Director Independent Director finance their dreams Information Technology
PAR TNERS Insurance Broking AEROSPACE Incubates and nurtures diverse Logistics Mr. Vijay Kumar Sharma Ms. Shikha Sharma AND DEFENCE new businesses for the Mahindra Nominee Director Independent Director Manufactures world-class Group by providing growth capital aircrafts that fly in all continents, and operational support to achieve Power Backup and also equips security forces critical scale and value creation with a range of armoured Real Estate & Infrastructure vehicles and defence systems Mr. Rajesh Jejurikar Mr. CP Gurnani Executive Director Non Executive - REAL ESTATE & Retail (Auto & Farm Sectors) Non Independent Director INFRASTRUCTURE Develops smarter, greener and Rural Housing Finance INFORMATION more productive spaces for TECHNOLOGY urban living Steel Dr. Anish Shah Dr. Pawan Goenka Powers the connected world, Deputy Managing Director Managing Director offering innovative and customer- Trucks & Buses & Group Chief Financial Ofcer & Chief Executive Ofcer centric technology services and solutions for enterprises, TWO-WHEELERS Two Wheelers associates and communities Offers customers stylish and powerful scooters and Vehicle & Equipment Finance Mr. Anand G. Mahindra Mr. Keshub Mahindra motorcycles Executive Chairman Chairman Emeritus COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 06 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 07
GROUP EXECUTIVE BOARD
1 Mr. Zhooben Bhiwandiwala 4 Mr. Kavinder Singh 6 Mr. Manoj Chugh 9 Mr. S. Durgashankar 12 Dr. Anish Shah 16 Mr. Shriprakash Shukla President - Mahindra Partners MD - Mahindra Holidays and President - Group Public Affairs President - Group Controller Deputy Managing Director Group President (Agri, Aerospace, and Group Legal Resorts India Ltd. & President - of Finance & Accounts & Group Chief Financial Of cer Defence & Steel Sector) 4 Leisure and Hospitality Sector 6 15 17 18 7 Mr. Ramesh Iyer 5 7 8 13 14 16 13 Mr. ByungTae (Brandon) Yea 11 10 Mr. Ashok Sharma CEO - SsangYong Motor Company 2 Mr. V.S. Parthasarathy Vice Chairman & Managing 1 17 Mr. CP Gurnani 5 Ms. Sangeeta Prasad President - Agriculture Sector President - Mobility Services Sector Director - Mahindra & Mahindra 12 Managing Director & CEO MD & CEO - Mahindra 3 and MD & CEO – MASL Financial Services Ltd. 2 9 10 14 Mr. Anand G. Mahindra of Tech Mahindra Ltd. Lifespace Developers Ltd.(*) Executive Chairman 3 Mr. Hemant Sikka 11 Mr. L. Ravichandran 15 Mr. Ruzbeh Irani 18 Mr. Rajesh Jejurikar President - *Ms. Sangeeta Prasad has 8 Dr. Pawan Goenka President & Chief Operating President - Group HR & Executive Director th Farm Equipment Sector resigned wef June 30 , 2020 Managing Director & CEO Of cer, Tech Mahindra Ltd. Communications (Auto & Farm Sectors) COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 08 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 09
OUR CORE PURPOSE REIGNITING VALUE CREATION 2002: The Turning Point Over the Years We will challenge conventional thinking and innovatively use all our In 2002, Mahindra & Mahindra's It did not just remain a 3-year initiative; value creation became ingrained resources to drive positive change in share price hit an all-time low. in our DNA. M&M was the best performing NIFTY stock from 2002 to the lives of our stakeholders and Concerned by this drop, the group 2018 (August 2018), with an annualised return of 31% during this period. communities across the world, to ACCEPTING ALTERNATIVE DRIVING made shareholder value creation as From F02 to F18, our EPS (earnings per share) grew at an annual rate of enable them to Rise. NO LIMITS THINKING POSITIVE CHANGE one of the prime focus areas. We 34%, with an impressive average RoE (return on equity) of 22%. launched a project called '3-2-3' - to increase the profits by 3 times and the top line by 2 times, in 3 years. What was thought as OUR CORE VALUES POWERED BY impossible then, was eventually GOOD GOVERNANCE achieved by most of the group businesses. Professionalism Good governance leads to Tweet by Mr. Anand Mahindra on August 21, 2018 We have always sought the most appropriate people for sustainable business. At Mahindra, the job and have given them the freedom and the governance is part of our DNA, and opportunity to grow under our wings. We support and we have institutionalised it through celebrate innovation, out-of-the-box thinking, well- a set of Core Values, Code of reasoned risk-taking and reward performance. Conduct, policies and structures like the Corporate Governance Council. Legacy of Value Creation Good Corporate Citizenship The framework is firmly in place to ensure that all governance issues are We are known in the business community for being an M&M Closing Share Price effectively and transparently Aug 2018 ethics-centric organisation. We have always believed in 1200 addressed, so that we continue to do doing business with a larger social purpose, keeping in right by our stakeholders. mind the welfare and growth of the communities we serve. 1000 Good governance has paid us rich Customer First dividends. Business partners trust us, 800 At Mahindra, we follow an internal metric called the because we are clear on how we 600 'Customer as Promoter Score'. This is one of the ways in work and what we stand for. Foreign which we measure the success of our businesses by their collaborators prefer us because they level of customer-centricity. This is designed around our know that our expertise is supported 400 goal to create and sustain a positive experience for our by ethics. Our shareholders know customers, because of whom we exist and prosper. that this is a Company that will 200 always do the right thing and will CAGR CAGR 31% -54% never let them down. Our people 0 Quality Focus feel a sense of pride in working for We put quality at the forefront, not just in our products Mahindra. Good governance Year 2002 to 2018 2018 - 20 but also in our actions and interactions. Each of our generates long-term sustainable businesses achieves its goal through individual strategy, value for all the stakeholders. while keeping a close eye on maintaining quality in every step of the way. For more details about our F02 - F18 F18 - F20 corporate governance, please refer to page no.167 - 204 of our Integrated Annual Report 2019-20. Operating Cash Flow pre Capex (F Cr) 2,433 5,210 Dignity of the Individual EPS and RoE on consolidated basis For us, the cornerstone of our business is our human EPS CAGR 34% (87%) resource – our people. This is not something we merely Cash Flow is average per preach, but something we truly believe in and practise at annum on standalone Avg RoE 22% 12% basis for M&M all times. We respect the time and efforts of our stakeholders and all our policies are designed keeping their well-being and betterment in mind. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 10 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 11
Over the years some group Rough Terrain Action on Loss-making Subsidiaries companies have delivered impressive returns. In the last 2 years, our performance has been impacted by increasing losses Tighter Capital Allocation Norms in some of our international subsidiaries and the slowdown in Indian Loss-making businesses/entities to be closely scrutinised and classified into 3 categories, viz. A, B and C economy, exacerbated recently by COVID-19. Though we have generated a Tech 16,850 healthy operating cash (pre-capex) of B5,210 crore in the last 2 years, our EPS Category A B C Mahindra has slowed down bringing down the average RoE to 12%. This has had a L Crore negative impact on our stock price. Entities with Delayed or unclear path to Unclear path to profitability Criteria IRR: 45% However, as the following table shows, the domestic businesses clear path to profitability but quantifiable and no quantifiable (M&M+MVML) are in good shape and would recover as soon as the economy 18% RoE strategic impact strategic impact 986 bounces back. Exit (Explore partnership, Action Continue Continue Investment Returns Resilient Operating Performance alliance or shut-down)
MMFSL F20 Vs F19 Excl. COVID, BS6 6,020 It has always been our endeavour to ensure that the businesses that deserve capital are never deprived of the same. L Crore Revenue 44,866 -15% -8% In the last year, even as the economy was showing signs of slowdown, we ensured that our Auto and Farm businesses received enough capital. Our investment portfolio returned cash for other businesses.
IRR: 24% EBITDA 6,351 -16% -5% 1,206 PBT (before EI) 5,402 -23% -12% Cash Inflows & Outflows: F20 L Crore
4,302 4,447 Investment Returns Operating margins Cash Farm Market Auto LCV < 3.5T maintained at Generated Share up Market Share up Swaraj 2,548 652 £ Engines 532 14.2% 3,946 cr 1% 1.2% 7,797 1,698 1,213 L Crore 292 6,928 Standalone M&M + MVML
(1,843) 1,895 IRR: 21% The challenge however, lies in the global subsidiaries of the Company, some of which are making significant losses. But, as is the ethos of Mahindra, we 26 never get bogged down by any challenge. Just as in 2002, we will use the crisis to rise and reach new heights by rebooting, reinventing and reigniting AUTO & FARM RELATED INVESTMENTS OTHERS Investment Returns value creation. Dividend Opening Cash Operating Capex Investments Investments Dividend Others Closing Cash Mahindra & Sale Holidays 2,112 Standalone M&M + MVML | PMTC is included in Auto & Farm related L Crore Recalibrating Capital Allocation
As part of our rebooting strategy, we have streamlined our capital allocation As part of our reinventing strategy, we have identified a set of unlisted businesses that show huge promise and could IRR: 37% policy to maximise value creation for all stakeholders. We have not only become value creators in the next few years. The Company would focus on allocating the right resources to ensure clearly laid out criteria to allocate capital to existing businesses, but also have that these businesses get the required inputs and capital to realise their true potential. 25 increased focus on improving the accountability of businesses to ensure that the outcomes are in line with the plans. Investment Returns With the revamped and stringent capital allocation process (rebooting), and the strategy to identify and scale up value creators (reinventing), we are dreaming bigger and maximising value Returns include dividends, sale & market value of the holding on 31st Mar, 2020. Investment includes creation for all our stakeholders (reigniting). both original cost and subsequent investments For more information on value creation, please visit www.mahindra.com/investors/reports-and-filings COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 12 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 13
GLOBAL FOOTPRINT
THE GROUP HAS BUSINESS PRESENCE OUR R&D FACILITIES IN 100+ COUNTRIES WITH ARE SET UP IN 50% REVENUE FROM OUTSIDE INDIA 20 centres across 10 countries China, Finland, France, India, Italy, Japan, South Korea, Turkey, UK, USA
UK R&D Facilities for FINLAND MANUFACTURING Digitalisation, Smart R&D Facilities FACILITIES AROUND FRANCE for Harvester TURKEY Cities and Electric R&D Facilities for THE WORLD Racing Technology R&D Facilities for Technologies with 72 USA Two Wheelers Sampo-Rosenlew Farm Mechanisation R&D Facilities Technology with Hisarlar & Erkunt SOUTH KOREA for Automotive & R&D Facilities for 40 INDIA Farm Technologies, Automotive Digitalisation, Technology with 02 ALGERIA AI and IoT SsangYong 02 AUSTRALIA 01 BENIN 01 BRAZIL 01 CANADA 01 CHAD 01 CHINA 01 FINLAND JAPAN 01 FRANCE R&D Facilities for Rice Value Chain 01 INDONESIA with Mitsubishi 01 JAPAN 01 KENYA 01 MALI 01 MEXICO 01 NIGERIA 02 S KOREA SOUTH AFRICA INDIA 01 Automotive Engineering & 01 SRI LANKA Design, Connected Cars & Electric Vehicle Technology, 01 TUNISIA Business presence and R&D facilities ITALY Aerospace & Defence, Digitalisation, AI & IoT R&D Facilities for 03 TURKEY Business presence Advanced EV Technologies with 02 UAE Pininfarina
05 USA Automotive Tractors & Farm Machinery Others Map not to scale. For illustrative purposes only. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 14 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 15
MANUFACTURING PLANTS IN INDIA We have always led the way in transforming automotive manufacturing in India. Our facilities have accelerated the Automotive Sector incorporation of technologies towards adopting the Industry 4.0 framework. This includes using cutting edge MANUFACTURING Sales Volume (units) technologies, digital interventions from machines with sensors and edge analytics to sort relevant data. We are using PLANTS ACROSS telemetry based solutions, and segregated networks for machine and process security towards optimising industrial 19 THE COUNTRY 4,71,141 network use. Farm Equipment Sector We have reduced energy utilisation and thereby our carbon footprint through digital monitoring of energy used by Sales Volume (units) manufacturing devices and monitoring vehicle-wise energy consumption trends. The focus is on transforming our production processes and improving our output through Digital Manufacturing, Connected Machines, Additive 3,01,915 Manufacturing, Artificial Intelligence, and Robotics & Automation. 3 MOHALI st 1 As on 31 March 2020, 1 JAIPUR property, plant, and HARIDWAR equipment (including capital work-in-progress) at M&M+MVML stood at £11,588 crore. 1 During the year, we incurred VADODARA Gromax a net capital expenditure of 1 £4,542 crore and the major RUDRAPUR focus was on new product 1 development. 1 IGATPURI PITHAMPUR
1 1 1 NAGPUR KANDIVALI
2 CHAKAN 1 1 ZAHEERABAD
2 1 NASHIK BENGALURU Mahindra Electric
Manufacturing Plants
- Manufacturing plants include M&M, MVML, Mahindra Electric Mobility Ltd., Automotive Tractors Two- Gromax Agri Equipment Ltd., Mahindra Heavy Engines Limited Electric & Farm Wheelers Vehicles - Map not to scale. For illustrative purposes only. Machinery Mahindra crossed a significant milestone, rolling out the 1 millionth vehicle from each of its 3 automotive manufacturing plants in Chakan, Zaheerabad and Haridwar. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 16 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 17
RISING TO THE CHALLENGE
The Mahindra Group's proactive and compassionate response to the unprecedented challenges ENSURING EMPLOYEE SAFETY AND WELLNESS posed by the COVID-19 pandemic is very much in keeping with its founding principles. Our three- pronged approach to the pandemic includes ensuring the safety and well-being of our employees, The Mahindra Group has always believed that our employees are our most valuable asset. So, before we got back to supporting the health care system with innovative products and solutions, and supporting the work, it was crucial for us to put in place certain Standard Operating Procedures (SOPs), to ensure that the safety of underprivileged sections of society, who have been impacted the most by this crisis. our people is not compromised, while business operations resume smoothly.
2,50,000 3,50,000 34,000 litres face shields face masks of disinfectants produced and delivered & sanitisers to frontline medical staff, produced and supplied by police, Municipal quickly converting existing Corporation of Greater production facilities Mumbai and community members
Re-aligned frugal engineering capabilities to SUPPORTING prepare a prototype of As per Government directives, thermal scanning, social distancing, wearing Started THE HEALTHCARE masks, usage of sanitisers, and frequent cleaning and disinfection of surfaces production of SYSTEM low-cost ventilators were made mandatory. As an added layer of safety, foot pedals were aerosol in just 5 days installed on doors to ensure employees don't touch door knobs or handles. A aspiration similar arrangement was made for sanitiser dispensers. box Some other initiatives undertaken by us are:
Ÿ Group-level Rapid Action Force Ÿ 24x7 emergency helpline for for constant monitoring and employees Free emergency cab services swift action Ÿ Regular webinars for physical (Alyte) launched in nine cities Ÿ 50 of our resorts Effective connectivity and digital and emotional well-being of for doctors, nurses, single mothers, security to ensure remote access employees across India have been made of applications/folders and enable specially-abled individuals and senior citizens. Ÿ available as temporary care employees to work from home Online fitness sessions for 5000+ registrations received in under 20 (WFH) employees facilities to the Government days. 1000+ customers served Ÿ Dedicated microsite with regular Ÿ Virtual engagements and exchange updates from Government of ideas among employees circulars and WHO guidelines through collaboration platforms COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 18 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 19
RISING FOR GOOD ADAPTING TO THE 'NEW NORMAL'
Rebuilding the Community Tech-Enabled Connections
£50 Crore donated by the Mahindra Group to the PM Cares Fund
7,000+ farmers were provided tele-advisory Launched 'Own Online', a one-stop, 24/7 online destination for customers to source, accessorise, finance, insure, purchase or exchange a Mahindra vehicle on agricultural practices, from the comfort of their homes during the lockdown Developed and deployed a block chain based ePass solution for State Governments to streamline validation and mobility of 2,10,000+ people essential services provided with meals/ration packets. Since 30th March 2020, 9,000+ bene ciaries have received daily nourishment across Helped develop Integrated 12 locations Digital Health Platform to provide remote access to healthcare Crowdsourced and Donated funds to Launched 'Contactless Service Experience', to ensure customers do not donated funds to drivers Maharashtra Chief Minister's encounter any paper documents, cash or payment machines while getting Supported Ayushman Relief Fund, Deputy Supported their vehicles serviced impacted by the lockdown, under Bharat with service centre Commissioner's Office – women farmers with seeds HOPE (Helping Our People during capabilities to manage Mohali and Thiruvallur through the Prerna project Emergencies relief fund) queries from citizens District Collectorate (an empowerment project for £2 Crore women farmers) Collaborated to create contributed by employees OWN NOW, PAY IN 2021 computational drug Own your dream SUV with Special financing schemes*. towards Mahindra Foundation With the help discovery models to help nd COVID-19 Relief Fund of our dealer partners, a cure for COVID-19 enabled several migrant workers to reach their homes with last mile Offered a variety of new, innovative finance schemes that deliver financial support flexibility to purchase vehicles COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 20 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 21
RESILIENCE TO RISE
Resilience is an inherent part of our DNA, allowing us to transform challenges into opportunities. This has helped us Automotive Sector Farm Equipment Sector drive growth for all our stakeholders, including employees, business partners, investors, and the communities and society at large. Resilience is also helping us effectively face the unprecedented challenges posed by the COVID-19 With an objective to sustain growth, we are pursuing Our constant endeavour is to serve our farmers and pandemic in both the business and social environment. We remain confident that we will overcome these challenges several strategic initiatives in all key areas of business. enable them to Rise. Our Farm Sector's strategy is and Rise in the post-COVID world. The key elements of our strategy include updating aligned to improve the state of farming by existing products, developing new products through democratising technology, especially for marginal and R&D and leveraging technology. Our technology focus small landholding farmers. We continue to invest in At Mahindra, we constantly push the areas are gasoline engines, emissions, safety, connected modern tractor technologies and offer tractors with boundaries of possibilities to create vehicles and electric vehicles. category first features, thus creating new benchmarks in products and services that enable our India. We also offer matched implements with crop customers and stakeholders to Rise. specific mechanisation solutions to boost farm By focusing on customer centricity, productivity. delivering accessible technology and enhancing people capabilities, we End to end farm mechanisation is an important focus continue to drive growth in the area for us and we continue to pursue in-house domestic market while pursuing development as well as alliances in this space. Some global expansion. notable alliances are in the domain of horticulture sprayers and potato planting technology. Several pilots for precision farming technologies are underway. We Mahindra is known to RISE continue to leverage our global acquisitions and partnerships to build farm machinery portfolio for in crisis and be driven by challenges. global markets and bring modern farm mechanisation technologies into India. In order to achieve our strategic objectives, we signed a definitive agreement with Ford Motor Company, to create a joint venture to drive pro table growth in India and emerging markets. We also remain committed to investing in development of new STRATEGIC OVER VIEW products and advanced technologies speci c Change is the only constant. The to electric vehicles. business landscape is changing very rapidly and so are the enablers for Our future direction in Automotive Sector would success. In the past, success was involve the launch of the New Thar, redefining the about selling the right product for dealer business model, strategic re-prioritisation of the right price through an efficient capital expenditure, aggressive cost optimisation, Our key priorities for Farm Sector include channel. Going into the future, the synergy projects with Ford JV, building a distinctive strengthening our domestic core business, product, pricing and channel will SUV brand, launching new models, leveraging LCV remain essential, but won't be and EV portfolio and creating a path to profitability building farm machinery business in India, enough. The winning mantra for our global subsidiaries. turning around our global business, would involve providing a solution, delivering an experience and leveraging our unique farming solutions having a purpose. With innovative products, solutions and approach, delivery model 'Farming as a Service (FaaS)' we will remain ahead of the curve and continue to and launching our lightweight compact create value for all our stakeholders. tractor platform 'K2'. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 22 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 23
RISK AND OPPOR TUNITIES RISKS STRATEGIC & OPERATIONAL INITIATIVES
At Mahindra, we have put in place robust systems and processes, along with appropriate review mechanisms to Commodity Prices Ÿ Leverage whenever there is a fall in prices of commodities and achieve actively identify, monitor, manage and mitigate internal and external risks. material cost reduction
At the highest level, the Chief Risk Officer and the Chief Sustainability Officer are engaged through a structured Ÿ Continue to work on mitigating the inflationary impacts through 'Commodity process to deliberate on possible risks and opportunities through the Technology-Economic-Media-Political-Legal- Risk Management', cost re-engineering and value engineering activities Environmental-Social (TEMPLES) framework.
Capacity Ÿ Built adequate manufacturing capacity for the immediate future; in the process of investing in additional capacity in preparation for mid to long-term Key Risks and Risk Mitigation Initiatives needs Ÿ On the EV front, investing under the new EV Policy of the Government of Maharashtra towards product development and capacity enhancement for EV RISKS STRATEGIC & OPERATIONAL INITIATIVES and related components Ÿ On the supplier end, working closely with key suppliers to minimise any COVID-19 Pandemic Ÿ Implementation of safety protocols as advised by the Government to ensure supply constraints through capacity planning and longer-term contracts, while well-being of employees pursuing global sourcing opportunities Ÿ Realign the cost structures and conserve cash
Ÿ Leverage technologies to cater to the needs of the post-COVID era Opportunities and Outlook Competitive Intensity Ÿ Invest in developing new products, increasing channel reach, delivering customer centric products & services, enhancing customer experience and Both the Automotive and Farm Sectors strive to sustain profitable growth, maintain leadership position in the building our brand domestic market and at the same time, explore global opportunities for growth. Simultaneously, we continue to focus Ÿ Investing and building capabilities in next generation digital technologies like on achieving cost leadership through focused cost optimisation, productivity improvements, value engineering, supply Industry 4.0, AR, VR, AI and Blockchain chain management and exploiting synergies between various group businesses.
Ÿ Forming strategic alliances to drive enhanced competitiveness through greater economies of scale across the automotive value chain Automotive Sector The automotive industry is an engine Ÿ Offering continuous product upgrades and introducing superior technology of economic growth. The mid to long-term outlook for the Indian auto industry is positive. As per the Ÿ Developed BS6 diesel engines at a very competitive cost; successfully met the Choice of Fuel and Automotive Mission Plan 2026 (AMP aggressive time and cost targets BS6 Emission Norms 2026), the Indian auto industry is Ÿ Introduced new range of BS6 ready gasoline engines that offer the same expected to grow at a double digit thrilling drive experience as diesel engines, which will power several Mahindra CAGR between the period 2016-2026. vehicles in the future However, there is uncertainty in Ÿ Continue to work on cost and value engineering, for easing the pressure on the short to mid-term due to the margins COVID-19 pandemic. Policies announced by the Government to boost consumption as the country Environment and Ÿ Pioneer for Electric Vehicles in India with a strong portfolio exits from the COVID-19 lockdown, Our company's focus on development of EV products, Alternate fuels Ÿ Actively pursuing development of the Electric Vehicle (EV) market, products will be beneficial. and technology exploiting synergies through strategic alliances, The Government has also formulated investing in next generation advanced engines and digital policies to boost the adoption of Tax Regulations Ÿ Strengthened the UV product portfolio attracting lower tax rates, with the electric and hybrid vehicles in India, transformation of customer experience would enable us launch of XUV300, TUV300 and KUV100 in order to improve air quality and to benefit from the opportunities in the sector. reduce the fuel import bill. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 24 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 25
Farm Equipment Sector AWARDS & RECOGNITIONS
Recognitions
FISITA, the international membership organisation for the automotive and mobility systems engineering profession, honoured Dr. Pawan Goenka, Managing Director, Mahindra & Mahindra, with the FISITA Academy of Technical Leadership Award 2019
Awards M&M won ICSI 'National Award for Excellence in Corporate Governance in Listed Segment: Large Category' for 2019 M&M won the Golden Peacock Global Award for 'Excellence in Corporate Governance' for 2019 M&M’s Integrated Annual Report M&M became the 1st company in 2019 won Gold at the MARCOM the world to win TPM advanced M&M won the 'Best Corporate Awards, USA special award Governance - India 2019' award from Strong Government focus on development of agriculture sector, increasing Business Vision adoption of mechanisation & modern agricultural practices and rural M&M won three awards at National Mahindra Racing received the development at large, is expected to drive sustainable growth in the CSR Awards Ceremony, organised by Best Social Media award by FIA Mahindra & Mahindra Automotive farm sector. the Ministry of Corporate Affairs. The Formula E in July 2019 and Farm Equipment Sectors awards were for - Excellence in CSR; recognised among India's Top 50 Important reforms in the farm sector announced by the Government, which National Priority Area Education for Best Companies to Work For 2019 are focused on improving the state of agriculture in India in the mid to Project Nanhi Kali; National Priority and among Mahindra Tractors ranked race strategy long-term, will benefit the sector. India's Best Workplaces Area Agriculture and Rural Mahindra Racing in Manufacturing 2020 No.1 and Swaraj Tractors ranked engineer Mr. Alberto Blanco won Development for Integrated No.2 in the JD Power Customer ABB FIA Formula E's Modis Engineer Sentiment in the rural economy is encouraging, as we expect a relatively Watershed Management Programme Service Index of the Year Award for the quicker recovery from the COVID-19 induced slump, driven by good Rabi The Mahindra Group's 'Wings For in MP 2018-19 season output, good reservoir levels and normal monsoon forecast by IMD, Our Girls' was awarded Platinum which augurs well for the Kharif crop as well as demand for tractors award for Best in Show at the 2019 TRA's most trusted and most M&M’s Igatpuri plant awarded the and farm machinery. South Asia SABRE Awards consumer-focused tractor brand 'The Hardest Worker' 'Sustainable Factory of the Year 2019 environmental awareness Award' at the India Sustainability campaign won 'Green With our leadership position in tractors and focus on Farm-Tech, we are well The Mahindra Group won Gold at PR Leadership Summit 2019, organised Campaign of the Year' - positioned to leverage this opportunity. Awards by Campaign India for by Frost & Sullivan and The Energy Gold at the Olive Crown #CelebrateDifferently and Resources Institute (TERI) As we bounce back from the crisis, we are fully geared Awards 2020 to leverage all upcoming opportunities through our Mahindra's initiatives in electric vehicles, shared mobility, farm Mahindra 'Ladki Haath Se Nikal Jaayeygi' Hariyali project Sustainability CSR campaign won Gold in the mechanisation solutions, launch of world-class products featured in the Report won Special Abby (Gender Sensitive) and an extensive product portfolio. 2020 edition of Asia's Best Carbon category at Goafest 2019. the Limca Book Disclosure Report For detailed information on the risks and opportunities and outlook, please refer to the Management of Records for at the Asia Discussion and Analysis section, page no.137-166, in the Integrated Annual Report 2019-20. 'Most trees Sustainability planted’ Reporting Awards (ASRA) 2019 COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 26 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 27
INPUT-OUTPUT MODEL
I N P U T O U T P U T
FINANCIAL CAPITAL FINANCIAL CAPITAL Business Model showing Principal Activities Total Segment Capital Employed (` Cr) 16,552 Total Income (` Cr) 44,866 EBIDTA (` Cr) 6,351 Gross Debt to Equity Ratio 0.10 Mission, Vision, Values, Net Profit (before EI) (` Cr) Net Capital Expenditure (` Cr) 4,542 Code of Conduct and 3,577 Governance Policy Framework Outcomes Dividend from Group Companies (` Cr) 882
MANUFACTURED CAPITAL Key Aspects MANUFACTURED CAPITAL Number of Plants in India 19 RISKS AND STAKEHOLDER STRATEGY & RESOURCE PERFORMANCE OUTLOOK Total Automotive Vehicles Sold (nos.) 4,71,141 Material Cost (` Cr) 29,867 ENGAGEMENT OPPORTUNITIES ALLOCATION Passenger Vehicles (nos.) 1,86,942 Key Raw Materials Steel, Iron, Rubber, Glass, Aluminium, Copper, etc. Commercial Vehicles (nos.) 1,99,131 Three-Wheelers (nos.) 58,145 INTELLECTUAL CAPITAL Automotive Exports (nos.) 26,923 Total Tractors Sold (nos.) 3,01,915 Spend on R&D (` Cr) 2,975 Spend on R&D (% of revenue) 6.3 INTELLECTUAL CAPITAL R&D Nodes MRV, Pininfarina, MANA, MAM, Sampo Rosenlew Farm New Products Auto: Cruzio, 2W: Jawa Perak, Equipment Launched Tractor: Plus Series Patents Applied (nos.) 185 Testing, Proof of Concept and Tractors, New mStallion, MESMA 350, Patents Granted (nos.) 50 Finalisations Implements Technologies Krish-e Design Registrations Granted (nos.) 67 Manufacturing, R&D, Design and HUMAN CAPITAL Development Assembly & Final Production HUMAN CAPITAL Automotive Permanent Employees Trained (nos.) 15,519 Number of Permanent Employees (nos.) 20,638 Vehicles Temp / Casual / Contractual 11,513 Employees Trained (nos.) Temporary / Casual / ICE, Electric Contractual Employees (nos.) 19,154 Complaints on Child / Involuntary Labour NIL Unionised Permanent Workmen (%) 78 Complaints on Discriminatory Employment NIL Employee Benefit Expense (` Cr) 3,224 Customers Technology, Permanent Women Employees (nos.) 751 Innovation, NATURAL CAPITAL Design & GHG Emissions (Scope 1 - tCO2) 40,609 New Features, Digital New Technology, GHG Emissions (Scope 2 - tCO2) 1,99,806 NATURAL CAPITAL Solutions Upgrades and Energy Saved (GJ) 63,038 % of Renewable Energy 4 Variants and Services Raw Materials Distribution, Water Reused (%) 40 Total Energy Consumption (GJ) 15,80,683 and Other Input Shipping and Procurement Logistics GHG Mitigation (tCO2) 9,812 Total Water Consumption (m3) 13,07,411
SOCIAL & RELATIONSHIP CAPITAL SOCIAL & RELATIONSHIP CAPITAL Girls Supported under 14,462 CSR Investment (` Cr) 127 Nanhi Kali (nos.) ESOP Hours 1,63,818 Youths Trained at 3,641 Human Resources | Accounts | Finance & Compliance | IT | Customer Service Environment | Corporate Communications | Marketing & Mahindra Pride Schools (nos.) Employee Volunteers for 22,877 Corporate Strategy & Planning | Research & Development | Safety, Health & Business Development | Business & Environment | CSR Various Services (nos.) Total Trees Planted under 1.32 Project Hariyali (million nos.) Key Focus Areas Education, Health Support Functions & Environment
* Financial Capital, Material Cost, R&D Spend and Employee Benefit Expense is at M&M + MVML Level Number of plants in India include M&M, MVML, Mahindra Electric Mobility Ltd, Gromax Agri Equipment Ltd. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 28 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 29
DESIGNED TO FUTURISE
Powering our Transition from BS4 to BS6 Emission Norms Our strength has always been the ability to innovate and create our future despite constraints and challenges. This Innovation has been at the core of Mahindra's ethos. We leveraged our R&D capabilities to lead the transition from legacy will prove invaluable as we leverage the current scenario to Reboot, Reinvent and Reignite our future growth. BS4 to BS6 with 8 engine platforms, 16 vehicle platforms and 30 vehicle variants. Some of the key innovations in our Throughout the company's history, we have demonstrated a remarkable ability to come up with unique, out-of-the-box journey to BS6 are outlined below. solutions that have catapulted us into the next orbit of growth. We are working to build on this rich legacy once again.
Design Innovation A whopping 30% friction reduction in all diesel platforms (except the ENGINE VEHICLE VEHICLE PRODUCTS PLATFORMS PLATFORMS new platforms where friction was 8 16 30 VARIANTS Mahindra's products have been empowering people everywhere to Rise. Our automotive products use cutting edge already at global benchmark level) technology to provide optimised performance, fuel economy, comfort and connectivity in rural and urban areas. Our tractors and farm equipment solutions drive farm prosperity in rural areas. Our electric vehicles and mass mobility products ensure a cleaner and greener environment. This year, we continued to innovate and develop world-class products that offer great economic value to our customers and prioritise their safety. Design simplification in many carryover designs New Products Integral exhaust manifold with Launched in F20 turbocharger implemented in all Mahindra CRUZIO Mahindra pursued an aggressive platforms, which resulted in product expansion strategy even as increased strength and reduced cost A brand-new range of BS6 the industry slowed down in F20. The push has been towards brand ready buses with patented building and augmenting products Mahindra FuelSmart WE HAVE DEVELOPED to create more value for customers. Below are some of the key product Technology to save fuel. MORE DIESEL ENGINES launches in the reporting period. THAN THE REST OF THE INDIAN OEMS COMBINED. 95% OF THE DEVELOPMENT IS IN-HOUSE.
Process Innovation
Approach to BS6 development was Accelerated wear test was introduced We did nearly 70 lakh km redefined to consider Real Driving for upfront evaluation of BS6 validation runs with more than Emission (RDE) requirements technologies to identify potential 130 vehicles, covering all possible failure modes within a short time conditions for the Indian market XUV500 - W3 Thar 700 XUV300 AMT A new entry-level variant of With its go-anywhere capability, An easier to drive, innovative, XUV500, offering hi-tech features Thar 700 is a true-blue off- new Automated Manual and thrilling performance at a roader and a typical Mahindra Transmission (AMT) version of competitive price. breed that exemplifies the XUV300 with autoSHIFT company's rich 4x4 heritage. technology. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 30 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 31
Jeeto Plus New Bolero City Pik-Up New Bolero Camper Range A new variant of the minitruck An ideal pick up with easy A refresh of the double cabin Jeeto platform, offering higher manoeuvrability for intra-city pick-up Bolero Camper, with Funster: Roadster concept A.T.O.M.: Smart Commute load-carrying ability and lower business trips and urban goods increased payload capacity. with a playful convertible mode A micro car designed to appeal to the emerging operating costs. transportation. A 'sports electric vehicle' that reaches 0 to 100 kmph new India and transform the face of clean, in just 5 seconds. comfortable and smart mobility.
SP PLUS Series XP PLUS Series Supro Minitruck VX Comes with a powerful engine Gives maximum power without Conceptualised for intercity and eXUV300: Electrifying Indian Roads eKUV100: India's most affordable, for superior performance and compromising on mileage. intracity business needs, the VX A perfect mobility solution for environment conscious compact electric SUV compatibility with all agricultural variant carries a higher payload. customers, who desire thrilling performance. An electric SUV meant to offer a relaxed, fatigue- applications. free driving experience in chaotic city traffic.
Products and Technologies showcased at Auto Expo 2020
Mahindra showcased a wide and varied range of its futuristic concept vehicles, EVs, passenger and commercial vehicles, as well as technology solutions under the theme #DrivenByPurpose at the Auto Expo 2020. Here are some of the products that were displayed. MESMA 350: Mahindra Electric Scalable mStallion Modular Architecture A range of advanced BS6-ready turbo gasoline direct A one-of-its-kind design-ready 350 volt electric injection (TGDi) engines that will deliver thrilling powertrain that will enable greater adoption of EVs. performance and power several Mahindra vehicles in the future. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 32 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 33
PAR TNERSHIPS BUSINESSES Effective partnerships drive innovations in a constantly changing world. We have been forging new partnerships and We listen, understand and respond to the emerging needs of our customers and provide them with relevant solutions nurturing the existing ones to create value for our customers. through our businesses.
Collaborating to Rise | Mahindra JV with Ford Motor Company Spark the New | Mahindra Electric
M&M Ltd. and Ford Motor Company signed a definitive agreement to create a joint venture – with Mahindra owning 51% controlling stake – that will develop, market and distribute Ford brand vehicles in India and Ford brand & Mahindra brand vehicles in high-growth emerging markets globally.
Mahindra Electric, our electric mobility arm, unveiled a new corporate brand identity – coupled with a new logo and tagline 'Spark the New' – with the vision of becoming a leader in providing The JV is the next step in the customised electric mobility strategic alliance forged between experiences through cutting-edge Mahindra Ford JV will drive enhanced competitiveness Ford and Mahindra in September technology. through greater economies of scale across the automotive 2017 and marks a new era of collaboration to deliver operational value chain, including optimised sourcing, product development, Mahindra EVs have already completed over excellence and value to stakeholders. 250 million electric kilometres on Indian roads. use of relevant technologies and a global network. Mahindra EVs have saved over 23,000 metric tons of CO emissions in India, an equivalent of planting 12 lakh trees. Heralding the Era of Smart Farming | Partnering to Power New Possibilities | 2 Mahindra's Partnership with Gamaya Mahindra Susten JV with Mitsui & Co. Mahindra & Mahindra's Farm Equipment Sector (FES) A leading player in the Indian solar energy sector, acquired 11.25% stake in Switzerland based agri- Mahindra Susten partnered with Mitsui & Co., Ltd. of technology firm, Gamaya, SA. This strategic association Japan to jointly develop and operate distributed solar will enable Mahindra to develop and deploy next- power generation projects in India. generation farming solutions that are easily accessible to the global farming community.
Treo, our electric 3-wheeler, crossed 4,000 in volume and is now present in 70+ cities. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 34 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 35
Making Used Car Recycling for a Cleaner Planet | INNOVATIONS Purchase Exciting | Mahindra MSTC Recycling Innovation has been at the core of the Mahindra's Rise philosophy. We are building a global network of innovation Mahindra First Choice Cero is India's first Government-authorised vehicle recycling company. labs to develop solutions for the future. Wheels A JV between Mahindra Accelo and MSTC Ltd. (a Government of India enterprise), the entity collects end-of-life vehicles, dismantles and recycles We are present in the Indian used them at its state-of-the-art facilities. Transforming Farming through Centres of Excellence vehicle ecosystem through Mahindra First Choice Wheels (MFCWL) with a Our eco-system of global innovation network of 1,000 plus outlets spread centres develops digital and JAPAN FINLAND TURKEY across India. MFCWL has pioneered mechanised farming solutions that Rice Value Chain Harvesters Farm Machinery several key solutions. are affordable, to empower farmers world-wide and help them achieve significantly better farming outcomes. CANADA & INDIA SWITZERLAND Mechanisation Solutions, Affordable On the right is the list of Centres of Precision Farming Solutions IoT and Automation Solutions Excellence (CoEs) established by Mahindra.
Redefining Automotive Ownership
Mahindra introduced an innovative subscription-based initiative in partnership with Revv, a self-drive car rental startup. This unique, flexible ownership experience for customers of Mahindra's personal range of vehicles is an all new way of using a brand-new vehicle, without actually having to buy or own one. The subscription model is currently available in select Indian cities. 'eDiig' Auction Platform: Auctioned 5 lakh+ vehicles through the platform to become the market leader in the online auction space.
Blue Book: India's first and only used car pricing guide that incorporates transaction data with an analytical engine.
Cero has set up two world-class facilities 'Autoinspekt': An unbiased third- party vehicle evaluation system that at Greater Noida and Chennai and has determines the condition, quality and aggressive plans to be present at 25 locations value of a used vehicle. MFCWL does across the country in the coming years. over a million inspections per year. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 36 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 37
RISING SUSTAINABLY DIGITAL CAPABILITIES We have been leveraging the power of digital technology to improve existing processes, products and services, and provide customer satisfaction. We have taken up multiple digital initiatives during the reporting period. ENVIRONMENT
Revolutionising FarmTech Enhancing Customer Experience through 'Krish-e' through the 'World of SUVs' The pandemic has inflicted huge Key Materiality Issues economic damage, but the resultant lockdowns were very effective in We completed our materiality healing the natural world and its assessment this year. Various ecosystems. Air pollution declined internal as well as external dramatically and blue skies appeared M&M Ltd. received Bronze stakeholders were identified once again. This is a lesson for all of Class in DJSI's (Dow Jones and engaged during the us and one we must not forget. To process. Based on these protect the environment even as Sustainability Index) Global interactions and benchmarking economic activity resumes, Sustainability Yearbook with industry peers, the organisations must reduce their 2020. material issues were identified. Mahindra has pioneered a new delivery model, ‘Farming Greenhouse Gas Emissions, pollution as a Service (FaaS)’, under the brand name 'Krish-e' to levels and waste generation, by All stakeholders including top support farmers across their full crop cycle. Krish-e aims adopting progressive and effective management, employees, to provide integrated agronomy advisory, mechanisation 'World of SUVs', a new format of next-generation sustainability practices. suppliers, dealers, customers, services and high-tech digital solutions to small farmers dealerships, provides convenience to customers by 25,000+ investors, community, etc. were to reduce the cost of cultivation, enhance productivity integrating the virtual world with the real on a phygital Mahindra is working to employees engaged in this materiality and improve farming outcomes. (physical+digital) platform. were engaged under enhance its Natural Capital assessment. After mapping, the Making Sustainability prioritisation, preparation and using the 3Cs - Conservation validation, the final materiality Seamless Customer Experience Personal (MSP) programmes of Natural Resources, matrix emerged. Driving Automation in across the Mahindra Group. Business Processes Continuous Improvement Mahindra's first digital employee named IRONA was towards Rejuvenation, and launched using Robotic Process Automation (RPA) to Comprehensive Disclosures. simulate and automate treasury's mutual fund investment operations. Success of IRONA has been A cohesive framework, well- replicated in other operational areas, such as HR and structured processes and The key material issues for operations, automating over 25 processes. environment included Carbon focused interventions are the Emission, Water Security and foundation of our environment Waste to Wealth. These core issues were given due management approach. importance while formulating the sustainability strategy. Some We are designed to Rise from the Embedded screens and immersive virtual reality with of the highlights pertaining to crisis and move towards a mirror display, Wi-Fi connected customer lounges and our sustainability initiatives are sustainable future. specially trained relationship managers make for an mentioned in this section. immersive customer experience.
Sales Assistance Aided through Digital Interventions This ensures clutter free space and paperless interaction Mr. Anand Mahindra has been through industry-first virtual reality experiences, appointed as a board member of personal voice assistance in test drive vehicles and ease the United Nations Global Compact. of scheduling test drives. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 38 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 39
REDUCTION OF Carbon Neutrality Other Key Developments GREENHOUSE GASES (GHG) In current reporting year We are focused on achieving our Greenhouse gases at the current Due to energy saving measures, M&M mitigated commitment of becoming Carbon 9,812 tCO2e emission rates have the capacity to Neutral by 2040. The plans include raise the temperatures by 2°C (3.6°F) energy efficiency improvements as – which the United Nations well as use of renewable energy, The Mahindra Group Mr. Anand Mahindra co- Intergovernmental Panel on Climate and offsetting the residual featured at 38 events chaired the High-Level Change (IPCC) designated as the emissions through carbon sinks. in Climate Week with Commission on Carbon upper limit to avoid 'dangerous' Pricing and Competitiveness, levels – by 2036. United Nations Climate Action Summit, New York which published its report This global warming would have potentially harmful effects on ecosystems, biodiversity, human Featured in 25 events livelihoods and business operations. at COP25 (United We are consistently working to Nations Climate Change reduce this risk by increasing our Conference) in Madrid energy efficiency and reducing our dependence on non-renewable M&M Ltd. became a part of CDP Climate Change Rising Star sources of energy. 2019 List as it received A-Rating and entered the Leadership band in CDP Climate Change. CONSER VATION OF ENERGY Science-based Carbon neutrality plans Targets (SBT) Energy saved is energy earned. Moreover, it also means GHG emissions are approved by eight group reduction. Our two-pronged approach to energy conservation includes enhancing the energy productivity of our processes and increasing the use of Targets adopted by companies to Ÿ Mahindra & Mahindra Ltd. companies. energy generated through renewable sources. Some of the methods to reduce greenhouse gas (GHG) Ÿ increase efficiency include heat recovery, energy efficient equipment, emissions are considered 'science- Ÿ Mahindra Lifespace Developers Ltd. Mahindra & Mahindra Ltd. installing LED lights, green building certifications and monitoring energy based' if they are in line with what Ÿ Mahindra Holiday & Resorts efficiency of our major suppliers. Increasing solar and wind power capacities the latest climate science says is Ÿ Mahindra World City Developers Ltd. India Ltd. boosts the share of green energy in the total mix. necessary to meet the goals of the Ÿ Mahindra World City (Jaipur) Ltd. Paris Agreement – to limit global Ÿ Mahindra Logistics Ltd. warming to well below 2°C above Ÿ Mahindra Holiday & Resorts India Ltd. pre-industrial levels and pursue Ÿ Tech Mahindra Ltd. efforts to limit warming to 1.5°C. Ÿ Mahindra Intertrade Ltd. Ÿ Swaraj Engines Ltd. Setting greenhouse gas emission Ÿ Swaraj Engines Ltd. Ÿ Mahindra First Choice Services Ltd. reduction targets in line with Ÿ climate science is a great way to Ÿ Bristlecone Inc. Gromax Agri Equipment Ltd. future-proof natural capital for all Ÿ Mahindra & Mahindra Financial of us. We are contributing our part Ÿ Tech Mahindra Ltd. in the global fight against climate Services Ltd. change by setting emission and Ÿ Till now, Mahindra Sanyo Special Steel carbon footprint reduction targets Private Ltd. We are focused on achieving 13 Mahindra group as per the SBT framework. our commitment of becoming companies have got Ÿ Mahindra Electric Mobility Ltd. Carbon Neutral by 2040. AD (Automotive Division) Igatpuri plant was declared their SBTi (SBT initiative) Ÿ Mahindra First Choice Services Ltd. targets approved. 'Sustainable factory of the Year' at India Sustainability Ÿ Gromax Agri Equipment Ltd. Leadership Summit 2019. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 40 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 41
Energy Productivity Renewable Energy BEING Water Security at Mahindra WATER POSITIVE Close monitoring of energy We keep increasing the share of renewable energy (RE) in M&M (share of RE Ÿ Our Igatpuri plant achieved 243 days without dependence on external productivity (EP) enhances our focus has increased from 2% in F18 and 3% in F19 to 4% in F20), thereby ensuring Being water positive is a holistic water through reducing water consumption, recycling and reusing of on energy efficiency initiatives. We environment custodianship as well as sustainable growth. Our total solar and approach. It includes optimising water, rainwater harvesting, wastewater treatment, etc. record Energy Productivity data wind power capacities are 8.9 MW and 6.3 MW, respectively. consumption, recycling as much separately for AS (Auto Sector) as water as possible, and capturing Ÿ Swaraj Division has constructed water recharging well. The well as FES (Farm Equipment Sector). and recapturing. With increasing in-house groundwater recharge capacity is 42,500 kL/year. Following is the EP data trend: production, the demand for water keeps on growing, yet we have been water positive since F14 AS FES through our comprehensive 360° water management programme - Other Key Developments
% H2Infinity. 5 . 3 2 % Water recharge increased from 0.12 million m to approx. 0.64 8 All our initiatives are based 3 3
. million m
1 on 3 R's (Reduce, Reuse, 8
% Recycle), and include
4 Improved water table from 450 feet to less than 100 feet, . 9
% rainwater harvesting, drip
7 in the last 18 years at AD Zaheerabad 3 . % & micro irrigation, water 8 6 . 7
7 recharging initiatives, etc. % 7 5 . Monitoring of all the 6
7 Our total renewable energy consumption in this year initiatives is done to increased by 16% as compared to last year. optimise the consumption. F18 F19 F20 F18 F19 F20 REDUCTION OF WASTE GENERATED Mahindra & Mahindra Ltd. and Mahindra Holidays are among the Other Key Developments Waste minimisation protects the environment and has positive economic first in the world to have signed the benefits. It leads to better realisation of environmental regulations, more EP100 Cooling Challenge and will of energy saving achieved in F20 efficient processes and enhanced brand perception. Our endeavour is to focus on improving energy efficiency 63,038 GJ foster a circular economy by minimum use of materials, reduction in of HVAC (heating, ventilation and air waste generated and reuse of waste. We are committed to minimise the conditioning) systems. amount of waste that enters landfills from our operations, leading to Mahindra Marine launched Mahindra & Mahindra better ecosystems. Mahindra Heavy Engines Ltd. its first Solar-electric boat deployed 50 Electric Vehicles (MHEL) became India's 1st (EVs) on the Uber platform in rd Hyderabad and the world's 3 AS and FES recycled and manufacturing unit to double reused 44% and 41% of its its energy productivity from a water respectively, and the 2016 baseline, in a record overall water recycled and time of four years, much reused across M&M has ahead of its target. This is reached 40% in F20 aligned to the company's st 1 in the Indian industry to sign the contract from 31% in F19. In the current year, five more locations across M&M were 'EP100 Programme' agreement for trigeneration project with Energy certified as ZWL (Zero Waste to Landfill) by Intertek, USA. commitment in alliance with Efficiency Services Limited (EESL). The Climate Group. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 42 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 43
RISING Waste to landfill PROMOTION OF BIODIVERSITY SUSTAINABLY Our initiatives towards minimising the amount of waste, that enters landfills from our operations, is The practice of protecting and preserving the wealth bearing results, as seen for the locations below. and variety of species, habitats, ecosystems and genetic diversity on the planet, is important for our health, wealth, food, fuel and ecosystem services. We PEOPLE understand the importance of biodiversity and are committed to maintain it.
As part of our biodiversity policy, we collaborate with Our people proved their mettle once again during the pandemic by rising above and beyond the call of duty. They IUCN (International Union for Conservation of Nature) moved seamlessly into the new Work From Home scenario while maintaining their creativity and productivity in this and IBBI (The India Business and Biodiversity Initiative), 'New Normal'. and undertake biodiversity assessments. Mahindra Hariyali is a key initiative to increase the green cover in our ecosystem. It is a part of the Group's efforts to The people of Mahindra are its create a sustainable future and to enrich the lives of the true strength and we are always communities in which it serves. working to grow the skills and LOCATIONS DIVERSION FROM LANDFILL capabilities of our Human Capital. In F20, M&M Ltd. planted 1.32 million This can be seen in the excellence SBU Kanhe 99.63% trees across India (1.52 million planted of our products and services, and MRV 99.40% the growing strength of the by the Mahindra Group). Mahindra brand. We consistently Nashik Plant 2 (Tool and Die) 100.00% invest Financial Capital in the Swaraj Plant 2 99.44% training and development of our people to ensure continual Worli CC 99.99% Other Key Developments upgradation of their skills and Mahindra & Mahindra Automotive & Farm Equipment Ÿ capabilities. Mahindra Heavy Engines Limited 99.52% On World Environment Day, we launched a new Sectors recognised among India's Best Workplaces citizens' movement, #CelebrateDifferently. The ® campaign urged people to celebrate key milestones in Manufacturing 2020 by Great Place to Work . A plastic collection drive at M&M Ltd. was conducted and achievements in their lives by planting a tree. to ensure that no plastic waste goes to landfill. The entire 2,232 kg of plastic collected was handed over to Ÿ 500 saplings of Mangrove were planted at M&M Ltd. Shakti Plastics, a Government-certified waste It included variants which are tropical and indigenous management company. plant species. Exotic, fast growing variants were Key Materiality Issues avoided to maintain ecological harmony. The key material issue green coverage in our Igatpuri plant, for human capital was which brings about 50% reduction in Other Key Developments 83% dust levels in the plant Health and Safety. Ÿ 49% reduction of paper usage at Swaraj Division from F16 to F20
Ÿ 35% reduction in hazardous waste at Rudrapur FES from 110 tons in F19 to 72 tons in F20
Ÿ 646 kg of waste was generated at the Mahindra Kabira Festival from 22nd to 25th November 2019. Of this, 569 kg or 88% was recycled, composted, We have a total workforce of The unionised permanent workforce sent to a biogas plant for conversion into energy, This issue was given due importance or to a Kulhad crushing unit while formulating our people policies comprises 78% of the total and sustainability strategy. Some of 39,792 permanent and non-permanent workforce. Over 75% of the Ÿ 3,089 kg of waste was generated at Mahindra Our name entered the Limca Book of the highlights pertaining to our employees, who Rise together permanent employees received safety Blues Festival from 7th February to 10th February employee initiatives are mentioned Records for planting a total of 16.4 million towards our vision. 2020. Of this, 2,921 kg or 94.6% was sent for in this section. and skill upgradation training in F20. recycling, composting, reusing, or for co- trees from 2007 to 2018 as part of the processing in cement plants Mahindra Hariyali sustainability initiative. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 44 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 45
THE MAHINDRA EMPLOYEE DIVERSITY & VALUE PROPOSITION INCLUSION
At Mahindra, we do not transform people; they transform themselves as a result of the empowering work culture that At Mahindra, we celebrate the uniqueness of every individual by fostering an environment of inclusion and we encourage across all our sectors and units. Our Employee Value Proposition of 'CAPable People - REAL Experience' empowerment across every unit and department. The Group continues its strong focus on fostering Diversity and underpins effective employee strategies that accelerate inclusive growth and drive the momentum towards Inclusion (D&I) at the workplace. collaborative success.
ENABLING TRANSFORMATION ENSURING GROWTH
C A P R E AL
Challenge Bring Alternative Drive Positive Recognition for Empowering Abundant Learning Conventions Thinking to Change in the Lives Outperformance Environment Opportunities the Workplace of Our Customers & Communities
EMPLOYEE ENGAGEMENT
Employee engagement at Mahindra is much more than just an HR initiative; it is a cornerstone of the company's culture and an integral part of our ethos. Based on the philosophy that 'our culture determines our success', we have Diversity Councils POSH created an engagement ecosystem that embodies the core purpose of Mahindra Rise. We have in place group and sector level diversity To ensure that all employees are made aware of the councils to advocate the relevance of Diversity & Prevention of Sexual Harassment (POSH) policy, the Workmen Engagement Survey MCARES Inclusion (D&I) and inculcate an inclusive working Mahindra Group launched the Speak Up campaign. environment. The Workmen Engagement Survey helps to capture the voice of workmen It is an employee engagement across our 14 manufacturing plants biannually. The Workmen Engagement construct devised to gather employee Mahindra World of Women Model has identified a stimulus response relationship between the elemental feedback on engagement parameters, constructs of employee engagement. where M stands for Mahindra, and Mahindra World of Women (MWoW) is a platform for CARES is an acronym derived from peer learning and networking to derive inspiration from The questionnaire contains the five engagement drivers: Career, role models internally and externally. 43 items measuring various aspects Alignment, Recognition, of engagement classified under Empowerment and Strive. The Mahindra Way (TMW) 14 factors, of which, The MCARES survey is administered For institutionalising D&I practices, The Mahindra Way Ÿ 9 are classified as Stimuli i.e. to our employees, with a 90% (TMW) assessment incorporates business specific D&I Alignment, Belongingness, response rate annually. After survey, processes and practices which are reviewed year on Learning Inclination, Supervisory key insights are generated through year to measure the progress made in this area. The Support, Recognition, Job Clarity, statistical analysis of the data which best practices emerging out of these assessments are Health, Safety & Environment, enable action planning at 3 levels – shared across the group companies for improvement Job Security, and Social Security Sector/Business level, Function/ and adoption. Department/Plant level, and work Ÿ 5 are classified as Response group (team) level. The Mahindra Group has signed up for World elements i.e. Pride, Sense of The insights derived from statistical Achievement, Team Spirit, Work Economic Forum's 'Valuable 500' initiative, analysis of the survey data are shared Life Balance, and Commitment to under which we have taken a commitment to with respective stakeholders which Work Processes & Quality help them to take necessary actions create awareness and sensitisation for towards engaging their workforce. employability of Persons with Disabilities. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 46 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 47
MAHINDRA LEADERSHIP UNIVERSITY
The Mahindra Leadership University (MLU) is a strategic initiative to support MLU academies collaboratively work with Sectors in the Group to create and implement a futuristic learning agenda the Group in its journey of being one amongst the Top 50 most admired THE 3+5 FRAMEWORK which includes digital learning solutions as well as physical face to face instructor led interactive workshops, as Global brands by 2021. MLU is the Group's Corporate University and is a appropriate. All academies consult business leaders in the Group to identify and prioritise group-wide capability platform that connects knowledge seekers and knowledge providers across development needs, and aggregate, curate and create knowledge, develop the desired capabilities and thereby It consists of 3 Rise Pillars the Group to develop executives in leadership and functional competencies. work towards fostering a culture of continuous learning, unlearning and relearning.
MLU is a learning and development initiative at Mahindra that caters Driving MLU's academies use a laddered approach for programme design and content development. This laddered Accepting Alternative exclusively to its employees and partners and is not an accredited Positive approach to leadership development recognises and addresses the need for varying inputs tailored to the different No Limits Thinking Change educational institution or university. The word 'University' is inclusive in levels of leadership. nature and encompasses all learning under one umbrella brand, powered by the unified LMS (Learning Management System), MLU's Digital Learning and 5 RISE Leadership Characteristics World (DLW). The DLW platform seeks to bring together internal and external learning resources and best practices from across all businesses in Whole New Mind the Mahindra Group. It enables employees to recommend courses to their Combining the left brain peers and teams, give feedback and rate the learning resources. It also of logic and rationality enables social learning. Further, managers can motivate and nudge their with the right brain of team members to learn and upskill. intuition & empathy for wholesome development MLU converges upon building both leadership and domain capabilities through its various academies, with each academy being headed by a Chairperson and supported by business leaders and functional leaders from Multipliers and across the Group as academy members. All learning content within Not Diminishers Mahindra is hosted under respective Academies. Multipliers of passion, energy, commitment, engagement and a sense of ownership MLU GOVERNING COUNCIL Managing Fear and ACADEMY OF LEADERSHIP DEVELOPMENT Leveraging Failure Creating a culture where INNOVATION ACADEMY people take risks, do Reflective Conversations Digital Dexterity Programme CUSTOMER EXPERIENCE ACADEMY rapid prototyping, fail Started as an initiative to make Mahindra a Reflective It is of paramount importance for employees to increase fast & create feedback Organisation, Reflective Conversations (RC) workshops their awareness about digital technologies and their DOMAIN ACADEMIES loops that learn from have been cascaded across the Group and more than application towards business benefits. failure 2,600 employees across multiple businesses and locations Manufacturing IT/Services Common have been covered under the program by a pool of A programme titled Digital Dexterity was launched to Businesses Businesses Functions internal RC trainers. To ensure cultural transformation increase the Digital Quotient of the organisation and to Mindfulness Technical Digital Finance and sustenance, a coaching certification programme make employees more receptive and ready to adopt Being here and now Manufacturing Healthcare HR titled 'Mahindra Certified Reflective Conversationalist' digital technologies. The programme enables employees & Quality & Life Sciences and open to all IT (MCRC), certified by the International Coach Federation to be digitally conversant and comfortable with Sourcing IT Project - possibilities Program Mgmt. Sales & (ICF), is being used to strengthen coaching as a emerging digital technologies and assists them in Marketing IT - Architecture leadership style. thinking about how these technologies could be used for business benefits. Various technologies such as AI, Trust Considering the pandemic, we shall adapt to the new Facial & Text Recognition, Live speech translation, IoT RISE LEADERSHIP CORE PURPOSE THE Building Authenticity social distancing norms by developing virtual digital have so far been covered under the programme. COMPETENCIES & VALUES MAHINDRA WAY solutions and modularised approaches to strengthen the skills of Reflective Conversations amongst our employees. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 48 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 49
RISING SUSTAINABLY CSR PROJECTS
Project Nanhi Kali Mahindra Pride Schools (MPS) SOCIAL
The Mahindra Pride School is a unique 90-day livelihood training programme for youths from socially and financially disadvantaged communities. With a 100% placement record, the nine schools in Pune, Patna, Chandigarh, Srinagar, Hyderabad, Varanasi and three in Chennai, trained and placed 6,045 students in F20.
Of the 9 schools, M&M Ltd. supported the schools in Chandigarh, Srinagar, Hyderabad, Varanasi and two schools in Chennai, which together skilled 3,641 students in F20.
Supporting the education of 67,337 girls, Till date, youths have been trained Our Core Purpose states, "We will challenge conventional thinking and through innovative use of all our the Mahindra Group is the largest through this programme. resources, drive positive change in the lives of our stakeholders and communities across the world, to enable them 39,280 to Rise". It is amply evident that Corporate Social Responsibility is integral to and at the core of our philosophy. contributor to Project Nanhi Kali. Of these, With a deep understanding of societal issues, we have built the 'Rise for Good' mission around the four pillars of M&M Ltd. supports 14,462 Nanhi Kalis. In F20, an additional 1,01,391 students were trained Community, People, Governance and Environment. through 2,374 Mahindra Pride Classrooms conducted Nanhi Kali is our flagship CSR project that through ITIs, Polytechnic and Arts & Science Colleges in Key Materiality Issues 16 States. M&M Ltd. contributed £20 crore to the 'Prime Minister's supports the education of underprivileged girls Citizen Assistance and Relief in Emergency Situations Fund'. The key material issue for social in India. Currently, the project supports the The Mahindra Group donated £50 crore to PM Cares Fund. capital was CSR Management. This education of 1,74,681 Nanhi Kalis across issue was given due importance while formulating our community 6,001 academic support centres, in 9 states. While our commitment to national priorities for development continues policies and sustainability strategy. The project provides 360-degree support to girls from unabated, our CSR work remains focused on the constituencies of girls, Some of the highlights pertaining Class 1 to 10, including two hours of free after-school youth, and farmers, whom we support through our initiatives in education, to our CSR Management are remedial classes every day, and an annual school supplies health, and the environment. mentioned in this section. kit to enable them to attend school with dignity. In addition, 78,437 girls in secondary schools have access to Of these, 71,248 students were supported by M&M Ltd. In F20, M&M invested £126.59 crore in various digital tablets which are pre-loaded with smart The Mahindra Pride Classrooms provide 40-120 hours of CSR projects to positively impact the communities educational content. The Nanhi Kali team also works to training to final-year students on topics that include sensitise parents and communities on the importance of English speaking, life skills, aptitude tests, interviews, in which we operate. educating girls and to become their collective guardians. group discussions and digital literacy. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL MAHINDRA & MAHINDRA LTD. 50 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS INTEGRATED ANNUAL REPORT 2019-20 51
C A S E S T U D Y
Project Hariyali Integrated Watershed Management Programme (IWMP) With the aim of adding 1 million trees to India's green cover every year, Mahindra Hariyali was launched in 2007. Today, it has become a movement among our employees, customers, vendors and dealers, as they undertake tree plantation drives across the country. Project Nanhi Kali DREAMS COME TRUE
Sandhya lived with her parents and elder sister in a tribal village in Araku Valley, Andhra Pradesh. Her father, a mail carrier, was the sole earning member of the family, and died when Sandhya was young. Her family struggled to make ends meet with meagre finances.
This project is a Private Public Partnership (PPP) model The turning point in Sandhya's life came when she was enrolled into Project Nanhi Kali, which with the Government of Madhya Pradesh in Bhopal, operates in the tribal villages of Araku. Sandhya worked hard and was supported by the Project till and in Hatta with the National Bank for Agriculture and she successfully completed her schooling. Along with all other help, Sandhya was particularly grateful Rural Development (NABARD), to increase the for the safe, conducive environment created by her tutors at Nanhi Kali which enabled her to excel in groundwater table of the region. her academics and gave her the confidence to dream of a brighter future for herself. The Mahindra Group planted over Implemented in 48 villages (35 villages in Bhopal and 13 Sandhya went on to secure admission in Nuzvid campus of RGUKT-AP (B.Tech. in Civil Engineering) 1.52 million trees in F20 under the project, villages in Hatta), this project will help increase in the year 2010. After completing her graduation, she secured a job with the State Government and out of which Mahindra & Mahindra planted agricultural productivity and improve overall standard is currently working with the Secretariat in the Civil Department. 1.32 million trees, taking the total tally to of living, benefitting 38,447 people residing in 17.93 million trees. these villages.
Of these, 10.78 million trees have been planted in the Araku Valley, which besides greening the environment, Employee Social Options (ESOPs) also provides livelihood support to tribal farmers I'm extremely grateful to growing coffee in the region. A long-running Employee Volunteering Programme, ESOPs is where Mahindra employees channelise their Nanhi Kali for giving me the time and skills to address the needs of local con dence to follow my dream of Saving Lives with Safer Roads communities. In F20, 91,943 ESOPs volunteers from the Mahindra Group contributed 693,305 person hours for becoming an engineer. My next various social initiatives. goal is to become an IAS of cer.
Lankapalli Sandhya Priyanka, Araku, Andhra Pradesh
Sandhya is financially independent and earns £15,000 per month. She currently lives in Visakhapatnam and is helping her family build M&M Ltd. is partnering with SaveLIFE Foundation and their home back in her village in Araku. Maharashtra State Road Development Corporation Limited (MSRDC) to create India's first Zero Fatality 22,877 M&M employees contributed Corridor on the Mumbai-Pune Expressway through 1,63,818 person-hours towards interventions in 4Es i.e. Engineering, Enforcement, Education and Emergency Response. giving back to society. COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL 52 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS
Stakeholder Engagement Effective engagement helps translate stakeholder needs into organisational goals and creates the basis for effective strategy development. Stakeholder Engagement Mechanisms form an integral part of our strategy for sustainable growth. We have a consistent flow of feedback from all stakeholders including our suppliers, customers, employees, investors, etc.
O U R S T A K E H O L D E R E N G A G E M E N T M E C H A N I S M S Each stakeholder is different and has different needs. Our Engagement Mechanisms are therefore designed to suit the unique needs of our stakeholders and foster effective communication with them. MAHINDRA & MAHINDRA LTD. STAKEHOLDER GROUP ENGAGEMENT CHANNELS
GOVERNMENT/ Environmental compliance, policy consultations REGULATORY AUTHORITIES
EMPLOYEES Conferences, workshops, publications, newsletters & reports, online portals, feedback surveys and one-on-one interactions, employees' involvement in CSR activities
CUSTOMERS Interviews, personal visits, publications, mass media & digital communications, feedback camps, plant visits and support programmes
SUPPLIERS & DEALERS Supplier & vendor meets, workshops & training, audits, policies, IT-enabled information sharing tools and recognition platforms
INVESTORS/ Annual report, sustainability report, press releases, investor SHAREHOLDERS presentations, corporate website, quarterly and annual results, ESG calls
LOCAL COMMUNITIES CSR activities
EDUCATIONAL INSTITUTES/ Technical collaborations, capacity building, research UNIVERSITIES
O N L I N E P R E S E N C E O F M A H I N D R A R I S E
With the emergence of digital media, online engagement with stakeholders has become vital. Our corporate brand handle - Mahindra Rise, enables us to communicate with our stakeholders interactively and in real time.
Mahindra & Mahindra Integrated Annual Report 9,09,390 13,04,673 3,29,898 2019 won Gold at the fans followers followers MARCOM Awards Association of Marketing and As on 31st March 2020 Communication Professionals (AMCP) COMPANY RISING TO RESILIENCE DESIGNED TO RISING CORPORATE STATUTORY FINANCIAL 54 OVERVIEW THE CHALLENGE TO RISE FUTURISE SUSTAINABLY INFORMATION REPORTS STATEMENTS
Corporate Information
C O M M I T T E E S O F T H E B O A R D
Audit Committee Strategic Investment Committee Chairman Emeritus Mr. T. N. Manoharan - Chairman Mr. Anand G. Mahindra - Chairman Mr. Keshub Mahindra Mr. Nadir B. Godrej Mr. Nadir B. Godrej Mr. M. M. Murugappan Mr. Vikram Singh Mehta Board of Directors Ms. Shikha Sharma Mr. T. N. Manoharan Mr. Anand G. Mahindra Ms. Shikha Sharma Executive Chairman Mr. Vijay Kumar Sharma Stakeholders Relationship Dr. Pawan Goenka Committee Managing Director and Chief Loans & Investment Committee Executive Officer Mr. Haigreve Khaitan - Chairman Mr. Anand G. Mahindra Mr. Anand G. Mahindra - Chairman Dr. Anish Shah Dr. Pawan Goenka Dr. Pawan Goenka Deputy Managing Director and Group Chief Financial Officer Dr. Vishakha N. Desai Mr. Vikram Singh Mehta Ms. Shikha Sharma Mr. Rajesh Jejurikar Mr. Haigreve Khaitan Executive Director - Governance, Nomination and (Auto & Farm Sectors) Remuneration Committee Research & Development Mr. Nadir B. Godrej Mr. M. M. Murugappan - Chairman Committee Mr. M. M. Murugappan Mr. Nadir B. Godrej Dr. Vishakha N. Desai Mr. M. M. Murugappan - Chairman Mr. Vikram Singh Mehta Mr. Vikram Singh Mehta Mr. Haigreve Khaitan Mr. Anand G. Mahindra Mr. T. N. Manoharan Dr. Pawan Goenka Mr. Vijay Kumar Sharma Mr. Nadir B. Godrej (Nominee of Life Insurance Corporate Social Corporation of India) Responsibility Committee Mr. Haigreve Khaitan Risk Management Committee Dr. Vishakha N. Desai - Chairperson Ms. Shikha Sharma Mr. Anand G. Mahindra Dr. Pawan Goenka - Chairman Mr. CP Gurnani Mr. Nadir B. Godrej Dr. Pawan Goenka Mr. Narayan Shankar Mr. Vikram Singh Mehta Mr. M. M. Murugappan Company Secretary Mr. T. N. Manoharan Ms. Shikha Sharma Dr. Anish Shah Mr. Rajesh Jejurikar
Bankers Auditors Registered Office Bank of America N.A BSR & Co. LLP Gateway Building, th Bank of Baroda 5 Floor, Lodha Excelus, Apollo Bunder, Apollo Mills Compound, N.M. Joshi Marg, Mumbai - 400001, Bank of India Mahalaxmi, Mumbai - 400011, India. India Canara Bank Central Bank of India Advocates HDFC Bank Limited Khaitan & Co., Standard Chartered Bank th One Indiabulls Centre, 13 Floor, Tower 1, State Bank of India 841, Senapati Bapat Marg, Union Bank of India Mumbai - 400013, India. Registered Office Mahindra & Mahindra Limited Gateway Building, Apollo Bunder Mumbai 400 001 www.mahindra.com