S U S T A I N A B I L I T Y R E V I E W 2 0 1 0 - 1 1 ALTERNATIIVE IIS TRANSFORMATIVE SUSTAINABILITY REVIEW 2010-11 Over the years, Alternative Thinking has been ingrained in Processes, Products and People all at Mahindra. It is helping us, not only in rising to emerging Mahindra are driven by Alternative Thinking. challenges but also in translating them into opportunities. This transformative power stems from our commitment towards the Group's purpose - This ability to think fresh, travel hitherto unexplored mind to enable people to Rise. spaces and develop innovative solutions that enhances resource efficiency has helped us transform the lives of Alternative Thinking is one of the three millions in India. brand pillars in our new brand mantra Rise. The other two being Accepting No We empower farmers through innovative agri prosperity Limits & Driving Positive Change. initiatives, lend support through financial products, provide IT solutions that help our clients adapt to changing The goal is to deploy this powerful tool to environment, create green and innovative urban living affect a shift in the basic premises of spaces and invest in new automotive technologies and thought, feelings, and actions. factories that leave a lighter carbon footprint. A U T O M O T I V E D I V I S I O N State-of-the-art green manufacturing plant with a phased investment of over USD 1 bn and vision to Enhanced product offerings beyond be among the world's most eco-friendly auto plants SUVs to boost self employment Introduced Asia's 1st in semi urban and rural India Fully integrated R&D facility Mahindra Research 100% Biodiesel SUV & Valley (MRV) in Chennai India's 1st hydrogen India's 1st compact low maintenance, powered three wheeler high mileage and affordable trucks - Acquired Reva Electric Vehicles Ltd. - one of the 1st Mahindra Gio and Maxximo companies in the world to introduce electric vehicles Development of HCNG (Hydrogen + CNG mixture) Entry in construction equipment and Expanded global reach through acquisition of commercial vehicles heavy vehicles manufacturing Ssangyong Motor Company Challenging Old Empowering Small-scale Becoming Technologies Enterprises Future-ready From Alternative Technologies to Alternative Markets F I N A N C I A L S E R V I C E S S E C T O R Introduction of hand-held devices to reach rural customers at their doorsteps Entered retail financing of Wind and solar tractors, commercial vehicles Opening 88 new branches in one year to increase installations at and construction equipment the reach to 547 branches mainly in semi-urban various rural and and rural area semi-urban Foray in insurance broking, branches facing rural housing finance and Easy finance for our Utility Vehicles (UV) chronic power loans against gold for rural prosperity shortage Investing in Widening Renewable Energy Inclusive Growth Rural Reach Projects From Financing Vehicles to Generating Livelihoods 01 F A R M D I V I S I O N Swaraj 843 XM, A tractor powered by 42 HP engine Introduction of an array of farm-tech products for greater power and that help transform rural productivity, income, better fuel efficiency Mahindra Samriddhi Centres empower and living standards farmers with agri-support information, B5 tractor that runs on counselling and services at every stage Yuvraj - a revolutionary 15HP tractor for small Eco-friendly biodiesel from planting to selling and marginal farmers Enhancing Going Beyond Providing Technology Fuel Efficiency Tractors for Prosperity From Farm Equipment to Enhancing Farm Prosperity T R A N S F O R M A T I O N A L J O U R N E Y I T S E C T O R Instituted in 1986, Tech Mahindra (Tech M) is the fifth largest software exporter in India today Tech Mahindra Foundation facilitates Presence in over Integration of our IT and Business Services quality education and vocational 25 countries Group (BSG) capabilities training for the disadvantaged sections of the society Official sponsor and Joint venture (JV) with Motorola Inc. and IT provider for the iPolicy Networks Private Limited Mahindra Satyam Foundation is a FIFA - Football World Cup TM, fierce advocate of education, livelihood maintaining end-to-end Acquiring Satyam to be a leader in opportunities, healthcare and logistics requirement the broader IT services space disaster management of the event Expanding Social Global Horizons Change Agents Footprint From an IT Player to a Game Changer 02 S Y S T E C H S E C T O R Since inception in 2004, it has become a leading supplier to global OEM's and Substantial acquisitions in India and Foray in aerospace with acquisition tier-1 suppliers overseas viz. Germany, UK, Italy of two Australian companies, one for component manufacture for A diverse mix of 24 manufacturing plants Technological collaborations with airplanes and the other for in India & Europe with 12,000 employees Indian and American universities for manufacture of small aircrafts R&D in steel making Leadership statistics: 5th largest forging Patent filed and business initiated company in the world; largest Indian Capacity expansions in to manufacture electrode-less lamps ductile iron foundry casting and forging for energy-efficient lighting solutions Strategic ‘Design to Widening Alternative Delivery’ Supplier the Radius Opportunities From Core Competencies to Exploring New Frontiers T R A N S F O R M A T I O N A L J O U R N E Y R E A L E S T A T E S E C T O R Mahindra Splendour - India's 1st Platinum pre-certified residential green building under IGBC Green Homes Rating system Mahindra World City, Chennai Mahindra World City Jaipur (MWCJL) is corporate India's 1st operational in being developed to meet the highest Recognition of all projects being Special Economic Zone (SEZ) benchmark in infrastructure development IGBC pre-certified green buildings with a key focus on sustainability Successfully deployed the Initiated a host of green features 'Work-Live-Learn-Play' concept which MWCJL is one of the 16 new developments in the building that protect the has made Mahindra World City Chennai in the world identified by the Clinton health of not only the residents a preferred business destination for Climate Initiative under its Climate but also the planet world-class companies Positive Development Program Pioneering Sustainable Creating India's 1st Developing a Carbon Construction Integrated Business City Efficient Township From Green Buildings to Healthy Lifestyles 03 T W O W H E E L E R S S E C T O R Introduced power scooters - a mix Product promotions that blend 1st Indian Motorcycle of style and substance creativity with a cause to enhance manufacturer to enter a the responsibility quotient of our team into MotoGP - Enhanced fuel efficiency and reducing consumers which are mainly the prestigious FIM Riad emissions on 'Rodeo' and 'Flyte' the youth Racing World Championship Engineering for Responsible Fast-track Indian Roads Marketing Growth From Roads to Racing Tracks L E I S U R E & H O S P I T A L I T Y S E C T O R 1st in the industry to be awarded an Ecotel certification for resorts; and Leadership in Energy & Environment Design (LEED) pre-certification of World's 1st vacation ownership company Club Mahindra was one of the greenfield projects to receive the COPC -2000® CSP Global 1st vacation ownership companies Standard certification for its Member in India and is today offering a CHEERS - a unique stakeholder Relations Centre bouquet of 35 beautiful resorts engagement program involves tourists and a family of 125,000+ in environmental and social activities Series of recognitions: happy members while on holiday The coveted Bird Express Travel World Award for 'Excellence in Operations; Addition of exciting new 'Homestays' offers a flavour of Indian offerings from leisure boats to living and 'Terra' brings people closer Resort Condominium International (RCI) corporate retreats to nature Gold Crown Award for 7 Resorts Introducing Vacation Leading by India's no.1 Ownership Sustainability Holiday Brand From Early Adopters to Market Leaders 04 SUSTAINABILITY REVIEW 2010-11 Executive Speak CHAIRMAN’S ADDRESS It was in the financial year 2007-08, that the Mahindra Group produced its first Sustainability Review, and I am really delighted to see that the strategic journey of 'Alternative Thinking' is growing in spirit and strength, adding more and more businesses into its fold, year on year. It is therefore with great pleasure that I present the fourth Sustainability Review of the Mahindra Group. From this report it is evident that, our businesses are harvesting visible competitive advantages that accrue as a result of responsible and transparent business practices; the advantages that cascade across the entire stakeholder chain benefiting our investors, employees, suppliers, dealers, customers and communities. In spite of the turbulent business environment; Mahindra, through the application of 'Alternative Thinking' in rigorous cost restructuring exercises, process efficiencies and product innovations, turned in a remarkable financial performance. As we delve into the challenges of climate change, it gets clearer that the future is fraught with uncertainties and it is increasingly obvious that incorporating sustainability into the business vision is prudent risk management. It is the strategic equivalent of creating financial reserves and investing in the long-term viability of not just our business, but of the employment it generates and of the social contribution it makes. Through ‘Alternative Thinking’, our businesses are harvesting visible competitive advantages that accrue as a result of responsible and transparent business practices; the advantages that cascade across the entire stakeholder chain benefitting our investors, employees, customers, suppliers, dealers, and communities.