Mahindra & Mahindra

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Mahindra & Mahindra Limited
Type Public
Traded as BSE500520
BSE SENSEX Constituent
Industry Automotive
Founded 1945 (Ludhiana)
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Anand Mahindra (MD)
Products Automobiles, commercial vehicles, two-wheelers
Revenue Increase INR691 billion (US$12 billion) (2012)[1]
Net income Increase INR41 billion (US$690 million) (2012)[1]
Total assets Increase INR712 billion (US$12 billion) (2012)[1]
Employees 34,612 (Mar-2013)[1]
Parent Mahindra Group
Subsidiaries Mahindra Two Wheelers limited
SsangYong Motor Company
Website Mahindra.com

Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile manufacturing corporation headquartered in Mumbai.[2] It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world.[3] It is a part of Mahindra Group, an Indian conglomerate.

It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014.[4] It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011.[5]

Its major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok Leyland, Toyota, Hyundai, Mercedes-Benz (Merc) and others.[6]

History[edit]

Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed.[7] After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan. The company changed its name to Mahindra & Mahindra in 1948.[8] It eventually saw business opportunity in expanding into manufacturing and selling larger MUVs, starting with assembly under licence of the Willys Jeep in India. Soon established as the Jeep manufacturers of India, the company later commenced manufacturing light commercial vehicles (LCVs) and agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility vehicle manufacturing and branding sectors in the Indian automobile industry with its flagship UV Scorpio and uses India's growing global market presence in both the automotive and farming industries to push its products in other countries.

Over the past few years, the company has taken interest in new industries and in foreign markets. They entered the two-wheeler industry by taking over Kinetic Motors in India.[9] M&M also has controlling stake in REVA Electric Car Company[10] and acquired South Korea's SsangYong Motor Company in 2011.[11] In the 2010-11 M&M entered in micro dripp irrigation with the takeover of EPC Industrie' Ltd, Nashik.

Operations[edit]

Automobiles[edit]

Automotive
Mahindra & Mahindra Limited

Mahindra & Mahindra, branded on its products usually as 'Mahindra', produces SUVs, saloon cars, pickups, commercial vehicles, and two wheeled motorcycles and tractors. It owns assembly plants in India, Mainland China (PRC),[12] the United Kingdom,[13] and has three assembly plants in the United States. Mahindra maintains business relations with foreign companies like Renault SA, France.[14]

M&M has a global presence[15] and its products are exported to several countries.[16] Its global subsidiaries include Mahindra Europe S.r.l. based in Italy,[17] Mahindra USA Inc., Mahindra South Africa[18] and Mahindra (China) Tractor Co. Ltd.[19][20]

Mahindra started making passenger vehicles firstly with the Logan in April 2007 under the Mahindra Renault joint venture.[21] M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA.[22]

Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers. It manufactures over 20 models of cars including larger, multi-utility vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build passenger cars.

At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine.[23] True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 units.[24]

Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt,[25] in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs.[26]

Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North America[27] through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia.[28] Mahindra announced it will import pickup trucks from India in knockdown kit (CKD) form to circumvent the Chicken tax.[29] CKDs are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates.[29] On 18 October 2010, however, it was reported that Mahindra had indefinitely delayed the launch of vehicles into the North American market, citing legal issues between it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier in 2010, due to a decision to sell the vehicles directly to consumers instead of through Global Vehicles.[30] However, a November 2010 report quoted John Perez, the CEO of Global Vehicles USA, as estimating that he expects Mahindra’s small diesel pickups to go on sale in the U.S. by spring 2011, although legal complications remain, and Perez, while hopeful, admits that arbitration could take more than a year.[31] Later reports suggest that the delays may be due to an Mahindra scrapping the original model of the truck and replacing it with an upgraded one before selling them to Americans[32] In June 2012, a mass tort lawsuit was filed against Mahindra by its American dealers, alleging the company of conspiracy and fraud.[33]

Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In 2011, it also gained a controlling stake in South Korea's SsangYong Motor Company.[34]

Mahindra has launched its relatively heavily publicised SUV, XUV 500, code named as W201 in September 2011. The new SUV by Mahindra has been designed in-house and it is developed on the first global SUV platform that could be used for developing more SUVs. In India, the new Mahindra XUV 500 comes in a price range between Rs 11.40 lakh to Rs 15 lakh. Besides India, the company also targets Europe, Africa, Australia and Latin America for this model.[35] Mahindra President Mr Pawan Goenka stated that the company plans to launch six new models this fiscal.[36] The company launched CNG version of its mini truck Maxximo on 29 June 2012.[37] A new version of Verito in diesel and petrol options was launched by the company on 26 July 2012 to compete with Maruti's Dzire and Toyota Kirloskar Motor's Etios.[38]

Automobile Assembly Plants[edit]

Military Defense[edit]

The company has built and assembled military vehicles, commencing in 1947 with the importation of the Willys Jeep that had been widely used in World War II.[39] Its line of military vehicles include the Axe. It also maintains a joint venture with BAE Systems, Defence Land Systems India.[40]

Energy[edit]

Mahindra & Mahindra entered the energy sector in 2002, in response to growing demands for increased electric power in India.[41]

Since then, more than 150,000 Mahindra Powerol engines and diesel generator sets (gensets) have been installed in India, offering standard proper quality power, as do most larger companies, in areas with arguably less reliable grid electricity. The inverters, batteries, and gensets are manufactured at three facilities in Pune (Maharastra), Chennai (Tamil Nadu), and Delhi; and 160 service points across India offer 24-7 support to most key markets. Powerol is present in countries across Latin America, Africa, the Middle East, and Southeast Asia—and expanding into the United Arab Emirates, Bangladesh, and Nepal.[41] Mahindra Powerol's energy services consist mostly of power leasing and telecom infrastructure management.[42] In 2006, it became a major market leader in the telecom segment (and in 2011, its market share passed 45 percent). In 2007, it won the Frost and Sullivan "Voice of the Customer" award for best practices in telecom.

Mahindra Cleantech Ltd focuses in eco-friendly, or 'green' power. In response to growing acceptance of Solar Power, it formed a subsidiary, Mahindra Solar, in 2010 to offer a range of solar solutions, both off grid and on grid, alongside Engineering, Procurement, and Construction (EPC).[43]

Mahindra EPC is the Engineering Procurement & Construction arm of the Mahindra group. A portfolio company under the Cleantech arm of Mahindra Partners, they offer solar solutions spanning On-Grid solutions, EPC (Engineering, Procurement and Construction) and Off-Grid Product solutions. The company commenced its operations in the year 2011 and has successfully commissioned over 60 MW worth of Solar PV projects.[44]

Meanwhile, its off-grid products include power packs and rooftop setups for business organisations and public institutions alongside rural electrification through lanterns and home and street lighting systems. The company works closely with Mahindra’s farm equipment division to offer lighting products to some of the more rural areas in India. It also works with Mahindra Powerol to offer solar power backup to telecom sites in India. In 2011, Mahindra Solar received a CRISIL rating of SP1A in 2011, the highest rating for any solar photovaltaic off-grid company.[43]

Farm equipment[edit]

Main article: Mahindra Tractors

Mahindra began manufacturing tractors for the Indian market during the early '60s. It is the top tractor company in the world (by volume) with annual sales totaling more than 200,000 tractors. Since its inception, the company has sold over 2.1 million tractors.[45] Mahindra & Mahindra’s farm equipment division (Mahindra Tractors) has over 1,000 dealers servicing approx. 1.45 million customers.[46]

Mahindra tractors are available in 40 countries, including India, the United States, China, Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America, and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and Eastern Europe (Serbia, Turkey, and Macedonia.[46] Mahindra Tractors manufactures its products at four plants in India, two in Mainland China, three in the United States, and one in Australia. It has three major subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).[46]

In 2003, the Farm Equipment Sector of Mahindra & Mahindra won the Deming Application Prize[47][48] and in 2007 it received the Japan Quality Medal for implementing Total Quality Management in its entire business operations.[49] The company has garnered the highest customer satisfaction index (CSI) in the industry at 88 percent.[46] It earned a 2008 Golden Peacock Award in the Innovative Product/Services category for its in-house development of a load car.[46] In its 2009 survey of Asia’s 200 most admired and innovative companies, the Wall Street Journal named Mahindra & Mahindra one of the 10 most innovative Indian companies.[46]

In addition to tractors, Mahindra sells other farm equipment. It has expanded its product-line to include farm-support services via Mahindra AppliTrac (farm mechanisation products), Mahindra ShubhLabh (seeds, crop protection, and market linkages and distribution), and the Samriddhi Initiative (farm counselling and information services).

Automotive models[edit]

Employees[edit]

As on 31 March 2013, the company had 34,612 employees, out of which 699 were women (2%). It also had around 16,000 temporary employees on the same date.[1]

Awards and recognitions[edit]

  • Bombay Chamber Good Corporate Citizen Award for 2006-07.[50]
  • Businessworld FICCI-SEDF Corporate Social Responsibility Award 2007.[51][52]
  • The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand in its India Study 2014 survey (from 20,000 brands analyzed).[4][53]
  • Its Farm Equipment division received the Deming Prize in 2003.[47]
  • Its Farm Equipment division received the Japan Quality Medal in 2007.[54]
  • The US based Reputation Institute ranked M&M amongst the top Ten Indian companies in its 'Global 200: The World's Best Corporate Reputations' list for 2008.[55]
  • Bluebytes News rated M&M as India's second Most Reputed Car Company (reported in their study titled Reputation Benchmark Study) conducted for the Auto (Cars) Sector in 2012.[56][57]

See also[edit]

References[edit]

  1. ^ a b c d e "Annual Report 2012-13". Mahindra & Mahindra. 
  2. ^ "Contact Us." Mahindra & Mahindra. Retrieved on 7 November 2013. " Contact Us Mahindra India & World Headquarters Mahindra Towers G M Bhosale Marg Mumbai 400018 INDIA 1800 425 1624" - Hindi address: "महिन्द्रा टॉवर्स जी. एम. भोसले मार्ग मुम्बई 400018 1800 425 1624"
  3. ^ "Indian Tractor Maker Mahindra Takes On Deere". Business Week. 1 August 2013. Retrieved 2 February 2014. 
  4. ^ a b "Samsung is India's most trusted brand followed by Sony, Tata". Business Standard. 29 January 2014. Retrieved 2 February 2014. 
  5. ^ "Mahindra & Mahindra in Fortune India list". Rediff.com. 22 December 2011. Retrieved 2 February 2014. 
  6. ^ "Top Competitors for Mahindra & Mahindra Limited". Hoovers. Retrieved 2 February 2014. 
  7. ^ "How we got here". Mahindra Corporate website. Retrieved 2 February 2014. 
  8. ^ "Information : Mahindra & Mahindra Ltd". Edelweiss.in. Retrieved 2 February 2014. 
  9. ^ "Mahindra enters two-wheeler market riding on Kinetic". Indian Express. 31 July 2008. Retrieved 2 February 2014. 
  10. ^ "India's Mahindra buys Reva majority stake". AFP. 26 May 2010. Retrieved 2 February 2014. 
  11. ^ "M&M named lead bidder for SsangYong". The Economic Times. 13 August 2010. Retrieved 2 February 2014. 
  12. ^ "Mahindras Scale Chinese Wall". JiangXi China. 2 July 2005. Retrieved 2 February 2014. 
  13. ^ "Mahindra buys 98.6 pc in UK's Stokes Group". The Hindu. 5 January 2006. Retrieved 2 February 2014. 
  14. ^ "Mahindra-Renault launch Logan". Times of India. 3 April 2007. Retrieved 2 February 2014. 
  15. ^ "500 Mahindra utility vehicles on order from Ghana Govt". MoneyControl.com. 23 January 2008. Retrieved 2 February 2014. 
  16. ^ "India starts auto exports to South East Asia - India's Mahindra launches new SUV in Malaysia". IndiaDaily.com. 4 May 2005. Retrieved 2 February 2014. 
  17. ^ "M&M acquires Italian auto design co". The Hindu. 9 January 2008. Retrieved 2 February 2014. 
  18. ^ "Mahindra launches Scorpio Pik-Up in Tunisia". Economic Times. 4 November 2013. Retrieved 2 February 2014. 
  19. ^ "M&M rolls out tractor from China venture". The Hindu. 3 July 2005. Retrieved 2 February 2014. 
  20. ^ "Mahindra seeds China-made tractors in Indian fields". Times of India. 21 May 2006. Retrieved 2 February 2014. 
  21. ^ Mahindra-Renault Launch Logan, additional text.
  22. ^ The Hindu on Mahindra International,.
  23. ^ Mahindra Looking for Expansion,.
  24. ^ "M&M net soars 152% as Xylo picks up speed". dnaindia.com. 31 July 2009. Retrieved 2009-09-11. 
  25. ^ M&M in Egypt, .
  26. ^ in Brazil, Egypt,.
  27. ^ Ulrich, Lawrence (24 December 2009). "2009 Was a Clunker. Time to Cash It In.". The New York Times. Retrieved 27 December 2009. 
  28. ^ "Mahindra says it has dropped Global Vehicles as U.S. importer". AutoWeek. 27 August 2010. Retrieved 17 February 2014. 
  29. ^ a b "Mahindra Planning Kit Assembly of Diesel Pickups To Avoid Chicken Tax". Motor Trend, Benson Kong, 1 June 2009. 
  30. ^ "Report: Mahindra introduction to U.S. 'indefinitely delayed'". Autoblog. 18 October 2010. Retrieved 19 October 2010. 
  31. ^ "Global Vehicles USA Still Hopes to Sell Mahindra Truck by Spring". pickuptrucks.com. 8 November 2010. Retrieved 12 January 2011. 
  32. ^ Edward Niedermeyer (30 December 2010). "Mahindra Delay Explained? New Pickup Model Coming". "The truth about cars". Retrieved 12 January 2011. 
  33. ^ Golfen, Bob (6 June 2012). "Jilted Dealers Sue Indian Automaker". SPEED Channel. Fox Sports. Retrieved 2012-06-06. 
  34. ^ Česky. "SsangYong Motor Company - Wikipedia, the free encyclopedia". En.wikipedia.org. Retrieved 2010-11-23. 
  35. ^ "Global SUV". Articles.economictimes.indiatimes.com. 2011-09-02. Retrieved 2012-02-05. 
  36. ^ "M&M plans to launch 6 models in FY’13". 31 May 2012. 
  37. ^ "Mahindra launches CNG variant of Maxximo". 29 June 2012. 
  38. ^ "Mahindra launches new, 'pricier' Verito". 26 July 2012. 
  39. ^ "Mahindra & Mahindra Defense Division", Mahindra Corporate Website. Retrieved 5 December 2011.
  40. ^ Gooptu, Biswarup (21 March 2012). "Govt's 26% cap for FDI in defence a challenge: Dean McCumiskey, CEO, BAE Systems India". The Economic Times. Retrieved 9 October 2012. 
  41. ^ a b "Mahindra & Mahindra Energy Division", Mahindra Corporate Website. Retrieved 5 December 2011.
  42. ^ "Energy Services", Mahindra Corporate Website. Retrieved 5 December 2011.
  43. ^ a b "Mahindra Solar", Mahindra Corporate Website. Retrieved 5 December 2011.
  44. ^ Mahindra EPC to execute 300 MW solar power plants in next 2 yearsThe Economic Times, 9 January 2013
  45. ^ ""Farm Equipment", Mahindra Corporate Website. Retrieved 5 December 2011". Mahindra.com. Retrieved 2012-02-05. 
  46. ^ a b c d e f "Mahindra & Mahindra Farm Equipment Division", Mahindra Corporate Website. Retrieved 5 December 2011.
  47. ^ a b "M&M unit receives Deming award". The Hindu. 13 October 2003. Retrieved 2 February 2014. 
  48. ^ "Press Release: M&M Tractors awarded the Deming for excellence in quality". Mahindra Group. Retrieved 2 February 2014. 
  49. ^ "Mahindra's Farm Equipment Sector receives the Japan Quality Medal". Mahindra Group. 14 November 2007. Retrieved 2 February 2014. 
  50. ^ "Mahindra wins Bombay Chamber Good Corporate Citizen Award". MoneyControl.com. 25 September 2007. Retrieved 2 February 2014. 
  51. ^ "FM tells corporates to embrace PM’s social charter". The Hindu. 17 May 2008. Retrieved 2 February 2014. 
  52. ^ "FICCI - SEDF CSR Award 2007". FICCI-SEDF. 16 May 2008. Retrieved 2 February 2014. 
  53. ^ "Samsung beats Nokia to become India's most trusted brand of 2014". DNA India. 30 January 2014. Retrieved 2 February 2014. 
  54. ^ The Machinist on M&M winning the Japan Quality Medal, additional text.
  55. ^ "Reputation Institute Global 200". Forbes. 4 June 2008. Retrieved 2 February 2014. 
  56. ^ http://www.bluebytes.info/BlueBytes/UserGuide/Reputation_Benchmark_Study.pdf
  57. ^ http://www.bluebytes.info

External links[edit]