INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

MAHINDRA GROUP

Submitted to
Prof (Dr.) Vinay Sharma
Department of Management Studies
Indian Institute of Technology Roorkee

STRATEGIC MANAGEMENT
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

AVIK PRAMANICK VAIBHAV BIRANGE SOUVIK PAL

18810012 18810017 18810075

ADITYA BANERJEE MILAN AGRAVAL

18810003 18810005
Founders

J C Mahindra
Founder, 1892 – 1951
Jagdish Chandra Mahindra, better known by his moniker JC, was
born in 1892 in Ludhiana, Punjab. The loss of his father at an
early age thrust the responsibility of his family’s welfare on his
young shoulders. The eldest of nine, JC strongly believed in the
power of education and ensured all his brothers and sisters
studied hard.

K C Mahindra
Founder, 1894 – 1963
Kailash Chandra Mahindra, known to all as KC, was born in 1894 in
Ludhiana, Punjab, the second of nine children. When their father
died at an early age, his older brother JC became head of the
family, and KC his best friend and future business partner. KC
attended Government College, Lahore, where his scholastic
aptitude shone through.

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Mahindra & Mahindra
• Founded in the year 1945 in Ludhiana(Punjab) by J. C. Mahindra,K. C. Mahindra and Malik Ghulam
Muhammad.

• Mahindra & Muhammad to Mahindra & Mahindra – 1948

• Emerged as one of the steel trading industry.

• Presently Headquartered in Mumbai.

• The Board comprises of key people like Anand Mahindra (Executive Chairman) and Pawan Kumar Goenka
(MD).

• It is the world’s largest tractor brand by volume and India’s largest utility vehicle manufacturer.

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Mission and Vision
Mission
"Rise" is a call to action. To challenge the status quo.
To think alternatively. To always drive positive change.

Vision
By 2021, we aspire to be among the 50 most admired brands in the world. With an inspiring history, an
unshakable set of values, and a clear sense of purpose, we aspire to reach our goal by enabling people
everywhere to Rise.

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ORGANISATIONAL STRUCTURE
Khailash Chandra
Mahindra(Co-Founder) Keshub
Mahindra(Chairman)

MAHINDRA Jagdish Chandra Harish Chandra Anand Mahindra

Mahindra(Co-Founder) (Current Chairman)
GROUP Mahindra

Malik Ghulam
Muhammad(Co-Founder)

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Mahindra Group’s Timeline

1945- 1955- 1965- 1975 -

1945
1955 1965 1975 1985

The company 75 Jeeps come Mahindra joins hands Mahindra shuts M&M ties up
commences its in from Willys with the US down the factory with Peugeot,
steel trading Overland Export manufacturer of in Mazgaon France
business Corporation agricultural machinery,
construction equipment

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Mahindra Timeline (contd.)

1985- 1995- 2005- 2015– 2019–

1995 2005 2015 2019 Future

Mahindra MMFSL The millennium year Mahindra enters Mahindra plans

British Telecom becomes a sees the unveiling of a China a big future for
formed subsidiary of new and visually eVerito
M&M Ltd. dynamic group logo,
which signifies the road
ahead

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Core Competencies- Core Competencies are capabilities that serve as a source of competitive advantage
for a firm over its rivals. Core competencies distinguish a company competitively and reflect its personality..

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Core Competencies Contd…

In all businesses today, alignment of business with strategy is important to

succeed. Mahindra group played around with organisational restructuring,
performance management systems, reduction of work force and career and
succession planning.

The main objective was to grow leadership positions in the UV and tractor
market and relatively new businesses like IT, financial services, real estate and
services industry.

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Before 1983- License Raj

From 1950s to 1981 the problems in the automotive sector were:

1. Limited number of players and high degree of government control.
2. Firms needed licence to operate and produce and had to work at reduced production capacity.
3. Small number of players led to little technological change and slow growth.

Changes in 1983-1993
1. Joint venture of Suzuki with the government led to the formation of Maruti Udyog Ltd
2. Maruti udyog brought in the concept of quality.

New Automobile policy in 1993

1. Barriers to entry for foreign car manufacturers were reduced. This led to the flooding of foreign players in
the domestic market. Ex: Ford Motor company, Toyota, Volvo etc came into the domestic market.
2. This created an opportunity for other players to easily do business while for M&M the competitors kept on
increasing.

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Saddle Curve-
The growth of Mahindra was phenomenal owing to the various changes in the organisational structure and strategy.

From 1990s the company has tremendous growth because of foreign and private investment. However in the dawn of
the 21st century Mahindra group faced a severe crisis as the share prices fell from Rs 676 in 2000 to just Rs 51
in 2001.

Both the auto and tractor businesses were facing losses. After a brainstorming session of the top managers, Scorpio
was launched in 2002 with an aggressive marketing strategy targeting the middle income group by offering a
comfortable, safe and classy looking SUV in the 5-7 lakh Rs range.

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Business Ventures

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Automotive and Farm equipment sector

• Mahindra is the market leader for utility • The Mahindra Group’s Farm Equipment
vehicles in India and also exports to several Sector is the largest producer of agricultural
countries in Europe, Africa, the Americas, tractors in India. It has enjoyed an
South Asia and the Middle East. unparalleled market leadership in the
domestic market for the last 23 years.
• Mahindra entered in motorcycle segment by
launching Pantero and Centuro.

• Electric vehicles.

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IT and Infrastructure development sector

• Tech Mahindra specializes in solutions for • The Mahindra Group has a major presence
the communications industry, and is the in the Infrastructure Development Sector
largest system integration and IT solutions with operations in real estate, special
provider to global telecommunication economic zones, the hospitality industry,
operators from India. infrastructure development, project
• Rated as the No.1 value creator in India, engineering consultancy and design.
Tech Mahindra has been ranked in the
Leaders Category in 'The 2009 Global
Outsourcing 100'

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Mahindra – Revenue

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Mahindra - Market capitalisation

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Mahindra – Presence (Automotive
industry)

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 STRENGTH WEAKNESS
• Market leader in multiple automotive segments • Geographic dependence
• Strong Research & Development (R&D) • Overdependence on Automotive industry
• Excellent products according to Indian road conditions • Product Recalls affects brand image
• Low after sale cost • M&M is mainly dependent on rural sector

SWOT
Opportunities Threats
• Growth in Indian automotive industry • Competition in the automotive industry
• Increasing Demand for Hybrid Electric Vehicles • Stringent Regulations
• Emerging nations

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Merger and Acquisitions
Pininfarina (December 2015)
• It is an Italian car design firm acquired by Mahindra Group on 14 December 2015 for 168
million euros.

SsangYong Motor Company(February 2011)

• It is an South Korean firm acquired by Mahindra Group in February 2011 for 522.5 billion
Won.

Reva Electric Car Company(May 2010)

• Now the name is changed to Mahindra Electric Mobility Limited, is and Indian company
based in Bangalore.

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Merger and Acquisitions

Peugeot Motorcycles(October 2014)

• Is an French motorcycle company, Mahindra now own 51% stake in it.

BSA Company(October 2016)

• BSA is an motorcycle company in October 2016 Mahindra Group acquired it for 3.4 million
euros

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THANK YOU

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