Mahindra Report : Analysis of Mahindra & Mahindra Scorpio

Semester Project

Submitted by: Anand Singh Tomar DM17B04 1

PGDM - 2

Table of Contents Sector Information ........................................................................................................................................................3 Industry size and its contribution to the GDP of India ............................................................................................4 Historical Growth/ De-growth Pattern of the sector observed in the previous years ...........................................6 Porter’s Five Forces Model of Mahindra..................................................................................................................7 Company Information ...................................................................................................................................................9 SWOT Analysis of Mahindra ...................................................................................................................................12 Product/Services Profile & Target Market – Product/Services offered by Mahindra ..........................................13 Competitor Analysis of Mahindra ..........................................................................................................................27 Most Recent Mahindra News:................................................................................................................................28 Marketing ....................................................................................................................................................................29 SWOT Analysis of Mahindra Scorpio......................................................................................................................29 Marketing Mix of Mahindra Scorpio ......................................................................................................................30 STP of Mahindra Scorpio ........................................................................................................................................34 Product Life Cycle of Mahindra Scorpio .................................................................................................................35 Business Finance .........................................................................................................................................................36 Statement of Profit and Loss for the year ended 31st March, 2017 .....................................................................36 Mahindra Common size and Comparative statement ..........................................................................................38 Gross Profit and Net Margin of Mahindra .............................................................................................................39 Working Capital for the year ..................................................................................................................................39 Debt/Equity ratio of Mahindra ..............................................................................................................................40 Direct and indirect costs of Mahindra ...................................................................................................................40 Fixed assets added during the year........................................................................................................................40 Human Resource Management ..................................................................................................................................41 Organization Structure ...........................................................................................................................................41 Skill sets require in Mahindra ................................................................................................................................43 JDs and Job Specifications posted by Mahindra on online-job portals ................................................................44 Recruitment Sources of Mahindra .........................................................................................................................49 Selection Process ....................................................................................................................................................50 Induction Program ..................................................................................................................................................50 Types of training provided in Mahindra ................................................................................................................51 Performance Appraisal Model of Mahindra ..........................................................................................................52 Employee Benefits provided by Mahindra ............................................................................................................55 Career Planning at Mahindra .................................................................................................................................56 Organization Culture at Mahindra (As per Employee’s review) ...........................................................................57 Bibliography/References ............................................................................................................................................58

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Sector Informationi

The Indian automobile sector is one of the largest in the world. It is 3rd largest automobile industry. It has strong market in terms of both, the domestic demand and exports. India automobile sector is the 7th largest manufacturer of commercial vehicles. India is the only country among top seven car markets globally to achieve double digit growth rate of 11 per cent during Jan-May 2017. India automobile exports to grow at a CAGR of 3.05 per cent during 2016-2026. Automobile sector split into four segments, each having few market leaders. The automotive manufacturing industry comprises the production of:    

Commercial vehicles that are light and heavy vehicles. Passenger cars which include passenger cars, utility vehicles and multi – purpose vehicles. Three-wheelers that are passenger carriers and good carriers. Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two – wheelers.

The automobile industry is one of the key drivers that boosts the economic growth of the country. Since the de-licensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in India. Indian automobiles sector produced 25 million automobiles in FY17. 3

The world standing for the Indian automobile sector, as per the Association of the Indian industry is as follows:      

Largest three-wheeler market Second largest two-wheeler market Tenth largest passenger car market Fourth largest tractor market Fifth largest commercial vehicle market Fifth largest bus and truck segment

Top companies in automobile sector are: 1. 2. 3. 4. 5.

Maruti Suzuki Mahindra & Mahindra Bajaj Auto Hero MotoCorp TVS Motors

Top Automobile Companies 250000

235308.28

200000 150000 93323.76

100000

85176.22

74842.38 32783.39

50000 0

Maruti Suzuki

Bajaj Auto

Mahindra & Mahindra

Hero Motor

TVS Motor

Market Capitalization(in rs Cr)

Industry size and its contribution to the GDP of India The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.

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Contribution to Growth Mature 7% Emerging Mature

Emerging 93%

India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

Automobiles Sold (in millions) 25

GDP Contribution 7.1% 22

CAGR 5.9%

20

17

18

18

2013

2014

20

20

2015

2016

15

10

5

0 2012

2017

Automobiles Sold (in millions)

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Historical Growth/ De-growth Pattern of the sector observed in the previous years

Automobile Sector Growth 7.1

2016-2017

7.9

2015-16 7.2

2014-15 6.6

2013-14 5.6

2012-13 0

1

2

3

4

5

6

7

8

Growth %

India’s economy grew faster in 2015-16 than earlier estimated, which could result in slower growth in the current fiscal because of a higher base. India’s gross domestic product (GDP) grew 7.9% in 2015-16 against an earlier estimation of 7.6%. India’s economic growth decelerated to 7.1% in 2016-17 based on the 7.6% estimate for the previous year, chiefly because of an industrial slowdown. However, it did not take into account the possible impact of demonetization.

Target vs Actuals (Quick Estimate)

Target FY16 Turnover Employment % share in GDP

Actual FY16 (estimation)

INR 561200 – 731400 crores

INR 601000 crores

35 million

22 million

10%

7.1%

At present, the contribution of automotive industry to overall Indian GDP has only reached 7.1 percent, instead of 10 percent set in AMP (Automotive mission plan) 2016.

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Overall Performance of Automobile Sector in FY16

Segments

Target FY16

Actual FY16

(in million)

(in million)

4.1

3.4

18

27.75

27.91

1

0.89

0.78

12

6.7

7.1

7

0.97

0.93

4

7.2

7.8

9

32.6

18.8

42

192

142

25

Passenger Vehicles Commercial Vehicles Three– wheelers Two– Wheelers

Shortfall %

Target Cumulative

Actual Cumulative

(in million)

(in million)

Shortfall/Surplus %

The annual production target of 4.1 million passenger vehicles was missed by 18 percent and reached only 3.4 million. The annual production target of 0.89 million commercial vehicles was missed by 12 percent and reached only 0.78 million. The annual production target of 4.1 million passenger vehicles was missed by 18 percent and reached only 0.78 million. The annual production target of 0.97 million three wheelers was missed by 4 percent and reached only 0.93 million. The annual production target of 32.6 million two – wheelers was missed by 42 percent and reached only 18.8 million. At the peak, the industry was nearly 26% ahead of the projections. But the start of decline in market sentiments soon after, which continued till the end, has made all the automakers' plans go irrational. India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

Porter’s Five Forces Model of Mahindra The automotive industry globally is a multi-billion-dollar industry, though it is extremely competitive, with many large players trying to leverage their competitive advantages to gain majority or complete market share. Industry environmental factors play an increasingly important role and so automobile manufacturers cannot rely on just safety and reliability to stay competitive, especially given the maturity of this industry. Porter's Five Forces, also known as P5F, is a way of examining the attractiveness of an industry. It does so by looking at five forces which act on that industry. These forces are determinants of that industry's profitability. The five forces are:

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1. The threat of new entrants In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility, would be a great enough barrier to entry to prevent many new entrants from setting up. However, given India's incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high because of the brand equity and capital intensive nature of the business. 2. The bargaining power of buyers/customers Buyers in India have a wide variety of choice. In a market, like India there is lot of bargaining power available to the customers as there are variety of products available in the same range, by different manufacturers. There are more than 20 foreign manufacturers selling in India (including ultra-high-end such as Rolls-Royce and Lamborghini). Of course there are also a surplus of incredibly cheap choices, like the famous Tata Nano. 3. The threat of substitute products India is famous for its two-wheelers (bikes and mopeds) and three-wheelers. These are very real and obvious threats to auto manufacturers. The threat from substitute products continues to be low, with public transportation being under developed even in cities. 4. The amount of bargaining power suppliers have It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in India. Bargaining power of suppliers is low as most of the auto component manufacturers are specialized in some segments related to only one client. 5. The intensity of the competitive rivalry The amount of competitive rivalry is high. The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders. The competition has turned more intense after the entry of foreign players like Volkswagen and Ford with their changed designs to cater to Indian market. 8

Company Informationii

Mahindra & Mahindra Ltd is an India – based company. They are federation of many companies, but they are one brand. Mahindra articulates that every day is perfect day to put yourself out there to chase the impossible and accomplish what is great. Mahindra enables people to rise their goals, dreams, ambition, hope, aspiration, potential & challenges. Mahindra is a global, innovation-led, federation of companies that provides a wide range of products, services and possibilities to people everywhere. Their story began in 1945 with two men – JC and KC Mahindra – on a mission. The mission – driven by the core idea that people will succeed if given an opportunity – was to bring the iconic Jeep onto Indian roads. In the 7 decades many things happened, but they are still driven by their core idea. They have made this idea their driving purpose to use resources innovatively, they challenge conventional thinking & to enable people to rise. Rise gives up meaning and purpose, it instills ambition & attitude, so that they can achieve whatever they set in their minds to be a globally admired brand. Today they have: 200,000+ employees $19 Billion 100+ Countries 22 Industries 11 Sectors

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Mahindra 11 sectors are:

Aerospace

Aftermarket

Agri – Business

Automotive

Farm Equipment

Financial Services

Hospitality

Information Technology

Partners

Real Estate

Two – wheelers Mahindra 22 Industries are: Aerospace

Aftermarket

Agri-Inputs

Automotive

Boats

Clean Energy

Components

Construction Equipment

Consulting

Defence

Farm Equipment

Financial Services

Food

Fruit

Hospitality

Industrial Equipment

Informational Technology

Logistics

Real estate & Infrastructure

Retail

Steel

Two-Wheelers

Mahindra is leader in following businesses:      

India’s 1 UV maker WORLD’S LARGEST TRACTOR BRAND BY VOL LARGEST NBFC IN RURAL & SEMI-URBAN INDIA TOP 5 IT SERVICE PROVIDER FROM INDIA INDIA’S #1 VACATION OWNERSHIP COMPANY INDIA’S LARGEST PRE-OWNED CAR COMPANY

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Mahindra innovation focus areas are:       

Design Green Solutions Accessible innovations Mobility Farm technology Smart Cities Information Technology

Creating world class properties, Mahindra is a global group earning more than 40% revenue outside India, selling vehicles & tractors in 90+ countries, creating business presence in 106 countries, with 34 manufacturing facilities around the world. Mahindra is growing rapidly with a growth rate of 10% through there people, community, governance & sustainability. Mahindra is focused on 6 key opportunities:      

Delivering the future of mobility Driving rural prosperity Providing sustainable urbanization solutions Leading the digital transformation Tourism & Leisure Strengthening security

The Goal or aim of Mahindra is:     

Growing R&D capabilities Innovating ahead of the curve Developing world – class manufacturing Building industry leading brands Having a broad portfolio of superior products Mahindra Founders

JC and KC Mahindra

C.E.O

Anand Mahindra

Headquarters

Mumbai

Market Capitalization

84,542.62 crores

Market Share

24.84%

Growth Rate

10%

GDP contribution

7.4%

Sales turn over

43,785.36

Net Profit

3,955,65 crores 11

SWOT Analysis of Mahindra

Strength of Mahindra: 







Market leader in multiple automotive segments: Mahindra & Mahindra has leading market share in a tractor as well as in the utility vehicles segment. Also, the company has strong market share in the commercial vehicle as well as passenger vehicle segment. Strong market share provides a competitive advantage to the company and allows the company to focus on innovation. Strong Research & Development (R&D): M&M has a highly focused R&D department constantly focusing on developing new products and technologies. M&M majorly focuses on Value addition and Value engineering (VAVE) approach, designing modularity, use of alternate materials etc. Excellent products according to Indian road conditions: Mahindra & Mahindra’s SUVs are suited perfectly to Indian road conditions especially, Mahindra Scorpio which has been an outstanding performer for many years. Low after sale cost: M&M has a competitive advantage on after sale cost since it is lower than the industry average and also have high availability of spare parts to different parts of the country.

Weaknesses of Mahindra:  

Geographic dependence: M&M is depended for the majority of its revenue (over 60%) from India, which would affect its business in case of any economic slowdown or high inflation. Overdependence on Automotive industry: M&M’s major part of revenues come from its automotive business which makes it vulnerable to any breakthrough in the industry or slowdown in the market.

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

Product Recalls affects brand image: M&M has had to recall many of its products in the recent past. For instance, In February 2015, M&M recalled XUV500 manufactured before July 2014. Such incidents affect the brand image of the company and consequently affect sales.

Opportunities of Mahindra: 





Growth in Indian automotive industry: The Indian automotive industry is growing year on year with over 12% growth from the previous 3 years. The industry is expected to grow at a CAGR of 13% in the next 4 years. This growth can be beneficial for M&M. Increasing Demand for Hybrid Electric Vehicles: There is an increasing demand for Hybrid Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to grow at a CAGR of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set to be benefited by the growing demand. Emerging nations: M&M should look forward to tapping the emerging nations around the world which have high potential. M&M should build over its global footprint to tap the emerging markets.

Threats of Mahindra: 





Competition in the automotive industry: M&M faces intense competition from various automotive companies such as Tata Motors, Ford, Volvo and General Motors etc. This can affect M&M’s market share and put pressure to constantly innovate on M&M. Competition in other businesses put pressure on M&M: Mahindra group faces strong competition in other businesses as well. For example, its IT business faces competition from IT giants such as Infosys. This reduces market share and increases competitive pressure. Stringent Regulations: M&M is subject to strict regulations by the government and environmental agencies in terms of emission levels, noise levels etc. Such regulations keep changing and thus increase compliance costs for the companies.

Product/Services Profile & Target Market – Product/Services offered by Mahindraiii

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Products offered by Mahindra are: 1. Personal Vehicles:

a.

The new Mahindra Nuvo Sport, with its sporty and aggressive styling, enables you to have new experiences and accomplish every adventure sports challenge on your bucket list. Built on Mahindra’s New Generation Platform, the Nuvo Sport is a perfect fit for those who lead an active, outdoorsy lifestyle and have an urge to see it all and do it all!

b.

The all-new KUV100 NXT has an intimidating, new front grille, toughened bumpers and bigger, 15”, diamond cut alloys which enhance its aggressive design & bold SUV stance. It also comes with 17.8 cm (7”) touchscreen infotainment system with navigation and premium black interiors with high quality fabric upholstery.

c.

The refined meets the rugged in the Bolero, the awardwinning utility vehicle that redefined the meaning of a UV to include comfort and style. A feature-rich car ready for any road, the Bolero has been India’s no.1 UV for six years in a row. With all the functional power and strength of a traditional UV, and the handling pleasures of a modern car, the Bolero remains the ultimate in style and substance.

d.

The New Bolero Power+ delivers an enhanced performance while retaining the core DNA of the legendary Bolero. It is powered by the reliable mHAWKD70 engine which is efficient, has low NVH and comes from the proven mHawk family of engines. It delivers more power, more mileage and is peppier. It also offers better maneuverability and spacious 7 seats with added cushioning.

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e.

Made for a generation for whom nothing else will do, the Scorpio is the definitive urbane SUV, with all the luxuries of a car, and all the thrills of an SUV. That is as comfortable on scorched earth as it is on smooth roads. That looks like it belongs on scrubbed city ways, as well as on windy Himalayan terrain. Adaptability comes standard on a Scorpio and you’ll find it in standard and pickup variants around the world including India, Africa, Europe where it’s known as the Goa. It’s big on size and innovation. On good looks and features. And oh-so-easy on the eyes.

f.

The legend of the Thar has been in the making for more than sixty years. The adventurer’s car of choice, it is the true successor to the MM540, Mahindra’s original all-terrain, come-what-may jeep. With its classic body and contemporary features, the Thar is more than just a vehicle that can navigate deserts, rivers, and ravines. It is an indestructible collector’s item.

g.

The new luxurious TUV300 is a bold and classy SUV, that comes loaded with high-end features that grabs attention wherever it goes. It comes with new plush faux-leather seats, a new hi-tech 17.8 cms (7”) touchscreen infotainment system and classy external finishes. The TUV300 is also perhaps India's easiest to drive SUV, thanks to its first-in-class 'auto SHIFT' technology (Automated Manual Transmission).

h.

The Verito is the sedan of substance for people who value that singular quality. Bold straight lines and subtle curves give it an unmatched elegance, and class-leading cabin space makes every ride a journey to behold.

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i.

We made the Verito Vibe for those who want a sedan’s character with a sporty personality. The Verito Vibe, a derivative of the Verito, is a compact sedan that retains the sedan’s inherent strengths and adds distinctive features such as first-inclass LED Light Streaming Tail Lamps, champagne alloy wheels, and a carbon-finished front grille.

j.

Bold lines trace its chiseled body. Static-bending projector headlamps glimmer from under its aerodynamic hood. A racing-inspired twin exhaust stands ready to emit a roar when you power up its turbo-charged mHawk engine. Feature-rich and innovative to its core, the XUV 500 is advanced, intense, and an undiluted driving experience.

k.

Why only drive a car when you can speak to it? The spacious and stylish Xylo offers comfort, power, and segment-defining Voice Command Technology, with which you can control your car with simple voiced instructions. Aided by an intelligent Digital Information System and our legendary mHawk engine, this multi-utility vehicle is as technologically advanced as you are.

l.

The Actyon fuses the style of a sports coupe with the strength of an SUV. With a no-nonsense third-generation 141-horsepower diesel engine, and progressive features like an electro chromatic mirror that auto-adjusts to reflections at night. Off the road or on it, the Actyon is designed to embolden passion. Free the spirit. Deliver the dream.

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m.

What happens when you take the Actyon and combine it with the characteristics of the pickup truck? The Actyon Sports comes to town. A vehicle ready to handle any challenge you throw at it, the Actyon Sports is Korea’s first multi-purpose sports utility truck, and a car constructed to succeed in any jungle, urban or otherwise.

n.

Unbridled luxury. State-of-the-art elegance. Innovative aesthetics. These attributes come standard in the Chairman W, a full-size luxury sedan that’s world class in its every line and groove. More than a car, the Chairman W is a modern classic, and the car of choice for the discerning and the distinct.

o.

The pre-eminent SUV that’s engineered and designed to captivate. That offers journeys, not drives. Stories and escapades. Discoveries and destinations. With its visceral power and progressive features, every twist and turn in the Rexton represents joy in motion. Drive one to understand one.

2. Electric vehicles are:

a.

The e2o is a clever little car. Gearless, noiseless, emissionless, it is the incredible electric car that delivers an astonishing driving experience. Sustainable and convenient, the e2o is leading the global charge to unearth an affordable and green car.

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Innovation-rich and city-ready, it is today's path-breaking solution to tomorrow's mobility needs. Sync it with your phone to get started!

b.

Esupro advancement of technology has enabled us to combat pollution in multiple ways. Now we have greener and cleaner alternatives for the wellbeing of our environment and health.

c.

e-Alfa mini is best suited for last mile connectivity in major metros. e-Alfa mini has an attractive exterior design, robust body, a large cabin space for ultimate comfort for driver & passengers and superior suspension and chassis. e-Alfa mini is powered by a 120Ah battery, a powerful motor and controller of 1kW. With all these features, the e-Alfa mini scores highly over its competitors.

3. Commercial Vehicles are:

a.

The new Imperio has a premium style, SUV stance and bold road presence. With its aerodynamically designed exterior look, new age headlamps, aggressive bumper, 16 inch (40.64 cm) radial tires and metallic colors, it is all set to take the take pick up segment to newer heights. It is powered by world class technology including Fuel Smart technology, brakes with LSPV & telematics compatibility. Below the hood of next generation styling and premium feel of the Imperio is tested & proven DI engine with common rail technology which delivers 75 HP power (56 kW), 220 Nm torque (pulling power) and mileage of 13.55km/l*. The Imperio is unmatched in terms of its head-turning style, performance, best in class safety and comfort features thereby providing an enhanced driving experience to customers.

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b.

A well renowned name in semi urban & rural last mile connectivity, ALFA passenger is known for its strong and rugged body. It is popularly known as 'Bad shah' of three wheelers. Besides the exceptional standards of style, comfort, safety and performance, it also offers you a best-in-class warranty of 24 months. To suit varied needs of customers it comes in 3 variants. So sit back, relax and watch your business grow with the Mahindra Alfa.

c.

The Alfa is a three-wheeled goods carrier made to positively impact the lives and livelihoods of its owners and drivers. It’s the only vehicle of its kind with a 24-month warranty, and designed to make the loading, moving, and unloading of small cargos easier and faster. It’s hardy frame handles oversized and tall loads with ease, and a green CNG (Compressed Natural Gas) model, the Champion, is also available on request.

d.

Presenting New Big Bolero Pik Up which enables to fulfil your Big desires in life. Its Big payload, Big Cargo box, Big Power and other Big features helps you to make it Big in life. Big payload of 1500 kg and 1250 kg gives you the freedom to carry more load, Big cargo box of 2765 mm (9 ft.) enables you to carry more load comfortably. Big power of 52.2 kW (70 HP) & 46.3 kW (63 HP) infuses energy in every journey. With so many Big features of New Big Bolero Pik Up, make your business Big and bring home Big happiness.

e.

The tough and uncompromising Bolero Pickup is true to its name and breed, a powerful vehicle that does the job, no matter the terrain. It’s been the market

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leader over a decade now, with over 600,000 customers trusting it to deliver the goods when it matters most.

f.

Whether you have unforeseen business to deliver or unseen places to visit, the Bolero Camper gets you and your cargo to your destination in style with its double cabin. It’s made for the expedition without the exhaustion, and like a Bolero, it’s made for whatever the earth can throw at it.

g.

The Bolero Maxi Truck Plus comes standard with all the legendary toughness of its namesake, and is built to not only carry loads, but also to conquer cities. With its power steering, low turning radius, and superior mileage, it’s made for street corners and stop-and-go-traffic.

h.

We designed the Jeeto to be the best mini-truck for the urban jungle. It offers an unmatched combination of styling, performance and car-like comfort. The peppy M-Dura engine ensures optimum efficiency and lower running costs. A specially designed wide front-screen allows drivers to clearly see oncoming traffic. The semi-forward design ensures offers protection even in the event of a frontal crash. The spacious cabin offers car-like comfort and leg-room, making even long journeys pleasant. It’s no wonder then that the Jeeto is making waves in its category.

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i.

The new Mahindra Jeeto Mini Van comes with power packed features like 16 HP kW power which helps customers cover long distances faster. It's mileage of 26 km/l* also gives our customers more earning potential.

j.

Mahindra Supro is India’s largest range of stylish and spacious vans. Offering a versatile range for various applications, the Mahindra Supro is perfect for long journeys with the family and for elevating any business to the next level. Supro is available with two powerful and fuel-efficient engines, 34 kW (45 HP)/ 22.2* km/l, and 19 kW (26 HP)/ 21.46* km/l. You get power to rule the roads and mileage to always go further. So, choose Supro and get an edge over others.

k.

Mahindra Supro Maxi truck - The stylish and modern Supro Maxi truck is here and be it comfort, payload, mileage or features, we are ready to power your dreams. Its amazing pick-up can take on any terrain and the power steering can maneuver through the narrowest lanes. Powered by a 34 kW (45 HP) power DI engine and 1000 kg payload capacity, you can take your good anywhere and your business to new heights.

l.

Mahindra Supro Mini truck has powerful features that make it the Profit truck. Its 19.2 kW (26 HP) robust DI engine and 70 kmph top speed lets you take more trips to earn more. With its 850 kg impressive payload capacity you can carry more load than any other mini truck. Along with an excellent mileage of 23.17 km/l* to give you more savings.

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4. Heavy Commercial Vehicles are:

a.

Mahindra BLAZO 25 is equipped with 7.2 litre MPOWER Fuel Smart engine which manages fuel more efficiently than any other truck in it class. It also has best-in-class cabin comfort which allows drivers to drive longer without feeling tired. The BLAZO 25 is specifically designed to transport construction material, cement, FMCG goods, vegetables, fruits, frozen meat, milk, dairy and pharmaceutical products by maintaining their freshness and quality from start to finish.

b.

BLAZO 25 Tipper is built for mileage. It’s made to endure the harshest of terrains while carrying the heaviest of loads. Heavy-duty aggregates, 7.2 litre engine with high torque and low RPM engine, solid braking system and trustworthy axles, make sure that this tipper can withstand anything that the roads may throw its way. The BLAZO 25 is a great combination of low maintenance, low running costs and high-performance

c.

BLAZO 25 COWL gives more power and more drilling per day. It's fitted with the m-POWER Fuel Smart engine with Multimode, which is as powerful as it is fuel-efficient. It also has the highest torque in the category.

d.

Delivers market loads and food grains without getting fuel – thirsty. BLAZO 31 is strong, reliable, efficient and comfortable. This is a minimum maintenance vehicle that is always ready to carry load anywhere, no matter how harsh the terrain. 22

e.

Assured fuel savings every time you deliver automotive. The rugged BLAZO 35 has been designed and built for Indian roads and load conditions. It is equipped with the extremely powerful fuel-efficient and reliable m-POWER Fuel smart engine.

f.

Perfect for fuel economy. Perfect for heavy loads. In a business as demanding as construction, timely delivery of cement, fly-ash and other construction material is critical. That’s why BLAZO 37 trucks come with superior power and mileage and torque to deliver goods quickly. They also have lower TCD which gives better maneuverability and tag axle which give increased tire life.

g.

Three things the BLAZO 40 is guaranteed to deliver – sturdiness, low maintenance and superior mileage. Mainly because the vehicle has been designed to endure any wear and tear. This leads to fewer servicing needs and downtime. Which in turn results in lower overhead charges.

h.

A big heart for big cargo and bigger mileage. Not only is the BLAZO 49 safer, it also helps make deliveries on time. Mahindra’s trucks and trailers are customized as per the customer’s business needs, without compromising on performance or profits. 23

5. Light Commercial Vehicles are:

a.

More comfort. More earnings. Ideal city truck. JAYO is all about giving customers more. It has best-in-class fuel economy and has a higher loading capacity. It comes with power steering option that ensures easy maneuverability and increased driving comfort. It has a clear lens headlamp that provides better illumination.

b.

The OPTIMO is a fresh entrant in the Mahindra LCV segment. Apart from a cargo variant, it also has a tipper option to take on specific applications like sand mining and construction. The Mahindra OPTIMO comes with a warranty of 1+2 years. The cargo variant has a grade ability of 29%, while the tipper has that of 33%.

6. Buses are:

a.

Bringing together the best of both worlds - supreme efficiency and incredible comfort. Mahindra DK school bus is an extremely economical machine built to deliver performance. Engineered to perfection, this bus reflects our philosophy of out-performance in more ways than one.

b.

The New Touristic EXCELO Bus brings together the best of both worlds - supreme efficiency and incredible comfort. It is an extremely economical machine built to deliver performance. Engineered to perfection, this bus reflects our philosophy of out-performance in more ways than one. 24

Services offered by Mahindra are: 1. Customization

Your wish is our command, at Mahindra Customization. After you pick your automobile, we offer you an array of customization menus to completely revise the look and feel of your car. From a new color to distinctive spot lamps, from re-styling the body shell to fitting a new bumper, we do it all so that you drive a car that’s as unique as you. 2. Design Services

To help you create and prototype tomorrow’s automobiles, we provide end-to-end design solutions via Mahindra Graphic Research Design, our Italian automotive and industrial design house. Traditional Italian sensibility and style combines with our technological prowess to ensure customized designs and services to match. 3. Mahindra Spares

Indicative of our DIY spirit, we build the spare parts that power our vehicles. Whether a scooter or a truck, take advantage of our expertise and network to enhance your machinery, with over 36,000 active parts sold by over 800 vendors. Get the best parts at the best price with us. 25

Target Market of Mahindra:

Mahindra & Mahindra has targeted different market segments with their different vehicles. XUV 500 is for the cosmopolitan population with international quality car and advance technology and style. Bolero is more for more price conscious, middle class consumers in smaller towns. Therefore, the pricing strategy in the marketing mix of the automobiles is done keeping the market segment and the competitors in mind. The automobiles in the product portfolio ranges from as low as 4.54 lakhs to 40 lakhs. Mahindra Scorpio ranges from Rs.8.11 lakhs to Rs.15.05 lakhs. Different versions of XUV500 can be bought from Rs.12 lakhs to Rs. 17.9 lakhs. Mahindra Thar ranges from 5.22 lakhs to 8.38 lakhs. Mahindra Rexton is the premium range SUV with superior features in the price range from 20.94 lakhs to 24.74 lakhs. Mahindra & Mahindra’s commercial vehicles are very popular for their ruggedness and toughness. Mahindra Truxo ranges from 17 lakhs to 22 lakhs. Mahindra & Mahindra follows competitive pricing as its price range is very similar to its competitors. In fact, some commercial vehicles are priced marginally lower than the competitors. Mahindra & Mahindra has a distribution network spanning the length and breadth of India. Mahindra & Mahindra has 300 dealerships spread across 240 cities. Around 1300 up-country outlets have been set up to serve the rural and semi-urban areas in the country. Mahindra & Mahindra has an efficient and effective warehouse and clearing and forwarding facility. SRP group supports Mahindra in logistics and warehousing. Mahindra & Mahindra has dealerships across the country which are equipped to handle sales and service for personal and commercial vehicles both. Their network reaches the remotest of places like Kargil, Port Blair, Barmer and Jaisalmer to name a few. Mahindra & Mahindra has further broadened its horizon by collaborating with ecommerce platforms giving further boost to the sales for online customers. Mahindra & Mahindra has a large customer base in the rural areas but due to poor infrastructure and lack of facilities it is hard to penetrate the rural market. Therefore, Mahindra & Mahindra came up with an innovative idea and helped in developing dealership’s infrastructure in the rural areas through its “Samriddhi Centers”. Through these centers farmers got valuable information on weather, crops and farm productivity which attracted the farmers to these dealerships and turned them into loyal customers. Mahindra target group is young executives from the upper-middle income bracket, farmers, tourists cab, military, small traders, government employees, etc. 26

Competitor Analysis of Mahindraiv Mahindra market capitalization is Rs 85,452.62 Crore and market share is 10.7% Competitor of Mahindra and their market share are as follow: Competitors

Market Capitalization (Rs Cr)

Market Share%

Maruti Suzuki

233,541.12

28.39

Bajaj Auto

92,828.94

11.71

Hero Moto corp

74,786.47

9.4

TVS Motors

32,448.45

4.9

Tata Motors

145,087.72

18.3

Eicher Motors

85,665.14

10.8

Ashok Leyland

37,766.93

4.7

Force Motors

4,810.39

0.9

Hind Motors

151.49

0.2

Automobile India Market Share 0.9

0.2

4.7

10.8

10.7

28.39

18.3

4.9 9.4

11.71

Mahindra

Maruti Suzuki

Bajaj Auto

Hero Moto corp

TVS Motors

Tata Motors

Eicher Motors

Ashok Leyland

Force Motors

Hind Motors

27

Most Recent Mahindra News:v                           



 



Mahindra Sparks Innovation Amongst the Next Generation with Revolutionary 3D Printing Technology. Mahindra group links talent diversity to business strategy. Mahindra Susten to build India's 1st battery-backed solar project in Andaman. Global cues weak for Muhurat Trading: 10 top stocks in focus. Mahindra launches 'Prerna' project for women farmers. Mahindra Logistics secures Sebi's approval to float IPO. Shapoorji Pallonji, Liberty House, M&M in race to buy ABG Shipyard. Nifty scales a new peak, but Street watchful. Mahindra & Mahindra showcases driverless tractor. Mahindra Life space launches Phase 2 of its premium residential project in Bengaluru. Mahindra Life space, IFC partner to develop multiple industrial parks in India. Will make money from EESL e-vehicle order: N Chandrasekaran. Mahindra USA pledges $1.5 million for hurricane Harvey relief. Mahindra Group to double US investment in next 5 years. Mahindra group to pump in $1 billion in US over next 5 years. Electric vehicles profit tipping point in reach: Anand Mahindra. Mahindra tractor sales up 22% at 16,516 units in August. Tech Mahindra looks to automate its future earnings. IFC to invest $125 million in Mahindra Group companies. Demand has been picking up over the last few months: Anita Arjundas, Mahindra Group. M&M launches e-rickshaw e-Alpha Mini at Rs 1.12 lakh. Mahindra to sell China tractor JV stake for RMB 82 million’ Mahindra, Lockheed open Hercules training center at Hindon air base. General Motors in talks with Mahindra group to provide after-sales support to existing customers. Mahindra Group set to invest in agricultural sector. Mahindra & Mahindra to roll out 4 SUVs, invest Rs 5,000 crore. From solar lamps and water jugs and even prosthetic limbs, 3D printing has the potential to drive positive change in the lives of people everywhere. The Mahindra Group has now designed and implemented a pilot project to bring its benefits to semi-urban and rural India. 2016 has gone down in history as Mahindra Racing's most successful Moto3™ World Championship campaign to date. Goals were achieved and surpassed, causing the bar to constantly raise as the season progressed. Mahindra partners with IBM to develop cloud-based Block Chain application, one of the first projects of its kind in India outside of traditional banking. In India, where approximately 64 percent of girls drop out of school before they complete the secondary level, the education of millions of girls is considered a daunting task. So, in 1996, Anand Mahindra, chairman of Mahindra & Mahindra Ltd., began Project Nanhi Kali at the K.C. Mahindra Education Trust, with the aim of providing primary education to underprivileged girls in India. Mahindra will soon be setting up a global start-up incubation center outside of the country to attract Block chain start-ups that can help the group in using the tech in as many ways as possible.

28

Marketingvi

SWOT Analysis of Mahindra Scorpiovii SWOT Analysis is a way of monitoring the external and internal marketing environment. The SWOT Analysis of Mahindra Scorpio is as follows: Strength of Mahindra Scorpio         

It has a very low maintenance cost with a gracefully tough masculine look. It has an extremely smooth performance in the rural, hilly, city and highway roads. Have a well-designed seating arrangement. Good performance for long distances. Powerful player in the taxi/rental segment. Good presence in the rural and tier-2 cities segment. Maintenance cost is low. Excellent performance in case of covering long distance. A very well impressed loyal brand positioning with good numbers of service centers.

Weakness of Mahindra Scorpio   

It has a very limited International market. There are no airbags for protection. Limited international market.

Opportunities of Mahindra Scorpio      

Hard work of the R&D department to innovate some new attractive featured models. Increasing the purchasing power and attraction towards heavy cars of common people. Making the models more fuel efficient models and try to introduce CNG models. Increasing purchasing power and growing target base Leverage strong brand name by more advertising Newer innovations

Threats of Mahindra Scorpio     

Increasing competition with global players. Increasing fuel prices. Intense competition Government regulations and increasing fuel prices Improvement in public transport 29

Marketing Mix of Mahindra Scorpio

The soft tops sales, which were Mahindra’s strength, were stagnating. Hard top vehicles like Sumo and Quails were garnering market share. The urban market was showing more potential for vehicle sales and UVs were gaining higher acceptability in urban cities. The competition was getting tougher with international UVs entering the market. The market was moving from traditional multi utility, non-luxurious vehicles to luxurious vehicles. M&M had launched Bolero in 2000 to cater to this newly emerging segment. However, to add to the category’s woes, it declined at threat of 3.1 percent in year 2001 over year 2000. UV as a percentage of the overall passenger car market was just 16 per cent in 2001. This simply meant that for attaining the volumes, Scorpio was launched in 2002 which was needed to look beyond UVs in terms of competitive framework to decide on a marketing strategy. Marketing mix of Mahindra Scorpio is as follows: A. Product: The M&M focused on product like Scorpio which was best design SUV available in that segment. This led to huge demand for that product because the only competition for them in that segment was Tata Safari which was also not updated in terms of its design.   

Mahindra Scorpio Mahindra Scorpio Getaway Mahindra Scorpio First

30

These are the following models of Mahindra Scorpio that are:               

S2 S4 Intelli-Hybrid S4 1.99 Intelli-Hybrid S4 Plus Intelli-Hybrid S4 Plus 1.99 Intelli-Hybrid S6 Plus Intelli-Hybrid S6 Plus 1.99 Intelli-Hybrid S4 Plus 4WD Intelli-Hybrid S4 Plus 4WD 1.99 Intelli-Hybrid S8 Intelli-Hybrid S8 1.99 Intelli-Hybrid S10 2WD Intelli-Hybrid S10 1.99 Intelli-Hybrid S10 4WD Intelli-Hybrid S10 4WD 1.99 Intelli-Hybrid

B. Price: M&M introduced their product with proper blend of innovation and price. They developed their products on their own without taking help from third party agencies, so they could keep the prices of the products very competitive. 31

Model

Price (IN ₹ Lakh)

S2

9.7

S4 Intelli-Hybrid

10.95

S4 1.99 Intelli-Hybrid

10.99

S4 Plus Intelli-Hybrid

11.46

S4 Plus 1.99 Intelli-Hybrid

11.50

S6 Plus Intelli-Hybrid

12.50

S6 Plus 1.99 Intelli-Hybrid

12.54

S4 Plus 4WD Intelli-Hybrid

12.56

S4 Plus 4WD 1.99 Intelli-Hybrid

12.74

S8 Intelli-Hybrid

13.54

S8 1.99 Intelli-Hybrid

13.64

S10 2WD Intelli-Hybrid

14.26

S10 1.99 Intelli-Hybrid

14.34

S10 4WD Intelli-Hybrid

15.49

S10 4WD 1.99 Intelli-Hybrid

15.57

C. Place: M&M has 4 manufacturing plants viz. in Mumbai, Nasik, Igatpuri and one in Andhra Pradesh. All these locations are either close to big markets like Mumbai, Pune, and Hyderabad etc. Also they can export the cars at lesser transportation cost because of vicinity to port. 32

Mahindra & Mahindra has a distribution network spanning the length and breadth of India. Mahindra has 300 dealerships spread across 240 cities. Around 1300 up-country outlets have been set up to serve the rural and semi-urban areas in the country. Mahindra has an efficient and effective warehouse and clearing and forwarding facility. SRP group supports Mahindra in logistics and warehousing. Mahindra has dealerships across the country which are equipped to handle sales and service for personal and commercial vehicles both. Their network reaches the remotest of places like Kargil, Port Blair, Barmer and Jaisalmer to name a few. Mahindra & Mahindra has further broadened its horizon by collaborating with ecommerce platforms giving further boost to the sales for online customers. Mahindra has a large customer base in the rural areas but due to poor infrastructure and lack of facilities it is hard to penetrate the rural market. Therefore, Mahindra came up with an innovative idea and helped in developing dealership’s infrastructure in the rural areas through its “Samriddhi Centers”. Through these centers farmers got valuable information on weather, crops and farm productivity which attracted the farmers to these dealerships and turned them into loyal customers. D. Promotion: M&M promoted their cars using lot of advertisements and putting their cars in car rally across the country. Scorpio become even big hit after it was being continuously shown in various movies. Mahindra & Mahindra advertises very smartly and adequately. Mahindra “Live young, Live free “campaign became popular. Mahindra & Mahindra follows an aggressive promotional strategy in its marketing mix. It showed Mahindra’s Scorpio in tough terrains of different parts of India. Mahindra do a lot of print, digital and media advertising as well. They host on ground events like the Mahindra adventure initiative. Mahindra has a huge fan base on social media. Various events and contests like the Dubsmash & win Mahindra Scorpio contest are played on the social media to create buzz and for customer engagement. It has around 17 million fans across various brands and over 40 million views on different videos on YouTube. Mahindra does a lot of promotion of Scorpio through road show. It is a great platform in terms of customer engagement and creating an extraordinary experience. Mahindra organized a multiple city road show to promote Scorpio. It helped the audience relate to the holiday theme of the car.

33

STP of Mahindra Scorpio

Segmentation of Mahindra Scorpio: A BRAND is a thought, and launching brands can be a great growth strategy for any corporate. But, it takes two to tango. A brand founded on a good idea needs to be built with an ever-evolving game plan. A case in point is the launch of the sports utility vehicle (SUV), Scorpio, by Mahindra & Mahindra (M&M). When Scorpio hit the streets, it arrived as an SUV with a `car plus package. Two-and-a-half years later, it has caused a paradigm shift in its category. Equipped with a savvy marketing strategy, the brand has not only grown the SUV market, but almost touched base with the `class cars segment According to automobile manufacturers data, the premium utility vehicle segment grew at approximately 14 per cent up to June 2002. With the launch of Scorpio, the growth rate from July 2002 to March 2003 rose to about 51 per cent. Between April 2003 and March 2004, the segment grew by 33 per cent. Targeting of Mahindra Scorpio: The track monitors `high value consumers, and registers those who are in the SEC A and B categories, while 67 per cent of the sample size is from the top eight metros; the rest from the next 50-60 towns across India. Sales too have been zooming, says the company. According to brand-wise data, the company claims to be matching sales of most C segment cars, even outselling some of them. In the last six months, M&M sold 14,389 Scorpios, against a total C segment sale of 79,346, according to company data. Positioning of Mahindra Scorpio: Attract a lot of cross-over customers. Unlike for its competitors in the UV category, people who wished to purchase a C class car would also consider a Scorpio," says Hormazd Sorabjee, Editor, and Auto car India. "The Scorpio launch did play a significant role in driving the UV market up. This to me is the ultimate measure of success - the ability of a company to drive the growth of markets," remark Abraham Koshy, Professor of Marketing, Indian Institute of Management, and Ahmedabad. Marketing gurus suggest that the positioning of Scorpio was also very bold and innovative. Mahindra Scorpio Pick Up secures third position in T2 category of Rally dos Sertoes in Brazil.

34

U A L

DECLINE

N

MATURITY

N

GROWTH

A

INTRODUCTION

Product Life Cycle of Mahindra Scorpioviii

S A

MAHINDRA

L

SCORPIO

E S

V O L U M

TIME

E Product life-cycle of Mahindra Scorpio is simply graphic portrayal of the sales history of Mahindra Scorpio from the time it is introduced to the time when it is withdrawn. It is a conceptual representation. It is a product aging process. Just as human-beings have a typical life-cycle going from childhood, adolescence, youth and old-age, so also Mahindra Scorpio follow a similar route. 1. Introduction: Mahindra Scorpio was introduced in 2002. Scorpio captured 22 per cent of the premium hard top market in 9 months. In its introduction stage, 12000 Scorpio’s were sold. 2. Growth of Mahindra Scorpio In its growth stage, Scorpio captured 45 per cent of the premium hard market and 24000 Scorpio’s were sold in 18 months. Due to Mahindra Scorpio’s increased sales Mahindra emerged as an urban player. 3. Maturity of Mahindra Scorpio Scorpio is now in maturity level they have 58% SUV market share. Scorpio has few competitors like Tata Innova, Tata Safari, Ford Eco-Sport, etc.

35

Business Financeix

Mahindra & Mahindra Limited Statement of Profit and Loss for the year ended 31st March, 2017 Rupees crores 2017

2016

Revenue from Operations

47,096.04

43,638.90

Other Income

1,342.49

849.93

Total Income

48,438.53

44,488.83

Cost of materials consumed

20,913.11

19,364.88

Purchases of Stock-in-trade

10,893.63

10,409.26

INCOME

EXPENSES

Changes in inventories of finished goods, stock-in-trade and workin-progress Excise Duty

(4.01)

(257.97)

3,310.68

2,763.83

Employee benefits expense

2,595.37

2,348.72

145.58

186.05

1,327.16

1,068.10

4,755.04

4,469.50

43,936.56

40,352.37

137.07

79.26

Finance costs Depreciation and amortization expense Impairment expenses/losses Other expenses Less : Cost of manufactured products capitalized

36

Total Expenses

43,799.49

40,273.11

Profit before exceptional items and tax

4,639.04

4,215.72

548.46

68.74

5,187.50

4,284.46

Current Tax

998.26

857.65

Deferred Tax

233.59

222.24

3,955.65

3,204.57

(5.19) 0.17

10.60 (0.04)

1.80

(3.67)

(1.20) 9.87

3.06 31.91

(3.00)

(12.10)

2.45 3,958.10

29.76 3,234.33

66.70 66.37

53.05 52.80

Exceptional Items Profit before tax Tax Expense

Profit After tax

Other Comprehensive Income A. (i) Items that will not be reclassified to profit or loss (a) Changes in revaluation surplus (a) Premeasurements of the defined benefit plans (b) Equity instruments through other comprehensive income (d) Fair value changes relating to own credit risk (e) Others (specify nature) (ii) Income tax relating to items that will not be reclassified to profit or loss B. (i) Items that will be reclassified to profit or loss (a) Exchange differences in translating the financial statements of foreign operations (a) Debt instruments through other comprehensive income (b) Effective portion of gains and loss on designated portion of hedging instruments in a cash flow hedge (d) Share of other comprehensive income of equity accounted investees (e) Others (specify nature) (ii) Income tax relating to items that will be reclassified to profit or loss Total other comprehensive income Total comprehensive income for the year Earnings per equity share : (Face Value Rs. 5/- per share) (Rupees) Basic Diluted

37

Mahindra Common size and Comparative statement Particulars

For the year ended March 31, 2017

For the year ended March 31, 2016

Common Size Ratio 2017

Common Size Ratio 2016

Comparative Ratio

Net Revenue Other Income

47,096.04 1,342.49

43,638.90 849.93

100.000 2.851

100.000 1.948

7.922 57.953

Total Income Expenses

48,439

44,489

102.851

101.948

8.878

20,913.11

19,364.88

44.405

44.375

7.995

10,893.63 (4.01) 3,310.68 2,595.37

10,409.26 (257.97) 2,763.83 2,348.72

23.131 (0.009) 7.030 5.511

23.853 (0.591) 6.333 5.382

4.653 (98.446) 19.786 10.501

4,755.04

4,469.50

10.096

10.242

6.389

Total Exp.

42,464

39,098

90.164

89.595

8.608

EBITDA

5,975

5,391

12.686

12.353

10.836

1,327.16

1,068.10

2.818

2.448

24.254

EBIT Finance cost

4,648 145.58

4,323 186.05

9.868 0.309

9.905 0.426

7.520 (21.752)

Profit before exceptional items and tax Exceptional Items

4,502

4,136

9.559

9.479

8.836

548.46

68.74

1.165

0.158

697.876

Profit before Tax

5,050

4,205

10.724

9.636

20.100

Current Tax Deferred Tax Net Tax

998.26 233.59 1,232

857.65 222.24 1,080

10.724 0.496 2.616

9.636 0.509 2.475

20.100 5.107 14.072

Profit After Tax

3,270

3,057

6.944

7.004

6.987

Cost of Raw material consumed Stock Purchased Inventory Stock Excise duty Employee Benefits Expense Other Expenses

Depreciation and amortization expenses

38

Gross Profit and Net Margin of Mahindra

Net Profit Margin =

2017 =

𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔

𝟑,𝟐𝟕𝟎 𝟒𝟕,𝟎𝟗𝟔.𝟎𝟒

* 100

* 100

2017 = 6.943 %

2016 =

𝟑,𝟎𝟓𝟕

𝟒𝟑,𝟔𝟑𝟖.𝟗𝟎

* 100

2016 = 7.005 %

Gross Profit Margin = 2017 =

𝑮𝒓𝒐𝒔𝒔 𝑷𝒓𝒐𝒇𝒊𝒕

𝟓,𝟎𝟓𝟎 𝟒𝟕,𝟎𝟗𝟔.𝟎𝟒

𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔

* 100

* 100

2017 = 10.722 %

2016 =

𝟒,𝟐𝟎𝟓 𝟒𝟑,𝟔𝟑𝟖.𝟗𝟎

* 100

2016 = 9.635 %

Working Capital for the year

Working Capital for the year = Current Assets – Current Liabilities 2017 = 12,455.99 – 9,458.95 2017 = 2,997.04 (in INR Crores) 2016 = 11,635.68 – 9,844.32 2016 = 1,791.36 (in INR Crores) 39

Debt/Equity ratio of Mahindra 𝑫𝒆𝒃𝒕 − 𝑬𝒒𝒖𝒊𝒕𝒚 𝑹𝒂𝒕𝒊𝒐 = 𝟐𝟎𝟏𝟕 =

𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓′𝒔 𝑬𝒒𝒖𝒊𝒕𝒚

𝟐𝟐𝟑𝟑. 𝟗𝟗 𝟐𝟓𝟔𝟔𝟗. 𝟓𝟓𝟓 = 𝟎. 𝟎𝟖𝟕 𝒕𝒊𝒎𝒆𝒔

𝟐𝟎𝟏𝟔 =

𝟏𝟒𝟗𝟓. 𝟒𝟐 𝟐𝟐𝟒𝟐𝟑. 𝟏𝟕 = 𝟎. 𝟔𝟔𝟔 𝒕𝒊𝒎𝒆𝒔

Direct and indirect costs of Mahindra

Particulars

FY 2017

FY 2016

Material cost

20,913.11

19,364.88

Purchase of Stock-in-trade Changes in FG & WIP Total Direct Cost

10893.63 (4.01) 31802.73

10409.26 (257.97) 29516.17

FY 2017

FY 2016

2,595.37 145.58 1,327.16 4755.04 8823.15

2,348.72 186.05 1,068.10 4469.5 8072.37

Particulars Employee benefits expense Finance costs Depreciation expense Other expenses Total Indirect Cost

Fixed assets added during the year No assets purchased this financial year.

40

Human Resource Managementx

Organization Structure Organization Hierarchy and Board of Mahindra & Mahindra:

41

Organization Structure of Mahindra & Mahindra:

42

Skill sets require in Mahindra

Communication

Ability to Work Under Pressure

Decision Making

Time Management

Self-motivation

Conflict Resolution

Leadership

Adaptability

Teamwork

Creativity

Technical Skills

Safety & Security Skills

Job doing skills

Analytical

Determination

Visionary

Confident

Patience

Goal-oriented

GrowthOriented

43

JDs and Job Specifications posted by Mahindra on online-job portalsxi

A. Human Resource Management

44

45

B. Finance

46

47

C. Marketing

JOB ANALYSIS : JOB DESCRIPTION Sales Executive at Mahindra Business unit/Function Job title Incumbent Name Organizational Chart/Structure

Automobile Sales Executive Anand Singh Tomar Regional Head Zonal Head Territory Head Area Sales Manager Sales Executives

Purpose of the Job

Supervision Received Supervision Exercised Key Responsibilities and Duties

1. To achieve organizational and personal sales objectives, retain and maintaining relationships with clients and gain prospective clients 2. Ensuring day to day functioning of the company carries on smoothly without any hitches and executive has to oversee the administration function of the organization. Area Sales Manager/ Territory Head Merchandiser, Executive Assistant, Retailer 1. Identifying prospects and evaluating their position in the industry 2. Researching and analyzing sales options 3. Sells products by establishing contact and developing relationships with prospects 4. Recommending solutions 5. Answering queries, offering advice and introducing new products 6. Organizing sales visits, demonstrating and presenting products 7. Developing, maintaining, and improving relationships with clients 8. Making appointments with and meeting new customers 9. Sell company's products and services

Skills Required

Customer service oriented and exceptional selling skills, Problem-solving and decision-making skills, Exceptional communication and interpersonal skills

Attributes Required

Greeting, acknowledging, and informing customers in a warm, courteous, and professional manner, Multitasking; proactive; able to work both independently and as part of a team; Physical strength to work in long hours

Education Qualification (min & max) Experience required (min & max) Principal contact- Internal Principal contact- External Prepared by Approved by Date(Prepared on)

Min: Bachelor's degree Max: Masters degree 1 - 3 years Territory head, Area sales manager, Employees of the organization Customers, Clients Anand Singh Tomar Dr. Rajshree Pillai 08-Nov-17

48

Recruitment Sources of Mahindra

Internal

External

Transfers Promotions Upgrading Demotion Retired Employees Retrenched Employees • Dependents & relatives of deceased employees

• Press Advertisements • Educational Institutes • Placement agencies/Outsourcing • Employment exchanges • Labour Contractors • Unsolicited Applicants • Employee Referrals • Recruitment at factory gate • Mahindra Career page

• • • • • •

49

Selection Process

The company conducts recruitment processes every year to select new candidates. The selection process of the company consists of 4 rounds. These rounds are as follows:

Written Exam

Group Discussion

Job Interview

HR Interview Induction Program The Global Recruit Program commences with an intensive induction process at Mahindra’s global headquarters in Mumbai. The Global Recruits are introduced to the top promoters at the Mahindra Group and are given a detailed overview of each of the Group’s sectors and businesses. Following this introduction in Mumbai, the Global Recruits are taken on a tour of Mahindra’s offices and operations across India, where they are exposed to businesses as varied as steel forging and vacation timeshares. Finally, the induction process finishes with a session at Mahindra’s corporate retreat center, where Global Recruits are provided with an intensive training program that prepares them to jump into a two years of work in corporate strategy.

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YEAR ONE In the first year of the program, Global Recruits are placed with the Group Strategy Office. The Group Strategy Office, or GSO, is an internal consulting practice that is responsible for ensuring a robust strategy cycle across the Group. Here, Global Recruits are assigned to the role of an analyst on a real time project in the GSO, which can range from researching/crafting marketing strategies for a Group company to finding synergies within the Group to promoting corporate initiatives such as Mahindra’s Rise brand campaign. Global Recruits work with a mentor, typically an MBA graduate from one of India’s top business schools, who assists on the project and helps Global Recruits in understanding Indian corporate culture. A Global Recruit’s first several months in the GSO are spent in a research capacity, in which he or she learns about the sector to which he or she has been assigned to, its relevant Group companies, and their markets. Thereafter, Global Recruits become part of project implementation teams, which provide them with hands on experience on all aspects of GSO projects -- and can vary from working on sales strategies to conducting consumer insight sessions to identifying acquisition opportunities for our Group businesses. YEAR TWO In the second year, Global Recruits are transferred from the GSO to one of Mahindra’s diverse corporate units where they continue to work, learn, and contribute to Mahindra’s global business operations. At the end of the second year, they are given an option to return back to their home countries or continue their tenure at Mahindra for a longer period of employment. Continuing with Mahindra’s culture of innovation and independent thinking, Global Recruits are always encouraged to use their unique experiences and educational backgrounds to come up with their own ideas on new business initiatives and ways to improve existing ones. Past recruit initiatives have not only enabled the group to revamp and realign its corporate and operational structures, but also initiate new business entities within the group, and even new companies.

Types of training provided in Mahindra

On the Job

• Apprenticeship • Quality Training • Professional Training • Technical Training • Safety Training • Skills Training • Team Training • Job Rotation • Internship

Off the Job

• Case Study method • Incident Method • Role play • In basket method • Business Games • Grid Training • Lectures • Simulation • Management Education

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Performance Appraisal Model of Mahindra

STRATEGY, VISION, MISSION & BUDGET

BUSINESS GOALS

ORGANIZATION’S OBJECTIVES

DEPARTMENTAL / FUNCTIONAL OBJECTIVES

ROLE / INDIVIDUAL OBJECTIVES KEY RESULT AREA (KRAs)

The PMS process starts with setting of business goals & organization’s objectives. In M&M Ltd., organizational goals are set in the month of March every year. After this step, departmental and individual goals are set. Here, in M&M Ltd., Top Down approach is followed for goal setting. Departmental Goal Setting Departmental goal setting: Balanced Score Card approach is adopted. It is derived from the Business Plan and Functional Strategies. In 1992, Robert S. Kalpan and David P. Norton’s concept of the Balanced Score Card revolutionized conventional thinking about performance metrics. The balanced scorecard measured performance on four perspectives: a) b) c) d)

Customer Internal processes Learning & Development Financial

The balanced scorecard allows managers to look at the business from these four important perspectives. The scorecard wasn’t a replacement for financial measures; it was their complement. It provides answers to four basic questions: a. b. c. d.

How do customers see us? (Customer perspective) What must we excel at? (Internal processes perspective) Can we continue to improve and create value? (Learning and Development perspective) How well do we look to our stakeholders? (Financial perspective) 52

In M&M Ltd., weightages are assigned to all four perspectives. The weightages may vary according to the department. Balanced Score Card also depends upon business plans for the particular year. Individual Goal Setting: After setting Departmental goals, Individual goals are set. Following diagram shows various steps in the process of individual goal setting:

Communic ation Workshop

Feedback & Counselling

Performanc e Appraisal(R eview)

KRA Setting

Mid - Term Review

Step 1: Communication Workshop: Communication workshop is conducted in months of May or June every year. It is compulsory for all employees, right from operational level to strategic level. This workshop is conducted for two days. KRA setting and How to conduct appraisal are the topics which are covered on first and second day respectively. It is useful to both appraisers as well as appraises. It helps appraisers for KRA setting and review meetings. It helps appraises as they get to know the whole procedure of KRA setting and the review which is useful for them during review discussions. Step 2: KRA setting: Measurable goals for every individual, linked with the business goals are set before the beginning of the financial year. Each individual has 3 to 5 KRAs. Each KRA set has a weightage and the total of weightages is 100%. All the targets i.e. KRAs are set after discussion between superior i.e. appraiser and subordinate i.e. appraise. Performance with respect of KRAs forms a basis for the calculation of Performance payout amount for an individual. There is a particular format in which KRAs are set (Annexure E). Level of Performance (LOP) and Measure of Performance (MOP) are decided at the time of setting KRAs. MOP means a measurable parameter which will indicate progress of GOAL set. E.g. Goal - cost reduction has MOP - reduction in Variable Cost / Vehicle - 5% 53

LOP i.e. Level of performance is method to set targets for MOPs to indicate good, superior and excellent performance. E.g. Reduction in variable Cost per vehicle –   

Level 3 - 5% Level 4 - 10% Level 5 - 15%

Normally, KRAs for the next year are set before the final review. Signatures of both i.e. appraiser as well as appraise are taken on the KRA sheet. The KRA sheets are sent to Corporate HR Department. Step 3: Mid – Term Review: Mid – term reviews are conducted in the month of October. Mid – term reviews are done with a view to know how much goals the appraise has achieved. If the appraise has failed to achieve the targeted level, then the superior can have a discussion with the appraise regarding this and the reason for not achieving the desired level of performance is found out. Step 4: Performance Appraisal (Review): Performance appraisal or reviews are done in the month of May. Appraises are reviewed on the basis of achievement of KRAs, assessment of significant tasks other than KRAs, if any, leadership competencies (M&M Ltd has adopted 7 leadership competencies) and strengths of the appraise. Employee & Superior together fill up the appraisal form based on which the assessment is carried out. Performance appraisal is a one to one discussion between the appraiser & the appraise about  

Performance based on goals set & results achieved Training and the developmental needs for the employee

At the end of the appraisal process employee’s comment on the process of appraisal feedback is recorded, to validate transparency & fairness of the appraisal process. Discussion is held between appraiser & reviewer to jointly arrive at overall rating of the employee. There is validation & moderation by Corporate HR. Distribution of letters to all employees is carried out on 1st August. In M&M Ltd., employees are rated on two scales:  

Performance Pay Rating Overall Rating Performance Pay Rating

a. Performance Pay Rating   

The rating scale 5, 4, 3, 2, 1. Rating would be based on the level of Performance on a specific KRA based on the Achievement levels agreed at the beginning of the Financial Year. No Distribution norms will be applicable.

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b. Overall Rating Performance Pay Rating    

The rating scale ES, S, G, MI, U DH level and above: - 50% competencies + 50% performance Below DH level: - 40% competencies + 60% performance Agreed distribution norms would be applicable.

For the performance pay calculation, the overall performance is divided into two parts:  

Business Performance Individual Performance

As an employee goes higher on hierarchy, the share of business performance increases and that of the individual performance starts reducing. The following table shows hierarchy wise (band wise) performance pay distribution Step 5: Feedback and Counseling: In M&M Ltd., superior gives the feedback to the subordinate immediately after the final performance appraisal. Following points explain the very purpose of Performance Dialogue:    

The appraiser and the appraise together review overall performance of an individual against agreed targets. Helps in identifying Areas for Improvement. Provides development opportunities for the growth of people. Agree / Generate Data for actions relating to Increments, Promotions, etc.

The next step that the Corporate HR department takes after collecting all performance appraisals is checking whether all the performance appraisals are normally distributed. If they are normally distributed, then Corporate HR department contacts the relevant departments and then after discussion, final letters are sent to the employees on 1st August every year.

Employee Benefits provided by Mahindra Gym Membership

Extra time off around the holidays

Off-site event

New tablets for new hires

Clubs

Onsite childcare

Health care insurance

Vacation/paid time off

Performance bonus

Paid sick days

Retirement plan and/or pension plan

Funding of education

Maternity & Paternity Leave

Flexible Timings

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Career Planning at Mahindra A key HR function at Mahindra group is the career and succession planning. The objective of this function is to chart out a detailed career path of each individual at the senior most levels. The career path taps both the strengths and weaknesses and aspiration of each individual executive. The detailed career planning also leads to identification of incumbents as successor to a specific responsibility. “What they try to do, through their succession planning is the early identification of potential successors and both formally and informally, begin to provide expanded responsibilities so that there is an on-the-job development of a larger perspective and understanding”.

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Organization Culture at Mahindra (As per Employee’s review)

Organization culture at Mahindra as per overall employee review is excellent. Mahindra provides a good work life balance to their employees and attrition rate is less. Employees work under good work culture in the organization. The compensation given to Mahindra employee is good and is more than its competitors according to the review of employees. Mahindra compensation policy is good for their employees. The company provides good incentives and benefits to its employees. Job Security of Mahindra is medium, that is if you are performing well in the company your job will appraise on monthly and quarterly basis as per the employee’s review. The management of Mahindra is tremendous; they manage the organization very well. They perform their task very well and they always take care of their employees. It’s a very good professional and competitive place to work. Pay is good and learning and training is for the hard working. The culture of Mahindra is that they focus more on the growth of their employees. The slogan of Mahindra is “Rise” which is a call to action. To challenge the status quo. To think alternatively. To always drive positive change. It's also our purpose. To see how we live our purpose. Anand Mahindra says, “if you are only tasting success, it is pertinent to ask whether you are taking enough risks”.

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Bibliography/References

i

https://www.ibef.org/industry/india-automobiles.aspx http://www.mahindra.com/ iii http://www.mahindra.com/business/automotive iv http://www.moneycontrol.com/india/stockpricequote/auto-cars-jeeps/mahindramahindra/MM v http://www.mahindra.com/news-room vi https://managementhelp.org/marketing/ vii http://www.mbaskool.com viii http://productlifecyclestages.com/ ix http://www.moneycontrol.com/financials/mahindramahindra/balance-sheetVI/MM#MM x https://managementhelp.org/humanresources xi https://www.naukri.com/ ii

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