Mahindra and Mahindra Limited

Presented by:Ms Divya HandaGandharva GuptaJohn Jacob Pranav NagpurkarMs Rashmi ShreeSagar ThuthejaShazer Askari

Content

Market Overview Mahindra and Mahindra

History Product Line Marketing & Business Strategy Financial CSR Initiatives

Growth drivers for theIndian automotive industry

Contemporary products

Shorter life cycle

Growth in Income levels

Easier financing

Government Policies

New productlaunches

Indian Automotive Industry

Increasing consumer

demand

Cost Competitiveness

Overall economic growth

Lower duties & taxes

Export Competitiveness

Reduced cost to consumer

India emerging as a manufacturing hub

Players: Indian auto industry

Global OEM

Indian OEM

Indian Suppliers

Global Suppliers

Engineering &

Development Companies

Indian Auto

Industry

Global OEMGM Toyota Ford Hyundai HondaSkodaVolvoMercedes

Indian OEMTata MotorsMahindra & MahindraBajaj AutoTVS MotorsHero HondaBajaj TempoAshok LeylandGlobal SuppliersDelphiVisteonBoschDensoThyssen Krupp

Vehicle sales in INDIA

Auto components industry has also grown at a rapid pace ...

Exports are rising - India has the potential to become the global outsourcing hub

Indian Automotive Industry The industry has grown at a CAGR of

14% p.a over the last 5 years With potential to emerge as one of the

largest in the world. Presently, India is 2nd largest two wheeler market in the world 4th largest commercial vehicle market in the

world 11th largest passenger car in the world and is

expected to be the 7th largest market by 2016 The industry has emerged as a key

contributor to the Indian economy

HISTORY OF M&M

JC Mahindra KC Mahindra G.Mohammad

Keshub Mahindra Anand Mahindra Chairman-07 Vice Chairman,MD- 07

MILESTONES OF M&M

M&M established its business connections in the USA through Mahindra Wallace.

It started steel trading on behalf of European suppliers

M&M was converted into a public limited company on June 15,1955

Machine Tools division was started.

Contd... Mahindra Engineering & Chemical

Products Ltd. (MECP) was formed.

M&M became the market leader in the Indian tractor segment-1983

Mahindra British Telecom (MBT) was formed as a joint venture with British Telecommunication plc (BT), UK-1986

MISSION & VISION “We don’t have a group-wide mission

statement. Our core purpose is what makes all of us want to get up and come to work in the morning” -Anand Mahindra

Indians are second to none in the world. The founders of our nation and of our company passionately believed this. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services.

CORE BUSINESS ACTIVITIES

Automotive Farm Equipment Trade & Financial Services Infrastructure Development Information Technology Systech Specialty Businesses

M&M AUTOMOTIVE

COMPETITION

BUSINESS AND MARKETING STRATEGIES

BUSINESS STRATEGIES

Restructuring of the company. E-business Initiatives Joint ventures. Foreign competition.

MARKETING STRATEGIES

USP – ruggedness and performance. Products that redefined the market. Network of dealers, sales offices, service

stations etc. Strong market base in the urban and

semi-urban areas.

M&M FINANCIALS

Current Financial Health August Sales

Total sales grew by over 30% over the corresponding period last year.

Domestic sales grew by 34% but exports declined by 21%

Q1 FY2008 results M&M results:

Gross revenue grew by over 16%PAT grew by 14%

Group results:

Gross revenue grew by over 40% while PBT grew by over 11%

Sector Performance

Outgrew industry in UV sectorRegistered a growth of 23.6% vs. industry

8.9% Commands an UV market share of 50%

as compared to 43.7% in the same period previous year.

Scorpio volumes grew by 16%, Bolero volumes grew by 35%

Contd...

Large 3-wheeler segment industry volumes declined by 46%. M&M arrested slowdown to 37%, market share of 53%

Small 3-wheeler segment growth of 74% and market share of 18%

Exports grew by 83% over the corresponding period last year.

Important FinancialsParticulars FY 2006 FY 2007 % variance

Sales Income 9,347 11,363 21.56

Expenditure 8,380 10,100 20.5

Gross Profit 1089 1525 40

PAT 857 1068 24.65

GPM% 10.54 11.71 1.17

Money figures in Rs. crore

Important Financials

Mahindra scrip trading at Rs 715 per share EPS of 39.33 P/E ratio of 18.22 Market capitalization of Rs 17,431 crores Slow down expected on blue-chip auto

stocks due to increase on interest on auto loans and prices have gone up due to increase in raw material like steel, rubber, etc.

Key Investments

Production plant in Chennai Signed MOU with Renault-Nissan M&M holds 50% stake, the rest is shared

between Renault and Nissan. Earmarked $908 million for investment Expected to begin production in early 2009. Installed capacity of 400,000 units

Contd...

Acquisition of 67.9% stake in Jeco Holdings of Germany Jeco has production capacity of 100,000

tonnes of forged components across its 3 plants.

Jeco manufactures forgings for gear boxes, engines, axle parts, hubs, gears and piston heads.

Corporate Social Responsibility

CSR

“CSR has always been an integral part of M&M group’s vision and the corner stone of our core value of good corporate citizenship”

– Keshub Mahindra Education Environment Health

FUTURE PLANS

Plans to enter US market. Expand operations in Germany New plant Mahindra Axe Marketing JV with Nissan

CONCLUSION Performance.

Both domestically and overseas Ability to deliver as per consumer demands JV in non expertise segments

Potential in the market CAGR 19% Potential buyers (300 million+ middle class)

Past performance and potential in the market implies the expected growth of the company

References

www.mahindra.com www.wikipedia.com www.icfai.com www.indiatimes.com Strategy and Business (June 07) The Hindu Auto India

THANK-YOU