ANAND MAHINDRA SPEAKS ABOUT HIS LOVE MAHINDRA SPEAKS ABOUT HIS LOVE . OF FILM MAKING. 34. 31. ... Priyanka Koijam. ... Gilroy Correia and Santanu Bhattacharya.

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    Mufaddal Choonia on Mahindra Racings new R&D centre 37


    RISE FOR GOOD SOCIAL STATUS28 33Empowering the Adivasi Community at Araku Valley and Nurturing a Culture of Innovation at Tech Mahindra with the sZenseEYE

    Tweets featuring the Mahindra Group from around the world wide web

    NEWS7 INDUSTRY SPOTLIGHT24Updates from across sectors, including launches, initiatives, awards and recognition.

    A focus on the Solar Energy space and Mahindra Sustens (formerly known as Mahindra EPC) position in it.



    AUTOMOTIVE DIVISIONBonita Fernandes, Rajeev Malik, Nandita Sarkar, Pavithra Kamdadai, KVN Prasad, Venecia Paulose, Neha Dalal and Anita Beri

    FARM DIVISIONRujuta Nadkarni, Shruti Chhabra and Phiruzi Kasad

    TWO WHEELERPriyanka Koijam

    FINANCIAL SERVICESCharandeep Chawla, Sheetal Choksey,Amit Agarwal and Ritesh Gaind

    AFTER-MARKETGeethu Menon and Mayank Maini

    SYSTECHSwapnil Soudagar


    INFRASTRUCTURE & REALTYRishika Mehrotra, Subrata Sengupta andAnurag Vijay

    HOSPITALITYDeepali Naair


    DEFENCE SYSTEMSSanjit Tiwari


    CORPORATE SOCIAL RESPONSIBILITYGilroy Correia and Santanu Bhattacharya

    Edited and Published by Mahindra Group Communications for Mahindra & Mahindra Limited, Gateway Building, Apollo Bunder, Mumbai 400 001.

    Editorial and Design Consultants:AICL Communications Limited (

    For employees of the Mahindra Group and for private external circulation only, through the Mahindra Group.


    FORGING A GLOBAL PRESENCEThe Mahindra CIE alliance establishes one of the top 25 auto component companies in the world, creating a supply base for Mahindras own globally expanding mobility business and also servicing the needs of global OEMs.

    SPECIAL FEATURE37RACING AHEADMufaddal Choonia, Chief Executive Officer, Mahindra Racing, talks about the companys new development centre in Italy and its growing ability to design racing motorcycles.

    FOREIGN DESPATCH26DECIPHERING THE PUZZLE CALLED INDIAMatthew Wozny, a 2014 global recruit from Harvard

    University, shares his experiences of working at Mahindra and

    his impressions about India.

    AFTER HOURS34EXPERIENCING THE WORLD IN 8 MM From studying cinema to investing in films -- Anand Mahindra reminisces about his keen interest in movies.


    DARIUS LAMAssociate Editor

    90 companies, 14 board meetings in 48 hours and 19 transaction agreements. These were just some of the mind boggling numbers involved in the Mahindra-CIE deal, one of the most complex M&A transactions ever executed in India. Our cover story in this issue takes a behind-the-scenes look at the strategy and passion which brought the two companies together. The coming together of Mahindra and CIE has resulted in the formation of one of the Top 25 auto component companies in the world. A true Rise story.

    In a very special edition of After Hours, our Chairman, Anand Mahindra, spoke to ME about his passion for cinema and its profound influence on his personal and professional life.

    Our Foreign Despatch this time is from India-based Matthew Wozny, a member of Mahindras Global Recruit Programme. The affable Matthew writes from the heart and with typical American candour about his experience of living and working in a country that never ceases to amaze him.

    From this issue, ME is delighted to introduce a new column by K. N. Vaidyanathan, EVP & Chief Risk Officer of the Mahindra Group, or Vaidy, as he is fondly known. Vaidys Musings on life, culture, economics, sport and various other topics are sure to enlighten and educate you.

    We also speak to Mufaddal Choonia, CEO of Mahindra Racing, about recent

    developments including the opening of their brand new development centre in Italy, which joins Mahindras neural network of innovation along with other centres in India, Korea and the US. He also looks forward to the 2015 season including the recent tie-up with the renowned Aspar Team of Spain.

    Crossing the road, climbing a flight of stairs and negotiating obstacles while walking are things we usually take for granted. But for the visually-challenged, these are often herculean tasks. Kunal Bhat, Principal Technical Architect at Tech Mahindra is trying to make life a little easier for them with sZenseEYE, the innovative goggles he has created for the visually impaired. You can read all about it in the Rise For Good section on page 31.

    And dont miss the incredible achievements of the Everest Twins, Nungshi and Tashi Malik, the worlds first twins to scale Mount Everest and the seven tallest peaks in seven continents, all for the cause of the girl child.

    After our last issue, many of you wrote to us, expressing appreciation for the new design of your newsletter. A big thank you from the editorial team to all those who sent us their valuable comments and feedback.

    We hope to live up to your expectations with this issue as well!

    Darius Lam

    Dear Readers,

  • F O R G I N GA G L O B A L P R E S E N C E



    When Zindagi Na Milegi Dobara (You Only Live Once) released in India back in 2011, it proved to be a blockbuster hit. Zoya Akhtars breezy coming-of-age comedy-drama which centred on a road trip by three friends through some of Spains most picturesque locales captured the hearts and minds of viewers across the country.

    As far as alliances go, the one between Mahindra and CIE has all the ingredients of a Bollywood blockbuster. Boy meets girl. Boy woos girl. Boy and girl decide to tie the knot. The families meet to discuss the alliance, but there are many obstacles along the way that threaten the marriage.

    FINDING COMMON BONDSMahindra CIEs alliance goes back to a time when an unflattering acronym, PIGS was coined to describe a group of countries, including Spain, which were facing dire economic straits and the wisdom of the Mahindra Systech team was questioned as it proposed an alliance and a cross investment between Mahindra and CIE.

    The movie played an unwitting part in helping tide over objections. Inspired by the film that has boosted Indian tourist arrivals into Spain by 32%, Hemant Luthra, President, Systech Sector quipped, You cant do Due Diligence by relying only on lawyers and accountants

    working out of an office. You have to get a feel of the country and the pulse of the economy with supporting field research. And what better way than taking two years to visit every bar and restaurant in Madrid, Barcelona and Bilbao before and after checking out all the golf courses in the company of your prospective partners and their families! It ensures pre merger integration!

    Just when the couple thought that the worst was over, Anton Pradera, the Chairman of CIE Automotive and Mahindras biggest supporter - fell ill, followed by Hemant who had to undergo a heart bypass surgery. Both were out of action for several months, but were committed to each other, cherishing a


    2 ISSUE 4 2014

  • common vision and values. Mahindra Systech and CIE waited patiently for each other till they could finally be united in Holy Matrimony.

    The time spent together helped to build mutual trust and confidence to the point where we figured out that if there was a recession in Spain, the Spanish did not know about it , adds Hemant. He should know since he is something of a veteran in the M&A field, having orchestrated the landmark Essar Telecom - Hutchison deal in his previous avatar at Essar and having created the core of Systech through a number of acquisitions in line with the principles of Anandnama i.e. investing so as to gain access to Customers, Technology and Management skills.

    The marriage, elegantly simple in terms of strategy, epitomises the entrepreneurial spirit of the Mahindra Group and its growing expertise in complex M&A transactions. It showcases the groups skills in building a business from a clean sheet of paper through acquisitions, and then developing that into a strategic partnership with a global auto component supplier, resulting in strong financial benefits for both companies.

    When CIE first expressed an interest in us, we wrote back explaining our intent to create One Systech which included our European companies which was actually not a part of their strategy. In November, they invited us to visit their plants in Spain. We returned,

    impressed with their efficiency and strengths in forgings and stampings. In fact, they have never made a quarterly loss since inception in 1996, says Vikas Sinha, Vice President Strategy, Mahindra Systech who was then with the Office of Strategy Management at Mahindra.

    They first wanted to form a JV with just our Stampings Division which didnt seem feasible to us. Things really changed when CIE Chairman, Anton Pradera met Anand Mahindra. There was mutual admiration and respect on both sides which led CIE to dramatically change its approach. They decided to take a stake in One Systech while we took a stake in CIE, Sinha explained. We



    UKStokes forgings


    GERMANYMahindra Forgings Europe









    INDIAMahindra CIE







    Formed by the merger of Mahindra CIE Automotive, Mahindra Hindoday, Mahindra Gears,MUSCO Stampings & Mahindra Composites

  • must say we were very lucky to discover that on the other side of the world, there was a company with values and culture similar to ours. There were several other common features between the two groups. Both were diversified in terms of technology and decentralised in nature, with each division functioning autonomously. Both Mahindra and CIE have grown through mergers and acquisitions, added Pedro.

    SYNERGY BETWEEN MAHINDRA AND CIEFor Mahindra, the deal will enable access to new products and global customers, including respected marquees like Volkswagen, Honda, Toyota, Ford, General Motors and Renault which were missing from its client list. Both Mahindra and CIE recognised that the automotive components business was becoming increasingly consolidated and global. International vehicle manufacturers were demanding that vendors follow them around the world.

    approached Mahindra because it was aligned with our aspiration to become a truly global company. CIE is very strong in Eastern Europe, the USA and Mexico. We also have several plants in Brazil and a presence in Russia and China but we needed a base in India. This would enable future expansion into South East Asia, particularly Indonesia, Malaysia and Thailand. Moreover, India is also a major player in the automotive industry, says Pedro Echegaray, CIE Representative in India, as

    Whenever we approach a new market or region, we always look for a strong and successful local partner. We never attempt to enter new geographies on our own because the business culture varies across countries. This is perhaps the most difficult aspect of expansion.

    he explained CIEs rationale for approaching Mahindra.

    Whenever we approach a new market or region, we always look for a strong and successful local partner. We never attempt to enter new geographies on our own because the business culture varies across countries. This is perhaps the most difficult aspect of expansion. In fact, we had looked at several companies before deciding on Mahindra. I


    4 ISSUE 4 2014


  • The Mahindra CIE alliance creates one of the leading LCC auto component companies in the world. The Mahindra Group now has access to a global supplier base for its automotive and tractor businesses, while CIE has gained entry into India, a key growth market where it previously had no presence.

    As part of the transaction, CIE Automotive - through one of its subsidiaries - would acquire from the Mahindra Group its stake in listed and unlisted companies belonging to the Systech auto components business. CIE Automotive would contribute its forgings businesses in Spain and Lithuania, and together consolidate all companies under Mahindra Forgings Limited, which would be rechristened Mahindra CIE. The latter would continue to be listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange).

    M&M has a 13.5% equity stake in CIE Automotive, which is listed in Spain, making it the second largest shareholder in CIE. M&M would also nominate two directors to the

    CIE Board. Meanwhile, CIE Automotive has a majority stake in a single listed entity in India that would continue to operate the current Systech automotive components businesses globally, and include CIEs European forgings operations.

    OPERATION PROJECT MOON The seeds of the alliance were now sown and it was time to lay the groundwork for the actual merger activity, code-named Project Moon. Mahindra and CIE engaged in negotiations on valuations until June 2013 with several rounds of discussion and due diligence work being done by both companies. Mahindras M&A team, led by S. Durgashankar, Executive Vice President Mergers & Acquisitions, had its work cut out.

    This was a global alliance with cross investments, making it a very unique and complex deal, says Durgashankar. To give you a sense of the complexity, the deal involved 20 Mahindra Group companies in Mauritius, Germany and Italy and 70 CIE companies spread across Spain, Lithuania, France, Brazil,

    China, Russia, the Czech Republic, Mexico and Portugal. A total of 14 Board meetings were conducted within a span of 48 hours and 19 transaction agreements were signed, explains Durgashankar.

    The agreement on valuation finally took shape in January 2013. Then came perhaps, the most challenging part of the process, that of executing the actual merger. The Competition Commissions of three countries Brazil, Germany and India - were involved. There were two merger schemes, two valuations and two valuers, says Sinha.

    To complicate matters further, MUSCO (Mahindra Ugine Steel Company) was being merged through a de-merger process which implied that the companys shareholders were not entitled to an open offer, resulting in protests.

    In addition, Mahindra had to tackle a growing perception within the larger financial community that the Group had sold out but subsequent developments have had



    1 Anand Mahindra, Chairman, Mahindra Group (left) and Anton Pradera (right), Chairman, CIE Automotive at the signing of the global alliance agreement

    3 Pedro Echegaray

    4 Hemant Luthra

    5 Vikas Sinha

    2 Pre merger integration


    3 4 5

  • analysts eat their words and the deal is now being commended as a masterstroke with Mahindra swapping part of its...