Mahindra War Room 2014

Mahindra Namaste Caselet

MAHINDRA PARTNERS SECTOR

NAMASTE BUSINESS

Mahindra Partners is the internal incubator of new businesses for the Mahindra Group,
supporting a portfolio of existing ventures across Retail, Logistics, Boats, Energy and
Media, while constantly exploring new ventures. This caselet pertains to the Namaste
Business.
BUSINESS BACKGROUND
In 2007, Mahindra Group set up Mahindra Pride School to help youth from socially and
economically disadvantaged communities by providing livelihood training. Mahindra
Pride School offered young people from these socially and economically disadvantaged
communities access to skills that empower them to earn a livelihood for themselves and
for their families. 5 schools with 7300 students across Pune, Chennai, Chandigarh,
Srinagar and Patna have been in operation, with 100% placement record and repeat
recruiters. The success of Mahindra Pride School proved that there is a larger need to
appropriately skill massive numbers of unemployed youth for the burgeoning service
sector, where there is a large demand for skilled job-ready workforce at the entry level.
From the experience and capability built through Mahindra Pride Schools, Mahindra
Group set up Mahindra Namaste Private Limited in 2012 as a professional skill training
venture, formed as a social-for-profit enterprise with inputs from Naandi Foundation,
another Mahindra CSR initiative. Mahindra Namastes vision is to create Indias largest
and most innovative learning environments that trains and finds jobs for millions of
Indian Youth.
LIVE CHALLENGE: MAHINDRA NAMASTE BUSINESS STRATEGY
Mahindra Namaste plans to set up more than 100 Training Centres across the country
to train 1 million youth and place them in regular jobs with reputed companies. The
training program will be targeted at youth of 18-26 age groups with minimum
educational qualification of 10th standard depending on the stream of training. Currently
4 courses, each of 3 months duration, in the areas of IT/ITES, Retail, Hospitality at INR.
30,000 and Automotive at INR. 20,000 are offered. Apart from the elective course,
students are trained in English, Computers, Aptitude and Life Skills and helped with
personality development and interview preparation - a course content evolved from that
of the proven Mahindra Pride School.
Mahindra Namaste aspires to train 1000 students now, and over a million youth over 10
years, transforming them into established, high earning professionals through
specialized employment-ready training and placement services. Mahindra Namaste
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Mahindra War Room 2014

Mahindra Namaste Caselet

also aspires to establish industry partnerships for relevant and responsive course
content development and placements. The jobs expected are customer care executive,
front office executive, sales executive and retail operations cash and billing with an
average salary of INR 10,000- 12,000 per month.
Even though the course is well-designed and there are ample opportunities post its
completion, Mahindra Namaste is facing challenges with the number of people enrolling
for the program and dropping out post enrollment. Namastes experience shows that
this is due to the trust deficit that students parents experience, having burnt their fingers
with other training institutes.
In this backdrop, provide a game-plan for Mahindra Namaste to train 1 Million
Youth in 10 years encompassing the following areas:
1. Reinventing the Product Portfolio: What should be Mahindra Namastes product
strategy to win in this environment, such that the programs offered cause disruptive
innovation in the vocational education space? Design a comprehensive product
portfolio plan and product mix calendar for MNPL over the next 5 years, bearing in
mind that vocational education is an unorganized sector and the target segment is
not very enthused for such courses. Currently, the following courses are in trial
stage: Effective English Communication, Effective Interview Skills, Effective
Computer Skills Basic , Effective Computer Skills Advanced; 3 days college
finishing program - Workshops in liaison with colleges catering to needs to
placement preparation of final year students.
2. Strategic and Tactical Game-plan: What should be Mahindra Namastes game
plan, both at strategic and tactical level, to create disruption and gain more students
or vocational education segment? With a good product and trust of potential
customers, how should Mahindra equity be leveraged to build Mahindra Namaste in
the market? Should the target segment or products be relooked?
3. Reaching Out effectively and Paying Capacity of Customer: How can the sales
team reach out effectively to convert the potential customers to the students of
Mahindra Namaste? Why are people not willing to pay an amount equivalent to their
3 months salary post the course, with Banks provide loan to students in need of
financial assistance? Evolve a comprehensive sales plan to tap the market efficiently
and effectively so as to cater to the right segment.

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