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
Porters 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 Employees review) ...........................................................................57
Bibliography/References ............................................................................................................................................58

2
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. Maruti Suzuki
2. Mahindra & Mahindra
3. Bajaj Auto
4. Hero MotoCorp
5. TVS Motors

Top Automobile Companies

250000 235308.28

200000

150000
93323.76 85176.22
100000 74842.38

50000 32783.39

0
Maruti Suzuki Bajaj Auto Mahindra & Hero Motor TVS Motor
Mahindra

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.

4
 Contribution to Growth

Mature
7%

Emerging

Emerging Mature
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) GDP Contribution

25
7.1%
22
CAGR 5.9% 20 20
20 18 18
17

15

10

0
2012 2013 2014 2015 2016 2017

Automobiles Sold (in millions)

5
Historical Growth/ De-growth Pattern of the sector observed in the previous years

Automobile Sector Growth

2016-2017 7.1

2015-16 7.9

2014-15 7.2

2013-14 6.6

2012-13 5.6

0 1 2 3 4 5 6 7 8

Growth %

Indias economy grew faster in 2015-16 than earlier estimated, which could result in slower growth in the
current fiscal because of a higher base. Indias gross domestic product (GDP) grew 7.9% in 2015-16 against
an earlier estimation of 7.6%. Indias 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 Actual FY16 (estimation)

Turnover INR 561200 731400 crores INR 601000 crores

Employment 35 million 22 million

% share in GDP 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.

6
Overall Performance of Automobile Sector in FY16

Segments Target Actual Shortfall Target Actual Shortfall/Surplus

FY16 FY16 % Cumulative Cumulative %
(in million) (in million) (in million) (in million)
Passenger 4.1 3.4 18 27.75 27.91 1
Vehicles
Commercial 0.89 0.78 12 6.7 7.1 7
Vehicles
Three 0.97 0.93 4 7.2 7.8 9
wheelers
Two 32.6 18.8 42 192 142 25
Wheelers

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.

Porters 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:

7
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

9
Mahindra 11 sectors are:

Agri Farm
Aerospace Aftermarket Automotive
Business Equipment

Financial Information
Hospitality Partners Real Estate
Services Technology

Two
wheelers

Mahindra 22 Industries are:

Aerospace Aftermarket Agri-Inputs Automotive Boats

Construction
Clean Energy Components Consulting Defence
Equipment

Farm Financial
Food Fruit Hospitality
Equipment Services

Industrial Informational Real estate &

Logistics Retail
Equipment Technology Infrastructure

Steel Two-Wheelers

Mahindra is leader in following businesses:

Indias 1 UV maker
WORLDS LARGEST TRACTOR BRAND BY VOL
LARGEST NBFC IN RURAL & SEMI-URBAN INDIA
TOP 5 IT SERVICE PROVIDER FROM INDIA
INDIAS #1 VACATION OWNERSHIP COMPANY
INDIAS LARGEST PRE-OWNED CAR COMPANY

10
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 & Mahindras 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&Ms major part of revenues come from its
automotive business which makes it vulnerable to any breakthrough in the industry or slowdown
in the market.

12
 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&Ms 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

13
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 Mahindras 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 award-

winning 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 Indias 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.

14
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 youll find it in standard and pickup variants around the world
including India, Africa, Europe where its known as the Goa. Its 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 adventurers car of choice, it is the true successor to the MM540,
Mahindras 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 collectors 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.

15
i. We made the Verito Vibe for those who want a sedans
character with a sporty personality. The Verito Vibe, a derivative of the Verito, is a compact
sedan that retains the sedans inherent strengths and adds distinctive features such as first-in-
class 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.

16
 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 Koreas 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 thats 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 thats 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, emission-

less, 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.

17
 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 well-
being 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.

18
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. Its 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. Its 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. Its been the market

19
 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. Its made for the expedition without the exhaustion, and like a Bolero, its 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, its 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. Its no wonder then that the Jeeto is making
waves in its category.

20
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 Indias 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.

21
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. Its 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. Thats 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. Mahindras trucks and
trailers are customized as per the customers 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 thats as unique as you.
2. Design Services

To help you create and prototype tomorrows 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 & Mahindras 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 dealerships 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 10.7
10.8

18.3 28.39

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 Mahindras 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 categorys 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 dealerships 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 Mahindras 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
 Product Life Cycle of Mahindra Scorpioviii

MATURITY

DECLINE
INTRODUCTION

GROWTH
A
N
N
U
A
L

S
A MAHINDRA
L SCORPIO
E
S

V
O
L
U
M
E TIME

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 Scorpios were sold.
2. Growth of Mahindra Scorpio
In its growth stage, Scorpio captured 45 per cent of the premium hard market and 24000 Scorpios were
sold in 18 months. Due to Mahindra Scorpios 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
INCOME
Revenue from Operations 47,096.04 43,638.90
Other Income 1,342.49 849.93
Total Income 48,438.53 44,488.83
EXPENSES
Cost of materials consumed 20,913.11 19,364.88
Purchases of Stock-in-trade 10,893.63 10,409.26
Changes in inventories of finished goods, stock-in-trade and work- (4.01) (257.97)
in-progress
Excise Duty 3,310.68 2,763.83
Employee benefits expense 2,595.37 2,348.72
Finance costs 145.58 186.05
Depreciation and amortization expense 1,327.16 1,068.10
Impairment expenses/losses
Other expenses 4,755.04 4,469.50
43,936.56 40,352.37
Less : Cost of manufactured products capitalized 137.07 79.26

36
Total Expenses 43,799.49 40,273.11
Profit before exceptional items and tax 4,639.04 4,215.72
Exceptional Items 548.46 68.74
Profit before tax 5,187.50 4,284.46
Tax Expense
Current Tax 998.26 857.65
Deferred Tax 233.59 222.24
Profit After tax 3,955.65 3,204.57

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 (5.19) 10.60
(b) Equity instruments through other comprehensive income 0.17 (0.04)
(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 1.80 (3.67)
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 (1.20) 3.06
(b) Effective portion of gains and loss on designated portion of 9.87 31.91
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 (3.00) (12.10)
or loss
Total other comprehensive income 2.45 29.76
Total comprehensive income for the year 3,958.10 3,234.33
Earnings per equity share :
(Face Value Rs. 5/- per share) (Rupees)
Basic 66.70 53.05
Diluted 66.37 52.80

37
 Mahindra Common size and Comparative statement

Particulars For the year For the year Common Common Comparative
ended March ended March Size Size Ratio
31, 2017 31, 2016 Ratio Ratio
2017 2016

Net Revenue 47,096.04 43,638.90 100.000 100.000 7.922

Other Income 1,342.49 849.93 2.851 1.948 57.953

Total Income 48,439 44,489 102.851 101.948 8.878

Expenses
Cost of Raw material 20,913.11 19,364.88 44.405 44.375 7.995
consumed
Stock Purchased 10,893.63 10,409.26 23.131 23.853 4.653
Inventory Stock (4.01) (257.97) (0.009) (0.591) (98.446)
Excise duty 3,310.68 2,763.83 7.030 6.333 19.786
Employee Benefits 2,595.37 2,348.72 5.511 5.382 10.501
Expense
Other Expenses 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

Depreciation and 1,327.16 1,068.10 2.818 2.448 24.254

amortization expenses

EBIT 4,648 4,323 9.868 9.905 7.520

Finance cost 145.58 186.05 0.309 0.426 (21.752)

Profit before exceptional 4,502 4,136 9.559 9.479 8.836

items and tax
Exceptional Items 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 998.26 857.65 10.724 9.636 20.100

Deferred Tax 233.59 222.24 0.496 0.509 5.107
Net Tax 1,232 1,080 2.616 2.475 14.072

Profit After Tax 3,270 3,057 6.944 7.004 6.987

38
Gross Profit and Net Margin of Mahindra

Net Profit Margin = * 100

,
2017 = * 100
,.

2017 = 6.943 %

,
2016 = * 100
,.

2016 = 7.005 %

Gross Profit Margin = * 100

,
2017 = * 100
,.

2017 = 10.722 %

,
2016 = * 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

=

.
=
.
= .
.
=
.
= .

Direct and indirect costs of Mahindra

Particulars FY 2017 FY 2016

Material cost 20,913.11 19,364.88
Purchase of Stock-in-trade 10893.63 10409.26
Changes in FG & WIP (4.01) (257.97)
Total Direct Cost 31802.73 29516.17

Particulars FY 2017 FY 2016

Employee benefits expense 2,595.37 2,348.72
Finance costs 145.58 186.05
Depreciation expense 1,327.16 1,068.10
Other expenses 4755.04 4469.5
Total Indirect Cost 8823.15 8072.37

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

Ability to Work Decision Time

Communication
Under Pressure Making Management

Conflict
Self-motivation Leadership Adaptability
Resolution

Safety &
Teamwork Creativity Technical Skills
Security Skills

Job doing skills Analytical Determination Visionary

Growth-
Confident Patience Goal-oriented
Oriented

43
JDs and Job Specifications posted by Mahindra on online-job portalsxi

A. Human Resource Management

44
45
B. Finance

46
47
C. Marketing
Business unit/Function
Job title
Incumbent Name
Organizational Chart/Structure
Purpose of the Job
Supervision Received
Supervision Exercised
Key Responsibilities and Duties
Skills Required
Attributes Required
Education Qualification
(min & max)
Experience required (min & max)
Principal contact- Internal
Principal contact- External
Prepared by
Approved by
Date(Prepared on)
JOB ANALYSIS : JOB DESCRIPTION
Sales Executive at Mahindra
Automobile
Sales Executive
Anand Singh Tomar
Regional Head
Zonal Head
Territory Head
Area Sales Manager
Sales Executives
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
Customer service oriented and exceptional selling skills, Problem-solving and
decision-making skills, Exceptional communication and interpersonal skills
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
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 Press Advertisements

Promotions Educational Institutes
Upgrading Placement
Demotion agencies/Outsourcing
Retired Employees Employment
Retrenched exchanges
Employees Labour Contractors
Dependents & Unsolicited
relatives of deceased Applicants
employees 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 Mahindras 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 Groups sectors and businesses. Following this
introduction in Mumbai, the Global Recruits are taken on a tour of Mahindras 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 Mahindras 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.

50
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 Mahindras Rise brand campaign. Global Recruits work
with a mentor, typically an MBA graduate from one of Indias top business schools, who assists on the
project and helps Global Recruits in understanding Indian corporate culture.

A Global Recruits 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 Mahindras diverse corporate
units where they continue to work, learn, and contribute to Mahindras 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 Mahindras 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 Off the Job

Apprenticeship Case Study method

Quality Training Incident Method
Professional Training Role play
Technical Training In basket method
Safety Training Business Games
Skills Training Grid Training
Team Training Lectures
Job Rotation Simulation
Internship Management Education

51
Performance Appraisal Model of Mahindra

STRATEGY, VISION, MISSION &

BUDGET

BUSINESS GOALS

ORGANIZATIONS OBJECTIVES

DEPARTMENTAL / FUNCTIONAL
OBJECTIVES

ROLE / INDIVIDUAL OBJECTIVES

KEY RESULT AREA (KRAs)

The PMS process starts with setting of business goals & organizations 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. Nortons concept of the Balanced Score Card revolutionized
conventional thinking about performance metrics.

The balanced scorecard measured performance on four perspectives:

a) Customer
b) Internal processes
c) Learning & Development
d) Financial

The balanced scorecard allows managers to look at the business from these four important perspectives.
The scorecard wasnt a replacement for financial measures; it was their complement. It provides answers
to four basic questions:

a. How do customers see us? (Customer perspective)

b. What must we excel at? (Internal processes perspective)
c. Can we continue to improve and create value? (Learning and Development perspective)
d. 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 &
KRA Setting
Counselling

Performanc
e Mid - Term
Appraisal(R Review
eview)

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 employees 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.

54
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

Extra time off

Gym New tablets for
around the Off-site event Clubs
Membership new hires
holidays

Health care Vacation/paid Performance

Onsite childcare Paid sick days
insurance time off bonus

Retirement plan Flexible Timings

Funding of Maternity &
and/or pension
education Paternity Leave
plan

55
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.

56
Organization Culture at Mahindra (As per Employees 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 employees 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. Its 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.

57
Bibliography/References

i
https://www.ibef.org/industry/india-automobiles.aspx
ii
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/

58