The History Of Mahindra And Mahindra


K. C. Mahindra is the person who established Mahindra and Mahindra when he visited United States of America as Chairman of the India Supply Mission. When he met Barney Roos who invented general purpose vehicle or Jeep who was the inspiration for K. C. Mahindra.

K. C. Mahindra Brothers joined with Ghulam Mohammed. And Mahindra & Mohammed was set up as franchise for assembling jeeps from Willys, USA on October 2nd, 1945.After Two years Mahindra & Mohammed changed its name to Mahindra & Mahindra. Mahindra & Mahindra grown in size and stature and it also occupied a premier position in all key sectors of economy. Mahindra & Mahindra group is engaged in an ambitious and prolonged penetration into the global arena.


FIG a: India's first Prime Minister.  FIG b: Mahindra Scorpio

A passenger in the past

FIG c: The electric car of Mahindra and FIG d: Mahindra tractor.

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its name is Mahindra REVA.

FIG e: Mahindra Jeeps are used FIG f: Two wheeler model in Mahindra & Mahindra

for daily transport in Agra. and its name is Mahindra Flyte.

The company encapsulated its ambition, spirit and inspiration from golden words of Pandit Jawaharlal Nehru:

"The woods are lovely, dark and deep, 

But I have promises to keep, 

And miles to go before I sleep, 

And miles to go before I sleep."

The golden words are translated into "many more milestones to be set up before it rest".

Today, It has evolved into a premium SUV(Sport Utility Vehicle) and MUV(Multi Utility Vehicle) with a large number of cars in the Indian car market. Today in the Indian car market we can see three types of Mahindra cars they are Mahindra Bolero, Mahindra Maxx, Mahindra Scorpio. In the present scenario Mahindra & Mahindra total turnover is of about 6 billion dollars.

Organization analysis:


Goals and Objectives

Strategy followed

Vision: Indians are second in the world in manufacturing automobiles. The founders of our nation and our company passionately believed by us. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services. And its new innovations.

The important goal of Mahindra &Mahindra is to provide highly technological innovative product and services .

E-business Initiatives and by out sourcing of technology

Products that redefined the market

By 2015 Mahindra &Mahindra wants to enter almost all continents in the world.

Joint ventures, acquisition and merger with different players in other countries

Foreign competition.

Mission of Anand Mahindra:

"We don't have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning".

Mr. Mahindra awards:

Rajiv Gandhi Award 2004 for outstanding contribution in business field.

From President of French Republic as "Knight of the Order of Merit".

In the year 2005 from Auto Monitor as Person of the year.

From American India Foundation 2005 Leadership Award for his, and the Mahindra & Mahindra group for its commitment to CSR(Corporate Social Responsibility).

CNBC Asia Business Leader Award for the year 2006.

Business Man of the year 2007 from Business India.

Business Leader of the year 2009 by Economic Times.

Miles stones of Mahindra & Mahindra:

In 1948 Mahindra & Mahindra LTD associated with UK for Steel trading business.

In 1957 Mahindra Owen established- a joint venture with Rubery Owen & Company LTD, UK.

In 1969 the Company entered the world market which exports utility vehicles and spare parts.

In 1975 Mahindra Engines developed an diesel engine for its vehicles.

In 1982 the Mahindra brand tractors were launched.

In 1986 Tech Mahindra (formerly known as Mahindra British Telecom) is established.

In 1994 Mahindra group created 6 Strategic Business Units they are: Automotive or Automobiles, Trading, Farm Equipment, Infrastructure, Financial Services, Information Technology(earlier it is Telecom and Software) and Systech(earlier it is MSAT).

In 1999 Mahindra group launched a 3-wheeler vehicle which is environmental friendly, a battery-operated.

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In the year 2007 Mahindra group focused on health and the environment. It launched Mahindra Hariyali, which aims to add 1 million trees to India's green cover and it also launched Lifeline Express.

In the year 2007 Tech Mahindra LTD launched Tech Mahindra Foundation on June 13th 2007.

These are the some of the milestones of Mahindra & Mahindra groups.

FOUR I's of Mahindra & Mahindra:

The four I's:





INNOVATIONS: Mahindra & Mahindra is one of the top industry in India. The director of the Mahindra & Mahindra Anand Mahindra put innovation is the core of its growth strategy. The radical innovation is successful in managing the balance between the structured processes and the creation of an environment.

According to this M&M group:

Innovation should start with the insight about customer, which the Mahindra & Mahindra group found by going to fields and observing the lives of farmers. And this group found that the tractors were used for personal use.

The Mahindra & Mahindra group encourages the experiments.

The new inventions should add value to company's bottom line that is nothing but profit.

The important point is that great products should have great design.

Thus Mahindra & Mahindra took this initiative and made the culture of innovation.

INFRASTRUCTURE: The Mahindra & Mahindra infrastructure is a JV between Mahindra Group and International Finance Corporation. It works close association with global companies to bring world class technologies and practices. It mainly focus on ownership, development and management of infrastructure projects. It is becoming the leading infrastructure developer in the country.

INSTITUTIONS: The Mahindra & Mahindra group is placed in all sectors like

Telecommunications and it is named as Tech Mahindra.

Software, Mahindra & Mahindra came to software field after buying Satyam company and it is named as Mahindra Satyam

Mahindra & Mahindra also has its recognition in the Infrastructure and it is named as Mahindra Infrastructure Developers. In this it also have holiday resorts it named as Mahindra Holidays and Resort LTD (MHRIL)

Mahindra & Mahindra is one of the top industry in India for automobiles and it is the starting point of Mahindra & Mahindra company.

Mahindra & Mahindra also involved in financial sector and its name is Mahindra & Mahindra Financial Service LTD.

Mahindra & Mahindra Group also have Mahindra Special Services which was established in 2001 as a separate division in Mahindra & Mahindra.

Mahindra & Mahindra also have Mahindra Defence Systems which oversees the requirement of India's Defence and Security forces.

INVESTIMENTS: Mahindra & Mahindra group have shares in many companies. Presently Mahindra & Mahindra Group want to acquire Ssangyong and expand its business in international market. But on other hand, its investors are quite suspicious regarding the investment. In the past Mahindra & Mahindra Group made many Joint Ventures and acquisitions and it has forayed into different sectors of automobiles like light, medium and heavy commercial vehicles. It also ambitious to acquire two wheelers also.


Many factors in the environment that affect the organization are:

Tax changes.

Trade barriers.

Government policy changes.

New laws.

Demographic change.

These are the some of the macro changes. Thus to analyze these factors we categorize them using PESTEL analysis. The PESTEL analysis includes Political, Economical, Social, Technological, Ecological, Legal factors.

Political Factors: This is a Government policy which includes what are the goods and services does a Government want, to what extent the government can subsidize firms and its priorities in political decisions and business support.

The factors related to Mahindra & Mahindra group:

For Mahindra tractor industry the Government laid stress on mechanism of agriculture to boost food grain production.

Change in Taxation policy.

Regaining "Agricultural dynamism" is the key goal in eleventh Five year plan.

ECONOMICAL FACTORS: The Economical factors which includes taxation change, inflation, interest rates, economic growth and exchange rates.

The factors related to Mahindra & Mahindra group:

Cost of tractors in India are more cheaper when compared to other countries.

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95% of tractors are on credit based.

For agriculture inputs Less interest rate charged by the banks.

Social Factors: As the population increases the demand on goods get increased. Thus there will be demand for firm products and industry.

As there is increase in awareness in farmers there is a need technology and thus there is a requirement of tractors and farmers can buy tractors on credit bases.

To meet the farmers demand the mechanized operations are preferred to eliminate delay, also labor shortage.

The other main important thing which Mahindra & Mahindra do for its long-term sustainability is CSR(Corporate Social Responsibility). Mahindra & Mahindra group spend Rs. 1.3 crore it is head donation in its annual report. Its activities include K. C. Mahindra Education Trust which provides education at various levels. There is another program for helping unprivileged girl child at the Mahindra foundation it is Nanhi. This are the main things which are done by Mahindra & Mahindra group for its long-term sustainability. The Mahindra & Mahindra also have its own foundation as Mahindra Foundation which was set up with a specific objective that to provide medical relief to poor people.

The Mahindra foundation always very responsive to any major disasters whether it has been taken as tsunami or the Gujarat earthquake, it provided support either by financially or by sending vehicles, supplying manpower or material.

Technological Factors: Increase in new Technology can create new products and process which can reduce the cost, improve the quality, lead to innovation and also reduce the life cycle of the product. This technology will benefit consumers as well as organizations.

The factors related to Mahindra & Mahindra group:

Continuous technological innovation.

Continuous improvement in technology will reduce use of Renewable energy development.

Ecological Factors: It include weather and climate change. The major climate changes occurring due to Acid rain, Green-house effect, Global warming thus it is becoming significant for the firms. Thus because of this impact environmentally friendly products and processes have more demand and also creating business opportunities.

The factors related to Mahindra & Mahindra group:

Global Warming.

Mahindra group is trying to release electric cars to reduce the pollution and also reduce the usage of renewable goods.

Legal Factors: Legal factors are related to legal environment. In recent years the developing countries changed the Legal factors which affected the firm's in other countries due to globalization.

The legal factors related to Mahindra & Mahindra group:

Agricultural policy

Collaboration with government which shapes policy issues.


SWOT (Strengths, Weakness, Opportunities, Threats) of Mahindra & Mahindra group

Strengths of Mahindra & Mahindra group:

Mahindra & Mahindra is one of the top players in the world in terms of number of tractors sold. This itself shows that Mahindra & Mahindra market share is the biggest strength of the company. It also have highest domestic share. The some other strengths of Mahindra & Mahindra group:

Product portfolio of Mahindra & Mahindra got extended from 20hp to 30hp.

There is government support for Mahindra & Mahindra Group.A

Availability of technically skilled people from JTC (Jiangling Tractor Company).

For its next stage of expansion Mahindra & Mahindra have a strategy. It not only focus on new products, it also have a programme of intensive management development to establish its leader for future.

The major strength of Mahindra & Mahindra is it have ability to introduce new products and process in to the market and also can generate sales for those new products.

Weakness of Mahindra & Mahindra group:

The production is non-competitive because of high interest costs and overheads.

Infrastructure of this group is Bottle neck.

The company's passenger cars are based upon 3rd and 4th generation platform.

In this group there is lack of efficiency for new plant layout.

Another weakness of Mahindra & Mahindra is multi franchise.

In Mahindra & Mahindra there is no effective dealership.

The M&M is mainly dependent on rural sector, the rural sector mainly depends on monsoon. Thus if there is bad monsoon for two consecutive years which leads to adverse impact on demand for tractors.

Opportunities of Mahindra & Mahindra group:

Rural demand is increased.

Income level is increasing.

Ban for overloading of commercial vehicles.

With the support of local partners there is an easy entry to Chinese market.

The Mahindra & Mahindra will be more competitive in Chinese market if they provided after sales service.

To get more demand the Mahindra & Mahindra group should export Chinese range tractors to India and Indian range tractors to China.

Mahindra also entered in to software field after buying satyam and renamed it as Mahindra Satyam.

Threats of Mahindra & Mahindra group:

Input cost got increased.

Competition also increasing.

The most important threat of Mahindra & Mahindra is legal consideration.

In China the Banking facilities are undeveloped.

The M&M also involved in different fields like holidays, telecom industry, financial services and resort etc. Which should have good subsidiaries from time to time if these are unmanageable this will divert the company's attention from its business which leads to destruction of shareholders value.

Mahindra & Mahindra will face more competition if the foreign players enter in to the tractor segment because these foreign players are technically more competitive when compared to M&M.

CONCULSION: Thus according to research on Mahindra & Mahindra Group it shows that the company uses the Strategic Key points in the external environment for long-term sustainability and sustained success. It is the one which encourages the new ideas and also have plan to sale the new product in the market. This company is the one which try to develop new products for consumers. Mahindra & Mahindra company is also socially responsible it give 1.3 crore only from its annual report for helping poor and unprivileged girls. Which shows that the company not only think about its profits but also feel the responsible about our country India. It is that which also do international trading with other countries. It also have a clear vision and goal which shows the dedication of the company. The mission itself says that it is not thinking about profits but it want develop ourselves. Mahindra and Mahindra tries to develop the new products which do not harm the environment and save the renewable resources example MAHINDRA REVA which is an electric car. According to research it shows that Mahindra & Mahindra is one company which is respected and trusted by consumers and it is the top industry in INDIA.