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1.0 INTRODUCTION

A subjective measure of how the firm can use assets from its primary mode of
business and generate revenues. This term is also used as general measure of a firms
overall financial health over a given period of time and can be used to compare
similar firms across the same industry or to compare industries or sectors in
aggregation.
Financial management is that managerial activity which is concerned with the
planning and controlling of the firms financial resources. The automobile sector is one
of the most important instrument of the national development, occupies a unique
place in a nation’s economy. Deregulation in the financial market, market
liberalization, economic reforms have witnessed astounding changes in car industry
leading to incredible competitiveness and advanced technology leading to a new era
of automobile sector.
Companies’ growth is possible in two ways internal and external. Internal growth
occurs when the company grows from its own business activity using funds from one
year to expand the company the following year. External growth occurs when
company grows by merger or acquisition of anotherbusiness. The main motive behind
the Merger is to create synergy that is one plus one is more than two. Merger and
Acquisitions help the companies in getting the benefits like :
 Achieving cost efficiency
 Engage new market area help in new innovation and technology advancement
 Economies of scale
 Industry consolidation
 Divesting non-core assets
 Geographical benefits
 Elimination or reduction in completion and risk etc.

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FINANCIAL PERFORMANCE :
Financial performance refers to the act of performing financial activity. In broader
sense, financial performance refers to the degree to which financial objectives being
or has been accomplished. It is the process of measuring the results of a firm's policies
and operations in monetary terms. It is used to measure firm's overall financial health
over a given period of time and can also be used to compare similar firms across the
same industry or to compare industries or sectors in aggregation. As long as
accounting biases remain more or less the same over time, meaningful inferences can
be drawn by examining trends in raw data and in financial Ratios. Since similar biases
characterize various firms in the same industry, inter-firm comparisons are useful.
Experience seems to suggest that financial analysis ‘works’ if one is aware of
accounting biases and makes adjustments for the same. Thus this paper concentrates
on the financial performance of Mahindra Finance and also objectives of the paper is
to check financial flow by primarily ratio analysis.

FINANCIAL ANALYSIS :
Financial analysis is the process of evaluating businesses, projects, budgets, and other
finance-related transactions to determine their performance and suitability. Typically,
financial analysis is used to analyze whether an entity is stable, solvent, liquid, or
profitable enough to warrant a monetary investment.
The financial analysis of companies is usually undertaken so that investors, creditors,
and other stakeholders can make decisions about those companies. Financial analysis
is the selection, evaluation and interpretation of financial data, along with other
pertinent information, to assist in investment and financial decision-making.
Financial Analysis is the process of identifying the financial strength and weaknesses
of the firm by properly establishing relationship between items of financial
statements. A financial statement is an organized collection of data according to
logical and conceptual framework. Consistent accounting procedure. Its purpose is to
convey an understanding of some financial aspects of a business firm. It may show a
position at a moment of time as time, as in the case of an income statement.

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Financial performance refers to the act of performing financial activity. In broader
sense, financial performance refers to the degree to which financial objectivities being
or has been accomplished. It is the process of measuring the results of firm’s policies
and operations in monetary terms. It is used to measure firms over all financial health
over a given period of time.

AREAS OF FINANCIAL PERFORMANCE ANALYSIS :

Financial analysts often assess the firm's production and productivity performance
(total business performance), profitability performance, liquidity performance,
working capital performance, fixed assets performance, fund flow performance and
social performance. Various financial ratios analysis includes :
1. Working capital Analysis
2. Financial structure Analysis
3. Activity Analysis
4. Profitability Analysis

SIGNIFICANCE OF FINANCIAL PERFORMANCE ANALYSIS :

Interest of various related groups is affected by the financial performance of a firm.
Therefore, these groups analyze the financial performance of the firm. The type of
analysis varies according to the specific interest of the party involved.

 Trade creditors :
Interested in the liquidity of the firm (appraisal of firm‟s liquidity)

 Bond holders :
Interested in the cash-flow ability of the firm (appraisal of firm‟s capital structure, the
major sources and uses of funds, profitability over time, and projection of future
profitability)

 Investors :

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Interested in present and expected future earnings as well as stability of these earnings
(appraisal of firm‟s profitability and financial condition)

 Management :
Interested in internal control, better financial condition and better performance
(appraisal of firm‟s present financial condition, evaluation of opportunities in relation
to this current position, return on investment provided by various assets of the
company, etc)

FINANCIAL STATEMENTS :
 Balance Sheet :
The balance sheet is a snapshot of the financial balances of an organization. It
provides an overview of how well the company manages its assets and liabilities.
Analysts can find information about long-term vs. short-term debt on the balance
sheet. They can also find information about what kind of assets the company owns
and what percentage of assets are financed with liabilities vs. stockholders' equity.

 Income Statement :
The income statement provides a summary of operations for the entire year. The
income statement starts with sales or revenues and ends with net income. Also
referred to as the profit and loss statement, the income statement provides the gross
profit margin, the cost of goods sold, operating profit margin, and net profit margin. It
also provides an overview of the number of shares outstanding, as well as a
comparison against performance the prior year.

 Cash Flow Statement :

The cash flow statement is a combination of both the income statement and the
balance sheet. For some analysts, the cash flow statement is the most important
financial statement because it provides a reconciliation between net income and cash
flow. This is where analysts see how much the company spent on stock repurchases,

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dividends, and capital expenditures. It also provides the source and uses of cash flow
from operations, investing, and financing.

LIMITATIONS OF FINANCIAL STATEMENT ANALYSIS :

1. Not a Substitute of Judgement :
An analysis of financial statement cannot take place of sound judgement. It is only a
means to reach conclusions. Ultimately, the judgements are taken by an interested
party or analyst on his/ her intelligence and skill.

2. Based on Past Data :

Only past data of accounting information is included in the financial statements,
which are analyzed. The future cannot be just like past. Hence, the analysis of
financial statements cannot provide a basis for future estimation, forecasting,
budgeting and planning.

3. Problem in Comparability :
The size of business concern is varying according to the volume of transactions.
Hence, the figures of different financial statements lose the characteristic of
comparability.

4. Reliability of Figures :
Sometimes, the contents of the financial statements are manipulated by window
dressing. If so, the analysis of financial statements results in misleading or
meaningless.

5. Various methods of Accounting and Financing :

The closing stock of raw material is valued at purchase cost. The closing stock of
finished goods is value at market price or cost price whichever is less. In general, the
closing stock is valued at cost price or market price which ever is less. It means that
the closing stock of raw material is valued at cost price or market price whichever is

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less. So; an analyst should keep in view these points while making analysis and
interpretation otherwise the results would be misleading.

6. Change in Accounting Methods :

There must be uniform accounting policies and methods for number of years. If there
are frequent changes, the figures of different periods will be different and
incomparable. In such a case, the analysis has no value and meaning.

7. Changes in the Value of Money :

The purchasing power of money is reduced from one year to subsequent year due to
inflation. It creates problems in comparative study of financial statements of different
years.

8. Limitations of the Tools Application for Analysis :

There are different tools applied by an analyst for an analysis. Even though, the
application of a particular tool or technique is based on the skill and experience of the
analyst. If an unsuitable tool or technique is applied, certainly, the results are
misleading.

9. No Assessment of Managerial Ability :

The results of the analysis of financial statements should not be taken as an indication
of good or bad management. Hence, the managerial ability can not be assessed by
analysis.

10. Change of Business Condition :

The conditions and circumstances of one firm can never be similar to another firm.
Likewise, the business condition and circumstances of one year to subsequent can
never be similar. Hence, it is very difficult for analysis and comparison of one firm
with another.

1.1 OBJECTIVES OF THE STUDY

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The study has been undertaken to make a comparative analysis of the impact of
merger on financial performance of Mahindra and Mahindra Company.
 To analyze the financial performance of company.
 To analyze the financial position of company.
 To forecast the future financial performance of company.
 To suggest suitable strategy to improve the financial position of company.
 To study the trend of financial performance of the company.
 To asses individual financial segments and put forth the strength and weakness
of the financial elements of balance sheet through trend analysis.

1.2 SCOPE OF THE STUDY

This study helps to identify the overall financial performance for the past five years.
To know the business ethics followed by the company in financial activity in
investment sector. The liquidity and activity positions of the firm are analyzed using
liquidity and turnover ratio using current liabilities. The solvency position of the
company is also analyzed using Statement Of Problem: The statement of problem is
that to analyze about performance of the company financially and in balance sheet
every pictures shows about the gross picture of every financial where no decision can
be made out of it.

1.3 PURPOSE OF THE STUDY

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 To understand the meaning, significance and limitation of financial

performance analysis.
 To calculate liquidity, solvency, profitability and activity ratios of the
organization.
 To make a comparative study and give solutions for the organisational
improvement.

1.4 LIMITATIONS OF THE STUDY

 The study was limited in terms of financial performance analysis and ratio
analysis only.
 The study is depends only on secondary data no primary data has been taken
so the fresh information is not available.
 The time factor was not in favour as the period of study was limited one
month.
 To maintain the confidentiality of the information data availability is a big
issue.

1.5 RESEARCH METHODOLOGY

Data Sources and Period of the Study The current study chooses one company as
Sample to assess the impact of mergers and acquisitions on the financial performance

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of selected company. The financial data has been compiled for the financial year 2007
to 2017 on an annual basis. The present study is based on secondary data.
The data is collected from the website www.moneycontrol.com and annual reports of
companies.

Research Design :
Descriptive research attempts to determine, describe, or identify what is. While
analytical research attempts to establish why it is that way or how it came to be
(Analytical Research).

Method Of Data Collection :

Secondary data was collected for the purpose of the study.

Data Analysis :
The tool used for calculation of financial performance analysis is following Statistical
tools they are applied to analyze the statistical data collected.
 Ratio analysis
 Comparative balance sheet
 Trend analysis.

Statement of Problem:
The statement of problem is that to analyze about performance of the company
financially and in balance sheet every pictures shows about the gross picture of every
financial where no decision can be made out of it.

2.0 COMPANY PROFILE

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Name of the Company Mahindra & Mahindra Limited

Type Public Company-Limited by shares/Non-Government

Company
Traded as  BSE: 500520
 NSE: M&M
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent
ISIN INE101A01026
Industry Automotive
Founded 2 October 1945; 75 years ago
Jassowal, Ludhiana, Punjab, India
Founders  J. C. Mahindra
 K. C. Mahindra
 M. G. Muhammad
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people  Anand Mahindra (Chairman)
 Pawan Kumar Goenka (MD) & (CEO)
Products  Automobiles
 Commercial vehicles
 Motorcycles
Revenue 949,261.90M
Mahindra & Mahindra Revenue , 2020
Operating income 77,560.30M (30 March 2020)
Net income Mahindra & Mahindra Net income , 2020

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1,270.40M
Total assets 1,670.06B
Total equity 399,693.10M
Number of employees 240,000
Parent Mahindra Group
Subsidiaries  Pininfarina
 Mahindra 2 Wheelers
 Ssangyong Motors (74.65%)
 BSA Company
 GenZe
 Mahindra Electric
 Peugeot Motocycles
 Ford India Private Limited (51%)
Website auto.mahindra.com

LOGO :
The logo has the oval which is cutting through by the three diagonal stripes. The red
color in the logo signifies the energy. The diagonal lines are moving in upward
direction which representing its new slogan i.e. spark the rise.

Keshub Mahindra
Chairman Emeritus, Mahindra & Mahindra Ltd:

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Anand Mahindra
Chairman, Mahindra Group

Dr Pawan Goenka

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Managing Director & CEO, Mahindra & Mahindra Ltd:

Dr Anish Shah
Deputy Managing Director & Group CFO

Rajesh Jejurikar
Executive Director (Auto & Farm Sectors)

SP Shukla

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Group President (Defence, Aero & Agri Sector)

Ashok Sharma
President, Agri Business; MD & CEO, Mahindra Agri Solutions Ltd:

CP Gurnani
Managing Director and Chief Executive Officer, Tech Mahindra

Kavinder Singh

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MD & CEO, Mahindra Holidays; President (Leisure & Hospitality Sector) & Vice
Chairman, Holiday Club Resorts Oy (Finland)

L Ravichandran
President (Group Public Affairs)

Manoj Chugh
President (Group Public Affairs)

2.1HISTORY

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Mahindra & Mahindra was incorporated as Muhammad & Mahindra in 1945 by the
brothers J. C. Mahindra and K. C. Mahindra, and Malik Ghulam Muhammad in
Ludhiana, Punjab to trade steel. Following the Partition of India in 1947, Malik
Ghulam Muhammad left the company and emigrated to Pakistan where he became the
first finance minister of the new state (and later the third Governor General in 1951).
In 1948, K. C. Mahindra changed the company's name to Mahindra & Mahindra.
Building on their expertise in the steel industry, the Mahindra brothers began trading
steel with UK suppliers. They also won a contract to manufacture Willys Jeeps in
India and began producing them in 1947. By 1956, the company was listed on the
Bombay Stock Exchange, and by 1969 the company had entered the world market as
an exporter of utility vehicles and spare parts. Like many Indian companies, Mahindra
responded to the restrictions of the Licence Raj by expanding into other industries.
Mahindra & Mahindra created a tractor division in 1982 and a tech division (now
Tech Mahindra) in 1986. It has continued to diversify its operations ever since
through both joint ventures and greenfield investments.
By 1994, the Group had become so diverse that it undertook a fundamental
reorganization, dividing into six Strategic Business Units: Automotive; Farm
Equipment; Infrastructure; Trade and Financial Services; Information Technology;
and Automotive Components (known internally as Systech). The new Managing
Director, Anand Mahindra, followed this reorganization with a new logo in 2000 and
the successful launch of the Mahindra Scorpio (a wholly indigenously designed
vehicle) in 2002. Together with an overhaul in production and manufacturing
methods, these changes helped make the company more competitive, and since then
the Group's reputation and revenues have risen noticeably. Currently, Mahindra &
Mahindra is one of the 20 largest companies in India In 2009, Forbes ranked
Mahindra among the top 200 most reputable companies in the world.
In January 2011, the Mahindra Group launched a new corporate brand, Mahindra
Rise, to unify Mahindra's image across industries and geographies. The brand
positions Mahindra products and services as aspirational, supporting customers'
ambitions to 'Rise.' In April 2012, the Mahindra Group showed interest in purchasing

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the bankrupt automobile company Saab, and placed several bids for Saab, though was
outbid by Saab's new owner National Electric Vehicle Sweden.

ACHIEVEMENTS :
 Mahindra and Mahindra recognised as India’s 10th Most Trusted Brand by
The Brand Trust Report in its India Study 2014 survey.
 Keshub Mahindra, former chairman of the Mahindra Group, decorated with
ASSOCHAM Lifetime Achievement Award.
 Mahindra Reva presented with CII Design Excellence award.
 M&M rated as India’s 2nd Most Reputed Company by Bluebytes News in
2012.
 Mahindra and Mahindra placed among the top Ten Indian companies in
'Global 200: The World's Best Corporate Reputations' list for 2008 by
Reputation Institute.
 M&M’s farm equipment branch bagged the apan Quality Medal in 2007.
 For 2006-07, bagged the Bombay Chamber Good Corporate Citizen Award.

AWARDS AND RECOGNITIONS :

 Bombay Chamber Good Corporate Citizen Award for 2006–07.
 Businessworld FICCI-SEDF Corporate Social Responsibility Award 2007.
 The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand in
its India Study 2014 survey (from 20,000 brands analyzed).
 Its Farm Equipment division received the Deming Prize in 2003.
 Its Farm Equipment division received the Japan Quality Medal in 2007.
 The US based Reputation Institute ranked M&M amongst the top Ten Indian
companies in its 'Global 200: The World's Best Corporate Reputations' list for
2008.
 Bluebytes News rated M&M as India's second Most Reputed Car Company
(reported in their study titled Reputation Benchmark Study) conducted for the
Auto (Cars) Sector in 2012.

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2.2 MISSION & VISION

MISSION :
To earn our Customer’s loyalty by delivering sales and service experiences with high
quality, excellent value, integrity and enthusiasm. We will function as a team, work
ethically, and focus on meeting and striving to exceed the expectations of our
Customers.

VISION :
 Listen to our Customers and team members. Mahindra group will ask
questions (not assume) seeking to understand specific needs, desires, and
expectations. They will seek to understand before they will seek to be
understood.
 M&M company will work in an environment of mutual trust and respect. They
will be caring and responsive to requests while being honest and timely,
avoiding false expectations.
 M&M company will think in terms of exceeding Customer expectations while
doing what is fair; i.e. striving to go the extra step that transforms Customer
Satisfaction into Customer Enthusiasm.
 M&M company will make it happen. Speed is essential in creating a win-win
culture for the Customer and Capital.
 M&M company will follow-up with the Customer to ensure that the
Customer’s expectations were met or exceeded.
 M&M company will seek to continually improve our skills and the quality of
our products and services in the eyes of our Customer.
 M&M company will be proactive by anticipating the needs of Customers and
team members.

CORE VALUES :

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Our Core Values are influenced by our past, tempered by our present, and will shape
our future. They are an amalgam of what we have been, what we are and what we
want to be.

 Good Corporate Citizenship :

As in the past, we will continue to seek long term success, which is in alignment with
our country's needs. We will do this without compromising ethical business standards.

 Professionalism :
We have always sought the best people for the job and given them the freedom and
the opportunity to grow. We will continue to do so. We will support innovation and
well reasoned risk taking, but will demand performance.

 Customer First :
We exist and prosper only because of the customer. We will respond to the changing
needs and expectations of our customers speedily, courteously and effectively.

 Quality Focus :
Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with
others. We will do it 'First Time Right'.

 Dignity of the Individual :

We will value individual dignity, uphold the right to express disagreement and respect
the time and efforts of others. Through our actions, we will nurture fairness, trust and
transparency.

2.3 SWOT ANALYSIS

STRENGTH :
 Market leader in multiple automotive segments :

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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 & Mahindra’s 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 :
 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.

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 Overdependence on Automotive industry :

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

 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 :
 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.

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THREATS :
 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&M’s 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.

2.4 CORPORATE SOCIAL RESPONSIBILITY

OBJECTIVE OF THE CSR POLICY :

 To promote a unified and strategic approach to CSR across the Company by
incorporating under one ‘Rise for Good’ umbrella the diverse range of its

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philanthropic giving, identifying select constituencies and causes to work
with, thereby ensuring a high social impact.
 To ensure an increased commitment at all levels in the organisation, by
encouraging employees to participate in the Company’s CSR and give back to
society in an organised manner through the employee volunteering programme
called ESOPs (Employee Social Options).

SCOPE AND APPLICABILITY :

This policy shall be applicable to all sectors and employees of Mahindra & Mahindra
Ltd.

CSR ACTIVITIES OF MAHINDRA & MAHINDRA :

The social initiatives of the group have been very well streamlined where each group
company donates 0.5% of their PAT to the K C Mahindra Education Trust and adopts
projects under the Trust. The remaining 0.5% is used by the company to run
community development programs on their own.

1. K. C. Mahindra Education Trust :

Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra Education
Trust aims to 'Transform the lives of people in India through education, by providing
financial assistance and recognition to them, across age groups and across income
strata'. It was registered as a Public Charitable Trust under the Bombay Public Trusts
Act, 1950. The K.C. Mahindra Education Trust has undertaken a number of education
initiatives to make a difference to the lives of deserving students. The Trust promotes
education mainly by way of scholarships. It has provided more than Rs. 13.80 crores
(approximately US $ 3.0 million) in the form of grants, scholarships and loans. Some
of these scholarships were instituted as far back as the 1950's, while others were
founded recently. These are funded through an investment portfolio, the main donors
of which are the Mahindra Group of companies.

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2. Mahindra Academy :
As part of its Corporate Social Responsibility activities, the Mahindra Group has
established schools near its factories primarily for children of its employees. At
present, the Group has three schools that impart high standards of education -
Mahindra Academy at Malad in Mumbai, Mahindra Academy in Zaheerabad and
a school in Khopoli. The establishment of these schools has not just benefited their
employees but also the community around these schools. Teachers at these schools
are qualified and undergo regular training as well as attend relevant workshops. Their
teaching methodologies are constantly evaluated and modified when necessary.

3. Disaster Relief :
The Mahindra Foundation has been set up with a specific objective: to provide
medical relief to the poor and needy sections of society. The foundation has helped
patients suffering from cancer, heart ailments as well as burn victims. It has also been
very active during national calamities and disasters and has helped contribute and
mobilize resources. The foundation also extends its support to academia and other
professionals and sportsmen by helping them attend workshops and conferences
overseas. The Mahindra Group has always been very responsive to any major disaster
in India. Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family
has got together and always provided support either by way of financial help or by
way of sending vehicles, supplying material or manpower.

4. The Group has Transformed 3 municipal Gardens :

The Shivaji Garden (near Gateway of India) is admired for its beautiful architecture
and flourishing plants and flowers. Completely renovated by the Mahindra Group at a
cost of Rs. 6 Lakhs, it now has pathways for pedestrians as well as new stretches of
lawns and flowers. An area formerly frequented by anti-social elements has been
merged with the garden, to prevent further misuse. Every effort has been taken to
keep the garden in an immaculate condition and visiting hours are in place, facilitating

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maintenance work. The Traffic Island Garden (opposite Regal Cinema) has been
completely renovated by the Mahindra Group at the cost of Rs. 1 Lakh. New lamp
posts and a variety of plants were put into place and the fountain was restored to its
former glory. The garden provides visual relief in this crowded and traffic congested
circle. The third garden is located at the junction of Madame Cama Road, to the south
of Oval Maidan. This is a brand new garden, developed by the group from scratch, at
a cost of Rs. 1.5 Lakhs.

5. Reducing CO2 Emissions :

The Bijlee
The Bijlee is an innovative, home grown, first-of-its-kind electric three wheeler,
India’s tried and tested battery operated vehicle. The Bijlee is an innovative “Kind to
Man” technology initiative from Mahindra & Mahindra’s alternate fuel programme. It
is a zero emission electrically powered vehicle that runs on a 72 volts DC motor. The
Bijlee’s 12 batteries allow the customer to do 80 km at a speed of 35 km/hour. With a
replacement battery on board the vehicle can easily give 120 kms. The electric vehicle
has spacious interiors, with ample space for an entire family. It has no engine,
gearbox radiator and no silencer, which makes it a virtually noise free vehicle. Bijlee
gives quality output without choking the environment and is favoured by governments
and institutions, which lay focus on conserving the environment. 10 Mahindra Bijlees
were handed over to customers in 2006 by the Chief Minister of Pondicherry.

6. Nanhi Kali :
Nanhi Kali is a program that supports education for the girl child and is being run by
the K C Mahindra Education Trust (KCMET). The project currently (2007) supports
the education of over 32,000 underprivileged girl children.

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7. Environmental Initiatives :
The environmental Performance enhancement is achieved through setting and
reviewing EMS Objectives and Targets, management programmes at plant level and
at relevant functional levels. These are in line with the Environmental Policy
approved by the sector president. Some of the key Environmental initiatives and areas
of achievement in Nashik site are as follows.

  Air Pollution :
  Exhaust provided for all stacks in paint shops.
  Incinerators for ensuring complete combustion of flue gases
  Scrubber for removing Suspended Particulate Matter
  Pollution levels monitored every six months using external professional
Lab.
 Ambiant Air, Ambiant noise
 Combustion Stacks
 Process Stacks
 Work Place Air, noise
  Use of Ear Muffs, Ear plugs ensured in all high noise areas.

 Water Pollution :
 State of the Art combined STP (Sewage Treatment Plant) and ETP (Effluent
Treatment Plant) installed in Plant
 Operation and Maintenance of ETP/STP closely monitored.
 Effluent pollution parameters monitored.

8. Mahindra Pride schools :

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It has decided to start two schools called Mahindra Pride schools for the SC/ST youth.
From the first Pride school, over 2000 students have been placed with a starting salary
of Rs. 9000.

9. Hariyali :
It is a mass tree plantation & target was to plant 1 million trees.

10. ESOP :
It enables Mahindra workforce to collectively donate thousands of human hours for
various social projects, in the three focused areas of Education, Health and
Environment.

11. Aanganwadi :
Centre to serve educational & recreational needs of local children.

12. Schools adopted by M&M :

With an aim to improve the learning level of children in government schools, the
Mahindra Group has entrusted K. C. Mahindra Education Trust to support 6
government schools in the city of Mumbai, which have drop out rates as high as 15%
by Std V and 22% by Std VII. A survey conducted in 60 schools in Mumbai revealed
that 60% of students studying in Std III would not read even simple paragraphs, 40%
in Std IV could not write and 32% were not able to do simple arithmetic. K. C.
Mahindra Education Trust has identified Naandi Foundation as our implementation
partner to help us support these schools through their Ensuring Children Learn
programme. The schools identified are needy government schools and 5 of them
located close to the factories and offices were selected to allow the employees an
opportunity to easily volunteer at these field sites.

No. School Name

1 Akurli Schools Marathi 1
2 Akurli Schools Marathi 2

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3 Akurli Schools Marathi Hindi medium (Kandivili)
4 Bajaj Road Marathi
5 Bajaj Road Marathi Kandivali
6 Dalvi Plot School Marathi 1
7 G K Kadam Marg School, Hindi Medium

13. Mahindra Search for Talent Scholarship :

This was initiated in 1983. This has been set up in 35 educational institutions across
the country with an objective to enthuse and reward excellence in academics. This
scholarship is awarded to students obtaining the highest aggregate marks, based on
the year-end examination. Further a student who receives the Mahindra Search for
Talent scholarship more than once, is awarded the ‘Honour scholarship’ which
includes a cash prize of Rs. 5000/- and a citation from the Trust.

14. Mahindra Pride Schools :

As part of the 60th year celebrations, Mahindra & Mahindra through its K C
Mahindra Education Trust set up 2 Mahindra Pride Schools, with the prime objective
of empowering youth from socially disadvantaged sections of society by extending
livelihood training, to enable them to gain employment based on their skills. The
schools offer equal opportunity for men and women, with a focus on rural youth.
These schools are nonresidential and offer various alternative livelihood options.
To effectively run the Mahindra Pride schools, KCMET decided to partner with
Naandi Foundation, a not for profit trust with a proven track record in the field of
education and livelihood creation.

15. Health :
 Blood Donation – Totally 14 camps conducted with 797 donors.
 Eye Camps – 7 Eye Camps conducted in which one was on Eye Donation
Awareness (18 donors) and others focused on eye testing and about 64 cataract
operations were recommended.
 Surgical Camp in association with Rotary Club for about 300 tribals in
which 175 surgeries took place.

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 Health Check Up –A unique initiative through which 115 Railway Porters at
CST Mumbai were given health cards after check up, similarly a camp
benefited 170 policemen in Mumbai.
 HIV/ Aids Awareness – 2 Camps were conducted in both urban & rural areas.
 Toilet Construction for school children.
 Typhoid Vaccinations for 200 children.
 Pulse Polio Awareness Drive.
 Dental Check up Camp.

2.5 MARKETING MIX (4PS) STRATEGY

Marketing Mix of Mahindra & Mahindra analyses the brand/company which covers
4Ps (Product, Price, Place, Promotion) and explains the Mahindra & Mahindra
marketing strategy. There are several marketing strategies like product/service
innovation, marketing investment, customer experience etc. which have helped the
brand grow. Marketing strategy helps companies achieve business goals & objectives,
and marketing mix (4Ps) is the widely used framework to define the strategies. This
article elaborates the product, pricing, advertising & distribution strategies used by
Mahindra & Mahindra.

 Mahindra & Mahindra Product Strategy :

The product strategy and mix in Mahindra & Mahindra marketing strategy can be
explained as follows:
Mahindra & Mahindra has a huge product mix with product lines of personal vehicles,
commercial vehicles, electric vehicles, application trucks, trucks, light trucks and
buses. In the personal cars category, Mahindra & Mahindra has a wide range of
Utility vehicles, Multi-utility vehicles, Sports utility vehicles and sedans. Mahindra
Bolero has been the one of the best UVs in India. Mahindra & Mahindra trucks are

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known to be powerful, durable and reliable. Cars such as Scorpio, KUV100, XUV
500, Quanto, Xylo, Rexton, Korando, Kyron offer a lot of modern features with the
toughness that Mahindra promises. This gives an insight in the product strategy in the
marketing mix of Mahindra & Mahindra. They come in vibrant colors ranging from
dazzling silver, fiery orange to flamboyant red and midnight black.
Being an environment conscious company Mahindra & Mahindra is trying to find
environment friendly alternatives, e2o and eSupro are proof of such commitments.
These are the electric cars that Mahindra & Mahindra is currently offering. E2o is a
car whereas eSupro is a cargo van with zero emissions.
In the commercial cars category Mahindra & Mahindra boosts of Imperio, Alfa,
Bolero pickup, Bolero Camper, Bolero Maxi truck. They are technologically
advanced cargo vehicles used for loading and unloading. Bolero pickup has been a
pioneer in the market for the last ten years now.

 Mahindra & Mahindra Price/Pricing Strategy :

Below is the pricing strategy in Mahindra & Mahindra marketing strategy :
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 &
Mahindra’s 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.

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 Mahindra & Mahindra Place & Distribution Strategy :
Following is the distribution strategy of Mahindra & Mahindra :
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
dealership’s infrastructure in the rural areas through its “Samriddhi Centres”.
Through these centres farmers got valuable information on weather, crops and farm
productivity which attracted the farmers to these dealerships and turned them into
loyal customers.

 Mahindra & Mahindra Promotion & Advertising Strategy :

The promotional and advertising strategy in the Mahindra & Mahindra marketing
strategy is as follows :
Mahindra & Mahindra advertises very smartly and adequately. Mahindra &
Mahindra’s “Live young, Live free “campaign became popular in 2012. Mahindra &
Mahindra follows an aggressive promotional strategy in its marketing mix. It showed
Mahindra’s portfolio of vehicles in tough terrains of different parts of India. They
made Varun Dhawan as their brand ambassador to target the younger audience. The
advertisement made with the actor had great content and complimentary music. Their
advertising strategy is not confined to just television. Mahindra & Mahindra do a lot

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of print, digital and media advertising as well. They host on ground events like the
Mahindra adventure initiative. Mahindra & Mahindra has a huge fan base on social
media. Various events and contests like the Dubsmash & win KUV100 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 & Mahindra does a lot of promotion 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 Quanto. It helped the
audience relate to the holiday theme of the car. Hence, this covers the entire
marketing mix of Mahindra & Mahindra.

3.0 THEORETICAL BACKGROUND

Mahindra & Mahindra was founded as a steel trading company on 2 October 1945 in
Ludhiana as Mahindra & Muhammed by brothers Harikrishnan and Jayakrishnan and
Jagdish Chandra Mahindra along with Malik Ghulam Muhammad. Anand Mahindra,
the present Chairman of Mahindra Group, is the grandson of Jagdish Chandra
Mahindra. After India gained independence and Pakistan was formed, Muhammad
emigrated to Pakistan. Muhammad acquired Pakistani citizenship and settled in
Lahore, and in 1948 became Pakistan's first finance minister.

CHRONOLOGY :
In 1948, the company changed its name to Mahindra & Mahindra. They eventually
saw a business opportunity in expanding into manufacturing and selling larger MUVs
and started assembling under licence of the Willys Jeep in India. Soon, M&M was
established as the Jeep manufacturer in India, later commenced manufacturing light
commercial vehicles (LCVs) and agricultural tractors.

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Mahindra CL 550 MDI, with design licensed from Jeep

In 1999, Mahindra purchased 100% of Gujarat Tractors from the Government of

Gujarat and in 2017 Mahindra renamed it as Gromax Agri Equipment Limited, as part
of new brand strategy and the models continue to be sold as Trakstar.
In 2007, M&M acquired Punjab Tractor Limited (PTL) making it the world's largest
tractor manufacturer. Subsequent to this take-over, the former PTL was merged into
M&M and transformed as Swaraj division of Mahindra & Mahindra in the year 2009.
Over the past few years, the company has taken interest in new industries and in
foreign markets.
In 2008, they entered the two-wheeler industry by taking over Kinetic Motors in
India.
In 2010, M&M took a 55% stake in the REVA Electric Car Company and in 2016,
they renamed it Mahindra Electric Mobility Ltd after taking 100% ownership.
In 2011 Mahindra and Mahindra acquired South Korea's SsangYong Motor
Company. In 2010–11 M&M entered into micro drip irrigation with the takeover of
EPC Industries Ltd in Nashik.
In October 2014, Mahindra and Mahindra acquired a 51% controlling stake in
Peugeot Motocycles and progressed to acquire a 100% controlling stake in October
2019.

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In May 2015 Mahindra acquired a 33.33% stake in Japanese tractor manufacturer
Mitsubishi Agricultural Machinery (MAM), a subsidiary of the Mitsubishi Heavy
Industries.
In December 2015, Mahindra and Mahindra Ltd and affiliate Tech Mahindra Ltd,
through a special purpose vehicle (SPV), have agreed to buy a 76.06% stake in Italian
car designer Pininfarina SpA, for €25.3 million (around Rs.186.7 crore).
In March 2016, Mahindra acquired 35% in Finland-based Sampo Rosenlew, entering
the combine harvester business, subsequently increasing its stake in the company to
49.04% in December 2019.
In January 2017, Mahindra and Mahindra Ltd acquired a 75.1 equity stake in
Hisarlar Makina Sanayi ve Ticaret Anonym Şirketi (Hisarlar), a farm equipment
company, marking its entry into Turkey and in September 2017 acquired another
Turkish tractor and foundry business Erkunt Traktor Sanayii AS for ₹800 crore.
In November 2017, Mahindra signed a memorandum of understanding (MOU)
agreement with Belgium-based Dewulf, a supplier of a full line of potato and root
crop machinery. Under the agreement, Mahindra will manufacture and market potato
planting equipment in India, for which the co-branded planter is developed.
In January 2018, Mahindra announced its foray into the sprayers business through
the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments Pvt Ltd, a
Maharashtra-based AgTech company (MITRA). In March 2020, Mahindra further
increased its stake in the company to 39%.
In February 2018, Mahindra acquired a minority stake of 22.9% percent in Carnot
Technologies. Carnot Technologies owns and operates smart car solutions firm
CarSense.
In May 2018, Mahindra signed a share subscription agreement to acquire up to 10%
share capital of Canada's IT firm Resson Aerospace Corporation. Resson is focussed
on providing technology solutions for agriculture. It has developed a system which
captures and interprets images to give farmers information about the state of their
fields and crops.
In June 2019, Mahindra purchased an 11.25% stake in Switzerland based agri
technology firm Gamaya SA. The acquisition enabled Mahindra to further develop

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and deploy next-generation farming capabilities such as precision agriculture and
digital farming technologies.
In October 2019, Mahindra entered into a joint venture with Ford by establishing
Ford India in which Mahindra & Mahindra acquired a controlling 51% stake.
In April 2020, the company ended its joint venture with Renault, with Mahindra &
Mahindra buying out Renault's stake. Renault continues to license and supply key
components such as engines and transmissions to Mahindra & Mahindra.

3.1 OPERATIONS AND PRODUCTS

Under the “Mahindra” brand name, the company produces SUVs, Multi utility
vehicles, pickups, lightweight commercial vehicles, heavyweight commercial
vehicles, two wheeled motorcycles and tractors. Mahindra maintains business
relations with foreign companies like Renault SA, France.
M&M has a global presence and its products are exported to several countries. Its
automotive global subsidiaries include :
 Mahindra Europe S.r.l. based in Italy,
 Mahindra Automotive North America (MANA) in US.,
 Ssangyong in South Korea
 Automobili Pininfarina in Italy
 Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
 Mahindra Australia
 Mahindra Brazil & Mexico

AUTOMOBILES :

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Bolero in mumbai South African Police Mahindra XUV500

1988 Mahindra CJ 640 DP, Peugeot XDP 4.90 diesel

engine – Jeep CJ derived model with 4-door closed body

Mahindra began assembling the Jeep CJ3 in 1954, and light commercial vehicles in
1965. In 1979 the licensed assembly of Peugeot diesel four-cylinder engines and
transmissions began, and in 1982 a tie-up with Kia Motors to build their four-speed
KMT90 transmission and transfer case was announced. Mahindra's MM range was a
mainstay of the lineup and was eventually also offered with a 1.8-liter Isuzu petrol
engine in addition to International and Peugeot diesels. Mahindra started making
passenger vehicles firstly with the Logan in April 2007 under the Mahindra Renault
joint venture. M&M made its maiden entry into the heavy trucks segment with the
Mahindra Truck and Bus Division, the joint venture with International Truck, USA.
Mahindra produces a wide range of vehicles, including MUVs, LCVs and three-
wheelers. It manufactures over 20 models of cars, including larger, multi-utility
vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford
called Ford India Private Limited to build passenger cars.

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At the 2008 Delhi Auto Show, Mahindra executives said the company was pursuing
an aggressive product expansion program that would see the launch of several new
platforms and vehicles over the next three years, including an entry-level SUV
designed to seat five passengers and powered by a small, turbocharged Diesel engine.
True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January
2009, selling over 15,000 units in its first six months.
Also in early 2008, Mahindra commenced its first overseas CKD operations with the
launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto
Group. This was soon followed by assembly facilities in Brazil.
Mahindra & Mahindra has a controlling stake in Mahindra REVA Electric Vehicles.
In 2011, it also gained a controlling stake in South Korea's SsangYong Motor
Company.
Mahindra launched its relatively heavily publicised SUV, XUV500, code named as
W201 in September 2011. The new SUV by Mahindra was designed in-house and it
was developed on the first global SUV platform that could be used for developing
more SUVs. In India, the new Mahindra XUV 500 came in a price range between
₹1,140,000–1,500,000. The company was expected to launch three products in 2015
(two SUVs and pme CV) and an XUV 500 hybrid. Mahindra's two wheeler segment
launched a new scooter in the first quarter of 2015. Besides India, the company also
targeted Europe, Africa, Australia and Latin America for this model. Mahindra
President Mr. Pawan Goenka stated that the company planned to launch six new
models in the year. The company launched the CNG version of its mini truck
Maxximo on 29 June 2012. A new version of the Verito in Diesel and petrol options
was launched by the company on 26 July 2012 to compete with Maruti's Dzire and
Toyota Kirloskar Motor's Etios.
On 30 July 2015, Mahindra released sketches of a new compact SUV called the
TUV300 slated to be launched on 10 September 2015. The TUV300 design took cues
from a battle tank and used a downsized version of the mHawk engine found on the
XUV500, Scorpio and some models of the Xylo. This new engine was dubbed the
mHawk80.

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In 2015, Mahindra introduced an app based intra-city cargo platform known as
SMARTSHIFT, a load exchange platform for small commercial vehicles. In 2018,
Mahindra announced merger the of SMARTSHIFT with Mumbai-based logistics
solutions provider Porter.
On 3 September 2018, Mahindra Marazzo the shark inspired vehicle was launched in
collaboration with Mahindra Research Valley (MRV), MANA and Pininfarina in four
variants. In August 2020, M&M and Israel-based REE Automotive signed a
memorandum of understanding (MOU) to explore development and manufacturing of
electric commercial vehicles for global markets. In October 2020, Mahindra launched
the second-generation Thar 2020 – the All-New Thar.
MAHINDRA IN NORTH AMERICA :

Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in
North America through an independent distributor, Global Vehicles USA, based in
Alpharetta, Georgia. Mahindra announced it would import pickup trucks from India in
knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete
vehicles that were assembled in the United States from kits of parts shipped in crates.
On 18 October 2010, however, it was reported that Mahindra had indefinitely delayed
the launch of vehicles into the North American market, citing legal issues between it
and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier
in 2010, due to a decision to sell the vehicles directly to consumers instead of through
Global Vehicles. However, a November 2010 report quoted John Perez, the CEO of
Global Vehicles USA, as estimating that he expected Mahindra's small Diesel pickups
to go on sale in the United States by spring 2011, although legal complications
remained, and Perez, while hopeful, admitted that arbitration could take more than a
year. Later reports suggested that the delays may be due to Mahindra scrapping the
original model of the truck and replacing it with an upgraded one before selling them
to Americans. In June 2012, a mass tort lawsuit was filed against Mahindra by its
American dealers, alleging the company of conspiracy and fraud.
Mahindra Automotive North America (MANA), the company's U.S. subsidiary,
opened a car manufacturing plant in Detroit, Michigan on 20 November 2017. The

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plant employs 250 people, and is the first automotive production facility to open in
Detroit in 25 years. The first product from the new facility was launched on 2 March
2018 as the Mahindra Roxor.

3.3 LIST OF MAHINDRA MODELS

CURRENT MODELS:
Calendar Current
Model year model Vehicle
introduced Introduction information
Hatchback

KUV A segment/
100 2016 2016 city car
NXT hatchback.

SUV

Bolero 2000 2020 SUV

Mid-size

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Scorpio 2002 2020 SUV

Compact off
Thar 2010 2020 road 4x4
SUV

C-segment/
XUV 2011 2018 compact
500 SUV

TUV 2015 2021 Subcompact

300 SUV

Alturas Mid-size
2018
G4 2018 SUV

B-segment/
XUV 2019 2019 subcompact
300 crossover

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SUV

MPV/van

Marazzo 2018 2020 Compact

MPV

UTV

4x4 off-road
2018 only utility
Roxor 2018
vehicle

DISCONTINUED MODELS :

Mahindra Xylo (2009-2019) Mahindra Quanto (2012-2020)

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Mahindra Verito Vibe (2013-2019) Mahindra e2o (2013-2016)

MILITARY AND DEFENCE :

Mahindra Axe

The company has built and assembled military vehicles, commencing in 1947 with
the importation of the Willys Jeep that had been widely used in World War II.[77] Its
line of military vehicles include the Axe. It also maintains a joint venture with BAE
Systems, Defence Land Systems India.

ENERGY :
Mahindra & Mahindra entered the energy sector in 2002, in response to growing
demands for increased electric power in India.
Since then, more than 150,000 Mahindra Powerol engines and Diesel generator sets
(gensets) have been installed in India. The inverters, batteries, and gensets are

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manufactured at three facilities in Pune (Maharashtra), Chennai (Tamil Nadu), and
Delhi; and 160 service points across India offer continuous support to most key
markets. Powerol is present in countries across Latin America, Africa, the Middle
East, and Southeast Asia—and expanding into the United Arab Emirates, Bangladesh,
and Nepal. Mahindra Powerol's energy services consist mostly of power leasing and
telecom infrastructure management. In 2006, it became a major market leader in the
telecom segment (and in 2011, its market share passed 45 percent).
Mahindra Cleantech Ltd focuses in eco-friendly, or "green" power. In response to
growing acceptance of solar power, it formed a subsidiary, Mahindra Solar, in 2010 to
offer a range of solar systems, both off grid and on grid, alongside Engineering,
Procurement, and Construction (EPC).
Mahindra EPC is the engineering procurement and construction arm of the Mahindra
group. A portfolio company under the Cleantech arm of Mahindra Partners, they offer
solar systems spanning On-Grid, EPC (Engineering, Procurement and Construction)
and Off-Grid products. The company commenced its operations in the year 2011 and
has commissioned over 60 MW worth of Solar PV projects.
Meanwhile, its off-grid products include power packs and rooftop setups for business
organisations and public institutions alongside rural electrification through lanterns
and home and street lighting systems. The company works closely with Mahindra's
farm equipment division to offer lighting products to some of the more rural areas in
India. It also works with Mahindra Powerol to offer solar power backup to telecom
sites in India. In 2011, Mahindra Solar received a CRISIL rating of SP1A in 2011, the
highest rating for any solar photovaltaic off-grid company.

FARM EQUIPMENT :
Main article: Mahindra Tractors

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Mahindra Arjun 605 DI tractor with trailer

Mahindra began manufacturing tractors for the Indian market during the early '60s. It
is the top tractor company in the world (by volume) with annual sales totaling more
than 200,000 tractors. Since its inception, the company has sold over 2.1 million
tractors. Mahindra & Mahindra's farm equipment division (Mahindra Tractors) has
over 1,000 dealers servicing approx. 1.45 million customers.
Mahindra tractors are available in 40 countries, including India, the United States,
China, Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan,
Ghana, and Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central
America, and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the
Middle East (Iran and Syria) and Eastern Europe (Serbia, Turkey, and Macedonia).
Mahindra Tractors manufactures its products at four plants in India, two in Mainland
China, three in the United States, and one in Australia. It has three major subsidiaries:
Mahindra USA, Mahindra (China) Tractor Company, and Mahindra Yueda
(Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).
In 2003, the Farm Equipment Sector of Mahindra & Mahindra won the Deming
Application Prize and in 2007 it received the Japan Quality Medal for implementing
Total Quality Management in its entire business operations. The company has
garnered the highest customer satisfaction index (CSI) in the industry at 88 percent. It
earned a 2008 Golden Peacock Award in the Innovative Product/Services category for
its in-house development of a load car. In its 2009 survey of Asia's 200 most admired
and innovative companies, the Wall Street Journal named Mahindra & Mahindra one
of the 10 most innovative Indian companies.

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In addition to tractors, Mahindra sells other farm equipment. It has expanded its
product-line to include farm-support services via Mahindra AppliTrac (farm
mechanisation products), Mahindra ShubhLabh (seeds, crop protection, and market
linkages and distribution), and the Samriddhi Initiative (farm counselling and
information services).
The Mahindra Automotive and Farm Equipment Sectors (AFS), is one of the largest
contributors to the Mahindra Group revenue and includes 27 businesses, 18
subsidiaries and 9 companies.
The Automotive business accounts for about 48% of India's utility vehicle market
share and is the number two CV player in India. The business has a presence in
almost every segment of the automobile industry with SUVs, luxury UVs, sedans,
pick-ups, light, medium and heavy commercial vehicles to three-wheelers. Their
customer base spans rural and urban India.
The Farm Equipment department also provides irrigation, fertilization, seeds through
varied agriculture and allied businesses.

4.0 DATA ANALYSIS AND INTERPRETATION

BALANCE SHEET:
The table 1 represents the data of balance sheet of Mahindra & Mahindra company.
In the balance sheet for the considered for last 3 years.

4.1 Table 1: Mahindra & Mahindra Ltd. (M&M) - Balance Sheet

Figures In Rs. Crore 2020 2019 2018

Sources Of Funds
Share Capital 596.52 595.80 594.97
Reserves 33871.32 33613.43 29699.07
Total Shareholders’ Funds 34467.84 34209.23 30294.04

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Secured Loans 0.00 0.00 0.00
Unsecured Loans 4689.15 4193.19 4308.58
Total Debt 4689.15 4193.19 4308.58
Total Liabilities 39156.99 38402.42 34602.62

Application Of Funds
Gross Block 22666.25 20518.32 16877.99
Capital Work In Progress 4009.46 2419.79 3128.71
Investments 19938.13 22016.03 20582.97

Current Assets, Loans & Advances

Inventories 3400.91 3839.27 2701.69
Sundry Debtors 2998.98 3946.30 3172.98
Cash And Bank 4236.51 3731.66 2893.73
Loans And Advances 5946.45 8326.29 8580.75
Total Current Assets 16582.85 19843.52 17349.15

Current Liabilities And Provisions

Current Liabilities 10956.12 15204.00 13385.69
Provisions 811.92 754.67 931.93
Net Current Assets 4814.81 3884.85 3031.53
Miscellaneous Expenses Not 0.00 0.00 0.00
Written Off
Deferred Tax Assets N/A N/A N/A
Deferred Tax Liability N/A N/A N/A
Net Deferred Tax N/A N/A N/A
Other Assets 0.00 0.00 0.00
Total Assets 39156.99 38402.42 34602.62

Source: Financial statement of Mahindra and Mahindra Company,

www.business-standard.com

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PROFIT AND LOSS (P&L):

The table 2 represents the data of Income statement/ profit and loss account of
Mahindra and Mahindra company. In the profit and loss (P&L) for the considered for
last 3 years.

4.2 Table 2: Mahindra & Mahindra Ltd. (M&M) - Profit And Loss

Figures In Rs. Crore 2020 2019 2018

Income
Sales Turnover 45487.78 53614.00 49444.99
Excise Duty 0.00 0.00 759.44
Net Sales 45487.78 53614.00 48685.55
Other Income 3034.86 2287.26 1469.97
Stock Adjustments -409.49 950.19 -194.87
Total Income 48113.15 56851.45 49960.65

Expenditure
Raw Materials 31223.10 39206.68 33939.78
Power & Fuel Cost 248.32 264.19 247.13
Employee Cost 2880.08 2980.22 2840.89
Other Manufacturing 499.18 585.40 569.14
Expenses
Selling And Administration 3108.62 3441.47 3224.05
Expenses
Miscellaneous Expenses 4909.50 2204.19 1574.13
Less: Pre-Operative Expenses 207.54 129.50 128.46

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Capitalized
Total Expenditure 42661.26 48552.65 42266.66
Operating Profit 5451.89 8298.80 7693.99
Interest 113.23 113.39 112.20
Gross Profit 5338.66 8185.41 7581.79
Depreciation 2222.63 1860.40 1479.42
Profit Before Tax 3116.03 6325.01 6102.37
Tax 1785.48 1528.97 1746.36
Net Profit 1330.55 4796.04 4356.01

Source: Financial statement of Mahindra and Mahindra Company,

www.business-standard.com

CASH FLOW STATEMENT:

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The table 3 represents the data of cash flow statement of Mahindra and Mahindra
company. In the cash flow statement for the considered for last 3 years.

4.3 Table 3: Mahindra & Mahindra Ltd. (M&M) - Cash Flow

Figures In Rs Crore 2020 2019 2018

Opening Cash & Cash
Equivalents 2237.58 1417.95 533.89
Net Cash From Operating
Activities 3677.83 4923.87 7027.08
Net Cash Used In/From
Investing Activities -2576.44 -2549.02 -5109.71
Net Cash Used In/From
Financing Activities -1015.46 -1555.22 -1033.31
Net (Decrease)/Increase In
Cash And 85.93 819.63 884.06
Cash Equivalents
Closing Cash & Cash
Equivalents 2323.51 2237.58 1417.95

Source: Financial statement of Mahindra and Mahindra Company,

www.business-standard.com

FINANCIAL RATIOS:
Financial ratios are created with the use of numerical values taken from financial
statements to gain meaningful information about a company. The numbers found on a

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company’s financial statements – balance sheet, income statement, and cash flow
statement – are used to perform quantitative analysis and assess a company’s
liquidity, leverage, growth, margins, profitability, rates of return, valuation, and more.
The table 4 presents the data of various financial ratios of Mahindra and Mahindra
Company. In the finanacial ratios for the considered 6 years, the following financial
ratios shows Debt-Equity Ratio, Current Ratio, Asset Turnover Ratio, Inventory,
Turnover Ratio, Debtors Turnover Ratio, Interest Coverage Ratio, Operating Margin ,
Net Profit Margin, Return On Capital Employed and Return On Net Worth.

4.4 Table 4: Financial Ratios Of Mahindra And Mahindra Company

Ratios 2015 2016 2017 2018 2019 2020

Debt-Equity Ratio 0.22 0.16 0.12 0.10 0.09 0.08
Current Ratio 0.92 0.88 0.94 0.95 0.97 1.03
Asset Turnover Ratio 3.61 3.42 3.24 3.06 2.87 2.11
Inventory Turnover Ratio 15.51 17.03 17.40 18.11 16.39 12.57
Debtors Turnover Ratio 16.04 17.22 17.39 16.18 15.06 13.10
Interest Coverage Ratio 20.45 24.03 27.16 55.39 56.78 46.31
Operating Margin (%) 13.19 12.69 12.37 15.56 15.48 16.41
Net Profit Margin (%) 8.17 7.34 6.80 8.81 8.95 5.00
Return On Capital Employed (%) 19.01 17.60 15.06 18.96 17.64 13.52
Return On Net Worth (%) 18.44 15.38 13.09 15.26 14.87 6.62

Source: Financial statement of Mahindra and Mahindra Company,

www.business-standard.com
ANALYSIS AND INTERPRETATION:

1) Current Ratio:

Current Asset
Current ratio =
Current Liabilities

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Particulars 2015-16 2016-17 2017-18 2018-19 2019-20
Current assets 13773.62 13818.48 17349.15 19843.52 16582.85
Current liabilities 9264.11 9826.69 13385.69 15204.00 10956.12
Current ratio 1.5 1.40 1.3 1.30 1.51

When compared to other years in the year 2017-18 the current liability has decreased
which leads to a current ratio of 1.3. And the current ratio was high in the year 2019-
20 at 1.51 which means that current asset is higher than current liability.

Finding
 When compared to other years in the year 2017-18 the current liability has
decreased which leads to a current ratio of 1.3. And the current ratio was high
in the year 2019-20 at 1.51 which means that current asset is higher than
current liability.
 Current asset is higher than current liability. If the company maintains a good
profit with less debt then the company can earn more profit out of it where the
company can reach the target with more current ratio than the principle.

2) Quick Ratio:
Current assets – inventories
Quick Ratio =
Current liabilities – bank over draft

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Current assets 13773.62 13818.48 17349.15 19843.52 16582.85
Current liabilities 9264.11 9826.69 13385.69 15204.00 10956.12
Current ratio 1.5 1.40 1.3 1.30 1.51

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The above table shows the quick ratio from the year 2016-20. In the study we did take
Inventories and Bank overdraft in to consideration so they will be analyzing about
only current assets and liabilities which shows the same ratio as above.

Finding

3) Working capital turnover ratio: Working capital = Current Assets - Current

Liabilities.
Working capital turnover ratio= Sales / Working capital

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Sales 1,974.46 1,531.70 1,364.83 1,205.78 829.11
Working capital 10808.88 7373.26 6047.57 5836.66 5634.59
W.C.T.O. ratio 0.18 0.21 0.23 0.21 0.15

The company was below the ratio of 2:1 the above table shows the Working Capital
Turnover Ratio from the year 2015-19.In case of working capital turnover ratio the

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study will be analyzing about sales and working capital ratio. In the year 2018-19 the
working capital decreased than the past years and it was very high in the year 08-09.

Finding
In case of working capital turnover ratio the study will be analyzing about sales and
working capital ratio. In the year 2018-19 the working capital decreased than the past
years and it was very high in the year 08-09. The company was below the ratio of 2:1
it shows that the company is running out of working capital which shows that the
company is in need of capital for further development of the company.

4) Debtors Turnover Ratio: (Net credit sales = sales) (Average debtors =

debtors)

Net credit sales

Debtor’s turnover ratio =
Average debtors

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Net sales 1,974.46 1,531.70 1,364.83 1,205.78 829.11
Debtors 7.27 1.29 2.75 3.89 3.81
Debtors .T.O. Ratio 271.59 1187.36 496.30 309.97 217.61

The debtor’s ratio was high in the year 2015-16 at 1187.36 and it was low at 271.59 in
the year 2014-15. It shows that the collection period was high in the last year where

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the company has to concentrate more on receivables to decrease the collection period
in future years.

5) Debt-Equity Ratio:
Particulars 2014-15 2015-16 2016-17 2017-18 2018-19
Debt 9,675.01 6,457.75 5,213.01 5,068.18 4,911.24
Equity 102.45 95.98 95.71 95.29 84.02
Debt-equity ratio 94.44 67.28 54.47 53.19 58.45

The above chart shows about the Debt- equity ratio from 2015-19. The table shows
that the debt equity was low in the year 2016-17 which means the debt was higher
when compared to other financial years.

The debt asset was high at 0.73 and the debt asset was low in the year 2014-15. And
the credit was increasing from one year to another year. The asset ratio maintained at
an average of .50 in the last five year and if the receivable can be increased then the
debt asset ratio can

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Operating Income
Operating Margin =
Net Sales

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Operating income 1,340.32 995.1 824.39 715.69 518.98
Net sales 1,974.46 1,531.70 1,364.83 1,205.78 829.11
Operating margin Ratio 0.68 0.65 0.60 0.59 0.63

The Company maintained the operating margin at 0.62 when they calculate it for five
years. And it was low at 0.59 in the year 2016-17.If the ratio was above 1.0 then the
company’s net sales will be at strong position which lead to increase in the net profit
of the company. The average ratio is at 0.55 and the net sales can be decreased in the
future period of time.

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Earning 2014-15 2015-16 2016-17 2017-18 2018-19

s Per
Share:
EPS =
Net
Profit
Availabl
e To
Equity-
Holders
Particul
ars
Net 463.13 342.71 214.52 177.02 132.88
profit to
Share
holders
No. 10.40 9.69 9.69 9.52 8.41

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Of.oordi
nary
shares
EPS 44.53 35.37 22.14 18.59 15.80

Above table shows about the earnings per share. The earnings was high at 44.53 in the
year 2014-15 to the share holders and was low in the year 2018-19 where it was
coming down every year from 44.53 to 15.80. When the companies EPS was 44.53
the share price was at 280.5 and it decreased to 15.80 but the share price of the
company is at 615.05. If the company earned more profit then the net worth of the
company would have increased further.

V. FINDINGS
When compared to other years in the year 2018-19 the current liability has
decreased which leads to a current ratio of 0.21. And the current ratio was high in the
year 2014-15 at 0.31 which means that current
Liability is higher than current asset. If the company maintains a good profit with less
debt then the company can earn more profit out of it where the company can reach the
target with more current ratio than the principle.
In case of working capital turnover ratio the study will be analyzing about sales
and working capital ratio. In the year 2018-19 the working capital decreased than the
past years and it was very high in the year 08-09. The company was below the ratio of
2:1 it shows that the company is running out of working capital which shows that the
company is in need of capital for further development of the company.
The debtor’s ratio was high in the year 2015-16 at 1187.36 and it was low at
271.59 in the year 2014-15. It shows that the collection period was high in the last
year where the company has to concentrate more on receivables to decrease the
collection period in future years.
The debt asset was high at 0.73 and the debt asset was low in the year 2014-15.
And the credit was increasing from one year to another year. The asset ratio

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maintained at an average of .50 in the last five year and if the receivable can be
increased then the debt asset ratio can
be increased simultaneously.
The Company maintained the operating margin at 0.62 when they calculate it for
five years. And it was low at 0.59 in the year 2016-17.If the ratio was above 1.0 then
the company’s net sales will be at strong position which lead to increase in the net
profit of the company. The average ratio is at 0.55 and the net sales can be decreased
in the future period of time.
The gross profit was very low in the year 2016-17 at 0.62 and it was high in the
year 2016-17. If the net sales of the company increases with low operating cost The
earnings was high at 44.53 in the year 2014-15 to the share holders and was low in the
year 2018-19 where it was coming down every year from 44.53 to 15.80.When the
companies EPS was 44.53 the share price was at 280.5 and it decreased to 15.80 but
the share price of the company is at 615.05. If the company earned more profit then
the net worth of the company would have increased further.
The PE ratio was high in the year 2018-19 and was low in the year 2014-15. The
profit of the company has decreased but the PE ratio increased due to EPS of the
company which shows that the industry is growing faster than the company.
In trend analysis the EBIT will be high in the year 2013 at 310.03 and will be
low in the year 2017 at -483.48. If the company takes remedy measures then the profit
can be increased in future

VI. SUGGESTIONS
The Company can try to maintain the liability less than the assets which shows
the sign of sound financial position of an organization which leads to a decrease in
pressure and will lead to more profit for the company.
The company have paid only a low interest its debtors in the past years and it
have decreased to the lowest in last financial year which shows that the company is

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going in a lactic stage and if it reduces further the company can evaluate more profit
from it and can invest that in operating cost of the company.
The total yearnings was when they compare the last five years and the trend
analysis shows that profit slides down in next five years that to loss for the company.
So the company can reduce the operating cost and other miscellaneous expenses
which will lead to decrease the loss and increase the profit of the company.

VIII. CONCLUSION AND SUGGESTIONS

Different companies shake hands with intention to create synergies, profit efficiency,
to improve competitiveness, enter into new market areas, etc. But mergers and
acquisitions may not be always fruitful for expansion and growth of acquirer
companies. The result of present study reveals that financial performance of selected
sample declines. The comparison of pre and post-merger financial ratios of the sample
shows that there is decline in the mean value of acquirer company in respect of all the
indicator ratios selected for the study. The reason behind decline of performance of
company can be other mergers that take place in recent years.
In the research the study have analyzed about the ratio statistics of Mahindra and
Mahindra financials and the pros and corns involved in the ratios.
The study analyzed the balance sheet with ratio analysis, trend analysis, and
comparative analysis as a tool. And the conclusion is that the study can be used as a
subordinate factor to make decision on the financial performance of the company. The
company’s net profit and sales is not in a good position and have if the company
concentrates on these things then it a lead to a growth of healthy organization in
future.

REFERENCES
http://data.conferenceworld.in/GKU/161.pdf
www.mahindrafinance.com
www.moneycontrol.com
https://www.mahindra.com

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https://www.emis.com

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