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INTEGRATED ASSIGNMENT
ON
MAHINDRA – RENAULT
Project Guide: Submitted By:
AJAY SINGH
SESSION: 2009-2012
PREFACE
Our comprehensive study on Mahindra Renault is mainly
about application of theoretical knowledge to practicality in
marketing of the product. It also gives the detailed study of
environmental factors which effect the Market and the
customer.
ACKNOWLEDGEMENT.
PROJECT WORK IS NEVER THE WORK OF AN INDIVIDUAL IT IS MORE A
COMBINATION OF IDEAS, SUGGESTION, CONTRIBUTION AND WORK
INVOLVING MANY FOLKS. ONE OF THE MOST IMPORTANT PARTS OF
WRITING A REPORT IS TO CONVEY THANKS TO THOSE WHO HAVE
CONTRIBUTED TO IT.
MY THANKS MUST GO TO ___________________ , WHO WAS MY GUIDE
FOR THE EXCELLENT ADVICE, GUIDANCE AND ENCOURAGEMENT
GIVEN TO ME DURING THE ENTIRE COURSE OF PROJECT WORK.
I also wish to extend my appreciation and thanks to __________________________
the project manager for their useful blessings contributions in writing this paper.
TRULY
AJAY SINGH
TABLE OF CONTENT
SERIAL NO TOPIC
1. INTRODUCTION
2. PRODUCT INFORMATION
3. OBJECTIVE OF THE STUDY
4. METHODOLOGY
5. FINDING & OBSERVATIONS
6.
COMPARISIONS OF
FINANCIAL STATEMENT
7. ANNEXURES
INTRODUCTION
21 March 2005,, Mumbai: Renault SA, France's second-largest carmaker, formed a 125
million euro ($165 million) venture with Mahindra & Mahindra Ltd to make Logan
sedans in India, tapping into Asia's fourth-largest car market.
The venture has built 50,000 cars a year beginning in 2007 for Indian buyers, Mahindra
said in a statement to the Bombay Stock Exchange today. Mahindra, India's biggest
maker of sport-utility vehicles and tractors, will own 51% of the company, with Renault
holding the remainder.
the first car to be launched is "The Logan"
Mahindra Logan's pricing is still hazy. It is now dominated by the Honda City and Ford
fiesta. In Europe, the Logan costs barely $6100.VISION STATEMENT
COMPANY’S PROFILE
84
In 2005, the company entered into a joint venture with renault of France for the manufacture of a mid-
sized sedan, Logan, a newly developed vehicle that meets all the European regulations for emissions
and safety. The Logan is expected to be launched in the Indian market in 2007. M&M has also
launched a joint venture with International Truck & Engine Corporation, one of the leading
commercial vehicle producers in the USA, for manufacture of trucks and buses in India. The Farm
Equipment division was established in 1963 in the form of a joint venture with International Harvester
Inc., and Voltas Limited, and christened as the International Tractor Company of India (ITCI). In
1977, ITCI merged with M&M and became its Tractor Division. After M&M's organisational
restructuring in 1994, this M&M is the market leader in the Indian MUV and tractor segments of the
automotive industry.
Background
Mahindra & Mahindra Limited (M&M), the flagship company of the US$ 3 billion
Mahindra Group, was set up in 1945 to make general-purpose utility vehicles for the
Indian market. It soon branched out into manufacturing agricultural tractors and LCV and
later expanded its operations from automobiles and tractors to other sectors. The
company has recently started a new division, Mahindra Systems and Automotive
Technologies (MSAT) in order to focus on developing components and to offer
engineering services. M&M has two main operating divisions – Automotive division and
Farm Equipment division. The company entered into collaboration with Willys Overland
Corporation (now part of the Daimler Chrysler group) to import and assemble the Willys
Jeep for
the Indian market. Thereafter, in 1965 the company started producing LCV. It went on to
develop its manufacturing technology to indigenously produce vehicles within a short
time of signing the collaboration agreement with willys. Today, the Automotive Division
of M&M manufactures and
markets MUV, LCV and three-wheelers.
MAHINDRA & MAHINDRA LIMITED
Company Products Established Founder Distribution Production plants
M&M Automobiles 1945 K.C. Mahindra & Europe, Russia, India Tractors, Auto J.C.
Mahindra with Asia, Africa, USA,
Components Ghulam Mohammed South America.
85
The promoters of the company along with persons acting in concert hold 22.97% of the
Company’s shares. The total foreign investment in equity constitutes 46.91%, the largest
contributor being FIIs with 34.45% (excluding Aranda Investments Mauritius Pte. Ltd, as
it is included in persons acting in concert). Domestic Financial Institutions including
insurance companies hold 15.26% of the equity with the remaining being held by public
and other corporate bodies.
Products and brands
Over the years, the Mahindra brand of vehicles has come to represent high quality,
ruggedness, durability, reliability, easy maintenance and division was re-christened the
Farm Equipment Sector Division. Today M&M is the largest
manufacturer of tractors in India. It designs, develops, manufactures and markets tractors
as well as implements which are used in conjunction with tractors. In addition to these
two divisions, M&M has a defence system division. The Mahindra Defence System
(MDS) was set up in mid 2000 with a view to providing a sharp focus to service the
Defence sector. With the announcement by the Government
regarding participation of private sector in defence, MDS intends to become a major
defence equipment/ product manufacture and supplier. The company now plans to set up
Mahindra Research Valley, a facility that will house the
company's engineering research and product development wings under one roof. M&M's
operations are also supported by its subsidiary Mahindra and Mahindra Financial
Services Ltd, that finances around 40 per cent of the company's MUV sales and 20 per
cent of the tractor sales. The Automotive division of M&M has manufacturing plants at
Mumbai, Nashik and Igatpuri in the state of Maharashtra, at Zaheerabad (Andhra
Pradesh) and at Haridwar (Uttaranchal).The Farm Equipment division has two main
tractor manufacturing plants located at Mumbai and Nagpur in Maharashtra and satellite
plants located at Rudrapur (Uttarachal), Jaipur (Rajasthan) and Jiangling (China).
Type of vehicles Name of Products
Utility Vehicles Commander, Maxx, Bolero, Scorpio Pickups / Vans Pik-up,
Utility, Bolero Camper LCV Cabking,Tourister Minibus, (for JV with ITEC) Loadking
Three-Wheelers Champion, Alfa Defence vehicles Rakshak, 550 XD Alternative Fuel
Bijlee, Tourister, CNG Minibus Vehicles
Category of tractor
The tractor industry in India is segmented by horsepower (HP) - below 30 HP (lower
segment), between 30-40 HP (mid-segment) and above 40 HP (higher segment). M&M's
Farm Equipment division has a presence in all three Segments with sales of more than
65,000 tractors in 2005, including exports. Under the MDS division, M&M supplies
MUV to the Indian security forces. It has extended its product range to include variants
like double stretcher ambulances, weapon carriers, rapid intervention vehicles, water
trucks, light logistic carriers and station wagons. MDS also carries out bullet proofing of
vehicles and cash in transit
vans. MDS has offered RAM 2000 light armoured multi-role vehicle for trials to the
Indian army. RAMTA Division of Israel Aircraft Industries, Israel, has developed these
vehicles and MDS intends to eventually manufacture this vehicle in India with a high
degree of indigenisation. operational economy. The Automotive division that
manufactures and markets MUV and LCV has a customer profile that includes
individuals, traders, entrepreneurs, contractors, tour operators, taxi owners, car hire
companies as well as government departments and institutions and the Indian Army. In
the year 2004 vehicle production and sales
reached an all-time high for the company and crossed the 100,000 mark for the first time.
In 2005, the company sold more than 1,45,000 vehicles, including exports. The
company's indigenous development of its model Scorpio
has received international attention for the fact that it cost barely US$ 120 million to
develop, whereas globally developing such a vehicle can cost US$ 0.6-1.5 billion .
The Farm Equipment division manufactures agricultural tractors, implements that are
used in conjunction with tractors and industrial engines. are to be used for product
development, modernisation, and expansion by internal growth as well as overseas
acquisitions.
M&M's contribution in making ‘Made in India’ global
M&M has nurtured ambitions to be a global player in the auto industry and has been
active in developing relationships that would enable it to access technology and markets.
This is evident from the joint ventures that it has formed with International Truck and
Engine Corporation of the US and the Renault Group of France. M&M holds majority
stake of 51 per cent in both these joint ventures.
M&M's joint venture with International Truck and Engine Corporation was formed in
June 2005 to
Financial analysis
Sales revenues have increased at a CAGR of 10.6 per cent between 1999 and 2005.This
is a result of the continued growth in the automotive industry as well as a substantial
recovery in the tractor industry. Export revenues have grown at an impressive CAGR of
18.6 per cent during this period as the company has ventured into new overseas markets.
Profitability of the company has improved over the years due to a restructuring exercise
that has resulted in optimal utilization of capacities and improved cost competitiveness.
The company has outsourced some of its non-core activities in addition to rightsizing
business operations. In 2004 the company raised US$ 100 million through the issuance
of a five-year zero coupon foreign currency convertible bonds (FCCB) which has
provided the company with substantial low cost funds to finance its expansion and
product development plans. The debt-equity ratio remained low at 0.52 in 2005, thus
giving the company financial flexibility for the future. In 2006, Mahindra & Mahindra
Ltd successfully completed its US$ 200 million FCCB issue with broad geographical
distribution of investors from Europe and Asia. The issue received overwhelming
response and was oversubscribed. The proceeds
Americas
Argentina
Costa Rica
Dominican Republic
Maxico
Surinam
Uruguay
USA
West Indiesurope
France
Georgia
Italy
Russia
Turkey
UkraineAsia Pacific & Middle East
Australia
Bangladesh
China
Kuwait
Malaysia
Maldives
Nepal
Oman
Saudi Arabia
Sri Lanka
Global presence
Africa
Angola
Ethiopia
Mozambique
Nigeria
Rwanda
South Africa
Tanzania
Uganda
88
manufacture and market LCV, MCV and HCV for both the domestic and export markets
in Asia, Middle East, Africa, Russia and Central Europe. The company, christened
Mahindra International Pvt Ltd, will have a project outlay of US$ 90 million. M&M has
sold its LCV business to the venture. This venture would also source components for
International's North American operations and provide engineering services to it. In
February 2005, M&M flagged off Mahindra Renault Ltd, a joint venture with France's
Renault Group, which would make and sell Renault's car, Logan in India. This joint
venture will invest US$ 155 million and target to sell around 50,000 cars annually under
the Mahindra Renault name in the mid-size car segment in India. Similarly, the company
has also entered into an agreement with Malaysia-based USF-HICOM Sdn Bhd to market
its sports utility vehicle Scorpio in that country. M&M's Automotive division exports its
products to several countries in Africa, Asia, Europe and Latin America. M&M crossed a
global milestone - for the first time the company launched a new vehicle overseas even
before introducing it in the domestic market. The Scorpio Pik-Up saw a maiden unveiling
in Johannesburg, South Africa in April 2006. The all new Scorpio was also launched
globally at the same venue simultaneously, a month after its India launch. It entered the
markets of South Africa, Uruguay and Malaysia for the first time in 2004-05. It exported
3046 fully built vehicles in fiscal 2005 and is expected to near double its exports in fiscal
2006. The indigenously developed Scorpio is being exported to the markets of South
Africa, Italy, France, the Middle East and Malaysia. In the long run, the company plans to
set up assembly operations in countries such as Russia and Malaysia once demand from
overseas markets reach a minimum economic demand size. Under its Farm Equipment
division, M&M has grown to become the fifth largest tractor manufacturing company in
the world with sales supported by its branch office and assembly operations at Brisbane.
A few months later the company entered China, the third largest tractor market in the
world after India and USA. It launched its Chinese operations in July 2005, through
Mahindra (China) Tractor Co Ltd, an 80-20 joint venture with Jiangling Motor Co Group
(JMCG), with M&M having a greater equity stake. Mahindra (China) Tractor Co Ltd has
acquired the tractor manufacturing assets from Jiangling Tractor Company, a subsidiary
of JMCG.The plant has the capacity to produce 12,000 tractors per year in the 18-33 HP
segment. Strategically this venture confers on M&M a quick entry in China as well as
export markets. M&M also plans to utilise the partnership with JMCG to source
components from China and to sell tractors in China through
JMCG's network of more than 11 lakh tractors since inception. Besides being the leader
in the domestic market for 23 consecutive years, the Farm Equipment division has also
found significant success in the international market. Around 90 per cent of the tractor
exports are to the eve loped market of the USA for which the company has indigenously
designed higher HP models (75 HP). M&M operates two assembly facilities in the US -
one at Tomball,
Texas and the other at Calhoun, Georgia, both of which are fully functional units, along
with full service capabilities. M&M's tractor business in the US, which clocked a
turnover of US$ 128 million in FY05 is supported by a strong dealer network. Mahindra
USA clocked sales of 10,000 tractors
for the first time last fiscal. Other major export markets for tractors include Nepal,
Bangladesh, Sri Lanka, Uganda, Nigeria, and Zambia. M&M launched its Australian
operations with the launch of Mahindra Australia in February 2005, which is critical to
gain acceptance in key global markets. The farm equipment sector created history by
becoming the first tractor company in the world to secure the coveted Deming Prize.
M&M has also developed capabilities
to develop new products that can meet global standards. Scorpio, which was launched in
2002 has been successful in the market and was declared to be the "Car of the Year" by
CNBC Autocar, BBC Wheels and Business Standard Motoring.
• Capitalising on outsourcing opportunities:
One of the emerging trends in the global auto industry is outsourcing of sourcing and
business processes to low costs countries like China and India. This has been primarily
driven by the increasing competitiveness of the advanced markets and the need to cut
costs in order to remain profitable. This has created a number of opportunities to Indian
players. M&M has acquired expertise to capitalise on these opportunities and can offer
global OEM and tier.
Factors fuelling M&M's global initiatives
M&M's global ventures have been strategically thought out and well planned for. There
are several factors for its success in the international markets, some of which are:
• Presence in key markets: After establishing its leadership in the Indian automotive
market, M&M has begun to seek opportunities in global markets that have growth
potential. M&M has set up subsidiaries in South Africa and Italy for accessing the
African and European automotive markets. M&M has been selling its vehicles globally
under the “Mahindra” badge. USA and China are key markets for tractors globally.
Besides establishing a sizeable presence in the US market, M&M acquired a tractor
facility from Jiangling Motor Group of China to get access to the Chinese market.
• Emphasis on quality and R & D: M&M has focused on improving the quality of its
products, Simultaneously, M&M will continue its focus on achieving cost leadership
through focused cost optimisation, value engineering, improved efficiency measures like
supply chain management and countrywide connectivity of all its suppliers and dealers
and exploiting synergies between its divisions. 1 suppliers, products and services across
the chain, right from the sourcing of steel to the design of systems.
• Joint ventures to access markets and technology: M&M has adopted the route of
strategic partnerships to ensure access to products, technology and new markets. Its joint
ventures with Renault, International Truck and Engine Corporation and JMCG are
pointers to this fact.
Future plans
Going forward, the company's growth is expected to be driven by the Farm Equipment
division in the backdrop of greater focus on the farm sector by the Government,
improved agriculture infrastructure like irrigation and easier availability of rural credit.
M&M with its range of tractors across all segments is well placed to keep pace with the
market. The emerging second hand tractor market provides an interesting opportunity for
the company. The Farm Equipment division has started an initiative 'Mahindra Vishwas'
that aims at organising the second hand tractor market. This initiative will help generate
additional new tractor sales as well as expanding the second hand tractor market. Under
the Automotive division, the Logan, expected to be introduced in 2007, will give M&M a
world-class product in the mid size passenger car segment, which is expected to be one
of the fastest growing segments in the Indian passenger car industry. With MUV gaining
popularity, the Scorpio's sales will continue to grow. With the company entering new
export markets, it is expected to double its volume of exports within a year. This increase
in volume will be driven by entry into selected large potential markets like Russia and
launch of new products like the Scorpio Pick -ups.
Globalisation at a glance
• Joint ventures that it has formed with International Truck and Engine Corporation of
the US and the Renault Group of France
• Exports of Automotive division to Africa, Asia and Europe and Latin America
• Fifth largest tractor manufacturing company in the world
• Around 90 per cent of the tractor exports are to the developed market of the
USA for which
the company has indigenously designed higher HP models (75 HP)
• Assembly operations in the US
and Australia.
ABOUT THE MAHINDRA-RENAULT LOGAN
Mahindra-Renault launches the premium Wide body logan
Logan launched on 4th april,2007 has been the target of many people willing to buy a
low cost c segemnt car, a bold, muscular and feature-packed car, powered by a
B-30 compatible 1.6l engine that decvelops 85 hp.It’s wider, it’s better. Logan gives the
expression “spacious sedan” an entirely new meaning. Built around Renault’s famous
space optimization design, the car redefines space and luxury. It’s loaded with
trailblazing technology and advanced safety features. Its robust lines, strongly marked
wheel arches and carved hood ensure it stands out in the crowd. The expansive interiors
are tastefully done. The wide-body experience awaits you., after the Scorpio, from M&M
Motor Corporation,Europe’s largest company Renault is making its debut n India, before
being launched in Europe an many other countries
”..
Eco friendly car with Eco2 compatibility
The Logan sedan is fitted with an advanced ECO2 compatible engine. The Eco2
represents the future of Mahindra renault’s engine technology. It is designed to be
compliant to Euro 4 and Euro 5 norms in future. Renault has developed this engine by
picking up the best features of the engine series used so far in Mahindra-Renault vehicles
and incorporating them in this latest series.
The 16-valve, 1.6 liter engine will produce a maximum power of 85 bhp @3100 rpm.
The engine also has a high torque of 145Nm @5500 rpm, which makes driving
comfortable.
Xtra large
The Logan sedan is the tallest, widest and the longest car in its class. It comes with the
widest tyres, and a boot space of 500 liters. The ground clearance of SX4 sedan is 175
mm.
Feature packed sedan
Logan sedan is equipped with features that impart aesthetics, status, convenience and
safety. It offers a music system integrated with the dashboard.The antenna is embedded
in the glass, further enhancing aesthetics of the car. An illuminated key insert and
variable instrument illumination are among the other unique features of the Logan.
Logan Versions
Mahindra Logan comes in total of 3 petrol (GL/GLE/GLS) and 2 diesel (DLE/DLS)
variants. The *LS versions are the fully loaded version where all available features are
included. The version *LE indicate they have power steering.
Variants Specifications
1.4l Petrol Engine (GL Version)
Engine Type : 4 Cylinder, 8 Valve
Piston Displacement : 1390cc
Maximum Output : 75bhp @ 5500 rpm
Maximum Torque : 112 nm @ 3000 rpm
Transmission Type : 5 Speed Manual
1.6l Petrol Engine (GLE/GLS)
Engine Type : 4 Cylinder, 8 Valve
Piston Displacement : 1598cc
Maximum Output : 84.5bhp @ 5500 rpm
Maximum Torque : 128 nm @ 3000 rpm
Transmission Type : 5 Speed Manual
1.5l Diesel Engine (DLE/DLS)
Engine Type : 4 Cylinder, 8 Valve
Piston Displacement : 1461cc
Maximum Output : 65bhp @ 4000 rpm
Maximum Torque : 160 nm @ 2000 rpm
Transmission Type : 5 Speed Manual
OBJECTIVE OF THE STUDY
Bringing theoretical knowledge of different subjects into practical
implication.
To understand the environment of the company.
Collection of primary & secondary data for the purpose of analyzing and
interpreting on various grounds such as demand analysis, demand
forecasting etc.
Making comparisons with the competitor.
METHODOLOGY
Primary data: By way of interaction with the dealer sales assistants,
dealer sales executives. Market segment is done and personals of West
Delhi showrooms (Bhasin motors) are interviewed.
Secondary data:
Website: WWW.Mahindrarenault.com
Journals: Marketing 4p’s.
FINDING AND OBSERVATIONS
Corporate Social Responsibility
IDTR
IDTR (Institute of Driving, Training and Research) is a professional school for driving,
managed and sponsored by MUL. It conducts one-day courses for both learners as well as
those wanting a refresher course. The institute is well equipped for both practical as well
as theoretical training using TV and other visual aids. Successful participants get an
IDTR certificate, which enables them to procure a driving license from the regional
transport office.
Interceptor Vehicle
Mahindra has also assisted traffic enforcement in Delhi through the sponsorship of
Traffic Interceptors. Conceived by the Institute of Road Traffic Education (IRTE), the
Interceptor project is being implemented in conjunction with Delhi Transport
Department, the Delhi Traffic Police Mahindra -Renault India Limited. Three Maruti
Interceptors equipped with State-of-the-art surveillance equipment were put on the roads
in January 2001, taking the total number of interceptors in Delhi up to more then 8.
The Mahindra Renault Traffic Beat
Started in New Delhi in June 1995, Mahindra -Renault Traffic Beat on AIR FM is an
innovative radio programme aimed at providing listeners with a regular and reliable
update of the traffic situation.. The information is relayed by the Traffic policemen to the
Traffic Police Headquarters where it is collected and collated, to commuters through AIR
FM. Besides helping ease peak rush-hour traffic congestion, the programme also
incorporates handy motoring and car care tips for the listener, enabling him to improve
his driving skills and look after his vehicle better.
School Initiatives
To ensure that children later become responsible drivers, Maruti has begun producing
several films on the safety of roads. These films have been sent to over 300 schools in
Delhi, Chandigarh and Kolkata. To take the initiative further, we have sent road safety
posters to schools. We have also sponsored painting competitions and All India School
Quizzes with emphasis on the environment and traffic safety.
Handbook of Safe Driving
Chief among Mahindra initiatives towards the NTC of Delhi is the Handbook of Safe
Driving, which was produced in conjunction with the State Transport Department. The
booklet is published in Hindi and English and provides comprehensive details on safe
driving. It is distributed free of cost in the NCT of Delhi at all Licensing Authorities. A
similar booklet has also been produced for Chandigarh.
Core belief
Mahindra & Mahindra believes that its human resources are its richest assets. Thus a
large part of the wealth created by the company must go towards the enrichment of
its people.
Mahindra Foundation
This trust has been set up to contribute during the national calamities such as
droughts, floods, and earthquakes. The Foundation in the past has helped patients
requiring cancer treatment, kidney transplant etc. The Foundation has extended its
support to numerous Academicians and other Professionals during their visits abroad
to attend various conferences and conventions.
Mahindra United World College of India (MUWCI)
The Mahindra United World College of India (MUWCI) was founded in 1997, as a
premier educational institute offering ‘true’ international education to students from
India and abroad. The college is promoted by Mahindra & Mahindra Ltd., one of the
leading business houses in India.
Situated about 40 Kilometers to the West of Pune, the MUWCI campus is built on the
scenic shoulder of a hill which overlooks the Mulla river.
The global education offered by MUWCI brings together students of various
nationalities for a pre-university degree. The school is global not only because of the
International Baccalaureate degree, but because of the true international culture in
which the students study, live and learn. Each years’ batch of about 100 students
accommodates about 65 to 70 international students. The highly qualified global
faculty brings in rich experience and expertise to put the students through a rigorous,
yet stimulating two year learningexperience.
This international mix of students from across 60 countries allows global exposure to
the students which helps them open their minds and transcend all artificial barriers
based on race, religion, ethnicity, class, gender or nationality. Keen focus is given on
all-round development of the students, and the students are encouraged to become
‘agents of change’ by involving themselves in socially and environmentally relevant
issues. The students also contribute to the local neighborhood through community
service programs as an intrinsic part of their curriculum.
K C Mahindra Education Trust
Established in 1953 by the late K.C. Mahindra, M&M is the main sponsor of the KC
Mahindra Education Trust. The trust's objective is the promotion of education at
various levels, and it is involved in and contributes to various education initiatives.
Every year the trust offers between 30 and 40 interest-free loan scholarships to
post-graduate students going abroad for higher studies.
The trust has instituted the Mahindra Search for Talent scholarships in 34
schools in India to encourage and reward students who have achieved academic
excellence. These scholarships are awarded every year to over 300 students from
all over India. These are students with good scholastic records who come from lower
income groups and are keen on pursuing job-oriented diploma courses.
The trust has also instituted the KC Mahindra Chair at the Institute of Science,
Mumbai, since 1970 to encourage research in the field of nuclear chemistry.
Besides, the trust has established the Mahindra Search for Talent scholarship at the
Banasthali Vidyapeeth, a deemed university in the state of Rajasthan, where it has
also recently started a management school called Wisdom - Women's Institute for
Studies In Development-Oriented Management.
Nanhi Kali
In 1996 the KC Mahindra Trust kicked off an ambitious program aimed at helping the
underprivileged girl child in India. Christened Nanhi Kali, the project's principal goal
is to promote primary education for the underprivileged girl child in both rural and
urban parts of the country.
The programme is implemented with the help of several non-government
organisations (NGOs) and voluntary agencies doing community-based development
work.
To make the project more participatory and involving, individual sponsorship is
encouraged wherein individual donors adopt a girl child. The Nanhi Kali project,
backed by an encouraging response from sponsors, currently supports the education
and general welfare of over 1,700 girl children through 18 NGOs.
The project hopes to reach out to thousands of such underprivileged girls across India
to provide them with opportunities and choices that give them a fighting chance in
life.
Welfare Centres
M&M's welfare centres run several programmes and projects in the spheres of
education, health and social welfare.
Education: A variety of initiatives are in place to help the company's employees and
their family members. The children of deceased employees are given educational
assistance, and educational programmes are conducted to help employee self-
development and encourage a higher standard of living.
The welfare centre also conducts various career guidance programmes for the
children of employees. Summer camps are organised for employees' children during
vacations to give them an opportunity to play diverse sports, learn computers and
various crafts, watch educational films, or just have fun. Parents are given
counselling on topics such as effective parenting, understanding the handicapped
child, etc.
Healthcare: There are diverse health-related services offered by the company's
welfare centres. Doctors from various medical fields are available for consultation at
the medical centre. Family planning and sex-education programmes are conducted,
and blood-donation drives are a regular feature.
There are lots of social awareness programmes on topics such as family welfare,
cancer, AIDS-awareness, heart-care, diabetes, etc. Special yoga classes are
conducted and health check-ups are a periodic affair for all employees. Psychiatric
consultation is also provided to employees and their families when the need arises.
Overall welfare: For M&M, the overall development of employees and their families
is as important as their physical well-being. Programmes are conducted for retiring
employees and their spouses, covering aspects like adjustment to a new role, finance
management, diet and health.
The company's community service programmes also include free medical check-ups
for women and children living in the vicinity of an M&M facility, and schemes aimed
at generating income for economically weaker sections of women.
33
First Prize Automobile
MAHINDRA & MAHINDRA LIMITED
Zaheerabad Unit, Medak (Andhra Pradesh)
Unit Profile
Mahindra & Mahindra Ltd., is a US $ 4.5 Billion group and is among the top 10 Industrial
Houses in India. With over six decades of manufacturing experience, the Mahindra
Group has built a strong base in technology, engineering, marketing and distribution.
The Automotive sector is part of a group of six sectors within M&M Ltd. It has five
manufacturing units, three in the state of Maharastra, located at Kandvili ( Mumbai),
Igatpuri & Nasik ; the fourth unit located at Zaheerabad, Medak- Andhra Pradesh and
the fifth unit located at Haridwar, Uttaranchal.
The Zaheerabad plant manufactures Multi Utility Vehicles (MUVs), Light Commercial
Vehicles (LCVs) and three wheelers. The plant has been in operation since the year
1985. It was merged into M&M Ltd in 1994. It produces around 40,000 vehicles per
annum of various models.
The Zaheerabad unit is a certified ISO / TS 16949 – 2002 unit. It has also been recently
cleared for the Integrated ISO14001:2004 & OHSAS 18001:1999 Certification. The unit
was a runner-up in the “National Energy Conservation Award - 2006” conducted by the
Bureau of Energy Efficiency.
Energy Consumption
By implementing various energy conservation measures at the Zaheerabad unit, there
has been consistent decrease in the Specific electrical & Thermal energy consumptions.
Description Unit 2004 - 2005 2005 - 2006 2006-2007
Annual equivalent
vehicles produced
No’s 17044 17294 22152
Total Electrical
energy
consumption per
annum
Lac. kWh 87 86 101.94
Specific electrical
energy
consumption
kWh/ equivalent
vehicle
511 500 448
Total thermal
( Fuel) consumption
per annum Million
K Cals/ annum
Lakh M3 2.29 2.26 2.60
3624 3571 4102
Specific thermal
energy
consumption per
annum
Million K Cals/
equivalent vehicle
0.213 0.206 0.185
ENVIRONMENT CONCERN
Mahindra-Renault India Ltd. is committed to:
Maintain and continually improve upon our Environmental Management system
and performance.
Prevention of pollution resulting from our business activities and products.
Strictly adhere to environmental laws and further follow our own standards.
Recognizing our responsibility to provide a green and safe environment, we put
forward following action guidelines:
Promote energy conservation
Promote three R's (Reduce, Reuse, Recycle)
Promote "Green" procurement
Provide environmental education to all the personnel working for or on the behalf
of Maruti Udyog Limited
Since the commencement of operations in 1981 we've been committed to the protection
of the environment and conservation of non-renewable energy sources. Our proactive
approach depends not only upon meeting the expectations of the regulatory authorities
but achieving the high standards that we've set as a responsible corporate citizen.
This philosophy of trying to make a difference to the environment penetrates through our
employees to the process of manufacture and finally into our products.
Pollution Control Camps
Our elaborate system of Free Pollution Check-Up Camps which run at regular intervals,
is designed at making the cars already on the road operate more efficiently. It also
inculcates awareness for environmental protection among the many car users of India.
ECO2
We have introduced Eco2compatible engines in all our models.
CNG
Mahindra-Renault is a strong advocate of CNG, a more eco-friendly fuel alternative to
diesel and petrol. In our endeavor to provide a cleaner and greener option to the
customer, we are in the process of equipping an extensive dealer network to assist
Mahindra owners in fitting CNG kits.
.
ETHICS
To adhere to a code of business, ethics and values. To serve as a role model in support of
corporate policies and professional ethics in our dealings with all our stakeholders
To co-operate and collaborate with colleagues in order to achieve company objectives.
To work effectively with others irrespective of position, department, etc
To deliver as promised and to adhere to commitments. To meet deadlines, and take
responsibility for actions and admit mistakes. To work effectively with little or no
supervision.
To honor rather belittle the opinion of work of others, regardless of their status or
position in the organization. To support the growth and development aspirations of
individuals.
Energy Conservation Commitment, Policy and Set up
Mahindra & Mahindra ltd., Automotive sector, Zaheerabad unit strongly believes that Energy
saving is a multi disciplinary approach. The Plant’s energy profile consists of Electricity,
LPG,HSD, Compressed air and Water.
Top Management periodically reviews Energy Management policy, Conservation plans, their
implementation and status. A special ENCON cell has been formed with a cross functional team
members from Maintenance, production, utilities, administration, purchase etc. Energy audits are
regularly conducted by external agencies like CII, Ingersoll-Rand, synergy services etc. in
addition to the in-house energy manager’s audits.
The company is strongly pursuing the TPM (Total Productive Management) methodology for its
excellence in performance. This has also resulted in greater awareness on conservation activities.
ENERGY MANAGEMENT POLICY
We are committed :
• Bench mark specific energy consumption with National & International standards, and
setting up systems to achieve them.
• Increase use of non-conventional sources of energy & alternate fuel sources.
• Incorporate energy efficient designs & equipments in all projects.
• Conduct regular Energy Audits to reduce energy wastage in all areas.
• Formation of small group activities to increase employee involvement.
• Promote awareness among all employees through leaflets, seminars, competitions and
company visits.
• Recognize energy conservation initiatives taken by employees and award them.
• Promote awareness among students, nearby areas through leaflets, seminars.
Energy Conservation Achievements
(1) Reduction of Transport Fuel by
a. Capacity utilization has been improved by modifying the size of the pallet.
b. Getting the same quantity of material in the smaller trucks.
c. Localization and Rationalization of vendors.
Utilization of compressed air from central compressor
Before:
Compressed air being used for supply to the Vehicle Assembly line through dedicated
compressor(30 hp motor)
After:
Utilization of compressed air from central compressor by providing airline & removed the
dedicated compressor (This EC measure was found during the air audit)
Investment : Rs. 0.20 Lakhs
Savings per annum : Rs. 2.10 Lakhs
Pay Back period: 2 Months
Environment and Safety
Mahindra & Mahindra Ltd.– Zaheerabad unit is committed to enhancement of Safety, Health &
Environment aspects on continual improvement basis.
Environment
The Management is committed to the Green belt development in and around the Zaheerabad unit.
Both internal & external environmental audits are regularly conducted to maintain ecological
balance.
Safety
Safety audits are being conducted regularly by the second party & annually by third party for
identification, elimination / minimization of Occupational Health & Safety hazards.
Safety patrol rounds are being conducted monthly section wise by involving workmen & also
safety committee members. A new initiative has been started in the form of Safety Tool box talks
at the beginning of the shift for all the workmen to create awareness on the safe work practices.
Internal, second & third party safety audits are done as well to avoid unsafe conditions prevailing
in the working environment.
ENVIRONTMENTAL FACTORS
The Logan was one of the most-awaited car launches of 2007. On it rode Mahindra &
Mahindra's second shot at the car market and French auto giant Renault's first shot at India.
A year down the road, the Logan has been spruced up and actor Kunal Kapoor is on their
commercial giving the brand some star push.
Rajesh Jejurikar, Managing Director of Mahindra Renault said he is delighted that Logan is
number three in the C-segment which is very competitive.
He added that positioning with respect to Logan is changing. "When it was launched,
it was a product-based position. At that stage, we needed to establish product and
the advertising about a product benefit or a product attribute. We are now taking it to
the next level, which is creating an emotional connect. So, we are changing the tag
and moving the product proposition up to a higher level and connecting with an
emotional reason." Logan overtakes City, Verna and SX4 in Feb7 Mar,
2008
NEW DELHI: Utility vehicle major Mahindra & Mahindra’s (M&M) foray into the
sedan segment is bearing fruit. It sold 2,753 units of Logan in February, claiming the
second position in the segment, leaving behind its traditional mid-segment rival
sedans like Honda City, Hyundai Verna and the Maruti Suzuki SX4.
Tata Motors’ Indigo sedan became the highest seller with sales of around 3,322 units
in February on account of huge demand of its compact sedan launched in February,
which avails concessional excise duty. It is priced at Rs 4.3 lakh, the lowest for any
sedan, which had pushed its demand and sales last month. Honda had sold 2,310
units of City, Hyundai has sold 2,132 units of Verna while Maruti Suzuki has sold
1,953 units of SX4 in February.
Logan, after successive pricing and re-positioning in the market, now comes for Rs
4.5 lakh for petrol and Rs 5.75 lakh for diesel variant. According to analysts, it has
posted a stronger performance due to high demand in commercial fleet operations
and customers upgrading from the premium hatchback segment.
Mahindra Renault managing director Rajesh Jejurikar told ET, “Logan’s application
in commercial fleet operations is a big booster for us. It has helped us to give the
highest numbers since its launch. We have given the customers the options to own a
big car at the price of a hatchback, which has been accepted well. Logan is emerging
as a strongest contender in the mid-size car segment. There is huge a demand for the
diesel variant which forms around 65% of our total sales due to its high fuel
efficiency and now comes with a waiting period in some markets.”
The company had sold more than 22,500 units of Logan, since its launch in May last
year. While it has ruled out any hatchback or a compact variant (under 4-metre
length like the Indigo sedan) which is now taxed at concessional 12% excise (after
the budget), against 24% for all other sedans, it will soon be launching a new brand
campaign for Logan.
“We shall be informing the customers of the high-quality of this international car
and its phenomenal fuel efficiency. With one of cheapest sedan, we are looking at
significant increase in the market-share in the mid-size car segment,” Mr Jejurikar
said. Logan’s improved sales in February increase the company’s market share to
16.8% against January’s 12% in mid-size car segment. The company fared well on
its flagship model Scorpio too.
Mumbai May 24 Mahindra Renault's Logan has received more than 3,000
bookings in three weeks since its debut on April 3. The car that is launched in 11
cities initially had 25,000 inquiries so far; this is very significant considering the
Logan has been launched in only 40 per cent of the markets, said Mr Rajesh
Jejurikar, Managing Director, Mahindra Renault Pvt Ltd.
More than 11,000 test drives were given to customers, 3,000 of which were
converted to bookings. "This is a healthy ratio of over 30 per cent conversion
from test drives to bookings," said Mr Jejurikar.
Bookings have opened in dealerships across Mumbai, Pune, Bangalore, Nashik,
Delhi - NCR, Chennai, Hyderabad, Kolkata, Chandigarh, Ludhiana and Jalandhar.
Heavy enquiries
The Logan has been getting over 1,200 inquires every day. The city-wise
launches have been made in a phased manner starting with Mumbai on April 9.
The phased ramp-up is to help cushion demand as the company increases its
plant capacity to the planned level of 50,000 per annum by July.
Mr Nalin Mehta, Vice-President Sales & Marketing, Mahindra Renault, said, "The
trend so far has shown that the 1.5-litre diesel variant has been a great hit
among customers. This is very much in line with our expectations given the fuel
and cost efficiency of diesel combined with Logan's superior technology, which
rivals the best petrol cars on the road."
"Our challenge now is to meet customer demand for the car," concluded Mr
Jejurikar.
Energy Conservation Commitment, Policy and Set up
Mahindra & Mahindra ltd., Automotive sector, Zaheerabad unit strongly believes that
Energy saving is a multi disciplinary approach. The Plant’s energy profile consists of
Electricity, LPG,HSD, Compressed air and Water.
Top Management periodically reviews Energy Management policy, Conservation plans,
their implementation and status. A special ENCON cell has been formed with a cross
functional team members from Maintenance, production, utilities, administration,
purchase etc. Energy audits are regularly conducted by external agencies like CII,
Ingersoll-Rand, synergy services etc. in addition to the in-house energy manager’s
audits.
The company is strongly pursuing the TPM (Total Productive Management)
methodology for its excellence in performance. This has also resulted in greater
awareness on conservation activities.
ENERGY MANAGEMENT POLICY
We are committed :
• Bench mark specific energy consumption with National & International standards, and
setting up systems to achieve them.
• Increase use of non-conventional sources of energy & alternate fuel sources.
• Incorporate energy efficient designs & equipments in all projects.
• Conduct regular Energy Audits to reduce energy wastage in all areas.
• Formation of small group activities to increase employee involvement.
• Promote awareness among all employees through leaflets, seminars, competitions and
company visits.
• Recognize energy conservation initiatives taken by employees and award them.
• Promote awareness among students, nearby areas through leaflets, seminars.
Energy Conservation Achievements
(1) Reduction of Transport Fuel by
a. Capacity utilization has been improved by modifying the size of the pallet.
b. Getting the same quantity of material in the smaller trucks.
c. Localization and Rationalization of vendors.
Utilization of compressed air from central compressor
Before:
Compressed air being used for supply to the Vehicle Assembly line through dedicated
compressor(30 hp motor)
After:
Utilization of compressed air from central compressor by providing airline & removed the
dedicated compressor (This EC measure was found during the air audit)
Investment : Rs. 0.20 Lakhs
Savings per annum : Rs. 2.10 Lakhs
Pay Back period: 2 Months
Environment and Safety
Mahindra & Mahindra Ltd.– Zaheerabad unit is committed to enhancement of Safety, Health &
Environment aspects on continual improvement basis.
Environment
The Management is committed to the Green belt development in and around the Zaheerabad unit.
Both internal & external environmental audits are regularly conducted to maintain ecological
balance.
Safety
Safety audits are being conducted regularly by the second party & annually by third party for
identification, elimination / minimization of Occupational Health & Safety hazards.
Safety patrol rounds are being conducted monthly section wise by involving workmen & also
safety committee members. A new initiative has been started in the form of Safety Tool box talks
at the beginning of the shift for all the workmen to create awareness on the safe work practices.
Internal, second & third party safety audits are done as well to avoid unsafe conditions prevailing
in the working environment.
Energy Conservation Policy and Set up
Mahindra & Mahindra Ltd, Automotive Sector, Nashik emphasises on all types of energy
(Electrical, Thermal and Compressed air.) conservation. Energy conservation measures are
identified, reviewed periodically for techno-commercial viability in ECON Cell, implementation
& verification strategies are made. ECON meeting is held on every alternate Tuesday of the
month to review the action plan.
Energy Management Policy
Environment and Safety
Environment
Mahindra & Mahindra Ltd. is committed to “Protect the Environment, Prevention & Control of
Pollution, Minimise the Waste Generation, Promote Energy Saving and Conservation of
Resources”. An “Environmental Policy” duly signed and documented is provided expressing our
commitment towards the EMS.
Plant Head along with Union President Planting the tree on Borgargh Hill Forest
Tree
The company has successfully obtained the Environment Management Certificate of ISO 14001
in the month of June 2004 from M/S. RWTuV of India. Efforts are being made for the
achievement of the goals of Legal Compliance, Proper Waste disposal, Promote recycling and
reuse of waste / Materials, etc. during the implementation and after the certification of the
Environment Management System.
Following are some of the initiatives taken by the management towards Environment protection
1. Installed Effluent Treatment Plant and the treated effluent is being used for Gardening
spread over the area of about 1.00 Lac M2.
2. Installed Bio-Gas plant for processing Canteen solid Waste to generate a cooking gas
for its use at canteen
3. Installed Solar Water Heating Systems for canteen hot water requiremen
4. Around 25% of the electricity requirement for the FY 06- 07 is met by clean energy i.e.
wind power.
5. An Oil Separation unit is installed to prevent the Water Pollution before its disposal
through ETP / STP.
6. Implemented the projects of providing a Sewage Treatment Plant
7. Acoustic Insulation for the Generator House, Vehicle Testing, Engine Testing to
prevent the noise pollution. Noise level is 64 dB in the day time and 58 dB in the night
time on average.
8. Around 5000 Trees planted in various schools & other institutions in the Nashik apart
from 18% green area coverage in our own premises in FY 06-07. As of now 25% area is
under green coverage and expecting to have 33% area under green coverage by FY 07-
08.
For FY 07-08 massive plantations of 1 Lakh trees in the Nashik has been planned in association
with Forest deptt. & Air Force.
Barriers that industry offers
Government policy and regulations: Every company has to abide by the various
government policy and regulations if they have to operate and this sometimes
becomes the barrier for any new entrant.
For instance:
NVH(Noise Vibration Harshness) norm: It states that the three factors i.e noise,
vibration and harshness should me minimum in the automobile and this requires
a huge investment in the form of advanced machinery.
ECO2 compatibily: States that vehicle should be less polluting. Also heavy
penalties are being paid by almost every automobile firm because of not abiding
this norm as this is unavoidable.
Capital requirements: For any new firm to enter into automobile industry
requires a huge amount of capital because of heavy machinery required for the
production. Also automobile industry is more of a capital intensive. This was
also the basic reason that government restricted the entry of private players in
automobile industry before 1991.
Proprietary products and knowledge: Vast knowledge is required for any new
entrant before he decides to enter into the automobile sector in various fields such
as norms, from where to take the raw material, best location for the plant that
minimizes the transportation cost.
Economies of scale and other cost advantages: It is very difficult for any new
firm to generate economies of scale or other cost advantage because for this they
have to produce in bulk and this requires a huge capital and demand for the
product but this is very difficult for new firm to shift the customers towards them
when already huge giants are operating in the market.
Switching costs and brand identity: In automobile industry the mere existence
of the firm depends upon that is the brand they are offering is identified in the
market or not. As it has direct impact on the demand for the product, higher brand
identification results in higher demand. And for this any new firm has to spend
heavily on promotion.
Increased customer demand: Now customer is demanding for new model in
short period and this becomes a big barrier for any new entrant to generate new
models in short span of time.
Innovation: Huge amounts are being spend by different competitors on research
and development so that they can attract more customers towards there product.
Reasons for opting sales force estimate method
1. Sales force is in the best place to tell the potential demand for the product because
they know the past trends of the sales.
2. They also are in direct contact with the customers thus knowing there taste and
preferences helping them to judge the potential demand.
3. Data generated by them are mostly accurate i.e the figures forecasted by them are
very close to the actual sales.
4. Convenient to interpret and analyze the data when compared with the other
forecasting tools namely econometric model, regression analysis.
5. Method use is also less time consuming when only few personals are interviewed
as compared to Delphi method or expert opinion method.
6. Less chances of error because no calculations are involved.
7. Best method to generate sales data for short period.
Financial analysis
Financial analysis is the process of identifying the financial strength and weakness of
the firm by properly establishing relationship between the items of the items of the
balance sheet and profit and loss account. Management of the firm, or the parties outside
the firm, viz. owners, investors, and others, can undertake financial analysis. The nature
of analysis will differ depending on the purpose of the analyst.
Trade creditors are interested in the firm’s ability to meet their claims over a very
short period of time their analysis will, therefore, confines to the firms liquidity
position. Suppliers of long term debt, on the other hand, are concerned with the
firm’s long term solvency and survival. They analyze the firm s profitability over
time, it s ability to generate cash to be able to repay interest and principal and the
relationship between various sources of funds. Long-term creditors do analyze the
historical financial statements, but the place more emphasis on the firm s projected
financial statements to make analysis about its future solvency and profitability.
Investors, who have invested their money in the firm s shares, are most concerned
about the earnings. They restore more confidence in those firms that show steady
growth in earnings. As such they concentrate on the analysis of the firm’s financial
structure to the extent it influences
the firm’s earnings ability and risk.
Management of the firm would be interested in every aspect of the financial analysis. It
is their overall responsibility to see that the resources of the firm are used most
effectively and efficiently, and the firm s financial condition is sound.
Cash Flow:
Cash flow is a term that refers to the amount of cash being received and spent by a
business during a defined period of time, sometimes tied to a specific project.
Measurement of cash flow can be used
To evaluate the state or performance of a business or project.
To determine problems with liquidity. Being profitable does not necessarily mean
being liquid. A company can fail because of a shortage of cash, even while
profitable.
To generate project rate of returns. The time of cash flows into and out of projects
are used as inputs to financial models such as internal rate of return, and net
present value.
To examine income or growth of a business when it is believed that accrual
accounting concepts do not represent economic realities. Alternately, cash flow
can be used to 'validate' the net income generated by accrual accounting
Cash flow analysis of Mahindra and Tata motors
Considering the figures of 2007 we can conclude that both the company’s are
making their profit from their actual business. I.e from the operating activity
Cash Flow analysis of Mahindra & Mahindra
Cash flow
Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Profit before tax 1,315.69 889.49 700.62 408.71 139.38
Net cashflow-operating activity 1,168.95 686.90 379.21 740.90 543.78
Net cash used in investing activity -950.39 -502.66 -174.30 -107.36 -54.59
Netcash used in fin. activity 418.08 -89.78 192.45 -643.93 -438.39
Net inc/dec in cash and equivlnt 636.64 94.47 397.36 -10.39 50.80
Cash and equivalnt begin of year 725.15 630.69 233.33 243.72 189.74
Cash and equivalnt end of year 1,361.79 725.15 630.69 233.33 240.54
Cash flow analysis of TATA Motors
Cash flow
Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Profit before tax 1,913.46 1,528.88 1,236.95 810.34 300.11
Net cashflow-operating activity 2,210.13 -221.03 1,249.82 2,717.53 1,311.40
Net cash used in investing activity -2,805.10 -1.06 -956.57 -2,043.19 -183.92
Netcash used in fin. activity 303.58 -855.27 940.67 -149.20 -1,208.75
Net inc/dec in cash and equivlnt -291.39 -1,077.36 1,233.92 525.14 -81.27
Cash and equivalnt begin of year 1,118.15 2,196.79 771.12 245.35 326.62
Cash and equivalnt end of year 826.76 1,119.43 2,005.04 770.49 245.35
If we compare cash flow statement of both the company, we see that tata
motors are making more profits on an account of operating activity.
Annexure
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 238.03 233.40 116.01 116.01 116.01
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 3,302.01 2,662.14 1,881.93 1,644.15 1,438.31
Loan funds
Secured loans 106.65 216.68 336.82 485.23 924.15
Unsecured loans 1,529.35 666.71 715.80 244.58 215.69
Total 5,176.05 3,778.92 3,050.56 2,489.96 2,694.17
Uses of funds
Fixed assets
Gross block 3,180.57 2,859.25 2,676.51 2,499.56 2,436.82
Less : revaluation reserve 12.86 13.33 14.32 14.88 15.51
Less : accumulated depreciation 1,639.12 1,510.27 1,335.56 1,165.83 1,023.04
Net block 1,528.59 1,335.65 1,326.63 1,318.86 1,398.27
Capital work-in-progress 329.72 205.46 133.93 57.86 52.31
Investments 2,237.46 1,669.09 1,189.79 1,111.15 862.27
Net current assets
Current assets, loans & advances 3,916.94 2,805.04 2,356.41 1,532.05 1,673.78
Less : current liabilities & provisions 2,854.20 2,254.37 1,980.58 1,539.60 1,332.18
Total net current assets 1,062.74 550.66 375.83 -7.56 341.60
Miscellaneous expenses not written 17.55 18.05 24.38 9.64 39.72
Total 5,176.05 3,778.92 3,050.56 2,489.96 2,694.17
Notes:
Book value of unquoted investments 1,515.23 1,419.01 1,047.67 953.86 745.75
Market value of quoted investments 10,285.25 2,030.85 240.83 121.38 112.70
Contingent liabilities 1,008.27 946.36 758.14 528.62 408.97
Number of equity sharesoutstanding (Lacs) 2380.33 2334.00 1116.48 1160.09 1160.09
BALANCE SHEET OF MAHINDRA & MAHINDRA
RATIOS
(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs) 40.38 25.61 43.83 26.46 7.61
Adjusted cash EPS (Rs) 49.20 34.19 60.33 41.74 22.29
Reported EPS (Rs) 44.88 36.72 45.92 30.04 12.55
Reported cash EPS (Rs) 53.70 45.30 62.42 45.32 27.23
Dividend per share 11.50 10.00 13.00 9.00 5.50
Operating profit per share (Rs) 47.73 37.34 64.39 44.52 26.29
Book value (excl rev res) per share (Rs) 147.98 123.29 176.77 150.89 130.56
Book value (incl rev res) per share (Rs.) 148.52 123.86 178.05 152.18 131.90
Net operating income per share (Rs) 416.81 348.61 590.67 425.11 320.08
Free reserves per share (Rs) 135.66 109.86 158.02 129.83 105.33
Profitability ratios
Operating margin (%) 11.45 10.71 10.90 10.47 8.21
Gross profit margin (%) 9.33 8.25 8.10 7.12 3.75
Net profit margin (%) 10.34 10.28 7.56 6.88 3.79
Adjusted cash margin (%) 11.34 9.57 9.93 9.55 6.74
Adjusted return on net worth (%) 27.28 20.77 24.79 17.53 5.82
Reported return on net worth (%) 30.33 29.78 25.97 19.91 9.60
Return on long term funds (%) 26.09 23.17 24.32 19.31 9.58
Leverage ratios
Long term debt / Equity 0.53 0.40 0.60 0.50 0.82
Total debt/equity 0.46 0.30 0.52 0.41 0.73
Owners fund as % of total source 68.39 76.62 65.49 70.69 57.69
Fixed assets turnover ratio 3.14 2.85 2.47 1.97 1.52
Liquidity ratios
Current ratio 1.37 1.24 1.19 0.99 1.26
Current ratio (inc. st loans) 1.31 1.21 1.10 0.95 1.21
Quick ratio 1.01 0.83 0.78 0.65 0.86
Inventory turnover ratio 13.42 11.13 10.66 13.11 11.47
Payout ratios
Dividend payout ratio (net profit) 30.39 32.45 33.54 33.79 49.46
Dividend payout ratio (cash profit) 25.40 26.30 24.67 22.40 22.79
Earning retention ratio 66.22 53.46 64.87 61.62 18.44
Cash earnings retention ratio 72.28 65.14 74.48 75.68 72.17
Coverage ratios
Adjusted cash flow time total debt 1.40 1.11 1.56 1.51 4.41
Financial charges coverage ratio 77.85 39.60 29.94 8.46 3.68
Fin. charges cov.ratio (post tax) 65.57 40.23 24.04 7.83 3.73
Component ratios
Material cost component (% earnings) 69.92 72.33 73.22 69.29 67.75
Selling cost Component 6.40 5.63 5.60 5.85 5.26
Exports as percent of total sales 7.18 6.24 5.14 4.63 5.76
Import comp. in raw mat. consumed 1.97 1.86 2.41 2.88 3.59
Long term assets / total Assets 0.50 0.53 0.52 0.61 0.58
Bonus component in equity capital (%) 71.67 73.09 47.06 47.06 47.06
Income Statement of tata motors
As on( Months ) 31-Mar-10(12) 31-Mar-09(12) 31-Mar-08(12)
Profit / Loss A/C Rs mn Rs mn Rs mn
Net Sales 265739.90 200374.90 171539.80
Operating Income (OI) 267822.60 204880.70 172658.20
OPBDIT 25523.60 20793.20 19470.30
OPBDT 23697.70 18529.70 17928.80
OPBT 17834.80 13320.30 13427.20
Non-Operating Income 7917.00 7217.80 3097.30
Extraordinary/Prior
Period-13.50 -1421.50 -511.30
Tax 6603.70 3827.80 3643.70
Profit after tax(PAT) 19134.60 15288.80 12369.50
Cash Profit 24997.50 20498.20 16871.10
Dividend-Equity 5780.70 4979.40 4521.90
Balance Sheet of tata motors
As on 31-Mar-10 31-Mar-09 31-Mar-08
Assets Rs mn Rs mn Rs mn
Gross Block 87153.40 79106.50 65774.40
Net Block 38553.10 35436.50 31576.70
Capital WIP 25133.20 9511.90 5388.40
Investments 23585.10 18377.80 13830.00
Inventory 25009.50 20122.40 16013.60
Receivables 7821.80 7157.80 8113.20
Other Current Assets 71537.80 72614.10 63652.60
Balance Sheet Total(BT) 191640.50 163220.50 138574.50
Liabilities Rs mn Rs mn Rs mn
Equity Share Capital 3854.10 3828.70 3617.90
Reserves 64483.00 51136.90 37314.40
Total Debt 40091.40 29368.40 24954.20
Creditors and Acceptances 57135.10 55358.70 50770.10
Other current liab/prov. 26076.90 23527.80 21917.90
Balance Sheet Total(BT) 191640.50 163220.50 138574.50
Ratio:
2010 2009 2008
Current ratio 1.25 1.27 1.21
Quick ratio 0.86 1.01 1.06
Debt equity ratio 0.37 0.41 0.59
Total debt equity ratio 0.59 0.53 0.61
Inventory turnover ratio 10.6 9.95 10.7
Fixed asset turnover ratio 6.89 5.65 5.46
Capital turnover ratio 4.45 3.55 3.67
Gross profit ratio 9.60 10.02 11.35
Net profit ratio to fixed asset 7.20 7.63 7.21
Return on investment 14.55 12.89 15.66
CASH FLOW STATEMENT OF MAHINDRA & MAHINDRA
Cash flow
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Profit before tax 1,315.69 889.49 700.62 408.71 139.38
Net cashflow-operating activity 1,168.95 686.90 379.21 740.90 543.78
Net cash used in investing activity -950.39 -502.66 -174.30 -107.36 -54.59
Netcash used in fin. activity 418.08 -89.78 192.45 -643.93 -438.39
Net inc/dec in cash and equivlnt 636.64 94.47 397.36 -10.39 50.80
Cash and equivalnt begin of year 725.15 630.69 233.33 243.72 189.74
Cash and equivalnt end of year 1,361.79 725.15 630.69 233.33 240.54
