Company profile:

Mahindra & Mahindra Limited (M&M) engages in the manufacture of a range of automotive
vehicles, agricultural tractors, implements, and industrial engines, as well as in property
development and construction activities. The company offers various multi utility vehicles, light
commercial vehicles, three-wheelers, and tractors as well as spare parts and related services. It
also provides various services related to financing, leasing, and hire purchase of automobiles and
tractors. M&M also involves in trading steel raw materials, ferro alloys, technical, and
applications-oriented products, as well as consumer products, such as toys and apparel; and in
the operation of steel service centre. In addition, the company operates in the real estate, special
economic zones, the hospitality industry, infrastructure development, and project engineering
consultancy and design industries. It provides telecommunication solutions and services;
business process and technology consulting services; and information security services, as well
as the design and development of software products and solutions for dealership business
segment. The company also offers design and engineering services to the automotive, aerospace,
and general engineering industries; and produces automotive components, as well as forgings,
gears, steel, stampings, and special polymers. Further, M&M engages in the business of contract
execution for ash slurry system and traveling water screens; various solutions to defense and
security forces; and logistic services. It has joint venture with International Truck and Engine
Corporation to manufacture trucks and buses for India and export markets; and with an affiliate
of Navistar International Corp. to produce diesel engines for medium and heavy commercial
trucks and buses in India. The company was founded in 1945. It was formerly known as
Mahindra & Mohammad and changed its name to Mahindra & Mahindra Limited in 1948. M&M
is headquartered in Mumbai, India.

Introduction:

Few groups can identify as closely with India's destiny and industrial progress as the Mahindra
Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had
the same aspirations and both experienced the inevitable troughs

and crests in the journey towards their goals. And both continue to march on the path to progress
and global recognition.
 The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States
of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the
rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't avehicle that had
proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and
its kutcha rural roads?

Swift action followed thought. The Mahindra brothers joined hands with a distinguished
gentleman called Ghulam Mohammed. And, on October 2nd, 1945, Mahindra & Mohammed
was set up as a franchise for assembling jeeps from Willys, USA.

Two years later, India became an independent nation and Mahindra & Mohammed changed its
name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and
became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a
Group that occupies a premier position in almost all key sectors of the economy. The Group's
history is studded with milestones. Each one taking the Group forward. In fact, today, its total
turnover is about 7.1 billion dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged penetration

into the global arena. Its spirit can be encapsulated in the words of the poet Robert Frost, a
favourite of India's first Prime Minister, Pandit Jawaharlal Nehru:
"The woods are lovely, dark and deep,

But I have promises to keep,

And miles to go before I sleep,

And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be set up before it rests.
If ever.

Awards and recognition:

Mahindra & Mahindra Ltd. received the prestigious NDTV Profit Business Leadership Award
2010 in the Automobile – Four Wheelers category.

Mahindra & Mahindra Ltd. bagged the Intelligent Enterprise Awards 2010 in the Industrial
Production (Manufacturing) category for Project Harmony.

Mahindra Finance receiver top honours at the IDC Enterprise Innovation Awards 2010, India at a
ceremony on July 27, 2010.

Mahindra & Mahindra received the Talent Management award from Asia’s Best Employer
Brand Awards on July 23 2010.

•Mahindra & Mahindra received the prestigious National Energy Conservation Award from the
Ministry of Power. On 2003

Scorpio was the recipient of:

'Car of the Year' award from Business Standard Motoring

'Best SUV of the Year' and 'Best Car of the Year' awards from BBC on Wheels

'Car of the Year' award from CNBC Auto Car

Bajaj Auto Limited

Maruti Suzuki India Limited

Tata Motors Limited

Swot

Karvy Research Desk

Mahindra & Mahindra Limited

General

Registered Office:

Gateway Building, Apollo Bunder,

Bombay - 400039, Maharashtra.

Telephone: 91-22-2021031/5158

Fax: 91-22-2028780/8990

Website: www.mahindraworld.com

BSE Code: 500520

NSE Code: M&M Reuters: MAHM.BO

Listing: BSE, NSE, Luxembourg.

Background
Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private limited
company under the Indian Companies Act of 1913 by two brothers, Mr. J.C. Mahindra and Mr.
K.C. Mahindra. It was converted into a public limited company on June 15, 1955. Mahindra &
Mahindra Ltd, one of the largest private sector company in India, is the flagship company of the
Mahindra Group. The company commenced operations in 1945 to manufacture General Purpose
Utility Vehicles and later on entered into manufacturing of Tractors and Light Commercial
Vehicles (LCVs). Over the years, the company has expanded its operations from automobiles
and tractors to steel, trading and manufacturing of Ash Handling Plants & Traveling Water
Screens. The company is focussed to become a world giant in the tractor business. It has already
made its presence felt in countries in Europe, Latin America, Africa and United States of
America.

Shareholding Pattern

The company has an equity capital base of Rs. 110.5 crore and the number of shares are 11.05
crore. The face value per share is Rs. 10 and the current market price is hovering around Rs. 125.
The market capitalization of the company, as on 30th March 2001, is Rs. 1,387.63 crore. The
promoters are holding 27% stake in the company. The free float available in the market is 14%.

Board of Directors

Mr. A K Nanda, Executive Director

Mr. A S Ganguly, Director

Mr. Alan E Durante, Executive Director

Mr. Anand G Mahindra, Managing Director

Mr. Baldev R Gupta, Nominee Director

Mr. Bharat Doshi, Executive Director

Mr. Deepak S Parekh, Director

Mr. K J Davasia, Executive Director

Mr. Keshub Mahindra, Chairman / Chair Person

Mr. Lewis W K Booth, Director

Mr. M M Murugappan, Director

Mr. Nadir B Godrej, Director

Mr. Narayanan Vaghul, Director

Mr. Philip G Spender, Alternate Director

Mr. R K Kulkarni, Director

Mr. R K Pitamber, Director

Mr. S K Bhatnagar, Director

Mr. Sanjiv A Kerkar, Nominee Director

Mr. Sanjiv Kapoor, Nominee Director

Business Overview

The company's core business comprises of utility vehicles, light commercial vehicles and
tractors. During FY2000, the commercial vehicles (i.e both utility vehicles and light commercial
vehicles) contributed 37.77% to the total sales revenue, tractors contributed 56.65% and other
sales like those of parts and engines contributed about 5.58% to the total sales. The company also
has 40% market share in the 30-40 HP segment in the US market.
Mahindra & Mahindra is highly dependent on good monsoon as major portion of its revenues
comes from tractors and farm implements. The slowdown in the agriculture sector in the last two
years has had a negative impact on the company's bottomline. The agricultural thrust in the
recent budget is expected to benefit the company. The customs duty on used cars and MUVs has
been raised to 105% which is triple the current rate. This would prvent the import of MUVs and
might benefit the company which is one of the major producers of the same. In the recent budget
the government has announced its plans to bring the service stations under the purview of service
tax. This would have a negative impact on the company's bootomline as the company is planning
to expand its distribution and services network.

Mahindra & Mahindra follows the strategy of continuous introduction of new products in the
automotive segment. In the last seven years, 30% of the sales volume in this segment came from
products which were less than five years old. The company continuously launches new products
so that none of the competitor's products can hold the customers for long.

In the tractors segment, the company is all set to counter the threat posed by the entry of foreign
players like New Holland and John Deere. The company has planned to introduce a wide range
of tractors and to strengthen its distribution and services network.

Performance of Segments

The sales breakup for FY99 and FY00 is as follows:

Period ended 03/99 03/00 % Change

Sales value (Rs crores)

Agriculture tractor,self prolled harv 1,554.90 1,631.85 +4.95%

Commercial vehicles 2,166.51 2,447.77 +12.98%

Sales volume (unit)

Agriculture tractor,self prolled harv (Nos) 69,362.0 70,571.0 +1.74%

Commercial vehicles (Nos) 69,003.0 76,316.0 +10.60%

Unit realisation (Rs/unit)

Agriculture tractor,self prolled harv (Nos) 224,172 231,235 +3.15%

Commercial vehicles (Nos) 313,973 320,741 +2.16%

Products

The company produces tractors in three categories viz., less than 30 HP, 30-40 HP and greater
than 40 HP. It also produces farm implements like cultivators, tillers, ploughs,etc. Some of the
well known brands of M&M in the utility vehicles are the Commander, Armada, Voyager and
Bolero.

SWOT Analysis

Strengths:

Over the years the company has emerged as one of the top players in the world in terms
of number of tractors sold. This gives a clear indication that the company's market share is one of
its biggest strengths.

The company's ability to introduce new products in the market and to generate sales from
those new products is a major strength. The reason being that this is very essential for any
company, for its survival in the long run.

The company has established its brand name in other countries of the world as well. This
is evident from the 40% market share that it holds in the 30-40 HP tractors market in the US.

Weaknesses:
 The company is highly dependent on the rural sector, and the rural sector in turn is highly
dependent on the monsoons. As a result, if there happen to be bad monsoons (less of rains) for
two consecutive years it could have an adverse impact on the demand of tractors for the
company.

Opportunities:

The government has been trying to strengthen the exports of agricultural products. As a
result, the quality of agricultural products necessarily has to be very high. For this, they need
better rural and agricultural infrastructure. This might result in an increase in demand for
tractors.

In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area,
which is much below the world average of 19 tractors for the same. Thus there is scope for the
demand to increase.

Threats:

The company has a history of having invested in unrelated diversifications such as

telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries
from time to time when these turned unmanageable. This is a cause for concern as such
diversifications could divert the company's attention from its core business. It is a dangerous
tendency as it leads to destruction of shareholders value.

The entry of foreign players in the tractors segment could pose a threat to the company as
these foreign players are technically more competitive than Mahindra & Mahindra.

Karvy Research Desk

Mahindra & Mahindra Limited

General

Registered Office:
Gateway Building, Apollo Bunder,

Bombay - 400039, Maharashtra.

Telephone: 91-22-2021031/5158

Fax: 91-22-2028780/8990

Website: www.mahindraworld.com

BSE Code: 500520

NSE Code: M&M Reuters: MAHM.BO

Listing: BSE, NSE, Luxembourg.

Background

Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private limited
company under the Indian Companies Act of 1913 by two brothers, Mr. J.C. Mahindra and Mr.
K.C. Mahindra. It was converted into a public limited company on June 15, 1955. Mahindra &
Mahindra Ltd, one of the largest private sector company in India, is the flagship company of the
Mahindra Group. The company commenced operations in 1945 to manufacture General Purpose
Utility Vehicles and later on entered into manufacturing of Tractors and Light Commercial
Vehicles (LCVs). Over the years, the company has expanded its operations from automobiles
and tractors to steel, trading and manufacturing of Ash Handling Plants & Traveling Water
Screens. The company is focussed to become a world giant in the tractor business. It has already
made its presence felt in countries in Europe, Latin America, Africa and United States of
America.

Shareholding Pattern
The company has an equity capital base of Rs. 110.5 crore and the number of shares are 11.05
crore. The face value per share is Rs. 10 and the current market price is hovering around Rs. 125.
The market capitalization of the company, as on 30th March 2001, is Rs. 1,387.63 crore. The
promoters are holding 27% stake in the company. The free float available in the market is 14%.

Board of Directors

Mr. A K Nanda, Executive Director

Mr. A S Ganguly, Director

Mr. Alan E Durante, Executive Director

Mr. Anand G Mahindra, Managing Director

Mr. Baldev R Gupta, Nominee Director

Mr. Bharat Doshi, Executive Director

Mr. Deepak S Parekh, Director

Mr. K J Davasia, Executive Director

Mr. Keshub Mahindra, Chairman / Chair Person

Mr. Lewis W K Booth, Director

Mr. M M Murugappan, Director

Mr. Nadir B Godrej, Director

Mr. Narayanan Vaghul, Director

Mr. Philip G Spender, Alternate Director

Mr. R K Kulkarni, Director

Mr. R K Pitamber, Director

Mr. S K Bhatnagar, Director

Mr. Sanjiv A Kerkar, Nominee Director

Mr. Sanjiv Kapoor, Nominee Director

Business Overview

The company's core business comprises of utility vehicles, light commercial vehicles and
tractors. During FY2000, the commercial vehicles (i.e both utility vehicles and light commercial
vehicles) contributed 37.77% to the total sales revenue, tractors contributed 56.65% and other
sales like those of parts and engines contributed about 5.58% to the total sales. The company also
has 40% market share in the 30-40 HP segment in the US market.

Mahindra & Mahindra is highly dependent on good monsoon as major portion of its revenues
comes from tractors and farm implements. The slowdown in the agriculture sector in the last two
years has had a negative impact on the company's bottomline. The agricultural thrust in the
recent budget is expected to benefit the company. The customs duty on used cars and MUVs has
been raised to 105% which is triple the current rate. This would prvent the import of MUVs and
might benefit the company which is one of the major producers of the same. In the recent budget
the government has announced its plans to bring the service stations under the purview of service
tax. This would have a negative impact on the company's bootomline as the company is planning
to expand its distribution and services network.

Mahindra & Mahindra follows the strategy of continuous introduction of new products in the
automotive segment. In the last seven years, 30% of the sales volume in this segment came from
products which were less than five years old. The company continuously launches new products
so that none of the competitor's products can hold the customers for long.
In the tractors segment, the company is all set to counter the threat posed by the entry of foreign
players like New Holland and John Deere. The company has planned to introduce a wide range
of tractors and to strengthen its distribution and services network.

Performance of Segments

The sales breakup for FY99 and FY00 is as follows:

Period ended 03/99 03/00 % Change

Sales value (Rs crores)

Agriculture tractor,self prolled harv 1,554.90 1,631.85 +4.95%

Commercial vehicles 2,166.51 2,447.77 +12.98%

Sales volume (unit)

Agriculture tractor,self prolled harv (Nos) 69,362.0 70,571.0 +1.74%

Commercial vehicles (Nos) 69,003.0 76,316.0 +10.60%

Unit realisation (Rs/unit)

Agriculture tractor,self prolled harv (Nos) 224,172 231,235 +3.15%

Commercial vehicles (Nos) 313,973 320,741 +2.16%

Products

The company produces tractors in three categories viz., less than 30 HP, 30-40 HP and greater
than 40 HP. It also produces farm implements like cultivators, tillers, ploughs,etc. Some of the
well known brands of M&M in the utility vehicles are the Commander, Armada, Voyager and
Bolero.
SWOT Analysis

Strengths:

Over the years the company has emerged as one of the top players in the world in terms
of number of tractors sold. This gives a clear indication that the company's market share is one of
its biggest strengths.

The company's ability to introduce new products in the market and to generate sales from
those new products is a major strength. The reason being that this is very essential for any
company, for its survival in the long run.

The company has established its brand name in other countries of the world as well. This
is evident from the 40% market share that it holds in the 30-40 HP tractors market in the US.

Weaknesses:

The company is highly dependent on the rural sector, and the rural sector in turn is highly
dependent on the monsoons. As a result, if there happen to be bad monsoons (less of rains) for
two consecutive years it could have an adverse impact on the demand of tractors for the
company.

Opportunities:

The government has been trying to strengthen the exports of agricultural products. As a
result, the quality of agricultural products necessarily has to be very high. For this, they need
better rural and agricultural infrastructure. This might result in an increase in demand for
tractors.

In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area,
which is much below the world average of 19 tractors for the same. Thus there is scope for the
demand to increase.
Threats:

The company has a history of having invested in unrelated diversifications such as

telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries
from time to time when these turned unmanageable. This is a cause for concern as such
diversifications could divert the company's attention from its core business. It is a dangerous
tendency as it leads to destruction of shareholders value.

The entry of foreign players in the tractors segment could pose a threat to the company as
these foreign players are technically more competitive than Mahindra & Mahindra.