Case 11 Mahindra & Mahindra
An Emerging Global Giant?
"I have been on record to say that my philosophy of going global is because if you don't succeed abmad or don't have the capacity to succeed abmad and to carve out some turf abroad you are not going to be safe at home [. . .}. If you want to compete with multinationals you have to be a multinational. So that is the logical rationale for going abmad.HI
-ANAND G. MAHINDRA,
Vice Chairman and Managing Director,
Mahindra & Mahindra Ltd., in 2010.
In 20 II, India-based automotive giant Mahindra & Mahindra
Ltd. (M&M) was featured on the Forbes Global 2000 list,2 a
ranking of the biggest and most powerful companies in the
world. Besides M&M, some of the other Indian companies
that figured on the list were Reliance Industries, State Bank of India, Oil & Natural Gas Corp., ICICI Bank, NTPC, Bharti
Airtel, Larsen & Toubro, and Tata Motors. Emerging markets
such as China and India, with 113 and 56 members respectively on the list, were growing steadily and gaining prominence at the global level, industry analysts said. Based in Mumbai, India, M&M was one of the leading
players in the Indian Multi Utility Vehicles (MUV) and tractor segments of the automotive industry as of 2011. Besides the automotive industry, the company has a presence in agribusiness, aerospace, components, consulting services, defense, energy, financial services, industrial equipment, logistics, real estate, retail, steel, and two-wheelers. The Group's automotive sector, which manufactures and markets utility vehicles and light commercial vehicles, was the fourth-largest automaker in India as of 2010. As of 2011, M&M's model range included more than
20 vehicles, including the Scorpio and the Xylo utility vehicles. After establishing its leadership in the Indian automotive market, M&M began to seek opportunities in global markets. The company stormed into the global limelight with the formidable success of its Sports Utility Vehicle (SUV)-the "S.corpio.,,3 Going forward, M&M planned to expand its global reach by launching its vehicles in the international markets including North America, Europe, Africa, and Asia. However, analysts said it This case study was written by Syeda Maseeha
Qumer and Vandana
under the direction of Vara Vasanthi, IBS Hyderabad. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was com. piled from published sources.
@ 2012, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Used with permission.
Kulamannage, "Going Global to Be Competitive in India: Anand Mahindra," www.lbr.lk.August 25, 2010.
2 The Forbes Global 2000 is an annual ranking by Forbes magazine of the top 2000 public companies in the world. The ranking is based on sales, profit, assets, and market value.
] Until M&M launched the Scorpio in 2002. it was associated with rural ve. hicles. The transformation of the company from an aging family business into a formidable model business player occurred under the able leadership of Anand G. Mahindra. For further information, refer to the case study by Vasanthi Vara and Jayakumar Vandana, "Mahindra & Mahindra (A): Transformation of an Indian Family Business into a Globally Competitive Firm," www.ibscdc.org.
was debatable whether M&M would be able to sustain a diverse product portfolio at the global level. They questioned whether M&M could be successful in the overseas markets, particularly the U.S., given that it was an emerging-market company.
"EMERGING-MARKET" COMPANIESCHANGING GLOBAL BUSINESS SCENARIO Based on their economies, the countries of the world have been categorized as developed and developing. While the developed economies include various countries in...
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