INFORMATION TECHNOLOGY MANAGEMENT-INDIVIDUAL ASSIGNMENT

REPORT ON MARKET SHARE OF MAHINDRA AND MAHINDRA

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

TOPIC: REPORT ON PROFIT, SALES AND GROWTH RATE OF

MAHINDRA AND MAHINDRA

Submitted to: Submitted by:

Prof. Kalyan Agrawal Yukti Sharma

Roll No. 120120

PGDM: 2019-21
 Table of Contents

SERIAL No. PARTICULARS PAGE No.

1 ACKNOWLEDGEMENT 3

2 OBJECTIVE 4

3 COMPANY 5

BACKGROUND

4 MARKET SHARE AND 6

INCOME

5 ASSETS AND SALES GROWTH 7

6 MOTORCYCLE INDUSTRY IN INDIA 8

7 REFERENCES 10
 ACKNOWLEDGEMENT

This report is an outstanding project to convey our gratefulness to those many people whose
timely help & guidance went a long way in finishing this work from commencement to
achievement. I want to express my sincere thanks to Prof. Kalyan Agrawal (CIMP) for
allowing pursuing the project.

I further extend our gratitude to Chandragupt Institute of Management Patna for giving me
this opportunity.

At last but not least gratitude goes to all of our friends and colleagues who directly or
indirectly helped me to complete this project report.

Working on this project has proved to be an enlightening experience for me.

Any omission in this brief acknowledgement does not mean a lack of gratitude.

THANK YOU
 OBJECTIVE

The main objective of this project is to determine the reason behind the success of Mahindra
& Mahindra in India and gaining most of the automobile market. It is a big player in the
automobile industry next to Maruti Suzuki and Hyundai India. Sales growth has decreased
over the years. What can be the reasons and remedies for this negative trend?
 Mahindra & Mahindra Ltd.

Company Background

Industry group: Diversified automobile

Entity type: Public Ltd.

Main product & services: Automobiles

Incorporation Year: 1945

Ownership group: Mahindra & Mahindra Group

Size group: Top decile

Mahindra and Mahindra (M&M) was incorporated in 1945 and is one of the flagship
companies of the Mahindra Group. M&M's main businesses are the manufacture,
distribution, and sale of agricultural machinery and utility vehicles.

The majority of the company's stakeholders are institutional investors with more than 56
percent, and Indian developers have more than 22 percent, while the Indian public has more
than 10 percent of the company's stake. Mr. Keshub Mahindra is the president of the
company.

M&M manufactures utility vehicles and tractors. In the automobile sector, the company
makes LCV, cars, jeeps, multipurpose vehicles, and three-wheelers. Its activities in the
agricultural equipment sector include the design, development, manufacture, and marketing
of tractors, agricultural implements, basic and advanced agricultural implements,
earthmoving equipment and construction and manufacturing of industrial engines. In the
defence sector, the company manufactures multi-function light armoured vehicles, simulators
for weapons and weapons systems, mobile surveillance platforms, maritime mines, and small
arms. He has ventured into the 3-wheel segment with a vehicle that runs on electric batteries
through its subsidiary Mahindra Eco Mobiles.

M&M has its registered office in Mumbai, and its plants are in Maharashtra, Uttar Pradesh,
Rajasthan, and Andhra Pradesh. The company has sales offices with a network of support
distributors throughout the country. M&M also has a presence in the international market.
 3% 1%
2%
3% Maruti Suzuki
4% Hyundai India
6% Mahindra & Mahindra
Tata Motors
6% Honda cars
50% Toyota
8%
Renault
Ford India
17%
Nissan
Volkswagen

MARKET SHARE OF AUTOMOBILE INDUSTRY (2018) (COURTESY: SIAM)

 Mahindra & Mahindra is 3rd largest automaker in India.

 It has a market share of 7.61%
 It has total sales of 4,67,292.60 million rupees
 It has a total asset of 4,03,244.10 million rupees
 It has a total profit after tax (PAT) of 39,556.50 million rupees
 TOTAL INCOME OF COMPANY

600000

500000

400000

300000

200000 Total income

100000

0
IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS
12 12 12 12 12 12 12 12 12 12
months months months months months months months months months months
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

SALES
450,000.00
400,000.00
350,000.00
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00 sales
50,000.00
0.00
IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS
12 12 12 12 12 12 12 12 12 12
months months months months months months months months months months
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
 TOTAL ASSETS OF THE COMPANY

GROWTH OF TWO-WHEELER INDUSTRY IN INDIA

30

25

20

15

10

0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
-5

-10

 From the above two tables, we conclude that although the sales figures and assets
figures are on the rise, yet the company is unable to produce the sales growth figure of
the period between 2011 and 2014.

 Although the UVs and passenger cars have shown a growth of 26 %, yet it has
demonstrated Negative growth for the next two years which is mainly due to reasons
like
1. Fewer sales in the Two-wheeler segment
2. It has pumped 100 Cr. and proposed to pump 400 Cr. more to tap that sector
(Courtesy: RBSA Advisor).

 It hasn’t introduced 150cc and 300cc motorcycle for those target audience those who
want super-bikes because it is trending nowadays.
 MOTORCYCLE INDUSTRY IN INDIA (COURTSEY: AUTOCAR)

 Final sales numbers for FY 2018 are 20,006,406 units in India

 For the top 6 bike companies, the growth rate is 15.98 %
 Nearly 37 million motorcycles are there in India
 Of this, 17.59 million motorcycles are sold every year
 Courtesy: Movers and Shakers

GROWTH OF TWO-WHEELER INDUSTRY IN INDIA

30

25

20

15

10

0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
-5

-10

 So, it is my recommendation to pump in more money in the Motorcycle industry and

increase its sales growth as it was nearly six years ago.

 It should also increase its four-wheeler SUVs and MUVs segment to remain
competent in the market.

 It should also increase its Ad dollars to make more appealing ads like hero moto cop
and Honda Activa.
References:

1. Autocar India: Essay on Automobile Industry in India

2. Prowess IQ: Database about M&M

3. RBSA Advisor: Article about the Automobile industry in India

4. https://www.youtube.com/watch?v=Et7CqvttXnI