Issue 9, December 2012 Issue 10, June 2013

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December
2012
IssueIssue
10, 9,
June
2013
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Dear
Mahindra Business Partner,
FY2013 has been a very eventful twelve months for International Operations.
In the midst of market as well as regulatory volatility, we have launched new
products and opened new markets, as well as grown existing ones. South
Africa, the rest of Africa, South & Central America & Nepal have all shown
handsome growth in Auto sales.
In tractors, Mahindra USA has grown by an unprecedented 30% on
retails, and wrested the no. 2 spot in dealer satisfaction from John Deere
in its own backyard! Africa has overtaken Asia & Australia to become the
largest Mahindra tractor selling region in RoW.
In FY13 we have made progress on brand-building as well as channel
strengthening and have launched a relentless retail focus. The Rise based
TVC created in South Africa; the digital campaigns run by Mahindra USA,
Mahindra South Africa, Mahindra Europe and Mahindra Australia; the
digital properties created by the IO, Tractor & Auto marketing teams and the activation of thematic BTL
campaigns in South Asia, have all ensured that brand Mahindra is beginning to get progressively stronger
outside India.
But this is only the beginning. In our quest to develop a significant presence in key markets, we will
intensify these thrusts, strengthen our processes and launch a crusade on getting our product and service
quality first time and every time right, so as to provide a delightful customer experience across all key
markets.
The full credit for all our achievements goes to all the International Operations employees & Channel
Partners worldwide. All of you have shown the dedication and the passion needed to excel and win against
the best in the world; for which I would like to complement and thank each one of you. We have the exciting
responsibility of building not only our business, but also the Mahindra brand, globally.
The Mahindra Group has set itself the aspiration to be counted among the Top 50 most admired global
brands, by the turn of this decade. The responsibility for this rests substantially on our shoulders. I have no
doubt that we will collectively Rise to the challenge!
Happy selling! I look forward to working with you in your respective markets.
Ruzbeh Irani
Chief Executive
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Working at the Bottom of the Pyramid…
Mr. Sanjay Jadhav - Senior General Manager (Africa and Middle East)
Mahindra has been operating in Africa, for over a decade now. During this
period it has consolidated its footprint by entering key markets and launching
products, customised for the farmers of Africa. FY13 was yet another year of
achievements with overall growth in the Tractor and Auto businesses taking
Brand Mahindra to new heights, while contributing significantly to the Africa
growth story at the same time.
There is one man whose leadership and vision has driven the team to yield
such remarkable results year on year: Mr. Sanjay Jadhav - Senior General
Manager (Africa and Middle East).
Mr. Jadhav has been instrumental in driving growth for both auto and
tractors in Africa and the Middle East. Under his strong leadership, Mahindra
auto exports experienced a growth of 63%, while Mahindra Tractor grew by
14% in F13 over last year in Africa. With his vision and leadership, brand Mahindra in Africa will grow
to newer heights.
M Trac World recently met with him to gain his inputs on what makes Mahindra Africa a unique
success story and learn more about his plans for the future. Some excerpts …
Mahindra & Mahindra has had a very successful journey in Africa so far and is consistently on the
move upwards. Can you share some insights about this journey?
Before we share our insights on this interesting journey, we are extremely pleased to highlight that
Mahindra Tractors has created a niche in the competitive African continent. A brief look at the Tractor
Industry indicates that we are amongst the Top 5 players in Africa overall and, when it comes to the
relevant segment of 40 to 95 HP, we are amongst the Top 3. We have the potential and we aspire to
becoming the leading tractor player in the continent.
We have been present in Africa for over a decade now and we have well understood the African
customer/farmer and his expectations. We have devised a strategy wherein we have identified the focus
markets, developed the channels in these markets and, with the introduction of the right product range,
we have strengthened our footprint.
We gradually entered other markets as we developed our network. We are now present in over 30
countries in Africa and have created a class leading infrastructure. We have focussed on after sales
service to our customers and have created ‘Service as a Differentiator’. While we have focussed on
growing the retail business, we have efficiently pursued major tenders or Indian Line of Credit (ILOC)
projects as well. Keeping competition at the back of our minds has helped us position our products
appropriately.
Some time back we had worked on setting up satellite assembly plants through our partners in certain
African markets like Tchad, Mali, Ghana, Gambia etc. Today, these plants are giving us good business.
As you said, Mahindra has been consolidating its footprint in the African tractor industry. After a
successful FY’13, where do you see the company heading?
As mentioned earlier, we are present in about 30 markets and are consolidating business in these
markets. However, we are yet to establish our presence in certain major markets like South Africa,
Morocco, Nigeria, Egypt, Ethiopia, etc. We will be working on these markets and will also enter the smaller
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markets through the cluster approach, wherein we will offer multiple markets to some large distributor.
Knowing the success of satellite assembly plants, we will be working on creating such assembly plants in
other markets as well - Algeria, Benin, etc.
Africa is generally deemed to be a land of tremendous opportunity, but it also comes with very unique
challenges and risks. What exactly makes Africa so unique?
Africa has been in focus in view of its fast economic growth. In an increasingly competitive global
environment, there is a constant search for new markets and lower-cost resources. Companies are slowly
beginning to look at Africa for manufacturing, but the continent’s potential is still largely untapped. There is
availability of abundant and low cost resources - over 1 billion people with 41% under the age of 15, 10%
of world’s oil reserves, 40% of the gold reserves and 80-90% of chromium and platinum group metals.
Continued improvements in the business environment due to greater political stability have helped initiate
macroeconomic reforms, leading to greater growth and stability.
Africa is such a big continent and every region has very specific and very complex requirements. What
is the core of your strategy that makes Mahindra so successful in Africa?
We focussed on delivering best quality products and building a world class distribution network that would
offer excellent support to our customers. This has helped us build the Mahindra brand in Africa. We will
continue offering the best of service to our customers. We are now focusing on capacity building across
the agri value chain – with activities like agronomy and soil testing; pesticides, micro-irrigation and farm
mechanisation.
With this we are not only looking at growing our tractor business but also at providing end-to-end
solutions in agribusiness to farmers by leveraging the Group’s strengths and synergies.
What are the unique Customer Value Propositions offered by Mahindra to its customers?
Mahindra tractors have been adapted to local African conditions. They are rugged, reliable and suitable
for diversified African conditions. Besides, they are easy to operate and compatible with a wide variety of
implements, trailers and harvestors. We also offer strong service backup at the customer’s doorstep,
making a Mahindra tractor a value for money product.
What are your short term & long term plans for Mahindra in Africa?
Africa is growing and we would like to be the part of the growth story. We have the aspiration to be the
leader in this continent and we are working towards this goal.
We are present in about 30 countries in Africa now and consolidating our presence here. We will
continue exploring new markets and build a distribution network that will sustain our growth. We will work
on alternate business models like creating local assembly plants in other markets as well, knowing the
success of the same.
We have a strategy of growing along with our partners, who understand the local market. These local
assembly plants are creating jobs for local manpower (employment), besides fuelling agricultural growth.
We have been a strong player in the 50 to 95 HP category and would like to focus on smaller, low-cost
tractors to attract marginal farmers. This trend reflects the changing dynamics in Africa where marginal
farmers with small landholdings are going in for mechanisation by using small HP tractors.
We will also leverage Group strengths and synergies in the Agri business to provide complete farming
solutions to African farmers.
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SPOTLIGHT
Assembly of Mahindra Tractors Commences in Novi Sad, Serbia
In Serbia, Mahindra Tractors have been sold and distributed
through the network of Agropanonka MTZ – Finke, since
2007. The association between the two companies has
now been raised to a higher level, with Agropanonka
assembling the 475 MKM series of Mahindra tractors at
its tractor assembly line in Novi Sad, which was inaugurated
on April 10, 2013.
Speaking at the inauguration ceremony, Mr. Dragoljub
Švonja, CEO Agropanonka, said that Mahindra tractors have
been highly appreciated by Serbian farmers for their high
The first batch of 475 Tractor Models assembled
in Serbia.
quality, reliability, ease of operations and performance. We
have started assembly of these tractors to meet the growing demand
and to achieve lower pricing.
Mr. Dragan Svircevic, Head of the
Mahindra business at Agropanonka,
explained the features of the 475
MKM series being manufactured at
this new plant. These include a quick
lift mechanism, reverse CRPTO, a side
positioned gear shift lever, oil immersed
Mr. Dragan Svircevic
addresses the gathering at the
inauguration ceremony.
brakes and improved ergonomics. An
important change made on this tractor
is its increased ground clearance to
address local needs – it is now 16 cm higher as compared to the earlier
Mr. Dragoljub Svonja speaks at the
inauguration event.
versions i.e. 46 cm in total.
To improve the comfort of operators, cabins will be provided by well
Participants included Agri Experts, Dealers, Customers, Bankers, etc.
Mr. Manoj Dalvi speaks at the
inauguration ceremony.
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SPOTLIGHT
known Turkish cabin manufacturer, Yaris, with
which Agropanonka has had a partnership for the
past four years.
Manoj Dalvi, Dy. General Manager in-charge
of East Europe, Turkey, and CIS, M&M, said
that from a humble beginning in 2007, the
M&M business today had grown in importance,
gradually establishing itself as a quality player in Serbia’s
tractor market.
The opening of the new Agropanonka assembly line
is also a clear demonstration of the 3 pillars of RISE
which the Mahindra Group firmly believe in: Accepting No
Limits, Alternate Thinking and Driving Positive Change.
M&M supports Agropanonka’s commitment to
providing better solutions to farmers in Serbia and
neighbouring markets.
spreading our
WINGS
Mahindra Yueda Launches Parts Warehouse and Service Van
December 21, 2012,
witnessed Mahindra Yueda
Yanchang Tractor Company
(MYYTCL) launching its Parts
Warehouse in Hubei, China,
with Anlu Feilong Agricultural
Machinery Co. Ltd., in Anlu,
amidst colorful flags and
exciting firecrackers. The
same day also witnessed the
launch of the HHJM Mobile
Service Van.
The ceremony was hosted
by Mr. Wuhansheng, Director, Anlu Agricultural Machinery Bureau, and was attended by
Mr. Zhouliming, Vice Director, Hubei Agricultural Machinery Bureau; Mr. Xuhuaqiao, Section Head, Quality
Supervision Department; Mr. Liziqiang, Secretary, Party Committee of Xiaogan Agricultural Machinery
Bureau; Mr. Zengfancang, Section Chief, Quality Supervision Admin. Office; Mr. Hufenhong, Member -
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WINGS
Standing Committee, CPC Anlu
Municipal Committee & Politics and
Law Committee Secretary;
Mr. Y.V. Anand, (India) National
Service Head, MYYTCL;
Mr. Sunjian, Manager, Service
Department; and Mr. Luoyujun,
President, Anlu Agricultural
Machinery Co. Ltd.
MYYTCL - Hubei Part Warehouse
will greatly improve the company’s
part supplying efficiency, thus
reducing the time span and
customer’s investment.
The HHJM Mobile Service Van
is well-equipped with a generator, air compressor, cleaning
machine, welding machine, bench vise, cutting machine,
electric drill, grinder, etc. along with one set of special HHJM
tools. It functions like a small mobile workshop to reduce
repairing costs and ensure the customer benefits related to
maintenance, service, part supply, product promotion and
technical support.
Mr. Zhouliming, Vice Director, Hubei Agricultural
Machinery Bureau, emphasized that Hubei has become a
major agricultural province, since the implementation of
an agricultural machinery subsidy and customers here are
buying tractors with great enthusiasm.
The HHJM Mobile Service Van is the kind of innovation that brings convenience to the customer by
providing service at the customer’s house or field – thus reducing repairing costs and enhancing efficiency.
Mr. Hufenhong, Member - Standing Committee of the CPC Anlu Municipal Committee and Secretary Politics and Law Committee, said that this is good news not only for the Anlu Feilong Company, but also for
the large masses of agricultural machinery drivers.
Mr. Y.V. Anand (India) National Service Head, MYYTCL, expressed appreciation for the agricultural
machinery system and the support from Government Leaders of Anlu. He handed over the HHJM Mobile
Service Van to Mr. Luoyujun, President, Anlu Agricultural Machinery Co., Ltd. The latter promises to
build another 20 MSVs like this in Hubei to support the Agricultural Mechanization of Anlu and all Hubei
provinces for better improvement.
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FOCUS
Mahindra Tractors Team at 9th
CII-EXIM Bank Conclave
Mahindra Tractors participated in the 9th CII
Exim Bank Conclave on India-Africa Project
Partnerships, held from March 17-19, 2013, in
New Delhi. A good number of delegations from
both the government and the private sector
participated in this mega event.
The Mahindra Stall at the 9th CII-EXIM Bank Conclave.
The conclave witnessed a large number of productive discussions.
This conclave has developed into a platform that has enhanced the presence of ‘Brand India’ in African
economies. It has encouraged Indian exporters to access African countries and increase their presence in
the region. The ‘Focus Country’ for this event was Ethiopia and the ‘Guest Country’ was Cameroon.
The M&M delegation at the conclave comprised of Mr. Ruzbeh Irani,
Chief Executive – Intl. Opns. Automotive & Farm Sector (AFS) and Mr. Sanjay
Jadhav, Sr. General Manager – Africa & Middle East, AFS, along with other
officers from M&M.
Speaking at the Conclave, Mr. Ruzbeh Irani said, “The Mahindra Group
operates in the key industries that drive economic growth, enjoying a
leadership position in
Sanjay Jadhav, Sr. GM – Africa
& Middle East, speaks at the
conclave.
diversified sectors. The
M&M Group’s strength and
dynamism can be leveraged to
create opportunities for expansion of trade and investment
in Africa. M&M desires to engage with its African partners
to unleash Africa’s agricultural potential, as there are high
potential ‘bread basket’ areas and Africa is likely to be the
growth destination for the next 20 years.”
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FOCUS
Action in Iraq
Best Quality Award
Mahindra Tractors is the first Indian Company to receive
Iraq’s Best Quality Award for Tractors. The award was
presented by H.E. Hassan N. Al-Timimy, Head of the
Farmer Union and was received by Mr. Jamaluddin
Mansoori, Sr. Manager – Middle East. The Ministry of
Agriculture has given an assurance about promoting the
Mahindra tractor business in Iraq.
On Display at Iraq Auto Show
Mahindra Tractors displayed the 8000 4wd
tractor at the Iraq Auto Show, in Baghdad,
through the Al Sadeq Group.
The show was visited by the Minister of
Agriculture, State Company for Mechanisation
of Industries (SCMI). During the show, twenty
farmers were given tractor field trials and
twelve 8000 model tractors were sold. These
were offered to farmers through SCMI.
A Visit to SCMI – Iskandariyah
In 2012 M&M appointed the AL SADEQ Group in Iraq as its
tractor distributor. This Group, headquartered at Baghdad,
is a provider of products and services for Mahindra
Tractors in Iraq. This has leveraged the Al Sadeq Group’s
connection with the Ministry of Industry & Minerals. There
is an MOI approved contract between the Al Sadeq Group
and the State Company for Mechanisation of Industries
(SCMI) for Mahindra tractors.
Mr. Jamaluddin Mansoori, Sr. Manager – Middle East,
recently visited SCMI, Iskandariyah. He was taken on a round on of the assembly line by Mr. Jawad Aubaed
Al Abed, Deputy Director General, and Mr. Mohammad Al Madad, Engineer. Subsequent to Mr. Mansoori’s
visit, 111 Mahindra Tractors were exported to Iraq.
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FOCUS
Agriculture Minister of Rwanda Visits Mahindra Tractor Facility
A high-level delegation from the Ministry of
Agriculture, Rwanda (MINAGRI), headed by
Dr. Agnes Kalibata, Minister of Agriculture,
visited Mahindra Tractors’ Nagpur Tractor
factory to discuss Mahindra’s participation in
the mechanization of Rwanda. The delegation
was received by Mr. Farhat Jalal, Senior
Manager - Exports.
Following this visit, Mahindra supplied 30
units of the 7030 4wd, against a tender
floated by MINAGRI.
achievements &
ACCOLADES
Mahindra USA Contributes to M&M’s Two Millionth Tractor
Milestone
M&M’s Automotive
and Farm Sector rolled
out its two millionth
tractor from the
company’s Kandivali
plant in Mumbai,
India, on February 27,
2013. This milestone was achieved by doubling its global production in less than a decade. The first million
tractors were produced over a nearly
40-year span, beginning with the first Mahindra tractor in 1965.
Mahindra USA, has contributed to this milestone in the company’s history through its steady growth in
the U.S. and Canadian tractor markets over the past two decades. It is currently ranked among the top
tractor manufacturers and is the fastest growing tractor brand in North America.
“This is a time for us to challenge ourselves and continue building on Mahindra’s success. By providing
quality products and outstanding service to our customers we have gained significant ground in North
America and we are not done yet,” said Mani Iyer, President of Mahindra USA.
“Mahindra’s brand recognition and reputation in the North American market is built on the strong
foundation and long history of providing quality products and unwavering commitment to our dealer
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achievements &
ACCOLADES
network,” said Cleo Franklin, Vice-President, Marketing and Strategic Planning. “Our customer and dealer
first strategy has led Mahindra USA to an industry-leading 97 percent customer satisfaction and 98
percent brand loyalty rating. This dedicated strategy will continue to be the cornerstone for our long-term
growth plans in the North American market.”
Mahindra became the number one selling tractor brand in the world in 2010 by providing value-packed,
high-quality tractors. Mahindra is the only tractor manufacturer in the world to win both the Deming
Application Prize and the coveted Japan Quality Medal for excellence in Total Quality Management, awarded
by the Deming Prize Committee care of the Union of Japanese Scientists. Mahindra “Rise” is a culture and
philosophy of Accepting No Limits, Driving Positive Change and Alternative Thinking.
Kudos from Indonesia for Mahindra Tractors
An excellent testimonial
for Mahindra Tractors
recently appeared in
the Sawit Indonesia
magazine. In an article
titled ‘Competitive Price,
Quality Guaranteed’,
Mr. Dinas Sebayang,
President Director, PT
.LANCAR JAYA ABDI, was
asked to give a testimonial
about heavy equipment PT
Intraco Penta Wahana.
He says that he prefers
to use Mahindra tractors
because of the higher
value they deliver.
Mr. Hasan Tan, Director of Operations, PT Lancarjaya Mitra Abadi, said Mahindra tractors are strong
and have good horse power for contoured uphill land and are good for transportation of oil palm fruit.
FY 2012 –13 SALES HIGHLIGHTS
The Farm Equipment Sector (FES), a part of the USD 15.9 billion Mahindra Group, maintained its
leadership position in the Indian tractor industry during FY 2012 – 13. Total sales (domestic + exports)
stood at 223,885 units.
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achievements &
ACCOLADES
Mahindra USA Announces Women In Ag Scholarship Winners
Mahindra USA Inc. is proud to announce the winners of its 2012-2013 scholarship
program benefiting young women studying agriculture, the ‘Mahindra Tractors’
Women in Ag Scholarships’.
Since 2007, Mahindra USA has sponsored the Women in Ag Scholarship Program
to recognize the important role that women play in the future of the agricultural
industry. These scholarships were created for the purpose of helping young women
sustain the family farm values and rural lifestyle through a career in agriculture.
Because of the role that young adults and in particular, young women play in advancing
American agriculture, it is important to provide this critical foundation to support
these students in their pursuit of a college degree. The following four outstanding women were selected to
receive merit-based college scholarships from Mahindra USA for use during the 2013/2014 school year:
• Shelby Chaney from Brimson, MO will be a sophomore at Northwest Missouri State University majoring
in Animal Science • Shelby Eckhardt from Seguin, TX will be a freshman at Texas A&M University – College
Station majoring in Pre-Vet / Vet Sciences • Victoria Riback from Molalla, OR will be a freshman at
Texas A&M University – College Station majoring in Agronomy & Crop Science • Stephanie Tarlowe from
Hackettstown, NJ is a freshman at Cornell University majoring in Animal Science.
In partnership with The National FFA Organization, the Mahindra scholarship winners were chosen
based on their passion and involvement in agricultural studies, as well as
their academic performance and leadership. Every year, Mahindra USA
teams up with the National FFA Organization to sponsor select young
women involved in agriculture and their pursuit of a college education.
“It’s been an incredible privilege, personally and on behalf of Mahindra
USA, to participate in another successful scholarship program.
These young women are a shining example of the Mahindra Rise
philosophy: Accepting No Limits, Alternative Thinking and Driving Positive Change for themselves and their
communities,” said Cleo Franklin, Mahindra USA’s Vice President of Marketing and Strategic Planning.
“Mahindra USA is proud to partner with the FFA, and we join them in congratulating these four very
accomplished students. We are thrilled to play a part in assisting them and their families in furthering their
agricultural education.”
Mahindra Tractor at Ugandan Sugar Farms
Upon retirement, Constantine Bakyabubi, a former stationmaster in
Uganda Railways, looked out for an occupation that would be simple
and not labour intensive. He chose to cultivate sugarcane for Kakira
Sugar Limited. His success in this endeavour has seen him expand
to cultivating this crop on 70 acres of land. He regularly uses a
Mahindra tractor for diverse sugarcane farming applications.
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WORLD
Enhancing Relations Between Burkina Faso and India
His Excellency Mr. Blaise Compaore, President of Burkina
Faso is working on new ways of harnessing new technologies
for agricultural development. The newly adopted Strategy for
Accelerated Growth and Sustainable Development (SCADD)
sets an ambitious goal of modernizing the Agriculture Sector
of the country.
A delegation led by H.E. Mr. Idriss Raoua Ouedraogo,
Ambassador, Embassy of Burkina Faso to India, recently
visited India. It included a technical team from Fonds de l’Eau
Mr. Sanjay Jadhav welcomes the delegation
from Burkina Faso,
et de l’Equipment Rural (FEER), Burkina Faso, led by
Mr. Concourou Coulibaly. The
delegation visited the M&M Unit in
Mumbai and were received by
Mr. Sanjay Jadhav, Sr. GM, Exports
- Africa & Middle East and others in
the M&M team. The keys of the first
batch of over 100 tractors that had
been ordered by the Government of
Burkina Faso were handed over to
the delegation.
“I am very honoured to receive the
first batch of tractors from Mahindra & Mahindra. I think my visit to Mumbai was very fruitful,” said H.E.
Mr. Idriss Raoua Ouedraogo. “Today, India is playing a great role in Africa and is setting an example for us.
Indian products are very suitable for our country as the technology is more appropriate. “
As Mr. Sanjay Jadhav says, “We were very pleased to receive H.E. Mr. Idriss Raoua Ouedraogo and the
officials from FEER. We are confidant about the quality that we deliver. His Excellency has expressed his
wish for having long-term cooperation with us. We are glad to be offered this opportunity, By offering high
quality products and efficient mechanization solutions we aim to transform rural productivity, and living
standards of the farmers of Burkina Faso.”
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WORLD
Sri Lanka Tractor Rally
In conjunction with DIMO, its Distributor in Sri Lanka,
Mahindra Tractors organized the Sri Lanka Tractor
Rally, in February 2013. The objectives were to promote
the Gold Coin & Implement package scheme on the 575
NBP and MKM models, create awareness about the
275, 575, 595 and 6030 models and showcase
models with high-end features to customers.
Two teams in Mahindra tractors covered 63
villages each in a time span of 16 days.
On Show in Uruguay
Camur Automotores, Mahindra Tractors’ Distributor
in Uruguay, put up an eye-catching product display
at Expo Activa, the country’s largest exhibition for
agriculture and agricultural machinery, organized by
the Rural Association of Soriano. Held from March
13-16, 2013, it witnessed over 250 participating
companies and over 10,000 visitors.
WINNING ARTICLE
In this issue the winning article is: Assembly of Mahindra Tractors Commences in Novi Sad, Serbia on
page 5. The story highlights the start of production at this new plant and the features of the 475 MKM
series that is being manufactured here.
SHARE YOUR NEWS!
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as the news and views of our valued Business Partners and Associates across the globe. Please send
news that you feel would be of interest to kasad.phiruzi@mahindra.com
Circulation of this newsletter is restricted to the employees of the Mahindra Group and for private external circulation to Business
Partners and Associates of Mahindra Tractors only.