Mahindra and mahindra strategy

Management experts typically frown upon too much diversification; they prefer companies that stick to their knitting. But in India, most entrepreneurs build conglomerates comprising a dozen or more businesses; the idea, it would seem, has been to explore a promising space no matter how challenging it may seem.

Indeed the clutch of non-auto businesses is now making its presence felt. While some management gurus deride diversification, it does have its benefits. In the case of the Mahindras, the second generation is yet to come in, so far it has been professionals who are running the show.

Mahindra Case Study Research Paper - Words

Mahindra also bought out the stake of Navistar in the joint venture that helped it establish an entry into the heavy commercial vehicle space. The group has readied itself for the future when the electric vehicle market opens up; the CIE merger has seen the European business starting to turn around.

Sanjeev Krishan, leader-private equity with PwC, says typically in India a holding company structure not only allows the family or promoter group to drive the subsidiaries but also allows them to bring in partners, joint venture entities in company operations.

Krishan points out that unlike private equity players that have pure investment interests in a company, in a holding company structure, the promoter entity is invariably in control of the subsidiaries, even if they are not the majority stakeholders in some cases. And one that will make it among the 50 most admired global brands by September 28, 1: International Yoga Day The Express Group The Indian Express The Financial Express Loksatta Jansatta inUth Ramnath Goenka Awards.

Privacy Policy Advertise with Us Contact Us Feedback.