New Delhi: For Mahindra & Mahindra (M&M), the two magic mantras for the immediate future are Scale and Synergy. The company has four main business areas and nine other businesses with “high growth potential”, Mahindra Group Chairman Anand Mahindra told the shareholders of the company at the 77th Annual General Meeting (AGM).
“Each growth gem has taken up the 5X challenge – our businesses have to grow 5X in the next 5 to 7 years from where they are today in terms of market cap. I am confident that the next few years will see an astounding pace of growth for us,” he said.
“Our primary objective is scale, scale and more scale. The Mahindra Group has another Brahmastra – a secret weapon – and that is the power of Synergy,” Mahindra added.
The federated structure of the auto major empowers its every business to pursue its own growth goals while freely drawing upon synergies that arise from companies working in collaboration with one another, he said.
Intertwined with India’s horoscope
The Indian economy is growing at 7% when many countries are heading for recession. The group Chairman noted that the world is at a stage where China’s political ambitions are being viewed with alarm, and India is seen as an obvious buffer and counterbalance to China.
Geopolitical tensions with China are pushing many manufacturers in India’s direction. “Economics also enters into it. India actually has the cheapest manufacturing costs in the world. It is not surprising that, of late, companies of the stature of Apple, Samsung, Boeing, and Toshiba have shifted a significant amount of their manufacturing activity to India,” Mahindra said.
The past few years have been full of ups and downs – financial turmoil, geopolitical uncertainty, climate change, natural disasters, and the pandemic all took their toll on businesses everywhere.
“In spite of all this volatility, we have taken a good, hard look at capital allocation and sharpened our strategies for growth over the past few years. We have clearly identified the businesses that we are betting on for future growth and nurtured them. These strategies are paying off,” he added.
“Mahindra’s horoscope and India’s horoscope are intertwined. India is ready to pole vault, and so is your company. I am optimistic that this year will see the beginning of a new and exciting chapter in our country’s and company’s saga,” Mahindra said.
