'We want to be the largest automotive manufacturer'
Anand Mahindra outlines his vision for the group which has an annual turnover of $4 billion, reports Deepak Joshi.india Updated: Nov 17, 2006 21:34 IST
Anand G Mahindra, vice-chairman and managing director of Mahindra and Mahindra has been in the forefront of making it an Indian multinational.
M&M currently has an annual turnover of $4 billion (Rs 18000 crores) in diversified industries from tractors and utility vehicles to the IT sector.
In conversation with Deepak Joshi, Anand Mahindra outlines his vision for the group.
Q. M&M has plans to unveil the Logan car in tie-up with Renault next year. You are also looking at a three-way manufacturing alliance between Nissan, Renault and M&M. What is the broad strategy?
A: Our three companies will be forming a manufacturing alliance. The equity structure and details have still not been decided. We are in discussions with state governments about setting up a greenfield project and a final decision will be taken soon. Logan and its variants will be manufactured at the existing Nashik facility.
The joint venture will give the three alliance partners economies of scale that is beyond one partner as well as flexibility in manufacturing lines. Apart from this, we will have the advantage of a wide vendor base for joint procurement and enable us to cut costs
Q. Scorpio has been well received both in India and overseas. What are your preparations for next model Ingenio?
A: The preparations for our next model are going on well. I cannot provide you details for competitive reasons. I can assure you that the model will hit the road in the next couple of years.
Q. How do you wish to be seen in next couple of years, as a car manufacturer or a utility vehicle maker?
A: I would like to be seen as a global brand in the utility vehicles segment in next few years. M&M should be an independent player in the segment with a wide acceptability and presence.
Q. What lessons did M&M learn from its earlier joint venture with Ford ?
Today the joint ventures are like pre-nuptial contracts. It is not essential to know how long they last. They can be dissolved once the objective is met. This is a win-win situation for the partners. Contracts can be extended if there are fruitful results or dissolved after the objectives are completed.
Q. You have been aggressively acquiring component companies. What are your plans on this front?
A: We want to be the largest and most diversified automotive component manufacturer with major portfolio of the products being exported. M&M hopes to have overseas revenues of $ 1 billion by 2010. We will be targeting forgings and castings segments. M&M is planning to achieve this largely through inorganic growth.
Q. Are you looking at setting up tractor manufacturing facilities to cater to US and European market?
A: In the United States, we have franchisee assembly in three locations and a post-fitment unit in Australia. Our strategy is to go high potential areas like China. M&M is also looking aggressively at China.
Q. Are you looking at the option of hiving off the tractor business into a separate company?
A: M&M is an engine that is adding a cylinder by entering various automobile segments. This gives us the advantage in terms of R&D, logistics, finance and component manufacturing.
Q. There have been reports about your entering the motorcycle business?A: We are always looking at options. This is pure speculation. I am not commenting on it.