Mahindra-Tata Motors Fdi Strategy

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Contents

PART I3
Mahindra and Mahindra3
Brief history of M&M tractors3
History of alliances and acquisitions which helped them in the tractor space4 Why did they go in for Ssangyong4
Technology benefits which Ssangyong possesses4
Mahindra’s experience of the acquisition5
How Mahindra handled the situation5
Successes of the acquisition5
PART II7
TATA MOTORS7
Brief history of Tata Motors7
Why did they go in for JLR deal?8
But Why Acquisitions?8
Technology benefits which JLR possess9
Tata’s experience of the acquisition9
Successes of the acquisition10
PART III10
Further Plans11
Prescriptive strategies:12
Bibliography:14

PART I

Mahindra and Mahindra

Brief history of M&M tractors

Today, Mahindra and Mahindra is the third largest tractor manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand since 1983. Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under licence of the iconic Willys Jeep in India.  Mahindra & Mahindra began manufacturing tractors for the Indian market in the early 1960s. Today, it is one of the top three tractor companies in the world with annual sales totalling more than 150,000 tractors. It has expanded its offerings to include farm-support services via Mahindra AppliTrac (agri-mechanization solutions), Mahindra ShubhLabh (seeds, crop protection, and market linkages and distribution), and the Samriddhi Initiative (agri-support information and counselling. The Timeline:

|1962 |In 1962, M&M formed a joint venture with International Harvester to make tractors , developed its first tractor, the B-275 | |1963 |Incorporation of International Tractor Company of India (ITCI),formed as a Joint Venture between Mahindra & Mahindra Limited | | |(M&M), International Harvester Inc, and Voltas Limited sharing the responsibility of design, manufacturing & marketing | |1965 |Rolled out first batch of 225 Tractors in 35 H.P. Range - Model B275 Regular | |1981 |100,000th Tractor rolled out. | |1983 |Market leader in domestic Tractor market - has maintained this position till date | |2004 |Announced a joint venture (80% stake) with Chinese automaker Jiangling Motor Corp contributing $8m (approx Rs 36 crore) of the | | |$10-m investment needed to buy the facilities of Jiangling's tractor unit | |2008 |Bought an 80 per cent stake in Kinetic Motors' two-wheeler business for Rs 110 crore. This is now run as a separate company - | | |Mahindra 2 Wheelers | |2010 |In May, bought a 55.2 per cent stake in Reva Electric Car Co, most of it from Reva's promoter thought that would benefit it in the| | |long run from Reva's electric vehicle technology | | |Acquired a 70 per cent stake in South Korea's Ssangyong Motor Co for about Rs 2,100 crore, including bonds. It is the largest | | |outbound deal by M&M | | |Acquired a stake of 43.3% in Punjab Tractors Ltd (PTL) to increase its geographic presence and also enable the company to enter | | |new segments (various horsepower (hp)...
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