Mahindra Group ventures into two-wheelers; eyes more growth
One of India’s largest business forces, the Mahindra group announced last week its plans to increase market share in Sri Lanka.
The $ 15.4 billion Mahindra Group already has a presence in the automobiles and tractors industry, but is now planning to enter into two-wheeler, aerospace and vehicle finance.
The title sponsors of the Sri Lanka Premier League (SLPL) are aiming to leverage sporting events in a bid to build brand recognition in various markets. The multi-billion dollar company is currently enjoying strong leadership positions in Sri Lanka and have announced their plans to diversify further within the vehicle and transport industry.
“The Mahindra Group has become a household name; it is the only company in the world that manufactures from two-wheelers to light aircrafts. The group is already the leader the tractor segment and since 2002, we have grown from strength to strength in the automobile industry,” said Ideal Group Chairman Nalin Welgama.
Average monthly sales are approximately 2,200 units where there are two segments, namely light vehicles and above one ton vehicles. The Mahindra Group noted that out of the greater than one ton segment, they have a 60% market share.
Outside of India, Sri Lanka is the biggest buyer of Mahindra related products where 2011-2012 light vehicle unit sales were approximately 12,000. For over six decades and based in over six countries, the company has constantly increased its market share as it works with vision and wisdom.
Mahindra Group President Group Strategy Shriprakash Shukla said: “We see the potential that the Sri Lankan market has to offer and this is why we are looking to increase our brand awareness with initiatives like the SLPL. Our sponsorship of the SLPL signals our intent to both expand and deepen our relationship with the country as it moves steadily towards greater economic progress.
“The Mahindra Group has an enduring relationship with Sri Lanka which is an important market for us within the sub-continent. Over the past 10 years, our vehicles and tractors have carved a distinct niche for themselves with their tough, rugged and fuel efficient nature.”
The company heavily invests in its corporate social responsibility projects and looks to contribute to society in a positive way.
Since its inception, the Mahindra Group has increased its revenue by 10 times, profits by 25 times and 50 times in market cap. The impact of Government taxes has affected business for the Mahindra Group but not as negatively as presumed. One of the reasons that such a duty was imposed was due to the fact that a halt was needed for foreign exchange trade.
Chairman of the Ideal Group Nalin Welgama pointed out how today, a customer can buy a light aircraft for less than a brand new car. The dual-purpose small trucks were not affected by the increase in duties and hence the Mahindra Group was not heavily affected by the Government intervention.
“Our knowledge of the local market combined with Mahindra’s superior product range and customer centric focus has helped us to significantly grow the business in Sri Lanka over the past 10 years. Today, the Mahindra brand is a symbol of trust and quality,” said Welgama.
Mahindra has been selling its tractors in Sri Lanka for over a decade and currently has a market share of more than 16%, placing it amongst the top two tractor brands in the country. The country recently also launched is Swaraj brand of tractors, affordably priced and fuel efficient with potential financing options. (ST)
