Openness and transparency is an integral part of the Mahindra Group’s DNA ensuring that all decisions are clearly communicated across the organization to build trust and boost employee engagement. With this in mind, Mahindra’s senior leadership organized the second GCO Townhall since the imposition of the lockdown due to Covid-19.
Setting the context, Dr Anish Shah, Deputy Managing Director, Mahindra & Mahindra Ltd., gave a detailed account of the company's efforts to tackle the Corona pandemic and the efforts taken to ensure the safety of every employee. He also talked about the prospects for the Indian economy. “Even though the outlook seems gloomy, there are some bright spots – the monsoon has begun well, there is an increase in rural spending which is helping the economy, and interest rates have been lowered,” he explained.
In his address, Ruzbeh Irani, President (Group HR and Communications), Mahindra Group, talked about the efforts made by the company to ensure salaries were not cut to insulate employees from further stress. In the post Corona situation, the Group had also simplified and modernized the leave policy to ensure a better Work-Life balance. Dr Shah introduced Amit Raje, Executive Vice President, Partnerships and Alliances who has joined the Group recently. Mr Raje gave a detailed account of his formative years and his industry experience, expressing his confidence and optimism about being a part of Mahindra.
Ramesh Iyer, Vice Chairman & Managing Director, Mahindra Finance, gave a detailed account of the business’s phenomenal growth. From a make-shift office, with four employees, Mahindra Finance has grown to become one of the largest non-banking financial companies (NBFC) serving rural India, with 33,000 employees across the country, and assets under management of almost Rs 80,000 crore.
Mahindra Finance went public in 2006, with its market capitalization growing from Rs 2,000 crore at the time of listing, to Rs 12,000 crore today. Stating that Mahindra Finance’s growth story reflects the Rise philosophy, Mr. Iyer said, the company’s success lies in its innovative, yet simple and transparent business approach, which also helped it develop long-lasting and mutually beneficial business partnerships.
The company has successfully created a strong, deeply penetrated rural financial inclusion model, delivered locally through a large network of locally recruited employees, who understand the customers and the nuances of the market. With its 2,000-branch network, it covers more than 90% of the districts in India and has served close to 7 million customers in over 4 lakh villages, which is more than one in every two villages in the country.
The current buoyancy in rural markets, coupled with an above average monsoon, a good crop, and the unfolding of the rural infrastructure story, all bode well for rural focused businesses. The current scenario has also afforded the team at Mahindra Finance, the time and opportunity to re-orient their thinking and strategy, to capitalize on the resurgence of the rural economy.
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