>GCO Townhall

Club Mahindra Highlights Growth Strategy

Confident, positive, upbeat and optimistic are some of the words that could describe the fourth townhall address by Dr Anish Shah, Deputy Managing Director & Group CFO, Mahindra Group. With most Mahindra Group companies well on their way to attaining ‘normal or near normal’ levels, barring a second wave of the Covid-19 pandemic or other unforeseen event, they could recover lost ground soon, he said.

Here are the key takeaways from Dr Shah’s address.

  • The Tractor business, the poster child of the Group, continues its amazing performance of the past four months. The growth trajectory has been sustained: May saw a 2% increase year-on-year, June 12%, July 28% and in August it was a phenomenal 69%. The business has generated a lot of cash and put itself in a strong position. For now, the crisis seems to be history.
  • For the Auto Sector, the recovery trajectory has been slower. However, sales figures are improving. We expect things to get ‘closer to normal’ though a full recovery could require another 3-6 months.
  • Tech Mahindra had a ‘fantastic’ quarter which saw the technology major register its highest ever cash generation. Concerns about customers cancelling contracts proved to be unwarranted and the company is in an extremely comfortable position.
  • The uptick in rural markets has helped Mahindra Finance zoom ahead on the recovery path. The company had come out with a very successful Rights Issue.
  • Mahindra Lifespaces has kickstarted its recovery march. However, with the Indian real estate industry continuing to be beset with problems, the recovery efforts have been impacted.
  • Mahindra Logistics has also recovered lost ground. The business recently won a large contract which has placed it in a comfortable situation.

‘The focus is on the customer at Mahindra Holidays’

Kavinder Singh, MD and CEO, Mahindra Holidays and Resorts, recounted the businesses’ growth and its strategy to continue growing into the future.

In 2014, when Kavinder Singh assumed charge at Mahindra Holidays, there were serious worries about the company’s survival. The numbers were not that great; the company had about 12,000 customers and Rs. 15 crores in cash. However, things have changed for the better since then.

Under Mr. Singh’s watch the business has grown and today boasts of a customer base of 258,000+ members, 100 resorts and cash reserves of Rs. 800 crores. The company’s profits had grown at a CAGR of 25% over the last 5-6 years. The transition has come about as a result of a careful execution of a strategy and relentless effort to drive change.

Three key strategies have guided Mahindra Holidays’ transformation journey: first and fore most the conscious effort to make every moment magical for its customers. Second, bringing about behavioural change to include aspects such as going the extra mile for customers, driving positive change, respecting people and demonstrating ownership through speed and action.

However, a pivotal aspect of the transformation journey has been the obsession with the customer. A minimum of 1,000 conversations per day happen with customers and that has helped the Mahindra Holidays team gather valuable insights.

The focus on customer experience, digitization, creating a culture that values customers and their experience, and the focus on frontline conversations have been key to the transformation of the company.

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