Key takeaways from the 76th Annual General Meeting

At the 76th AGM, our Chairman Anand Mahindra shared his perspective on the economic outlook, Scorpio-N launch, oil prices and more

In his presentation at the 76th AGM, Anand Mahindra addressed key concerns, both national and international. He shared his perspective on the economic outlook, focusing on India's opportunity to grow amidst the gloom. He addressed issues relating to inflation, supply chain disruptions and the rising price of oil, learning the lesson about the dangers of over-reliance on oil and the need for alternate energy sources, a much-needed fillip to the quest for renewable energy.

Opening address

“Your company has approved the Q1 F’23 results, which have shown the growth pathway of your company and the Mahindra Group. I will not dwell upon them further as they are already in the public domain. I would like to mention, though, the unprecedented response to our Scorpio-N launch, where 25,000 bookings were gone in 60 seconds.”

India’s resilience in the face of recession
India has always been resilient. Look at shocks over the last three decades - there is a short-term impact, of course. But over the longer term, the Indian story stays alive. If there is only a mild recession in the US, that is likely to be good for India. Our resilience will help bring capital inflows. Further, the recession will help reverse the commodity price rises and also perhaps induce the US Fed to put a cap on rising interest rates.

Unshackling ourselves from China

Unshackling ourselves from China is a good development for the rest of the world and long overdue. Nature abhors a vacuum, and other countries, including ours, will rush to fill it. In fact, the process of unshackling has already begun. China may be losing its edge: 60% of companies and 82% of manufacturers now report their production slowed during the present outbreak due to lack of employees, inability to obtain supplies, or explicit factory halts resulting from the lockdowns.

Supply chain disruptions

The supply chain disruption experience will also boost another burgeoning business. All of us have learned the hard way that it is crucial to keep monitoring the supply chain situation, to keep a finger on the pulse and to get early warning signals of possible disruptions. This points to the need for greater digitisation and reliable monitoring software, including perhaps, blockchain. Another opportunity.

Rupee depreciation

Rupee depreciation has caused inflation. But fortunately, it has remained in control due to sound fiscal and monetary management. Our inflation target deviation is well below those of most developed economies. The rupee was overvalued, and it was inevitable that it would head towards finding its own level. This level helps boost export competitiveness and helps India's exports, which have grown 25% YoY.

Read the full address here

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