Issue 9, December 2012 Issue 10, June 2013
Transcription
Issue 9, December 2012 Issue 10, June 2013
1 December 2012 IssueIssue 10, 9, June 2013 2 touching Base Dear Mahindra Business Partner, FY2013 has been a very eventful twelve months for International Operations. In the midst of market as well as regulatory volatility, we have launched new products and opened new markets, as well as grown existing ones. South Africa, the rest of Africa, South & Central America & Nepal have all shown handsome growth in Auto sales. In tractors, Mahindra USA has grown by an unprecedented 30% on retails, and wrested the no. 2 spot in dealer satisfaction from John Deere in its own backyard! Africa has overtaken Asia & Australia to become the largest Mahindra tractor selling region in RoW. In FY13 we have made progress on brand-building as well as channel strengthening and have launched a relentless retail focus. The Rise based TVC created in South Africa; the digital campaigns run by Mahindra USA, Mahindra South Africa, Mahindra Europe and Mahindra Australia; the digital properties created by the IO, Tractor & Auto marketing teams and the activation of thematic BTL campaigns in South Asia, have all ensured that brand Mahindra is beginning to get progressively stronger outside India. But this is only the beginning. In our quest to develop a significant presence in key markets, we will intensify these thrusts, strengthen our processes and launch a crusade on getting our product and service quality first time and every time right, so as to provide a delightful customer experience across all key markets. The full credit for all our achievements goes to all the International Operations employees & Channel Partners worldwide. All of you have shown the dedication and the passion needed to excel and win against the best in the world; for which I would like to complement and thank each one of you. We have the exciting responsibility of building not only our business, but also the Mahindra brand, globally. The Mahindra Group has set itself the aspiration to be counted among the Top 50 most admired global brands, by the turn of this decade. The responsibility for this rests substantially on our shoulders. I have no doubt that we will collectively Rise to the challenge! Happy selling! I look forward to working with you in your respective markets. Ruzbeh Irani Chief Executive 3 touching Base Working at the Bottom of the Pyramid… Mr. Sanjay Jadhav - Senior General Manager (Africa and Middle East) Mahindra has been operating in Africa, for over a decade now. During this period it has consolidated its footprint by entering key markets and launching products, customised for the farmers of Africa. FY13 was yet another year of achievements with overall growth in the Tractor and Auto businesses taking Brand Mahindra to new heights, while contributing significantly to the Africa growth story at the same time. There is one man whose leadership and vision has driven the team to yield such remarkable results year on year: Mr. Sanjay Jadhav - Senior General Manager (Africa and Middle East). Mr. Jadhav has been instrumental in driving growth for both auto and tractors in Africa and the Middle East. Under his strong leadership, Mahindra auto exports experienced a growth of 63%, while Mahindra Tractor grew by 14% in F13 over last year in Africa. With his vision and leadership, brand Mahindra in Africa will grow to newer heights. M Trac World recently met with him to gain his inputs on what makes Mahindra Africa a unique success story and learn more about his plans for the future. Some excerpts … Mahindra & Mahindra has had a very successful journey in Africa so far and is consistently on the move upwards. Can you share some insights about this journey? Before we share our insights on this interesting journey, we are extremely pleased to highlight that Mahindra Tractors has created a niche in the competitive African continent. A brief look at the Tractor Industry indicates that we are amongst the Top 5 players in Africa overall and, when it comes to the relevant segment of 40 to 95 HP, we are amongst the Top 3. We have the potential and we aspire to becoming the leading tractor player in the continent. We have been present in Africa for over a decade now and we have well understood the African customer/farmer and his expectations. We have devised a strategy wherein we have identified the focus markets, developed the channels in these markets and, with the introduction of the right product range, we have strengthened our footprint. We gradually entered other markets as we developed our network. We are now present in over 30 countries in Africa and have created a class leading infrastructure. We have focussed on after sales service to our customers and have created ‘Service as a Differentiator’. While we have focussed on growing the retail business, we have efficiently pursued major tenders or Indian Line of Credit (ILOC) projects as well. Keeping competition at the back of our minds has helped us position our products appropriately. Some time back we had worked on setting up satellite assembly plants through our partners in certain African markets like Tchad, Mali, Ghana, Gambia etc. Today, these plants are giving us good business. As you said, Mahindra has been consolidating its footprint in the African tractor industry. After a successful FY’13, where do you see the company heading? As mentioned earlier, we are present in about 30 markets and are consolidating business in these markets. However, we are yet to establish our presence in certain major markets like South Africa, Morocco, Nigeria, Egypt, Ethiopia, etc. We will be working on these markets and will also enter the smaller 4 touching Base markets through the cluster approach, wherein we will offer multiple markets to some large distributor. Knowing the success of satellite assembly plants, we will be working on creating such assembly plants in other markets as well - Algeria, Benin, etc. Africa is generally deemed to be a land of tremendous opportunity, but it also comes with very unique challenges and risks. What exactly makes Africa so unique? Africa has been in focus in view of its fast economic growth. In an increasingly competitive global environment, there is a constant search for new markets and lower-cost resources. Companies are slowly beginning to look at Africa for manufacturing, but the continent’s potential is still largely untapped. There is availability of abundant and low cost resources - over 1 billion people with 41% under the age of 15, 10% of world’s oil reserves, 40% of the gold reserves and 80-90% of chromium and platinum group metals. Continued improvements in the business environment due to greater political stability have helped initiate macroeconomic reforms, leading to greater growth and stability. Africa is such a big continent and every region has very specific and very complex requirements. What is the core of your strategy that makes Mahindra so successful in Africa? We focussed on delivering best quality products and building a world class distribution network that would offer excellent support to our customers. This has helped us build the Mahindra brand in Africa. We will continue offering the best of service to our customers. We are now focusing on capacity building across the agri value chain – with activities like agronomy and soil testing; pesticides, micro-irrigation and farm mechanisation. With this we are not only looking at growing our tractor business but also at providing end-to-end solutions in agribusiness to farmers by leveraging the Group’s strengths and synergies. What are the unique Customer Value Propositions offered by Mahindra to its customers? Mahindra tractors have been adapted to local African conditions. They are rugged, reliable and suitable for diversified African conditions. Besides, they are easy to operate and compatible with a wide variety of implements, trailers and harvestors. We also offer strong service backup at the customer’s doorstep, making a Mahindra tractor a value for money product. What are your short term & long term plans for Mahindra in Africa? Africa is growing and we would like to be the part of the growth story. We have the aspiration to be the leader in this continent and we are working towards this goal. We are present in about 30 countries in Africa now and consolidating our presence here. We will continue exploring new markets and build a distribution network that will sustain our growth. We will work on alternate business models like creating local assembly plants in other markets as well, knowing the success of the same. We have a strategy of growing along with our partners, who understand the local market. These local assembly plants are creating jobs for local manpower (employment), besides fuelling agricultural growth. We have been a strong player in the 50 to 95 HP category and would like to focus on smaller, low-cost tractors to attract marginal farmers. This trend reflects the changing dynamics in Africa where marginal farmers with small landholdings are going in for mechanisation by using small HP tractors. We will also leverage Group strengths and synergies in the Agri business to provide complete farming solutions to African farmers. 5 in the SPOTLIGHT Assembly of Mahindra Tractors Commences in Novi Sad, Serbia In Serbia, Mahindra Tractors have been sold and distributed through the network of Agropanonka MTZ – Finke, since 2007. The association between the two companies has now been raised to a higher level, with Agropanonka assembling the 475 MKM series of Mahindra tractors at its tractor assembly line in Novi Sad, which was inaugurated on April 10, 2013. Speaking at the inauguration ceremony, Mr. Dragoljub Švonja, CEO Agropanonka, said that Mahindra tractors have been highly appreciated by Serbian farmers for their high The first batch of 475 Tractor Models assembled in Serbia. quality, reliability, ease of operations and performance. We have started assembly of these tractors to meet the growing demand and to achieve lower pricing. Mr. Dragan Svircevic, Head of the Mahindra business at Agropanonka, explained the features of the 475 MKM series being manufactured at this new plant. These include a quick lift mechanism, reverse CRPTO, a side positioned gear shift lever, oil immersed Mr. Dragan Svircevic addresses the gathering at the inauguration ceremony. brakes and improved ergonomics. An important change made on this tractor is its increased ground clearance to address local needs – it is now 16 cm higher as compared to the earlier Mr. Dragoljub Svonja speaks at the inauguration event. versions i.e. 46 cm in total. To improve the comfort of operators, cabins will be provided by well Participants included Agri Experts, Dealers, Customers, Bankers, etc. Mr. Manoj Dalvi speaks at the inauguration ceremony. 6 in the SPOTLIGHT known Turkish cabin manufacturer, Yaris, with which Agropanonka has had a partnership for the past four years. Manoj Dalvi, Dy. General Manager in-charge of East Europe, Turkey, and CIS, M&M, said that from a humble beginning in 2007, the M&M business today had grown in importance, gradually establishing itself as a quality player in Serbia’s tractor market. The opening of the new Agropanonka assembly line is also a clear demonstration of the 3 pillars of RISE which the Mahindra Group firmly believe in: Accepting No Limits, Alternate Thinking and Driving Positive Change. M&M supports Agropanonka’s commitment to providing better solutions to farmers in Serbia and neighbouring markets. spreading our WINGS Mahindra Yueda Launches Parts Warehouse and Service Van December 21, 2012, witnessed Mahindra Yueda Yanchang Tractor Company (MYYTCL) launching its Parts Warehouse in Hubei, China, with Anlu Feilong Agricultural Machinery Co. Ltd., in Anlu, amidst colorful flags and exciting firecrackers. The same day also witnessed the launch of the HHJM Mobile Service Van. The ceremony was hosted by Mr. Wuhansheng, Director, Anlu Agricultural Machinery Bureau, and was attended by Mr. Zhouliming, Vice Director, Hubei Agricultural Machinery Bureau; Mr. Xuhuaqiao, Section Head, Quality Supervision Department; Mr. Liziqiang, Secretary, Party Committee of Xiaogan Agricultural Machinery Bureau; Mr. Zengfancang, Section Chief, Quality Supervision Admin. Office; Mr. Hufenhong, Member - 7 spreading our WINGS Standing Committee, CPC Anlu Municipal Committee & Politics and Law Committee Secretary; Mr. Y.V. Anand, (India) National Service Head, MYYTCL; Mr. Sunjian, Manager, Service Department; and Mr. Luoyujun, President, Anlu Agricultural Machinery Co. Ltd. MYYTCL - Hubei Part Warehouse will greatly improve the company’s part supplying efficiency, thus reducing the time span and customer’s investment. The HHJM Mobile Service Van is well-equipped with a generator, air compressor, cleaning machine, welding machine, bench vise, cutting machine, electric drill, grinder, etc. along with one set of special HHJM tools. It functions like a small mobile workshop to reduce repairing costs and ensure the customer benefits related to maintenance, service, part supply, product promotion and technical support. Mr. Zhouliming, Vice Director, Hubei Agricultural Machinery Bureau, emphasized that Hubei has become a major agricultural province, since the implementation of an agricultural machinery subsidy and customers here are buying tractors with great enthusiasm. The HHJM Mobile Service Van is the kind of innovation that brings convenience to the customer by providing service at the customer’s house or field – thus reducing repairing costs and enhancing efficiency. Mr. Hufenhong, Member - Standing Committee of the CPC Anlu Municipal Committee and Secretary Politics and Law Committee, said that this is good news not only for the Anlu Feilong Company, but also for the large masses of agricultural machinery drivers. Mr. Y.V. Anand (India) National Service Head, MYYTCL, expressed appreciation for the agricultural machinery system and the support from Government Leaders of Anlu. He handed over the HHJM Mobile Service Van to Mr. Luoyujun, President, Anlu Agricultural Machinery Co., Ltd. The latter promises to build another 20 MSVs like this in Hubei to support the Agricultural Mechanization of Anlu and all Hubei provinces for better improvement. 8 in FOCUS Mahindra Tractors Team at 9th CII-EXIM Bank Conclave Mahindra Tractors participated in the 9th CII Exim Bank Conclave on India-Africa Project Partnerships, held from March 17-19, 2013, in New Delhi. A good number of delegations from both the government and the private sector participated in this mega event. The Mahindra Stall at the 9th CII-EXIM Bank Conclave. The conclave witnessed a large number of productive discussions. This conclave has developed into a platform that has enhanced the presence of ‘Brand India’ in African economies. It has encouraged Indian exporters to access African countries and increase their presence in the region. The ‘Focus Country’ for this event was Ethiopia and the ‘Guest Country’ was Cameroon. The M&M delegation at the conclave comprised of Mr. Ruzbeh Irani, Chief Executive – Intl. Opns. Automotive & Farm Sector (AFS) and Mr. Sanjay Jadhav, Sr. General Manager – Africa & Middle East, AFS, along with other officers from M&M. Speaking at the Conclave, Mr. Ruzbeh Irani said, “The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in Sanjay Jadhav, Sr. GM – Africa & Middle East, speaks at the conclave. diversified sectors. The M&M Group’s strength and dynamism can be leveraged to create opportunities for expansion of trade and investment in Africa. M&M desires to engage with its African partners to unleash Africa’s agricultural potential, as there are high potential ‘bread basket’ areas and Africa is likely to be the growth destination for the next 20 years.” 9 in FOCUS Action in Iraq Best Quality Award Mahindra Tractors is the first Indian Company to receive Iraq’s Best Quality Award for Tractors. The award was presented by H.E. Hassan N. Al-Timimy, Head of the Farmer Union and was received by Mr. Jamaluddin Mansoori, Sr. Manager – Middle East. The Ministry of Agriculture has given an assurance about promoting the Mahindra tractor business in Iraq. On Display at Iraq Auto Show Mahindra Tractors displayed the 8000 4wd tractor at the Iraq Auto Show, in Baghdad, through the Al Sadeq Group. The show was visited by the Minister of Agriculture, State Company for Mechanisation of Industries (SCMI). During the show, twenty farmers were given tractor field trials and twelve 8000 model tractors were sold. These were offered to farmers through SCMI. A Visit to SCMI – Iskandariyah In 2012 M&M appointed the AL SADEQ Group in Iraq as its tractor distributor. This Group, headquartered at Baghdad, is a provider of products and services for Mahindra Tractors in Iraq. This has leveraged the Al Sadeq Group’s connection with the Ministry of Industry & Minerals. There is an MOI approved contract between the Al Sadeq Group and the State Company for Mechanisation of Industries (SCMI) for Mahindra tractors. Mr. Jamaluddin Mansoori, Sr. Manager – Middle East, recently visited SCMI, Iskandariyah. He was taken on a round on of the assembly line by Mr. Jawad Aubaed Al Abed, Deputy Director General, and Mr. Mohammad Al Madad, Engineer. Subsequent to Mr. Mansoori’s visit, 111 Mahindra Tractors were exported to Iraq. 10 in FOCUS Agriculture Minister of Rwanda Visits Mahindra Tractor Facility A high-level delegation from the Ministry of Agriculture, Rwanda (MINAGRI), headed by Dr. Agnes Kalibata, Minister of Agriculture, visited Mahindra Tractors’ Nagpur Tractor factory to discuss Mahindra’s participation in the mechanization of Rwanda. The delegation was received by Mr. Farhat Jalal, Senior Manager - Exports. Following this visit, Mahindra supplied 30 units of the 7030 4wd, against a tender floated by MINAGRI. achievements & ACCOLADES Mahindra USA Contributes to M&M’s Two Millionth Tractor Milestone M&M’s Automotive and Farm Sector rolled out its two millionth tractor from the company’s Kandivali plant in Mumbai, India, on February 27, 2013. This milestone was achieved by doubling its global production in less than a decade. The first million tractors were produced over a nearly 40-year span, beginning with the first Mahindra tractor in 1965. Mahindra USA, has contributed to this milestone in the company’s history through its steady growth in the U.S. and Canadian tractor markets over the past two decades. It is currently ranked among the top tractor manufacturers and is the fastest growing tractor brand in North America. “This is a time for us to challenge ourselves and continue building on Mahindra’s success. By providing quality products and outstanding service to our customers we have gained significant ground in North America and we are not done yet,” said Mani Iyer, President of Mahindra USA. “Mahindra’s brand recognition and reputation in the North American market is built on the strong foundation and long history of providing quality products and unwavering commitment to our dealer 11 achievements & ACCOLADES network,” said Cleo Franklin, Vice-President, Marketing and Strategic Planning. “Our customer and dealer first strategy has led Mahindra USA to an industry-leading 97 percent customer satisfaction and 98 percent brand loyalty rating. This dedicated strategy will continue to be the cornerstone for our long-term growth plans in the North American market.” Mahindra became the number one selling tractor brand in the world in 2010 by providing value-packed, high-quality tractors. Mahindra is the only tractor manufacturer in the world to win both the Deming Application Prize and the coveted Japan Quality Medal for excellence in Total Quality Management, awarded by the Deming Prize Committee care of the Union of Japanese Scientists. Mahindra “Rise” is a culture and philosophy of Accepting No Limits, Driving Positive Change and Alternative Thinking. Kudos from Indonesia for Mahindra Tractors An excellent testimonial for Mahindra Tractors recently appeared in the Sawit Indonesia magazine. In an article titled ‘Competitive Price, Quality Guaranteed’, Mr. Dinas Sebayang, President Director, PT .LANCAR JAYA ABDI, was asked to give a testimonial about heavy equipment PT Intraco Penta Wahana. He says that he prefers to use Mahindra tractors because of the higher value they deliver. Mr. Hasan Tan, Director of Operations, PT Lancarjaya Mitra Abadi, said Mahindra tractors are strong and have good horse power for contoured uphill land and are good for transportation of oil palm fruit. FY 2012 –13 SALES HIGHLIGHTS The Farm Equipment Sector (FES), a part of the USD 15.9 billion Mahindra Group, maintained its leadership position in the Indian tractor industry during FY 2012 – 13. Total sales (domestic + exports) stood at 223,885 units. 12 achievements & ACCOLADES Mahindra USA Announces Women In Ag Scholarship Winners Mahindra USA Inc. is proud to announce the winners of its 2012-2013 scholarship program benefiting young women studying agriculture, the ‘Mahindra Tractors’ Women in Ag Scholarships’. Since 2007, Mahindra USA has sponsored the Women in Ag Scholarship Program to recognize the important role that women play in the future of the agricultural industry. These scholarships were created for the purpose of helping young women sustain the family farm values and rural lifestyle through a career in agriculture. Because of the role that young adults and in particular, young women play in advancing American agriculture, it is important to provide this critical foundation to support these students in their pursuit of a college degree. The following four outstanding women were selected to receive merit-based college scholarships from Mahindra USA for use during the 2013/2014 school year: • Shelby Chaney from Brimson, MO will be a sophomore at Northwest Missouri State University majoring in Animal Science • Shelby Eckhardt from Seguin, TX will be a freshman at Texas A&M University – College Station majoring in Pre-Vet / Vet Sciences • Victoria Riback from Molalla, OR will be a freshman at Texas A&M University – College Station majoring in Agronomy & Crop Science • Stephanie Tarlowe from Hackettstown, NJ is a freshman at Cornell University majoring in Animal Science. In partnership with The National FFA Organization, the Mahindra scholarship winners were chosen based on their passion and involvement in agricultural studies, as well as their academic performance and leadership. Every year, Mahindra USA teams up with the National FFA Organization to sponsor select young women involved in agriculture and their pursuit of a college education. “It’s been an incredible privilege, personally and on behalf of Mahindra USA, to participate in another successful scholarship program. These young women are a shining example of the Mahindra Rise philosophy: Accepting No Limits, Alternative Thinking and Driving Positive Change for themselves and their communities,” said Cleo Franklin, Mahindra USA’s Vice President of Marketing and Strategic Planning. “Mahindra USA is proud to partner with the FFA, and we join them in congratulating these four very accomplished students. We are thrilled to play a part in assisting them and their families in furthering their agricultural education.” Mahindra Tractor at Ugandan Sugar Farms Upon retirement, Constantine Bakyabubi, a former stationmaster in Uganda Railways, looked out for an occupation that would be simple and not labour intensive. He chose to cultivate sugarcane for Kakira Sugar Limited. His success in this endeavour has seen him expand to cultivating this crop on 70 acres of land. He regularly uses a Mahindra tractor for diverse sugarcane farming applications. 13 dealer WORLD Enhancing Relations Between Burkina Faso and India His Excellency Mr. Blaise Compaore, President of Burkina Faso is working on new ways of harnessing new technologies for agricultural development. The newly adopted Strategy for Accelerated Growth and Sustainable Development (SCADD) sets an ambitious goal of modernizing the Agriculture Sector of the country. A delegation led by H.E. Mr. Idriss Raoua Ouedraogo, Ambassador, Embassy of Burkina Faso to India, recently visited India. It included a technical team from Fonds de l’Eau Mr. Sanjay Jadhav welcomes the delegation from Burkina Faso, et de l’Equipment Rural (FEER), Burkina Faso, led by Mr. Concourou Coulibaly. The delegation visited the M&M Unit in Mumbai and were received by Mr. Sanjay Jadhav, Sr. GM, Exports - Africa & Middle East and others in the M&M team. The keys of the first batch of over 100 tractors that had been ordered by the Government of Burkina Faso were handed over to the delegation. “I am very honoured to receive the first batch of tractors from Mahindra & Mahindra. I think my visit to Mumbai was very fruitful,” said H.E. Mr. Idriss Raoua Ouedraogo. “Today, India is playing a great role in Africa and is setting an example for us. Indian products are very suitable for our country as the technology is more appropriate. “ As Mr. Sanjay Jadhav says, “We were very pleased to receive H.E. Mr. Idriss Raoua Ouedraogo and the officials from FEER. We are confidant about the quality that we deliver. His Excellency has expressed his wish for having long-term cooperation with us. We are glad to be offered this opportunity, By offering high quality products and efficient mechanization solutions we aim to transform rural productivity, and living standards of the farmers of Burkina Faso.” 14 dealer WORLD Sri Lanka Tractor Rally In conjunction with DIMO, its Distributor in Sri Lanka, Mahindra Tractors organized the Sri Lanka Tractor Rally, in February 2013. The objectives were to promote the Gold Coin & Implement package scheme on the 575 NBP and MKM models, create awareness about the 275, 575, 595 and 6030 models and showcase models with high-end features to customers. Two teams in Mahindra tractors covered 63 villages each in a time span of 16 days. On Show in Uruguay Camur Automotores, Mahindra Tractors’ Distributor in Uruguay, put up an eye-catching product display at Expo Activa, the country’s largest exhibition for agriculture and agricultural machinery, organized by the Rural Association of Soriano. Held from March 13-16, 2013, it witnessed over 250 participating companies and over 10,000 visitors. WINNING ARTICLE In this issue the winning article is: Assembly of Mahindra Tractors Commences in Novi Sad, Serbia on page 5. The story highlights the start of production at this new plant and the features of the 475 MKM series that is being manufactured here. SHARE YOUR NEWS! This newsletter is designed as a forum to share the latest happenings at Mahindra Tractors as well as the news and views of our valued Business Partners and Associates across the globe. Please send news that you feel would be of interest to [email protected] Circulation of this newsletter is restricted to the employees of the Mahindra Group and for private external circulation to Business Partners and Associates of Mahindra Tractors only.