Mahindra & Mahindra is a case of success in diversification; all others have stumbled at some point
As soon as the acquisition was announced, many industry watchers turned critics, given the falling consumer base and low ARPU of the target company. Moreover, the deal was valued at twice the normal cost that the conglomerate would have had to pay to DoT for operating in circles like Karnataka and Punjab. But the company went ahead, and what tomorrow holds in store for K. M. Birla is any fathead''s guess. Even the behaviour of Indian retail consumers towards Mukesh Ambani hasn’t been pleasant. So be it the ban on Reliance Fresh in the U.P. region or the announcement of stores closure in the country, there is no denying that Ambani is still a good distance away from troubles as far his retail dreams go. There are many such instances which testify why diversification is actually a doubled edged sword.
And then we come to the real samurai, the one that''s understood the right grip on diversification – Anand Mahindra. He has transformed a typical ‘Jeep manufacturing’ business into a 360 degree conglomerate (well, literally!) – The Mahindra & Mahindra Group. From starting his career at Mahindra Ugine Steel Company Ltd. as just an Executive Assistant in 1971 to becoming the Finance Director just a decade later, he actually seems to be putting his Harvard MBA to good purpose. His aggressive management approach and excellent understanding of the market also saw him become the Managing Director of the Group. Finally in 1997 he became the Vice-Chairman of M&M Group. Well, we''re not here to stand alibi to the fact that every move of his has been ''superlative'', but what makes him admirable are his diversification strategies as N. Wadhwa, MD, SKI Capital Ltd opines, "Anand Mahindra’s diversification strategy has undoubtedly taken the M&M Group to a different platform. He has always been very accurate in understanding the targeted consumer segment...” His successful ventures into sectors like Tourism & Travel (via Club Mahindra) and IT/ITeS (through Tech Mahindra) have taken the $6.2 billion M&M group to new highs. In fact, the latest Satyam acquisition for a mind boggling Rs.28.8 billion has made Tech Mahindra the fourth-largest IT major operating in the country. Apart from Tourism and IT, this magnate has also cut neat corners in sectors like retail, financial services & logistics.
And then we come to the real samurai, the one that''s understood the right grip on diversification – Anand Mahindra. He has transformed a typical ‘Jeep manufacturing’ business into a 360 degree conglomerate (well, literally!) – The Mahindra & Mahindra Group. From starting his career at Mahindra Ugine Steel Company Ltd. as just an Executive Assistant in 1971 to becoming the Finance Director just a decade later, he actually seems to be putting his Harvard MBA to good purpose. His aggressive management approach and excellent understanding of the market also saw him become the Managing Director of the Group. Finally in 1997 he became the Vice-Chairman of M&M Group. Well, we''re not here to stand alibi to the fact that every move of his has been ''superlative'', but what makes him admirable are his diversification strategies as N. Wadhwa, MD, SKI Capital Ltd opines, "Anand Mahindra’s diversification strategy has undoubtedly taken the M&M Group to a different platform. He has always been very accurate in understanding the targeted consumer segment...” His successful ventures into sectors like Tourism & Travel (via Club Mahindra) and IT/ITeS (through Tech Mahindra) have taken the $6.2 billion M&M group to new highs. In fact, the latest Satyam acquisition for a mind boggling Rs.28.8 billion has made Tech Mahindra the fourth-largest IT major operating in the country. Apart from Tourism and IT, this magnate has also cut neat corners in sectors like retail, financial services & logistics.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
