annual-report-FY2020

59 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 Farm Equipment Sector Your Company’s Farm Equipment Sector recorded total sales of 3,01,915 tractors (domestic + export) as against 3,30,436 tractors sold in the previous year, registering a de-growth of 8.6%. This includes 2,988 tractors sold under the Trakstar brand, which is the third brand of your Company under the subsidiary Gromax Agri Equipment Limited. For the year under review, the tractor industry in India recorded sales of 7,09,002 tractors, a de-growth of 9.9%. Tractor Industry recorded de-growth in Financial Year 2020 after three consecutive years of growth. In the domestic market, your Company sold 2,91,901 tractors (including Gromax Agri Equipment Limited), as compared to 3,16,742 tractors in the previous year, recording a de-growth of 7.8%. However, in a very competitive industry, your Company increased its market share by 0.9% and continued its market leadership for the 37 th consecutive year. Your Company’s performance was supported by good performance of all products in the portfolio. Your Company continues to focus on growing the farm mechanisation space, by offering affordable mechanisation solutions. The portfolio comprises of Rotavators, Cultivators, Harvesters, Rice transplanters, Balers and Sprayers for horticulture segment. For the year under review, your Company exported 9,956 tractors which is a de-growth of 26.6% over the previous year. Spare parts net sales for the year stood at Rs. 718.2 crores (including exports of Rs. 42.4 crores) in Financial Year 2020 as compared to Rs. 682.2 crores (including exports of Rs. 47.0 crores) in the Financial Year 2019, registering a growth of 5.3%. Other Businesses Mahindra Powerol Under the Mahindra Powerol Brand, your Company has been a leader in providing power back-up solutions to the telecom industry for the past 13 years. To cater to changing customer needs, your Company continues to expand its presence in tele infra management and in the energy management solutions space. In the retail genset business, your Company is the No. 2 brand by volume, offering a wide range of solutions from Lower KVA range to mid to higher KVA range. With a focus on providing greener solutions, your Company started selling Gas Powered Gensets across the country, in the Financial Year 2019-20. Construction Equipment Business For the year under review, your Company (under the Mahindra EarthMaster brand) sold 880 Back-Hoe Loaders (BHLs) against 1,286 BHLs in Financial Year 2019, which is a de-growth of 31.6%. With the slowdown in Infrastructure Sector, the BHL market in India de-grew by 22.5% over the previous year. Your Company continues to be at 4 th position in the BHL industry. Your Company has presence in the road construction equipment business through motor graders (under the Mahindra RoadMaster brand). For the year under review, your Company sold 168 motor graders. Two-Wheeler Business For the Financial Year 2019-20, your Company sold 1,450 two-wheelers (including 412 export). Additionally, your Company successfully exported first lot of ‘Made in India’ electric two-wheeler E-Ludix, to its subsidiary Peugeot Motocycles in France. In line with the revised strategy for the two-wheeler business, your Company through its subsidiary, Classic Legends Private Limited (CLPL) had reintroduced the iconic brand ‘Jawa’ to the Indian market in Financial Year 2019, with the launch of new range of JAWA motorcycles - Jawa and Jawa Forty-Two. A new addition to that range - JAWA Perak was launched in the Financial Year 2019-20. Current Year’s review During the period 1 st April, 2020 to 11 th June, 2020, 7,122 vehicles were produced as against 79,655 vehicles and 8,289 vehicles were dispatched as against 77,332 vehicles during the corresponding period in the last year. During the same period 22,025 tractors were produced and 23,049 tractors dispatched as against 64,233 tractors produced and 63,241 tractors dispatched during the corresponding period in the previous year. The world is in the middle of perhaps the biggest crisis faced ever in the modern times. Just three months ago, the IMF was expecting positive per capita income growth in > 160 member countries in 2020. Today, it projects that over 170 countries will experience negative per capita income growth this year. The ensuing lockdowns to contain the spread of the virus have curtailed both supply and demand. Added to this, a combination of lower incomes and heightened