annual-report-FY2021

27 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 We foresee an exciting opportunity in the farm machinery segment. We believe the segment has potential to act as a key engine of our future growth. Our domestic farm machinery segment revenue grew by 45% in F21. We plan to build a strong product pipeline of farm machinery, in partnerships with global CoEs to capitalise on the growth opportunity. We are also exploring exports and inorganic acquisitions to rapidly scale up the segment. We have a sizeable global farm business, with presence in the 4 largest markets (excluding China) - USA, Brazil, Mexico, and Turkey. We aim to grow and generate returns from our global businesses. We are also present in Japan and Finland, through Mitsubishi Mahindra Agricultural Machinery (MAM) and Sampo-Rosenlew respectively. Quantum Growth in Farm Machinery PRESENCE IN THE 4 LARGEST MARKETS (excl. China) Global Farm Business USA Mexico Brazil Finland Japan Turkey RISKS & OPPORTUNI T I ES Our business is exposed to many internal and external risks and consequently, we have institutionalised robust systems and processes, along with appropriate review mechanisms to actively identify, monitor, manage, and mitigate these risks. Considering the current scenario, the three major focus areas are Ensuring the well-being of our communities, associates and partners With the second wave of pandemic striking India in April 2021, emerging risk factors include global shortage of specific commodities like semi-conductors, supply chain issues with localised lockdowns, and increasing commodity prices. Ramping up production to meet the demand rebound Prudent cash management and system cost control