MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 21 In F22, the Farm Sector recorded the highest ever volume and revenue by exporting 17,646 tractors - a growth of 65.5% over the previous year. products in the country with help from our COEs in Turkey, Finland and Japan (where, over the years, we have created footprints through strategic stakes and acquisitions). We are also setting up a dedicated new plant at Pithampur to produce rice transplanters, potato planters and harvesters. Quantum Jump in Global Farm Businesses In F22, the Farm Sector recorded the highest ever volume and revenue by exporting 17,646 tractors - a growth of 65.5% over the previous year. Our distribution operations, including USA, Brazil, various African and South Asian markets such as Nepal, Sri Lanka and Bangladesh, helped us to reach this milestone. 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. RISKS & OPPORTUNITIES Key Risks & Risk Mitigation Initiatives COVID-19 Pandemic and Geopolitical Crisis Ÿ Implementation of countermeasures to minimise any short-term impact and mitigate any long-term impact. Ÿ Company-wide initiatives to rationalise cost structures, cash flow management and minimise the impact of availability of materials and semi-conductors. Competitive Intensity Ÿ Invest in new product development, technology upgrades, increasing channel reach, focus on delivering customer-centric products & services and build a brand with an aim to remain competitive in the market. Ÿ The revised emission norms BS TREM IV for tractors, slated to be implemented from October 01, 2022, would apply only to vehicles with engine capacity higher than 50 HP. This would not be a major disruptor as India is primarily a medium to high HP market, with around 80% of the sales coming from the 30-50 HP categories. Ÿ Nonetheless, we are exploring innovative approaches for cost control and ensuring competitiveness whenever the new emission norms become applicable. New Emission Norms