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

51 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 Rotavators, Cultivators, Harvesters, Rice transplanters, Balers and Sprayers. For the year under review, your Company exported 17,646 tractors which is a growth of 65.5% over the previous year. Spare parts net sales for the year stood at Rs. 917 crores (including exports of Rs. 81 crores) in Financial Year 2022 as compared to Rs. 758.2 crores (including exports of Rs. 48.8 crores) in the previous Financial Year 2021, registering a growth of 20.9%. Other Businesses Powerol Under the Powerol brand, your Company has been a leader in providing power back-up solutions to the telecom industry for more than 14+ years. Your Company continues to consolidate its presence in the tele-infra management space. Alongside the Telecom, Powerol has been increasing the Retail market share, especially with the extension in HkVA range. With the introduction of the BS IV range of engines, Powerol has introduced 21 new nodes for various industrial applications. Powerol stands at No. 2 brand by volume in the overall Diesel Genset power back-up segment. Powerol’s move towards sustainability has led to the introduction of the Gas Powered gensets with introduction of 5 nodes between 15 kVA to 315 kVA. They offer lower operating costs and low emissions complying to the new emission norms. Construction Equipment For the year under review, your Company (under the Mahindra EarthMaster brand) sold 729 Backhoe Loaders (BHLs) against 681 in Financial Year 2020-21, which is a growth of 7%. Your Company also has a presence in the road construction equipment business through motor graders (under the Mahindra RoadMaster brand). For the year under review, your Company sold 117 motor graders, as against 82 in Financial Year 2020-21 which is a growth of 42.7%. The BHL industry de-grew by 31% due to transition from BS3 to BS4 and commodity inflation. The Grader industry has grown by 14% with increased focus on the infrastructure development push by the Government of India. Your Company has presence in Sugar Cane Haulage (under Mahindra Haul Master Brand) in Kenya. This is a new product which is added to the portfolio. For the year under review, your Company sold 105 Haulage tractors. Two-Wheeler Business In line with the strategy for the two-wheeler business, your Company through its subsidiary, Classic Legends Private Limited had reintroduced the iconic brand ‘Jawa’ to the Indian market in the Financial Year 2019, with the launch of new range of JAWA motorcycles - Jawa and Jawa Forty-Two. A new addition to portfolio - Yezdi was launched in the Financial Year 2021-22. Launch of Non-Fungible Tokens (NFTs) The launch of NFTs is another step taken by your Company to leverage the next frontier of digital marketing. With the release of its first tranche of tokens, it became the first Indian automotive original equipment manufacturer to enter the universe of NFTs. Current Year’s review During the period 1 st April, 2022 to 27 th May, 2022, 90,899 vehicles were produced as against 54,903 vehicles and 79,739 vehicles were dispatched as against 49,117 vehicles during the corresponding period in the last year. During the same period 64,447 tractors were produced and 64,180 tractors dispatched as against 55,904 tractors produced and 55,682 tractors dispatched during the corresponding period in the previous year. The tectonic shifts beginning 24 th February, with the commencement of war in Ukraine, followed by sanctions and escalating geopolitical tensions have cast a shadow on the pace of global recovery. Medium-term global growth is expected to decline to about 3%, compared to an average of 4.1% in the period from 2004 to 2013, and growth of 6.1% in 2021 as per the IMF. It has pared its expectation of global economic activity to slow with a projection of a 3.6% growth in 2022. The global economy is staring at fractures in the international financial architecture and accentuation of shortage in key commodities will add to the inflationary pressures throughout 2022 with a projection of 5.7% in advanced economies and 8.7% in emerging economies. Global central banks across the world, look set to tighten monetary policy conditions in a bid to counter the growing inflationary pressures even if it leads to some sacrifice of growth. Financial market volatility caused by monetary policy normalisation in advanced economies, geo-political backdrop, higher oil and commodity prices and renewed wave of COVID-19 pose a challenging backdrop in Financial Year 2023. Infections with augmented supply- side disruptions and protracted shortages of critical