MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

56 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 In the domestic market, your Company sold 3,89,531 tractors, as compared to 3,37,052 tractors in the previous year (these figures for the current year sales and previous year sales include tractors sold by Gromax Agri Equipment Limited), recording a growth of 15.6%. It is the highest ever volume sold by your Company. With market share at 41.2%, a gain of 1.2% over previous year, the Company continues to be the market leader for the 40 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 the year under review, your Company exported 18,014 tractors which is a growth of 2.1% over the previous year. Net Sales of Spare parts for the Financial Year 2023 stood at Rs. 1,070.5 crores (including exports of Rs. 97.4 crores) as compared to Rs. 917 crores (including exports of Rs. 81 crores) in the previous Financial Year 2022, registering a growth of 16.7%. Please refer to the paragraph on Operating Results in the Management Discussion & Analysis section for detailed analysis. 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 15+ years of operation. 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 CPCB 4+ for gensets, Powerol is gearing up for the transition. 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. During the year, Powerol has also initiated EV Charger business for Home Charger Installations for the EV customers of the Company. Construction Equipment For the year under review, your Company (under the Mahindra EarthMaster brand) sold 989 Backhoe Loaders (BHLs), a 35.7% increase as against 729 sold in the Financial Year 2021-2022. 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 188 motor graders, a 60.7% increase as against 117 sold in the Financial Year 2021-2022. Your Company also has a presence in the Sugar Cane Haulage market (under the Mahindra HaulMaster brand) in the export market. For the year under review, your Company sold 247 Haulage Tractors, a 135.2% increase as against 105 sold in the Financial Year 2021-2022. The BHL industry grew by 28% and the motor grader industry grew by 42% due to increased focus from the Government of India on infrastructure. Two-Wheeler Business In line with the 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 the Financial Year 2019, with the launch of new range of JAWA motorcycles - Jawa and Jawa Forty-Two and strengthened its portfolio by adding Yezdi in the Financial Year 2021-22. During Financial Year 2022-23, 42 Bobber was introduced to the Indian market and in addition, CLPL forayed into the international market by introducing iconic British brand BSA in UK and European market. Current Year’s review During the period 1 st April, 2023 to 25 th May, 2023, 1,08,013 vehicles were produced as against 89,041 vehicles and 1,03,410 vehicles were dispatched as against 74,605 vehicles dispatched during the corresponding period in the last year. During the same period 62,235 tractors were produced and 60,435 tractors dispatched as against 61,268 tractors produced and 60,977 tractors dispatched during the corresponding period in the previous year. The high-interest rate environment has exposed the underlying fault lines of the global economy and the financial system, which has now widened further due to multiple shocks ranging from the pandemic and continuing war in Ukraine. With instances of bank runs amid a loss of confidence and liquidity woes in the advanced economies of the US and Europe, growth and liquidity concerns are back to the fore as central banks continue their pursuit of a ‘soft landing’.