MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 How can we, in private industry, ensure that we ride this upsurging tide? In the spirit of “ask not what your country can do for you; ask what you can do for your country”, I would argue that the most important thing industry can do at this critical juncture is to increase private investment. Private capital investment is the key to capitalising on this opportunity. It's a key driver of growth, jobs, and demand. After the economic reforms of the 1990s, it rose from around 10% to around 27% of GDP. However, from 2011-12 onwards, private investment as a percentage of GDP has been falling to a worrisome level. We need to remedy that situation. The problem is not one of resources—rather, it is one of mindset. Particularly after COVID, Indian companies have become increasingly risk averse, sticking to the tried and true rather than blazing new trails. To some extent, this is understandable. But when opportunity beckons, when private industry can make a significant difference, it is time to set aside our fear of failure and take a leap of faith and self-belief. We, in the Mahindra Group, are ready to take the current when it serves, but we also believe in making our own favourable tides and currents. The Mahindra Group has had an extremely successful few years on the back of a slew of strong product launches across our Auto Division and Farm Division complimented by a turnaround in Mahindra Finance and successful value creation within our Growth Gems. The XUV 3XO has broken barriers and created a new segment. The Scorpio-N has proved to be a blockbuster. The Oja tractor is a path-breaking product in the global tractor industry and promises to make its own tidal waves. On the back of this rising tide, we are stepping up our investments. We have already announced an investment of INR 37,000 Crores across our Auto, Farm and Services businesses (excluding Tech Mahindra) in F25, F26 and F27. These investments will, to a large extent, go towards building capacity, with a pipeline of 26 new models/facelifts in the next 5 years. Mahindra Finance's loan book crossed the threshold of one lakh crores, increasing by 24% over the previous year. The valuation of our Growth Gems increased over 4x in the last 4 years. The contribution of our Services businesses (Mahindra Finance, Tech Mahindra and growth gems) to M&M's net cash generation was almost seven thousand crores over the F22-F24 period. The future is pregnant with potential. So, I find it somewhat ironic that the law requires businesses to use the suffix 'Ltd” (to convey limited liability, of course). That is a correct description of our legal position, but we in M&M do not see ourselves as limited in any other fashion. We know that there will always be challenges; there will always be ups and downs. But we also know that our resilience is unquestionable, our imagination is unfettered, and our aspirations are unconstrained. We are truly Mahindra – Unlimited. Sincerely, Anand G. Mahindra Chairman We are truly Mahindra – Unlimited.
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