MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 86 In the domestic market, your Company sold 3,64,526 Tractors, as compared to 3,89,531 Tractors in the previous year (these figures include tractors sold by Gromax Agri Equipment Limited), recording a de-growth of 6.4%. It is the 2nd highest ever volume sold by your Company. With a market share at 41.6%, a gain of 0.4% over previous year, your Company remains the Market Leader for the 41st consecutive year. Your Company has launched next generation product platforms in FY 24 like Mahindra OJA, Swaraj ‘Target’ and ‘Naya Swaraj’, all of which have significantly contributed to a good performance. 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 13,860 tractors which is a de-growth of 23.1% over the previous year. Overall exports are under pressure due to global slow down. Net Sales of Spare parts for the Financial Year 2024 stood at Rs. 1,121.2 crores (including exports of Rs. 105 crores) as compared to Rs. 1,070.5 crores (including exports of Rs. 97.4 crores) in the previous Financial Year 2023, registering a growth of 4.7%. Please refer to the paragraph on Operating Results in the Management Discussion & Analysis section for detailed analysis. Other Businesses Powerol Mahindra Powerol has been significantly ruling the power back-up industry from last 20+ years. Your Company is at No. 2 position in overall Power generation market by volume. Mahindra Powerol is spread across 300+ sales and service centres nationwide with over 12 overseas locations. In alignment with this strategy, Powerol’s unique business model evenly allocates revenue between product sales and services, with each accounting for 50%. In addition to Telecom, Powerol has also been focusing on increasing the retail market share by HkVA range extensions. With the successful launch of CPCB4+ gensets, your Company has already sold more than 500 units in the market so far. Powerol’s focus on green energy, has also initiated EV charger business for home charger installations. It has already installed over 5,000 chargers nationwide. Accompanied with this, Powerol is also into Energy Storage Solutions segments through Li-ion batteries. Construction Equipment For the year under review, your Company (under the Mahindra EarthMaster brand) sold 1,118 Backhoe Loaders (BHLs), a 13% increase as against 989 sold in the previous year. 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 306 motor graders, a 62.7% increase as against 188 sold in the previous year. Your Company also has a presence in the Sugar Cane Haulage Market (under the Mahindra HaulMaster brand) in the export market. The BHL industry grew by 22% and the motor grader industry grew by 28% 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 had re-introduced the iconic brands ‘Jawa’ and ‘Yezdi’ to the Indian market in the Financial Year 2019 and 2022 respectively. During Financial Year 2022-23, ‘42 Bobber’ was introduced and during Financial Year 2023-24, ‘Jawa 350’ was introduced to the Indian market. In addition, the Company forayed into new international markets through iconic British brand BSA in UK and European markets. The volumes in domestic market for Financial Year 2023‑24 got impacted with delays in launching improved products and subdued marketing spend. Exports volume fell owing to slowdown in the UK/European economies and the RussiaUkraine conflicts, impacting demand sentiments. However, with tied-up funding for the next level of growth and new external investors coming on board, the focus for FY25 is on Product improvements, New launches, Dealer developments, Network expansion, Cost reductions, to grow the volumes and improve the margins multi-fold in FY25 and going forward. Current Year’s review During the period 1st April, 2024 to 15th May, 2024, 93,296 vehicles were produced as against 82,438 vehicles and 90,395 vehicles were dispatched as against 79,043 vehicles during the corresponding period in the last year. During the same period 50,481 tractors were produced and 49,065 tractors dispatched as against 51,237 tractors produced and 49,249 tractors dispatched during the corresponding period in the previous year. Global growth is holding up better than expected despite the simmering conflict in Russia-Ukraine, escalation of conflict in Israel-Palestine and non-state actors disrupting trade near the
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