ALLIED BUSINESSES MAHINDRA POWEROL Mahindra Powerol has been a significant player in the power back-up industry for over 20 years. Among the Top 2 players (by volume) in the overall Power Generation market, Mahindra Powerol's network is spread over 800 service and sales touchpoints nationwide and over 12 overseas locations. The Company's distinct business model strategically balances its service and product contributions, each equally vital to its revenue generation. In addition to Telecom, Powerol has also been focusing on increasing its retail market share by HkVA range extensions. With a focus on green energy, Powerol has also initiated an EV charger business for home charger installations. Mahindra Powerol has already installed over 10,000 chargers nationwide. Your Company is also into Energy Storage Solutions through Li-ion batteries. TWO-WHEELER SEGMENT 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 FY19 and FY22 respectively. During FY23, 42 Bobber was introduced and during FY24, 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 market. During FY25, the Company launched its third iconic brand into Indian market ‘BSA’ by launching BSA Gold Star 650. The Company also added one more product to Jawa 42 FJ into Jawa portfolio in FY25. OPPORTUNITIES AND THREATS AUTOMOTIVE SECTOR The Indian automotive industry, recognized as a sunrise and champion Sector, plays a vital role in the economy—contributing 6.8% to India’s GDP and over 40% to manufacturing GDP. In FY25, PV sales hit a record 4.3 million units, while CV saw a 1.2% decline. Excluding two-wheelers, the industry recorded its highest-ever sales at 6.0 million units, reflecting 2.0% YoY growth. Growth in the UV segment continues to be driven by strong consumer preference and product innovation, with UV launches far outpacing launches in the Passenger Car segment over the past two years. To reduce oil dependency, the industry is actively exploring alternative fuels such as CNG, LNG, ethanol, and flex fuels, alongside investments in next-gen technologies like Electric battery and hydrogen. Government initiatives are accelerating the alternative fuel transition. The PM E-DRIVE Scheme aims to boost EV manufacturing with a strong ecosystem, while the Voluntary Vehicle Modernization Program supports the phasing out of unfit vehicles. In addition, the E-Vehicle Policy promotes India as a global EV manufacturing hub. Complementing these, Production Linked Incentive (PLI) Schemes for automobiles, auto components, ACC batteries, and semiconductors are addressing cost challenges and advancing India’s capabilities in Electric battery and hydrogen technologies. FARM EQUIPMENT SECTOR With a strong emphasis on agriculture as a key engine of India's future, through Union Budget 2025, the Government announced a slew of measures. This is by encouraging sustainable farming practices, strengthening irrigation, improving storage, increasing credit and enhancing capacity in food processing. These initiatives truly have the potential to make India a food basket of the world while driving resilience of the rural economy. Robust government support has spurred uptake in farm mechanisation and contemporary farming techniques, alongside broader rural development efforts. India which has a substantial base of small and marginal farmers, grapple with numerous areas characterized by limited penetration of farm mechanisation. As labour scarcity persists, escalating labour costs, widespread adoption of diverse mechanisation methods emerge as the way forward. Considering these circumstances, the trajectory of the tractor and farm machinery market is anticipated to exhibit long-term growth. Management Discussion and Analysis | 147 MAHINDRA & MAHINDRA LTD.
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