37 RISE TO CREATE VALUE | Risk Management International Markets – Demand Cycles, Currency Exposure & Portfolio Risk Prolonged weakness or slower recovery in key international markets may impact volumes, margins and the viability of export growth. Mitigation: International expansion is a significant growth vector for the Group’s businesses, especially Auto and Farm. Mahindra has adopted a disciplined approach with a calibrated, phased global expansion. Alongside exits from structurally weak markets, our Farm business is simultaneously deepening presence in strategically important markets like the US, Brazil and Turkey. India’s Free Trade Agreements present a significant export opportunity by enabling access to new markets at preferential tariffs. Competitive Intensity – Auto and Farm The businesses operate in a highly competitive environment marked by rapid technological changes, as both domestic and international automakers strive to strengthen their presence across all segments. Mitigation: Our Auto business across SUVs and LCVs has a robust product portfolio. The business continues to invest in capacity expansion and has a strong launch pipeline of ICE and electric vehicles, which includes 10 ICE SUVs, 6 E-SUVs and 10 LCVs by 2031. The Farm business leverages its over four-decade leadership, the Mahindra–Swaraj dual brand strategy, deep rural distribution and higher operating leverage. Product upgrades and platforms, such as OJA and Target, further strengthen differentiation. In FY27, we have planned 7 new product launches and 12 feature upgrades. Our global innovation centre, Mahindra Research Valley, is the engineering powerhouse behind our Auto and Farm businesses. It has a strength of over 5,000 engineers who are committed to advancing product capabilities in India, enhancing global competitiveness and delivering superior products to customers. Controllership, Compliance & Governance Risks Potential internal control gaps, cyber risks or regulatory non-compliance can affect business continuity and reputation. Mitigation: A strong internal audit framework, well-defined enterprise-wide policies and continuous oversight by the Board and its Committees form a robust foundation for governance. Enhanced cybersecurity and fraud-prevention systems, and periodic risk assessments enable effective controls and timely remediation. Brand reputation, data security and regulatory compliance are evaluated on an ongoing basis to maintain governance standards consistently across the Group. Taken together, these measures reflect the Group's proactive and forward-looking approach to risk management. Regular reviews, robust internal controls, and clear escalation processes ensure that emerging risks are identified early and addressed effectively. By instilling sound risk practices across its businesses, the Group continues to build resilience, safeguard its long-term value, and stay well-prepared for an evolving business environment.
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