Global Recognition for Mahindra’s Strong Corporate Governance Practices

Mahindra and Mahindra recently won the prestigious Golden Peacock Global Award for Excellence in Corporate Governance for 2019. The Awards Jury was led by Chairman Sir Richard Needhan, Non-Executive Director, NEC Europe Ltd & Chairman – Advisory Group, STERN UK.

V.S. Parthasarathy, Group CFO and Group CIO, Mahindra Group, said, “M&M has steadfastly held high standards for its corporate governance practices. We consider compliance to be our rule book and governance our gospel. Following our 2015 National Award in the same category, we have now received the ‘Golden Peacock Global Award for Excellence in Corporate Governance’ for the year 2019, which is an indicator that we are moving in the right direction. I hope that each of you take this achievement as a recognition of your prime adherence to governance principles and continue your march towards governance premium.”

The Golden Peacock Trophy and a Certificate will be presented to Mahindra at the ‘Golden Peacock Awards Presentation Ceremony’ on November 14, 2019, in London. The evening will witness a grand gathering of business leaders and participants during IOD, India’s 19th Annual London Global Convention on Corporate Governance & Sustainability, and a Global Business Meet, which will be held between November 13 - 16, 2019, at the same venue.

One of the important objectives of the ‘Golden Peacock Awards’ Excellence Scheme is to boost a company’s brand image and employee morale. It encourages the organization to share their successful journey on improving corporate governance – not just compliance, but also the firm’s efforts on performance aspects of the Board’s work through strategy formulation and policy making.

Mahindra Racing Gears Up For Season 6 of Formula E Championship

Mahindra Racing is all set for Season 6 of the ABB FIA Formula E Electric Racing Car Championship which begins this November, and before they go green at the Diriyah E-Prix in Saudi Arabia, they travelled to Germany for a special event to announce that they will retain their driver lineup of Jérôme D’Ambrosio and Pascal Wehrlein for the new season. The team also showed the new M6Electro race car and announced a technology partnership with ZF Friedrichshafen AG.

Remaining with the team for the second consecutive season, driver Jérôme D’Ambrosio had previously earned the team’s first podium for the 2018/19 season at the inaugural Diriyah E-Prix (the opening round of the Championship). Jérôme then took his maiden win for the team at the next event in Marrakesh and was crowned a triple Formula E race-winner in only his second race for the Mahindra Racing team.

Along with Jérôme, his teammate Pascal Wehrlein impressed car racing enthusiasts in Season 5, as he secured a maiden Formula E podium in only his second race and took his first pole position at the next event in Mexico City. He then went on to add six Super Pole appearances and two fastest laps to his name throughout the 2018/19 campaign.

Along with these two drivers, Nick Heidfeld (who drove the unraced M6Electro at the 2019 Goodwood Festival of Speed in Hillclimb) will remain an integral part of the Mahindra Racing family and will continue in his advisory role and as the team’s official test and reserve driver. Belgian racer Sam Dejonghe, will also continue to work closely with the team in the position of reserve and sim driver.

Apart from revealing the driver line-up, Mahindra Racing also announced the new cars which will be a part of this Championship – the #64 and #94 M6Electro. They were revealed to the audience in an electric-themed photoshoot. The car will retain the familiar red, white and blue hues. Along with this, a new technology partnership was announced with ZF Friedrichshafen AG, who will be Mahindra Racing’s Official Powertrain Partner in this new Season.

The global technology giant will be supporting Mahindra Racing’s Season 6 campaign with chassis development work, shock absorber provision and engineering services. In addition to the electric motor, development will include both single-gear, highly efficient transmission and the matching power electronics.

The first race of the 2019/20 ABB FIA Formula E Championship starts with a double-header at the Diriyah E-Prix on November 22-23, 2019.

No More Plastic!

On October 2, the Government of India announced a nationwide ban on the use of plastic – small bottles, straws and sachets, as part of Prime Minister Narendra Modi’s efforts to reduce the use of pollution-causing single-use plastics.

Mahindra and Mahindra immediately took notice of this fact and wasted no time in announcing that the Company too, will stop the use of plastic at all its 15 manufacturing plants in the country.

On September 30, before the official announcement was made by the Indian government, Pawan Goenka, Managing Director, Mahindra and Mahindra, tweeted, “All 15 manufacturing plants of Mahindra & Mahindra commit to stop using single-use plastic latest by end of this Year. Kudos team for taking this step. @MahindraRise.

Last year, the Mahindra Group collaborated with the Brihanmumbai Municipal Corporation (BMC) and started a drive to bring awareness to the damage being caused by the use of plastic. Under the company’s Rise for Good initiative, Mahindra educated local communities about plastic pollution.

This year, the Group plans to tackle plastic pollution through its new social media campaign titled #CutTheCrap. The eye-catching short film alerts viewers to the damaging effects of plastic and other forms of non-recyclable waste. Click here to watch M&M's short film on Weapon of Mass Destruction - https://www.youtube.com/watch?v=4hhU5-NAWqU

In June this year, Anand Mahindra, Chairman, Mahindra Group, had also made a promise to ban plastic bottles from boardrooms, which is yet another proof point of the Group’s commitment towards sustainability.

RBI May Stay Lower for Longer

The Reserve Bank of India (RBI) cut policy rates by 25 basis points last week (1% = 100 basis points). This was the fifth cut in 2019, taking the cumulative cuts to 135 basis points. The policy was extremely dovish – the Monetary Policy Committee highlighted that it would “continue with an accommodating stance as long as it is necessary to revive growth”.

What stands out in the policy is the sharp cuts in growth projections. The RBI cut the economic growth outlook for FY-2020 to 6.1% from 6.9% earlier - much sharper than market estimates of 6.3-6.5%. Projections for the current fiscal year have been lowered by 130 basis points since February 2019. Importantly, the RBI projects FY-2021 growth at 7%, which is an acknowledgement that the growth recovery will be much more gradual and more ‘U’ shaped than a ‘V’.

The RBI maintained its inflation projections for 2H, FY-2019 at 3.5% to 3.7% and expects inflation at 4% in FY-2021. Subdued inflation and weak growth provide a justification for the dovish policy stance. Besides, the real policy rate stands at 1.15% assuming the expected inflation of 4% in the next 12 months. The RBI had previously espoused a real rate of 1.25-1.50% while highlighting the fact that it was a time-varying concept. Given the current slowdown, a lower real rate would be warranted.

Monetary transmission has remained muted so far as banks have slashed lending rates by just 30 basis points. Further, the flow of funds to the commercial sector has slumped to Rs. 910 billion during 1H, FY-2020 from Rs. 7.4 trillion in the year-ago period. Banks, NBFCs and HFCs, together, account for 84% of the decline. The RBI must quickly address this issue by stepping in to infuse confidence where necessary and unclog the system.

Given the benign inflation outlook, muted growth forecasts and the extremely dovish statements by the RBI, there is room to cut rates further despite fears of fiscal slippage. The RBI may stay ‘lower for longer’, given its growth - inflation assessment for FY-2021, namely 7% GDP growth and 4% inflation.

Mahindra Shows Strong Growth in Brazil

At the prestigious Expointer Farm Show in Parque Estadual de Exposições Assis, Brazil, Mahindra and Mahindra announced a record 35% increase in sales over 2018. The expansion of the tractors portfolio and dealer network were part of the recipe for this success.

With an innovative proposal and a booth that reflects its positioning in Brazil, M&M welcomed its audience in a large and robust space. Visitors were delighted and shared their feeling with the factory team and the dealers, who provided all the technical support during the event and ensured every effort is made to highlight the Mahindra brand.

A press conference was also held which saw the presence of over 40 journalists. Mahindra and Mahindra presented a strong figure for the company in 2019 – a growth of over 35% in Brazil, as compared to 2018. The Brazilian market retreated 9.4% over the same period.

The highlight of this event was the Group’s 6075 tractor model, which is Mahindra’s new global line of tractors. With the lowest operating cost in Brazil, the new model is recommended for semi-densified applications, has greater versatility and power in the field with lower fuel consumption.

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A landscape of green hills or rotting landfills? Let’s choose to #CutTheCrap and #RiseForGood. Discover what you can do for the planet here: http://bit.ly/SiteCutTheCrap

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