1 hr ago
Mahindra-SML Merger Targets Growth Through Shared Platforms and Services
Mahindra and SML are bringing their truck and bus businesses together.
They want the combined business to sell more commercial vehicles.
The two brands will still look different and remain separate to customers.
However, they plan to use some of the same basic vehicle designs and technology.
This could reduce the cost and time needed to develop new products.
Dealers and service centers may also support both brands where extra investment is small.
The combined company currently has about 7% to 7.2% market share.
It hopes to reach 10% to 12% by FY31 and about 20% by FY36.
Mahindra Group combined its commercial-vehicle businesses under SML Mahindra to expand its truck and bus operations.
The combined business currently holds about 7%-7.2% commercial-vehicle market share, compared with roughly 3% for each company before consolidation.
Mahindra aims to raise its market share to 10%-12% by FY31 and around 20% by FY36.
A shared product platform, combined development teams and unified budgets are expected to reduce duplication and development costs.
The companies are combining service capabilities selectively while keeping the Mahindra and SML brands distinct.
- Who
- Mahindra Group, SML Mahindra and Vinod Sahay are involved in the merger and integration plans.
- What
- The two commercial-vehicle businesses are being combined to create sourcing, product-development, dealer and service synergies.
- Where
- When
- Benefits are expected to begin flowing into the profit and loss account from the current financial year; market-share targets are set for FY31 and FY36.
- Why
- The merger is intended to scale up the truck and bus business, reduce duplication and expand service and retail coverage.
Key facts
- Combined market share
- About 7%-7.2% across commercial vehicles
- Pre-consolidation share
- Roughly 3% for each business
- FY31 target
- 10%-12% market share
- FY36 target
- Around 20% market share
- Service network
- Each business had about 300 service stations before integration
- Product strategy
- One underlying platform for two differentiated brands
- Recent launch
- Blazo i-TRK, aimed at improving the heavy-truck position
Quotes
Vinod Sahay
Mahindra Group commercial vehicle executive discussing the merger strategy
“On service side, it makes a lot of sense to, unless the workshops are very close to each other, all other workshops, we are telling that just by minimum investment of some parts and tools, they can do the other brand service”
businesstoday.in
“We are, in a way, going towards a strategy where one platform will be used for two different brands”
businesstoday.in
Sources
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