Pawan Goenka, Ppresident, Automotive & Farm Equipment, M&M , Talks about the Group’s M&A Strategy, Future M&A plans and endeavours for a Global Presence, particularly in neighbouring China in this Exclusive interaction with B&E’s Pawan Chabra
The day Pawan Goenka, President – Automotive & Farm Equipment Sector, Mahindra & Mahindra, joined the home-grown conglomerate as General Manager (R&D) in 1993 with a solid 14 year experience of working with the Detroit giant General Motors, was the harbinger of a major transformation for M&M. Goenka not only made M&M one of the most competitive players in the SUV segment with his R&D expertise and market oriented focus, but has also been successfully leading the core automotive division for Mahindra since 2005. The UV major has been on a relentless acquisition spree over the past few years. Goenka explains the strategic propositions behind the acquisitions and the way forward to B&E.
B&E: After the failed attempt to acquire JLR from Ford Motor Company, the company has been on an acquisition spree. Be it Kinetic, Reva or Ssangyong, M&M has been able to get into major segments where it wasn’t present so far. What is the broad rationale?
Pawan Goenka(PG): The three acquisitions that you mentioned were done with three different goals in mind; the Kinetic deal was done with a view to give Mahindra a head-start in the two-wheeler business. We have used that to ramp up very quickly. The Reva acquisition was done to get an acceleration as far as the electric play is concerned. The Ssangyong acquisition is done to expand our global presence. If you notice, the product portfolio of Ssangyong complements the portfolio of Mahindra. Our primary objective is to become a global SUV maker. Also, we have always promoted green and clean electric technology and that’s where the Reva deal comes into play.
B&E: With the acquisition of Reva and the expected launch of NXR, the company will have its presence even in the small car segment. How different will be your strategy for the same?
PG: With the acquisition of Reva, Mahindra is aiming to gain presence in the electric car segment and not small car segment. Having said that, the first product i.e. NXR that we are planning to launch by the end of next year happens to be a small car, which was showcased by Reva at the Frankfurt Motor show.
The day Pawan Goenka, President – Automotive & Farm Equipment Sector, Mahindra & Mahindra, joined the home-grown conglomerate as General Manager (R&D) in 1993 with a solid 14 year experience of working with the Detroit giant General Motors, was the harbinger of a major transformation for M&M. Goenka not only made M&M one of the most competitive players in the SUV segment with his R&D expertise and market oriented focus, but has also been successfully leading the core automotive division for Mahindra since 2005. The UV major has been on a relentless acquisition spree over the past few years. Goenka explains the strategic propositions behind the acquisitions and the way forward to B&E.
B&E: After the failed attempt to acquire JLR from Ford Motor Company, the company has been on an acquisition spree. Be it Kinetic, Reva or Ssangyong, M&M has been able to get into major segments where it wasn’t present so far. What is the broad rationale?
Pawan Goenka(PG): The three acquisitions that you mentioned were done with three different goals in mind; the Kinetic deal was done with a view to give Mahindra a head-start in the two-wheeler business. We have used that to ramp up very quickly. The Reva acquisition was done to get an acceleration as far as the electric play is concerned. The Ssangyong acquisition is done to expand our global presence. If you notice, the product portfolio of Ssangyong complements the portfolio of Mahindra. Our primary objective is to become a global SUV maker. Also, we have always promoted green and clean electric technology and that’s where the Reva deal comes into play.
B&E: With the acquisition of Reva and the expected launch of NXR, the company will have its presence even in the small car segment. How different will be your strategy for the same?
PG: With the acquisition of Reva, Mahindra is aiming to gain presence in the electric car segment and not small car segment. Having said that, the first product i.e. NXR that we are planning to launch by the end of next year happens to be a small car, which was showcased by Reva at the Frankfurt Motor show.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
