MAHINDRA PARTNERS SECTOR

INDUSTRIAL EQUIPMENT BUSINESS

Mahindra Partners is the internal incubator of new businesses for the Mahindra Group,
supporting a portfolio of existing ventures across Retail, Logistics, Boats, Energy and
Media, while constantly exploring new ventures. This caselet pertains to Mahindra
Industrial Equipment Business.
BUSINESS BACKGROUND
Mahindra Conveyor Systems (MCS) is in the business of design, manufacturing and
supply of specialised material handling equipment to Cement and other process
industries and has recently diversied into Unit Material Handling systems for
Automotive industry. The company has collaboration with Tsubaki Group, Japan a
leading entity in chain manufacturing, power transmission products and material
handling systems. MCS sales crossed the INR. 50 crore revenue mark in FY09 and had
stagnant revenues in the 2010-2013 period, before clocking revenues of INR. 67 Crores
FY14, with consistent prots. MCS has recently set up a well equipped factory with
facilities for light/medium fabrication and assembly work at Pirangut, Pune. MCS is
recognised for high quality of products and services offered and scores high on
customer satisfaction ratings.
LIVE CHALLENGE: SCALE UP 10X
MCS aspires to achieves a turnover of INR. 500 crores by 2020 through the following
approach:
1. Associate with the most challenging assignments in material handling
2. Become a preferred supplier for material handling solutions
3. Achieve records of Highest capacity equipment, most intricate layout, maximum
installations and so on.
Evolve a business strategy to help MCS achieve their vision, through exploring
the following alternatives or a hybrid of these, to scale up their business 10X:
1. Achieve Growth: MCSs focus is currently on limited products for small market
segments but Bulk Material Handling and Unit Handling equipment and systems
have estimated sales of over 5000 Cr and cater to wide range of industry segments.
How should they scale up the business from current level to a signicantly
Mahindra War Room 2014 Industrial Equipment Business Caselet
Broadvision Perspectives Client Condential Page 1 of 2
higher level? How should MCS build on current strengths, excel and continue
to deliver value to all stake holders?
2. Diversication: To achieve the targeted growth MCS needs to diversify into many
more areas of bulk and unit handling. Which products and sectors will take MCS
on high growth trajectory in minimum possible time? Should MCS consider
organic growth path or explore acquisition options too? Can MCS continue to
be only in equipment space or scale up to become a project executor?
3. Capability building: While achieving growth, MCS does not want to lose focus on
core values of high quality and customer satisfaction. Current systems need to be
scaled up without diluting the focus on strengths. How should MCS keep up their
focus on their key strengths that has delivered focus over the years?
Mahindra War Room 2014 Industrial Equipment Business Caselet
Broadvision Perspectives Client Condential Page 1 of 2