1% of group's profit will go to education work: Mahindra

Anand Mahindra has said that out of the 2% required CSR, the company will concentrate on education the most

The Mahindra Group, plans to invest at least one percent of the group's net profit in educational initiatives as part of the group's corporate social responsibility initiatives.  

Ananda Mahindra, Chairman and Managing Director of Mahindra Group today said with companies required to spend two per cent of their net profit on corporate social responsibility (CSR) initiatives, the amount the group invests in education activities will go up substantially.

“The amount we invest in education would go up substantially as the law requires us to set aside two per cent for CSR activities and this is the first year in which we are now deciding how to allocate these funds,” Mahindra said, adding that the group's CSR council has decided that 50 per cent of the two  per cent will be given by the companies (with in the group) to their particular causes and other 50 per cent will be decided by the group.

"So around one per cent would be decided by the group's CSR council. By and large we have focussed and allocated a lion's share to education," Mahindra added.

Considering one per cent of the group's profit, spend on education initiatives from the group would amount to around 47 crore a year. The group's consolidated profit after tax (after deducting minority interests) for 2013-14 is Rs 4667 crore as compared to Rs 4099.2 crore in the previous year– a growth of 13.8 per cent.

Anand Mahindra, Governor of UWC Mahindra College and Shelby M.C. Davis, UWC International Patron, today announced commitment of a total of $12.5 million scholarship funding over the next five years.

Shelby Davis will contribute $7.5 million, $1.5 million a year for the next five years. Of this total, $5 million will provide additional funding for the Davis Scholarships, which already support more than 100 Americans to attend UWC-USA in New Mexico and the 13 other UWC schools and colleges.

The remaining $2.5 million will continue Davis’ support for the Davis International Scholarships, established a decade ago and operating in every UWC college.

The Mahindra Group will contribute approximately $5 million, for five years, in support of need-based scholarships for students at UWC Mahindra College.

These funds are expected to support 50 new scholarships each year, 25 for Indian students and another 25 for students selected by UWC national committees in other countries.