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Mahindra & Mahindra (M&M) Chairman Anand Mahindra wants his group to break into the league of the top 50 most admired global brands in the next eight years. He took over as the chairman of the diversified company last year when his uncle, Keshub Mahindra, stepped down after being at the helm for 45 years.
“There is a story how US President Harry Truman had a plaque on his desk that said, ‘The buck stops here’. Well, an identical plaque has now earned a place on my desk. While I always hope to enjoy the blessings and guidance of our chairman emeritus, and the direction of the board, the hard fact is that, for the first time, the buck now stops with me,” Mahindra said.
M&M’s sales have slowed down, thanks to the government’s move to discourage purchases of big and heavy sports-utility vehicles, a segment in which the company is the market leader. In addition to increase in taxes, a higher diesel price has also worsened matters for all companies.
"I am aware that I have taken over at a time of substantial macroeconomic strain. When I joined MUSCO in 1981, the steel industry was in a crisis. When I became Dy. MD in 1991, M&M faced a challenge to its very existence, with the onset of liberalisation. when I became the MD in 1997 Asia was in economic crises and India was feeling the effect. And since I have become chairman Indian business has been under seige due to global and domestic factors. So I can humbly claim to be familiar with crises", Mahindra further added.
While the company reported a industry-beating growth of 21% last financial year in the automotive division, higher fuel costs, competition, increased central and state taxes, inflation and a sombre consumer attitude has led a sales decline of two% in the first quarter of the current year.
