Spread too thin? Fewer businesses might make M&M a better conglomerate

When a large group spreads itself too thin, it dilutes focus on core businesses

When Mahindra & Mahindra (M&M) took the call in 2008 to acquire a two-wheeler business being sold by Kinetic Motor for Rs 1.4 billion, the consensus was that the company, known for its tractors and rugged sports utility vehicles (SUVs), could leverage distribution and brand equity to crack a booming motorcycle market.

But a decade later, after struggling with product launches and unshakable domination from entrenched players Bajaj Auto, Hero MotoCorp, and Honda, Mahindra Two Wheelers has notched up cumulative losses of some Rs 28 billion, a market share of less than 0.10 per cent and not much light at