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Mahindra CIE Automotive Ltd is an Indian auto components manufacturer incorporated in 1999 through a global alliance with CIE Automotive. It manufactures forged components for commercial and passenger vehicles. It has a global manufacturing footprint and supplies major automakers in India and abroad. The auto components industry in India has grown at 10.6% but Mahindra CIE has been impacted by the COVID-19 pandemic, with a 28.76% reduction in sales and a loss of Rs. 46.72 crores in June 2020.

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Mohith RK
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73 views

Org Study

Mahindra CIE Automotive Ltd is an Indian auto components manufacturer incorporated in 1999 through a global alliance with CIE Automotive. It manufactures forged components for commercial and passenger vehicles. It has a global manufacturing footprint and supplies major automakers in India and abroad. The auto components industry in India has grown at 10.6% but Mahindra CIE has been impacted by the COVID-19 pandemic, with a 28.76% reduction in sales and a loss of Rs. 46.72 crores in June 2020.

Uploaded by

Mohith RK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MAHINDRA CIE AUTOMOTIVE LTD

By:

Mohith K
20192MBA0257
INTRODUCTION TO MAHINDRA CIE
AUTOMOTIVE LIMITED

• Mahindra CIE Automotive Limited is a Public company incorporated on


13 August 1999.
• It is formed under the global alliance with CIE Automotive Ltd.
• It manufactures and supplies engine and chassis forged components for
commercial and passenger vehicles such as crankshafts, steering, knuckles,
stabilizer, bars, gear blanks, front axle, beams, levers, flanges, control arms,
camshafts, connecting rods, pitman arms, and piston rods and other non-
automotive products.
• Romesh Kaul is the present CEO for the Indian Operations.
• It has its major branches in India, Spain, Germany, Italy, UK, Lithuania.
• It has its worldwide area of operations.
• Its authorized share capital is Rs. 513,19,26,500 and its paid-up capital is
Rs. 379,01,06,880.
• The company’s consolidated total revenue from the continuing operation
during last year was 75,660 Million.
• It has the total employees of 8772.
• It has the total number of shares of 37,20,10,682.
• Mahindra CIE Auto motive’s price-to-earnings ratio stands at 10.83x.
CUSTOMERS
• Hyundai • Renault Nissan
• Ford • Maruthi Suzuki
• Mahindra • Tata
• Honeywell • Nexteer
• JCB • Caterpillar
• CNH Industry • Eaton
• Dana • Denso
• TVS • Mitsuba
• Volvo • Varroc
• Scania • Comstar
• Hero • Sumida
• Honda • Intica
ABOUT INDUSTRY

Mahindra CIE Automotive Ltd belongs to an Indian auto components


manufacturing industry. The Indian auto-components industry has experienced
healthy growth over the last few years. The auto-component industry of India
has expanded by 10.6 per cent to reach at a level of US$ 56.2 billion in FY19.
The auto-components industry accounts for 2.3 per cent of India’s Gross
Domestic Product (GDP) and employs as many as 1.5 million people directly
and indirectly each. A stable government framework, increased purchasing
power, large domestic market, and an ever-increasing development in
infrastructure have made India a favorable destination for investment.
SWOT ANALYSIS
STRENGHTS: WEAKNESS:
• Strong, focused & disciplined parent • Customer concentration in India
• Wide product basket across business, as M&M and Tata Motors
technologies contributing over 50% of India
• Global manufacturing footprint for revenues
forgings • High dependence on M&A for growth
• Financial discipline with high focus on and entry in new technologies.
profitability

OPPURTUNITIES: THREATS:
• Synergies with parent in form of access • Weaker than estimated growth for key
to its customers, products & customers in India business
technologies • Electrification of automobiles would
• Entry in aluminum and plastic be a key threat to its forgings
technologies components used in engines &
transmission.
PORTER’S 5 FORCE ANALYSIS

1. Threat of new entrants: It is difficult for new brands to enter the automotive
industry because of the large investments.

2. Bargaining power of suppliers: The bargaining power in the automotive


industry is weak for most of them are small players. As there are large number of
steel & aluminum manufacturers (raw materials).

3. Bargaining power of buyers: High demand from car manufacturers give them
lesser bargaining power & also product differentiation is low.

4. Substitute product: Threats from substitute products is low unless it is an


electric vehicles

5. Competitive rivalry: Competition among players is intense as govt has already


deregulated the sector. Also cheaper imports of components from China is
increasing.
COMPANY STATUS

• 138.00 INR is the current share price of the company.


• Net sales has been reduced heavily as there are lesser manufacturing activities
taking place due to Covid-19 pandemic.
• There has been 28.76% lesser sales than previous month sales.
• Currently the company suffered a loss of 46.72 Crs during the month June
2020.
• The company is starting to recover the loss as the manufacturing activities is
being started slowly.
FINDINGS & CONCLUSIONS

FINDINGS

• The industry is running in loss not because of its competitors but due to current
pandemic.
• It requires more time to recover from the economy fall down.
• The threat level is low from substitutes & new entrants.

CONCLUSION:

• Mahindra CIE was growing in last 5 years. MCIE sales was increasing at CAGR at
36.02%, EBITDA at CAGR of 90.06% and operating profit at CAGR of 95.65%.
PAT and EBIT were negative in 2014 but the pandemic has taken down its
operations.
• The company will recover soon if the manufacturing activities increases more than
usual.
SUGGESTIONS

• Mahindra CIE should make plans on manufacturing electric vehicles


components as it started to evolve in the present automobile industry.
• Should innovate its designs and make them both durable and cost friendly.
• Should be active in the technological stream as the technology changes every
day.
LEARNINGS / TAKEAWAYS

• A sense of accomplishment
• Time management skills
• Professionalism
• A measure of the impact of the pandemic.
• Familiarized with the organizational structure and its function.
• Familiarized with the different departments in the organization and their
functions
• Learnt how the key business processes are carried out in an organization
• Learnt how information is used in organization for decision making at
various levels

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