Mahindra & Mahindra Financial Services’ Profit Jumps 87%
Systech team and its partners not only helped the team weather the global financial crisis of 2008, but also saw it emerge stronger and more resilient when it partnered with CIE of Spain which had a complimentary set of product mix, geographies and products.
“To begin with, we combined all our entities and those of CIE, including Mahindra Hinoday, MUSCO Stampings, Mahindra Composites, CIE Spain, CIE Lithuania, etc., under the Mahindra CIE umbrella.
We have maintained a strong focus on productivity improvement and have implemented stringent cost controls, which has resulted in vast enhancement in operational performance of all the businesses.
The extent of synergy persuaded M&M to cede a majority stake and CIE reciprocated by allowing M&M to assume an ownership larger than that of its promoters.
Subsequent events testify to the wisdom and foresight of both partners as our stock price moved up exponentially from INR 43 in May 2013, just before the alliance with CIE was announced, to INR 260 at the time of going to press,” says a visibly proud Hemant Luthra, Chairman, Mahindra CIE.
This has led to the Company being recognised as a top value creator by both Fortune India and Forbes India, and in March 2016, the Mahindra CIE stock was included in FTSE’s Asian Equity Small Cap Index.
It would be another three years before the next Mahindra company made its debut on the bourse. This one conjures visions of sunny skies, pristine beaches and misty mountains.
Mahindra Holidays & Resorts India Ltd.
(MHRIL) was established in 1996 with a vision to create quality family holidays through vacation ownership. Today, the Company has a customer base of over 2,25,000 members and a bouquet of over 50 resorts in India and overseas.
The Company listed in July 2009 at INR 20 per share and is now trading at around INR 350 per share after a 1:2 bonus. With focused expansion and newer product offerings, MHRIL is on the path to rapid growth as it increases its member base and resort portfolio.
“Today, we have a rapidly growing international footprint in both Asia and Europe. Our recent acquisition of Holiday Club Oy which has resorts in Finland, Sweden and Spain has expanded the breadth of our business and has made us the largest vacation ownership company outside the USA.
We have also doubled our room inventory since listing, and now have the highest leisure room inventory in the country,” says Kavinder Singh, Managing Director & CEO, Mahindra Holidays & Resorts India Ltd.
So, what next in the Mahindra Group’s growth story? “The Group was on a golden run till 2012 but growth has been affected over the last few years.
A combination of various factors, both internal and external, including global crises, a bad monsoon and slow industrial growth have contributed to this scenario. However, we are optimistic about the next phase of growth and there are a lot of our businesses which have the potential of listing.
I have a vision of one listing per year which will keep the value creation journey alive and take our Group to the next orbit,” muses Parthasarathy, while outlining the future trajectory of wealth creation for the Group.