The Mahindra Group, spanning from farm equipment to aerostructures, is set to focus on delivering scale across its businesses, which it anticipates will cover 70% of India’s growth over the next decade, according to Managing Director and CEO Anish Shah.
Having streamlined its operations by exiting 15 companies, the conglomerate now aims to enhance the valuation of its emerging businesses, referred to as ‘growth gems,’ by fivefold within the next five years, up from $4.2 billion in March 2024.
Shah emphasized that the group’s current portfolio consists of strong, market-positioned companies capable of scaling significantly. “Today, we have a set of companies that are very strong and well-positioned in the market. Each of them can become a scale company. Our focus now is to deliver scale,” he told PTI in an interview.
Looking towards the future, Shah envisions Mahindra Group growing in tandem with India’s economic expansion. “Our businesses cover what we believe is 70% of India’s growth over the next decade. We are very well positioned to grow with India, and that’s our goal for 2030,” he stated.
Strategic Focus Areas
In the automobile and farm equipment sectors, Mahindra plans to leverage its market leadership while unlocking the potential of underperforming yet strong franchises such as Tech Mahindra (TechM) and Mahindra Finance. Shah noted that Mahindra Finance is making significant progress in its turnaround, with about a year left to complete the process, while TechM has already begun its recovery.
The ‘growth gems’ strategy includes 10 key businesses, with three listed entities—Lifespace, Logistics, and Holidays—and seven unlisted entities, including last-mile mobility, farm machinery, aerostructures, Classic Legends, Susten (solar business), and Accelo (vehicle recycling business). These ventures are expected to drive future growth.
“Our growth gems have already grown fivefold in valuation over the last four years, from $0.8 billion in March 2020 to $4.2 billion in March 2024. We aim to grow them five times more, which will bring scale to these businesses,” Shah explained.
Potential IPOs and New Ventures
Discussing the possibility of IPOs for unlisted entities, Shah highlighted Accelo’s focus on decarbonizing the auto industry. “Accelo is on a path to listing. However, the timeline is secondary to building scale and preparing the business to stand independently on a much larger platform.”
The Mahindra Group is also exploring new business areas, although it has not yet identified a specific sector. “We will enter a new business only if we can add significant value and meet our high standards. It has to generate returns greater than the industry average and be scalable. If we don’t find something that meets these criteria, we won’t pursue it,” Shah said.
