M&M is not just a well-known candy but also the name of a part of the Mumbai-based Mahindra Group – an Indian conglomerate with a market value of $17.6 billion that has 119,900 employees in more than 100 countries and is involved in almost everything from banking and agribusiness, to aerospace technology and real estate.
M&M, which stands for Mahindra & Mahindra, is the flagship company of the Mahindra Group and has a presence in both the automotive and tractor businesses. Anand Mahindra, son of one of India’s richest families, leads the company.
Mahindra certainly has great ambitions for his company and SsangYong, the bankrupt Korean manufacturer which he bought in November 2010. Automotive News reports that Anand recently stated “We want to be India’s first global cult brand”.
The Indian company is not new to the game. It already has a 65 year old history, having begun assembling the legendary Willys Jeep in 1947. It also is, since 2010, the world’s largest tractor manufacturer. Now, Anand Mahindra is focusing on the car business and has decided that he wants to make his company a global player.
Mahindra and SsangYong currently manufacture a wide range of products. Their car line-up consists of 13 models, the most recent of which is the Korando SUV, but they also manufacture many other vehicles like trucks and tourist buses.
Anand Mahindra’s aim is to invest in SsangYong and turn it into a global brand known for its SUVs: “I see our relationship with SsangYong as an inflection point that will contribute greatly to the future success of the Mahindra Group.”
India’s expanding economy, along with the West’s problems, may serve Mahindra’s plan well. “Several Indian companies saw opportunities for global expansion and were able to buy these assets when some overseas companies were restructuring,” says Nikhil Nath of Hong-Kong based Nomura Holdings.
One well-advertised case is the acquisition of Jaguar and Land Rover by Tata Motors. “Those companies will become truly global in the next decade. M&M’s SsangYong deal shows such an aspiration” Nath concludes.
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