Mahindra & Mahindra Group will focus on scaling up its existing non-core businesses, including real estate, logistics, renewable energy, and hospitality, to grow five times to hit a $17 billion valuation over the next five to seven years.

During an analyst presentation of the quarter results, the company stated that they are actively working on unlocking the full potential of their “growth gem” businesses, which include Mahindra Logistics, ClubMahindra, Mahindra Lifespaces, Susten, Mahindra Last Mile Mobility, Mahindra Accelo, Car&bike, and Classic Legends.

Going forward, the group has set a target of scaling up its renewable platform, Mahindra Susten, from 1.5 GW to 7.0 GW by F27 with value unlock through the InvIT structure. Lifespaces will focus on key markets through bock-bluster launches (15+ annually).

Also read: Mahindra Lifespaces transfers 9.24 acres of residential land to Alliance Group

Club Mahindra will double the cumulative room inventory from 5,000 in FY23 to 10,000 by FY30, and Mahindra Logistics plans to launch an integrated tech stack (LogiOne) to create transformative and differentiated tech capabilities. Mahindra Accelo has set a target to become largest player in organized vehicle recycling with target market share of approximately 25 per cent by FY28

“We do not want only four core businesses but also want other businesses to start becoming core for us as well. We are well positioned to tap into the opportunity in India, and therefore our focus is to deliver scale by capitalising on the market leadership and by tapping into our growth gems, which have a very strong platform to start with and significant potential to go from here. Further, diversify into new businesses, which will also help us in asset quality,” said Anish Shah, Managing Director and Chief Executive of Mahindra and Mahindra Ltd., during the analyst meet.

Also read: 75% of Mahindra Group’s workload will be on the cloud in the next 3 years: Mohit Kapoor

Growth gems

The company identified ten growth gems a few years ago as part of its plans to future-proof the business, which is currently dependent largely on the auto segment. Apart from its core automotive and farm equipment segments, the company also registered revenue growth from its non-core businesses during the quarter. The company registered ₹263 crore from its real estate business, as opposed to ₹163 crore in quarter four of FY22. In the hospitality segment, the company registered revenue of ₹712 crore compared with ₹542 crore during Q4 of FY22, and the financial services segment registered ₹3,420 crore during the quarter as opposed to ₹2,844 crore during the same quarter in FY22.

The company posted a 17.83 per cent increase in consolidated net profit for the quarter that ended in March 2023 and clocked ₹2,636 crore in net profit during the quarter, compared to ₹2,237 crore during the same quarter last year.

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