Mahindra Universe

If a few weeks ago, you told a true blue capitalist that the US government would be actually buying a private US company, or that one of the bulwarks of America Inc. would be going to the US government with a begging bowl in hand, he would tell you in no uncertain terms that you needed psychiatric treatment. Yet, believe it or not, both the scenarios are a reality today. To say that this has sent shockwaves across the globe would be an understatement. It also looks like that this is not the end of it and more turmoil is in store.

But how did this come to pass? While it would take a roomful of analysts months to work out an explanation, one reason looks obvious - the inherent nature of the 'anything goes' brand of capitalism which the US practises and follows. The basic premise of the 'buy now, pay later' system is that everything will remain stable or improve. It does not consider the flip side - that things may go down. Nature's movements are generally cyclical and it would be wise to keep that in mind.

While various companies, institutions and even governments all over the world will face the fallout of this, there is a lesson in it for all of us. We need to inculcate a sense of financial discipline and avoid the pitfalls of 'living on credit'. Many a time we are tempted to buy something (which we probably don't need in the first place), because it is available on 'easy credit' - but that's a misnomer, there is no such thing as easy credit.

It would also be wise to avoid buying things just to 'keep up with the joneses'. While its easy to get carried away in the flow of materialism and the thrill of 'acquiring' new objects, it would be wise to remember that materialism, like fire, is a good servant but a bad master.

This is not to say that we should all become monks and start living in a cave, but we do need to keep in mind that there is a difference between genuine needs and mindless consumerism.

What's in a name, you may ask? Plenty, if you're a car!

Mahindra & Mahindra has just pulled the covers off its latest project - Ingenio - to reveal the brand name for its much anticipated new car which is all set to hit the roads by year end.

Here's a bit of trivia on how some of the giants of the auto world got their famous monikers.

Mahindra XYLO was chosen after extensive research as it is a perfect fit with the new car's attributes. It's trendy and contemporary, implies luxury, high fashion and technology and has connotations of Space, planets and the future. Mahindra XYLO will soon take its place amongst its older siblings, the iconic Scorpio and Bolero utility vehicles.

For more information on the latest offering from the Mahindra stable, watch this space!

Dr. Pawan Goenka, President, Automotive Sector and Member of the Group Management Board, Mahindra & Mahindra Ltd., makes a case for diesel as a fuel in this article which recently appeared in The Economic Times

In the recent past, there has been increasing opposition to the use of diesel as a fuel and the so-called dieselisation of our vehicles. This opposition is ill-informed. In fact, there is a clear case for greater dieselisation of our fleet along the lines of the European Union. The only real issue with diesel today is the inability of the government to charge a higher price for diesel fuel which would be closer to its economic cost. However, that is no reason to condemn diesel as a vehicle fuel.

If diesel was so bad for vehicles, then why would the EU sell more diesel personal vehicles than petrol powered ones? Clearly, the EU is as concerned as India about the negatives of diesel. Why is it that 4 of the top ten models sold in the world are diesel-powered? Why did diesel personal vehicle sales increase over 80% since 2000 in the US?

Why are diesel vehicles forecast to make strong inroads into traditional petrol markets like the US and Japan--even when diesel is more expensive than petrol, as in the US? Why would the US government provide a tax incentive of up to $ 3,400 for buying a lean burn diesel vehicle--the same kind of incentive as that provided to a hybrid vehicle?

There are three main reasons. The first one is that a diesel engine is the most efficient internal combustion engine amongst fossil fuels. Its inherent higher efficiency leads it to need a lot less fuel than alternatives such as gasoline, compressed natural gas or liquefied natural gas.

Diesel engines consume about 30% less fuel than petrol engines. Thus, from an energy security perspective, diesel offers a great advantage. While updated numbers for end use of diesel are not available, it is estimated that personal diesel vehicles consumed about 3.3 million MT diesel in F-08--which is about 7% of India's diesel consumption. At 30% higher fuel efficiency, personal diesel vehicles saved an equivalent consumption of about 1 million MT or Rs 3,000-crore worth of fuel imports.

The second reason for diesel's increasing global popularity is its lower greenhouse gas emissions as compared to petrol. Diesel vehicles generate about 30% lower CO2 emissions than petrol and on a well-to-wheel basis about the same carbon emissions as CNG.

The third reason is the significantly improved performance of diesel vehicles with modern technology diesel engines that provide similar power as petrol, but greater torque, making them a pleasure to drive. And the reduced NVH makes them much less noisier. Anyone who doubts this should drive a modern diesel vehicle. This has led to a complete change in the way diesels are viewed.

So why are we hearing this clamour for banning diesels in India? There are two reasons. The first is that emissions of particulate emissions (PM) and nitrous oxides (NOX) is higher in diesel as compared to other fossil fuels.

However, with the improved fuel quality and tighter emission norms, combined emission values of personal diesel vehicles have reduced 94% between 1994 and 2005 in India. Future diesels will further have reduced emissions. Here the issue is really not the sale of new vehicle. The vehicular pollution in our cities is principally attributable to older vehicles. To really reduce vehicular pollution, we need the implementation of a strong Inspection and Maintenance program which will focus on controlling pollution from older vehicles of all fuel types. And to control air pollution per se, we need to also focus on non vehicle pollution sources which account for between 65-75 % of air pollution.

The other issue is the built-in subsidy in diesel fuel due to which the Indian Government is unable to pass on the full cost on fears of increasing transportation costs. So how big is the issue of subsidised diesel being used by personal vehicles? Personal diesel vehicles account for only about 7% of India's diesel consumption. Has an inherent fuel subsidy encouraged increased sales of diesel vehicles? The average savings of a personal-use diesel vehicle versus a petrol vehicle in fuel costs is about Rs 20,000 per year, but a diesel vehicle itself costs on average about Rs 1, 00,000 more than a petrol vehicle.

So, unless such a vehicle is used for intercity commutes or commercial purposes like a taxi, a buyer will not choose a diesel vehicle because diesel fuel is subsidised. This is also borne out by the fact that the proportion of diesel cars and MUVs has remained between 17-19 % in Delhi, India's largest vehicle market, from F03 to F-06 (being the latest year for which data is available). So let's not make a mountain out of a molehill on this issue. We need to focus on the real issue.

The bigger issue for the government is diversion of diesel as a substitute fuel. Given the power shortages we are facing, and given that normal genset fuels have increased in price significantly more than diesel, there is an incentive of 22-25,000 MW captive power generators to use diesel instead of fuel oils. This can be borne out by the fact that diesel consumption increased 11% in F-08, marginally less than petrol consumption increase, but LDO consumption declined 8% and furnace oil consumption declined 1%.

Given a shortage of power from the grid, LDO and FO consumption should have increased with more generation from captive power. Some sources attribute the consumption of diesel for power generation at about 20%. Hence, it would be beneficial to actually encourage the use of diesel vehicles. Of course, we must also focus on fuel conservation across the board and gradually progress towards tighter emission norms concurrent with cleaner fuel availability. And we must implement a strong inspection and maintenance programme for older vehicles to have the maximum impact of reducing vehicular pollution.

The Chinese character for 'crisis' is a combination of the symbols for 'danger' and 'opportunity'. Crisis is, in fact, like an uninvited guest - it comes calling when you least expect it. Yet, crisis can also be viewed from a positive angle - as an opportunity to innovate and do better in future.

On his blog, Think | Innovate | Execute, Gudjon Mar Gudjonsson, CEO of Industria, states that during an economic boom, most companies and consumers choose the most obvious option, without taking cost or long-term viability into consideration. This is usually because it's easiest to opt for something familiar. Hence, when money isn't the primary factor to consider, lesser known but highly innovative solutions tend to fall by the wayside. However, once money is in short supply, both businesses and consumers become more cost conscious and focus on long-term benefits. This helps fuel innovation, growth of new ideas and ensures customer needs are fulfilled in as efficient a manner as possible.

Companies can't avoid being a part of a larger economic crisis but they can certainly use it to their advantage by developing more robust and cost-effective processes and investing in long-term innovation which is the ultimate differentiator when it comes to business. The Indian Railways is perhaps one of the best examples of successful innovation in the face of adversity. The world's largest employer and one of the biggest and busiest rail networks in the world, the Indian Railways was, until very recently, a loss-making organization on the road to bankruptcy.

When Minister of Railways, Laloo Prasad Yadav, took over the reins in 2004, he had a budget of just $200 million with which to turn the beleaguered institution around. Instead of retrenching staff and increasing passenger and freight fares as expected, Yadav chose to retain the railways' large workforce and in fact, reduced fares by up to 45 per cent with a long-term focus on building volumes. Moreover, mere increase in capacity of a long-distance train from 800 passengers to 2,000, saw input costs fall by over 40 per cent.

Plans are also afoot to expand freight lines, increase their efficiency, and capture the 60 per cent of goods that are still transported by road. In a striking example of innovation, Prasad will also plans to use the railways to aid in India's water conservation efforts by building siphons and canals, and pipes with water for drinking and irrigation on the wasteland on either side of the 64,000 kilometres of track. He plans to reduce fuel consumption by building train carriages from aluminium to reduce their weight and electrify the main routes throughout the country.

A combination of calculated risk-taking, ingenuity, business acumen and long-term vision has seen the Indian Railways emerge as a success story, an example to emulate. Another instance of innovation in the face of adversity is the increasing focus on eco-friendly technology for cars in the backdrop of rising oil prices. This has led to an increase in vehicles running on alternative fuels such as the Alfa CNG, the Bolero Pik Up CNG and the Bijlee, India's first battery operated three-wheeler.

Perhaps the last word belongs to Prasad's adviser, Sudhir Kumar who says, "We are not in the business of railways; we are in the business of transportation - one of several modes of transportation, and the only way to survive and thrive in the marketplace is to offer superior and compelling value to your customers."

The Scorpio recently made its movie debut when it featured in Mission Istanbul, the latest Bollywood thriller to hit the big screen. Directed by Apoorva Lakhia, Mission Istanbul is a fast-paced action film featuring an all-star cast including Abhishek Bachchan, Zayed Khan, Viveik Oberoi, Bobby Deol and Sunil Shetty. 

One of India's most loved SUVs features in an exciting action sequence, testimony to the vehicle's tough build and powerful performance. Here's a sneak peek of the Scorpio in action.

Alfa CNG

Sustainability is the new buzzword today as companies actively seek to reduce their carbon footprint and invest in creating eco-friendly products and solutions. As eco-strategy expert, Andrew Winston, puts it, 'a green wave is sweeping the business world' as organizations increasingly realize the importance of going green.

Sustainability and sustainable issues have traditionally been viewed as an extension of a company's CSR programme. However, this perception is undergoing a distinct change today as companies realize that sustainability can lead to wealth creation.

According to Andrew, who has incidentally co-authored a book on this topic with Dan Esty of Yale University titled 'Green to Gold', the best companies are innovatively focusing on sustainability to create value in four fundamental ways - It can help drive new revenues, enhance brand value, cut costs through eco-efficiency measures and reduce risks related to changing consumer tastes and regulations.

Ecomagination

GE has already shown the way with its innovative venture, Ecomagination which illustrates its commitment to develop products and solutions that address environmental challenges and generate profitable growth. Ecomagination focuses on key areas of the company's business including energy, technology, manufacturing and transportation.

Products developed under the Ecomagination brand include locomotives for use on China's mainline rail system which reduce emissions and are more fuel efficient than other locomotives, LED traffic and road signals which result in significant energy savings and require lower maintenance and innovative wind turbines.

Ecomagination products have resulted in substantial revenues running into billions of dollars for GE, making it one of the company's most successful initiatives. This is a clear example of how sustainability can help create profits for stakeholders.

Closer to home as well, there are several companies which have taken the initiative to both reduce their carbon footprint and harness the power of sustainable solutions for the greater common good. Mahindra, for instance, has launched several eco-friendly products such as India's first bio-diesel tractor, the Alfa CNG, which is a dynamic three wheeler cargo carrier and the Bijlee, the first-of-its-kind electric three wheeler in India. Most recently, M&M launched the environment friendly Bolero Pik-Up CNG, the first CNG model to be launched in the large Pickup category which offers savings of up to 40% on costs as compared to a comparable diesel vehicle.

So how can companies make sustainability work to their advantage?

Andrew Winston suggests three initial steps:

• Companies must first understand how their business impacts the environment across the value chain. Do suppliers, for instance, follow environment-friendly practices?

• Organizations also need to know what others think of their environmental performance. This would include perceptions held by employees, customers and perhaps even NGOs.

• Last but not the least, businesses must take stock of their core competencies when it comes to creating environment-friendly and energy-efficient products and actively work towards developing the same.

The Mahindra Great Escape is a non-competitive, off-road rally which is meant to encourage Mahindra customers to test the strength of their vehicles on terrain other than tarmac. The annual Great Escape held in Rajasthan is eagerly anticipated by off-roading enthusiasts across the country who look forward to driving their Mahindra vehicles on a challenging route across the desert. A route which tests the mettle of both man and machine.

Join Claire and David, our off-roaders from Australia, as they take on the sand dunes, rocky patches, steep inclines and sheer drops of the Great Thar Desert in their Mahindra Scorpio, at the 41^st Annual Great Escape.

I think this poster says it all.

Is it that difficult??

Forget the Government or the environment NGOs – They are all doing whatever it takes to spread awareness and literally Clean up! (I shall give my views on that campaign some other time).

Just ask yourself this:

In the tons of litter found on the road, does that one wrapper on the road, belong to me?
Is that one cigarette butt mine?
 
Littering is an involuntary habit for most of us. You can in fact, say that it’s like going to the gym for that one more day, or more aptly, its like you trying to stop biting your nails – but you somehow never realize how you got those abnormal blunt looking nails!

None of us WANT this city to be a garbage dump. No way.
But we need to unlearn, and hurl out the habit – of littering our streets.
And this change is going to be tough and a conscious one (It definitely was for me)

Excuse me for this gyan, but I believe there are 2 broad steps to this one:

Step One: STOP LITTERING YOURSELF!

Get a grip on yourself, be it a chocolate wrapper, no matter how small, a bus ticket, an expired movie stub, nothing goes down the road. If you don’t find a Bin, shove those in your pockets, handbags, or purses.


Step Two: IT IS OKAY TO TELL OTHERS TO STOP LITTERING

This is even tougher, but you don’t mind doing it if you have mastered step one!


The Mahindra Way

Our Employee Volunteers at various Mahindra Tractor and Auto plants and at our Club Mahindra offices in rustic areas often do exactly this - several clean up drives, waste management workshops, anti-plastic drives etc around their localities - and here lies the importance – of just TELLING people and making them conscious about their own habit.

My escapades in the Mumbai locals have taught me two ways to do this: Sounds simple, but it requires guts.

a)    Request at first – This works with the mellow-looking ones
“Excuse me, could you please not throw this on the ground? Please use the dustbin”

You may get 2 broad types of reactions to the above:

•    An embarrassed apologetic ‘sorry!’ (your purpose is served, congratulations!)
•    You get an angry look, or… an even more angry retort .. slander .. Or even an outright tirade.

In any case, NEVER lose your cool.

b)    The last and in some cases the best option is the non-violent method –
SOMETHING YOU MUST DO IN FRONT OF THE ONE WHO IS LITTERING –
SOMETHING THAT WILL SURELY EMBARRASS HIM/HER –
& something that they will never forget

Wear your best smile and Take it to the Basket yourself!  :)

So finally the unthinkable has happened. Tata Motors has acquired Jaguar Land Rover and one of the strongest symbols of British supremacy is now owned by a former colony. Reverse imperialism? Jokes apart, this is really a very welcome development, not because of jingoistic reasons, but simply because it shows that India is finally a global player, able to match steps with the best of them. Of course, this is not the first time this has happened (think Corus, Stokes Forging, Tetley Tea), but somehow, maybe due to the aura of the brand involved (Jaguar/Land Rover), the impact seems to be stronger. This will also go a long way in emboldening others, who will now go forth and grab whatever there is on offer, the logic being 'if Tata can do it, why not us?’
 

These takeovers also drive home a point - if you think you are the best (or can be the best) in a given field, then you should look at players who are better than you, rather than gunning for the smaller fish in the pond. That way, your trajectory will always point north. Also, this way a company gets the latest technologies, which help in giving better value to customers and, of course, to shareholders. Some naysayers would point out that the brand is in its sunset years and not worth the price, but what one needs to remember is that the advantage is not in just absolute terms, but goes much beyond that. Sure, some of these takeovers have not been successful (both Ford and BMW have been owners of JLR in part or full), but this has never reflected badly on the company taking over.

 

I hope we see many more such takeovers, which will keep the flag of India Inc. flying high.

Do keep the feedback rolling in about what you think.

Note: Jaguar was initially named 'Swallow Sidecar Company' and they were in the business of refurbishing and overhauling motorcycles and sidecars of other makes. From there, they moved to developing their own automotive engine and coaches (car bodies)