Tag: Mahindra and Mahindra

Why this global investment firm ranks M&M and Indigo among its top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Matt Orton, Chief Market Strategist at Raymond James Investment lists Mahindra and Mahindra (M&M) and Interglobe Aviation (IndiGo) among his top picks given their significant presence in the expanding Indian market.

In an interview with CNBC-TV18, he pointed out that the automotive sector has played a significant role in driving the Indian market, serving as a pillar of strength.

“Mahindra and Mahindra is a top pick of mine because you have seen margin hold up even as the order books are kind of been going through a little bit of a reworking phase earlier this year. But it has exposure not only to light motor vehicles, and light SUVs but also to the farm side, which is going through a period of recovery. So, I think when we come out the other side, you are going to see an earnings acceleration there,” he said.

Also Read | M&M ED and CEO shares EV plans, says ready to compete with anyone amid Tesla entry news

Indigo, he believes, will benefit from the ever increasing number of travellers both within India and globally.

He highlighted the company’s strong margins and profitability, attributing it to the favourable balance between seat costs and customer demand.

Investments in widebody jets will also help Indigo expand its global reach beyond the current fleet’s capabilities, he noted.

Also Read | IndiGo only airline in the world to induct one plane every week: CEO Pieter Elbers

Overall, he thinks investors should now be selective in what they own.

“There are a number of areas of the market that have won pretty significantly. So, you want to lean into quality, you want to lean into where there is margin strength, and where you are seeing a little bit of an acceleration in earnings,” he said.

He also noted the appeal of various cyclical segments in both the US and global markets. “I have been advising to use weakness as an opportunity to put some cash to work.”

For the entire interview, watch the accompanying video

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Mahindra and Mahindra shares get an upgrade as analyst sees SUV 3XO as a game changer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra and Mahindra shares have the potential to surge 15% (from the closing price of April 30), said brokerage firm DAM Capital Advisors and upgraded its rating on the stock to ‘buy.’

M&M shares surged almost 2% to ₹2,204 to hit an all-time high during the day on the NSE. The stock was among the top five Nifty 50 gainers and also outperformed the sectoral index Nifty Auto which traded 1.12% higher.

In the past year, the stock has given a return of 77% to its investors as against the benchmark Nifty 50 which has risen 25% during the period. The market capitalisation of M&M has now hit ₹2.73 lakh crore.

DAM Capital Advisors, meanwhile, has set the target price at ₹2,550 for M&M shares as it believes the carmaker’s stellar SUV performance and tractor recovery warrant valuation expansion.

The brokerage commentary comes days after M&M unveiled its compact sports utility vehicle (SUV) XUV 3XO, which the brokerage believes will be a major game changer for the company.

Mahindra’s XUV 3XO is a facelift of the XUV300 with prices starting from ₹7.49 lakh (ex-showroom). The new model, available in five trims, features a significantly revamped design, a new cabin, an array of added features and an updated automatic gearbox.

Also Read: M&M ED and CEO shares EV plans, says ready to compete with anyone amid Tesla entry news

M&M Executive Director and CEO for auto and farm Rajesh Jejurikar also told CNBC-TV18, “3XO is a disruptor product. We tried to excel in every dimension… XUV 3XO comes with many segment-first features and aggressive pricing.”

The Street also seems to have liked the pricing of the facelift vehicle, which is quite competitive pricing across variants ranges from ₹7 lakh to ₹15 lakh.

Meanwhile, M&M also announced on May 2 that its overall auto sales, including exports, for April 2024 have risen 13% year-on-year to 70,471 vehicles.

In the utility vehicles segment, Mahindra sold 41,008 vehicles in the domestic market, a growth of 18% and overall, 41,542 vehicles, including exports. The domestic sales for commercial vehicles stood at 22,102.

DAM Capital expects the company to sell more than 8,000 vehicles every month, which it believes would be a stable volume and would drive its SUV growth to 20% in FY25.

The brokerage expects a volume compound annual growth rate (CAGR) Of 10% over FY24-FY26 as against industry growth of 6-7%.

It said that M&M’s operating scale and better mix would drive earnings before interest, taxes, depreciation, and amortization or EBITDA margin expansion of 100 basis points from the current level to 13.8% in FY26. Tractor rebound and better pricing would also drive EBITDA margin expansion, it added.

M&M shares traded almost 2% higher at ₹2,197.50 on NSE at 1:08 pm.

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April Auto Sales preview | M&M likely to post highest sales growth in cars, Hero MotoCorp in two-wheelers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automakers, including Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Bajaj Auto and Hero Motocorp, among others, report their monthly sales data on the first of each month. But May 1 being a market holiday, few companies might announce April sales numbers.

Among those who announced their numbers were Escorts Kubota. The company said total tractor sales were down 0.7% at 7,515 units versus 7,565 units YoY. Domestic tractor sales were down 1.2% at 7,168 units versus 7,252 units YoY.

With waiting periods in the cars or passenger vehicles segment going down, modest growth is expected in the segment whereas two-wheelers are likely to have witnessed good growth on the back of marriage season, according to analysts. The truck segment shall see mid-single-digit growth, analysts indicated.

Jefferies is of the view that wholesales in April would grow 15-18% on a year-on-year basis for TVS Motor Company, Bajaj Auto and Hero MotoCorp.

Nomura, meanwhile, expects the tractor segment growth to remain flat and the truck segment’s growth to be in mid-single digits.

The brokerage has pegged the industry’s growth for the 2024-25 fiscal year at 5%.

For April, Nomura expects Maruti Suzuki to continue to see the lion’s share of the market clocking in the highest number of car sales. Mahindra and Mahindra Auto is likely to see the maximum growth in sales, as per the analyst’s projection.

Also Read: India’s largest carmaker sells over 2 million cars in a year, SUVs take the lead

In the two-wheelers segment, Hero MotoCorp is expected to witness the maximum market share and the highest YoY growth for the month under review. While Bajaj Auto may be in the second spot in terms of sales, TVS Motors is likely going to occupy the spot in terms of growth.

Here are Nomura’s auto sales estimates for April 2024:

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M&M ED and CEO shares EV plans, says ready to compete with anyone amid Tesla entry news

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite a slowdown in EV sales globally, Mahindra and Mahindra aims to stick to its original EV plans. Rajesh Jejurikar, ED and CEO (Auto and Farm Business), M&M said, “We’re confident about our EV sales. Our EV design and technology will create a different category in the Indian market. The Indian government is focused on electrification, which is the right solution.”

When asked about Elon Musk’s global EV behemoth Tesla’s entry into India, Jejurikar said for now, it sounds speculative. “Let’s wait and watch how and when Tesla enters India. New entrants to help to grow the EV category, we’re ready to compete with anyone on a level playing field,” he told CNBC-TV18 on the sidelines of the unveiling event of its new compact SUV XUV 3XO.

With XUV 3XO, the Indian carmaker Mahindra and Mahindra aims to capture a larger market share of the SUV market. “3XO is a disruptor product…we have tried to excel in every dimension,” he said.

Jejurikar pointed out that M&M wasn’t successful in the compact SUV segment earlier but the company has set high hopes with the new launch. XUV 3XO comes with many segment-first features and aggressive pricing, he said.

“Over the next 2-3 years, we want to become the number one player in the compact SUV segment,” the top boss said, adding that three successful SUV launches have made M&M number 1 SUV player in the industry in terms of revenue market share by volume.

Also Read: Anand Mahindra to critics: ‘Your scepticism fuels our fire,’ responds by launching XUV 3XO amidst competition

Mahindra’s XUV 3XO, which will be manufactured at the plant in Maharashtra’ Nashik, has been launched in eight variants. “The ₹7.49 lakh variant is for entry level customers with many features at this price point. The gasoline automatic transmission variant has been priced below ₹10 lakh which can be a gamechanger,” Jejurikar explained.

M&M also wants to create its market in the higher priced variants. “Many customers don’t want a full size SUV but a feature rich SUV. The XUV 3XO’s X7 and AXL variants can take on a full size SUV and can create a very different category,” he asserted.

The XUV 3XO is the first product to be launched by M&M in the new financial year and more products are lined up. Mahindra’s ED said, “We’re hoping that XUV 3XO will build volumes for the company. We will launch five door Thar and new EVs in early 2025. Truly exciting time ahead for M&M this year,” he added.

Also Read: M&M in fast lane: Stock hits record high to become top Nifty 50 gainer after XUV 3XO launch

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M&M in fast lane: Stock hits record high to become top Nifty 50 gainer after XUV 3XO launch

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra and Mahindra shares touched a record high on April 30, a day after the carmaker unveiled its compact sports utility vehicle (SUV) XUV 3XO.

M&M shares rallied 5% to ₹2,169 on the NSE and became the top Nifty 50 gainer. The carmaker’s stock also outperformed the sectoral index Nifty Auto which traded 2% higher.

In the past year, the stock has given a return of 75% to its investors as against the benchmark Nifty 50 which has risen 25% during the period. The market capitalisation of M&M has now hit ₹2.67 lakh crore.

What are the reasons behind the M&M stock rally?

1) Tuesday’s surge in the auto stock comes a day after Mahindra unveiled the XUV 3XO, a facelift of the 2024 XUV300, with prices starting from ₹7.49 lakh (ex-showroom). The new model, available in five trims, features a significantly revamped design, a new cabin, an array of added features and an updated automatic gearbox.

The Street seems to have liked the pricing of the facelift vehicle which is quite competitive
pricing across variants ranges from ₹7 lakh to ₹15 lakh.

2) The utility vehicle segment is a high growth segment in which M&M is strengthening its position. In fact, the compact SUV segment constitutes 50% of UV volumes and 30% of overall four wheeler volumes. M&Ms market share in the UV category increased from the lows of ~8% in FY21 to 16.3% in FY24.

3) Brokerages are bullish on the stock.

Nomura is of the view that the XUV 3XO launch has the potential to double sales. It believes M&M is offering several best-in-class features in this facelift and has the potential to increase sales by 50-100% which is 6,000-8,000 per month.

It has maintained M&M as its top pick in the OEM space and added that new products should continue to drive re-rating from current levels of 10.5x FY26F EV/EBITDA, which is below peers at 15x EV/EBITDA.

Investec too said that M&M is its top pick in the auto OEM space due to its strong earnings momentum that is driven by successful product launches. The core valuation of 20x FY26E EPS is also attractive, it said and reiterated its buy stance on the stock.

M&M sales trend in the past months

M&M UV monthly sales have seen consistent growth over the last 10 months, rising from 36,205 in June 2023 to 40,631 units in March 2024.

June 2023: 32588
July 2023: 36205
August 2023: 37270
Sep 2023: 41267
Oct 2023: 43708
Nov 2023: 39981
Dec 2023: 35174
Jan 2024: 43068
Feb 2024: 42401
Mar 2024: 40631

‘3XO is a disruptor product’

At the unveiling event on April 29, M&M Executive Director and CEO for auto and farm director Rajesh Jejurikar told CNBC-TV18, “3XO is a disruptor product. We tried to excel in every dimension… XUV 3XO comes with many segment-first features and aggressive pricing.”

He said the firm launched three SUVs in the past that have made the carmaker a number SUV player in the industry in terms of revenue market share. Earlier, M&M wasn’t successful in the compact SUV segment and over the next two to three years, the company wants to attain the top spot in the compact SUV segment as well, he said.

Also Read: Anand Mahindra to critics: ‘Your scepticism fuels our fire,’ responds by launching XUV 3XO amidst competition

The bookings for XUV 3XO will open online and simultaneously at Mahindra dealerships from May 15, the company said while the deliveries will commence from May 26.

M&M shares traded 4.85% higher at ₹2,162 on NSE at 1:27 am.

Track latest stock market updates from CNBCTV18.com’s blog

With inputs from Daanish Anand

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Anand Mahindra to critics: ‘Your scepticism fuels our fire,’ responds by launching XUV 3XO amidst competition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Business tycoon Anand Mahindra thanked a person on social media for his “scepticism” after he told the Mahindra Group Chairman that his cars “can’t compete with Japanese or Americans in their land”.

This came after Mahindra introduced its much-awaited Mahindra XUV 3XO in the Indian market on Monday.

Unveiling the first look of the compact SUV, Mahindra wrote on social media site X, “It’s here. Prices start at ₹7.49 lakh. The revolution begins. #MahindraXUV3XO”.

In the comment section, a person wrote, “Your cars can’t compete with Japanese or Americans in their land. Enjoy import substitution policies while they last. Mahindra will disappear as tariffs get reduced.”

Thank you for your skepticism.

It only fuels the fire in our bellies.

I was told exactly the same thing when I joined the company in 1991.

Global consultants advised us to exit the industry.

We were told the same thing when Toyota and other global giants in the UV space… https://t.co/oYMBO6HcWk

— anand mahindra (@anandmahindra) April 29, 2024

In reply, Mahindra noted that he was told the same thing when he first joined the group in 1991. He added that the company hoped to be around for the next 100 years, noting that every day is a fight for survival.

“Thank you for your scepticism. It only fuels the fire in our bellies. I was told the same thing when I joined the company in 1991. Global consultants advised us to exit the industry,” he wrote.

“We were told the same thing when Toyota and other global giants in the UV space entered India. But we’re still around. Every day is a fight for survival. And we relish it. We hope to be around for the next 100 years, still fighting—every single day—for your approval,” the 68-year-old added.

About XUV 3XO

On Monday, Mahindra launched the XUV 3XO, which is a facelift version of the XUV 300. The price starts from ₹7.49 lakh (ex-showroom). The new model, available in five trims, boasts a significantly revamped design, a new cabin, an array of added features and an updated automatic gearbox.

The company has substantially redesigned the XUV 3XO’s exterior, which features a new gloss black grille and LED headlights reminiscent of the XUV700.

The rear has been completely revamped and now has a connected LED tail lamp and bold ‘XUV 3XO’ badging. Meanwhile, its number plate housing has been relocated to the rear bumper.

The XUV 3XO is available in the Indian market in a total of 18 variants, with the top-end model — AX7 L variant — priced at ₹15.49 lakh (ex-showroom).

Also Read: Mahindra unveils XUV 3XO with Level 2 ADAS features, starting at ₹7.49 lakh

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Mahindra unveils XUV 3XO with Level 2 ADAS features, starting at ₹7.49 lakh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra has unveiled the XUV 3XO, a facelift of the 2024 XUV300, with prices starting from ₹7.49 lakh (ex-showroom). The new model, available in five trims, features a significantly revamped design, a new cabin, an array of added features and an updated automatic gearbox.

The XUV 3XO’s exterior has been substantially redesigned, with a new gloss black grille and LED headlights reminiscent of the XUV700. The rear has been completely revamped, now featuring connected LED tail lamps and bold ‘XUV 3XO’ badging. The number plate housing has been relocated to the rear bumper.

Veejay Nakra, President – Automotive Division, Mahindra & Mahindra, in a company statement, said, “With the launch of the XUV 3XO, starting at an attractive price of ₹7.49 lakh, Mahindra is redefining what an SUV can be… From those upgrading from a hatchback to their first SUV to luxury seekers looking for high-end features at a competitive price, the XUV 3XO offers a unique blend of innovation, safety, comfort, and performance.”

Inside, the XUV 3XO boasts a new dashboard borrowed from the updated XUV400 EV, a large floating touchscreen infotainment system, sleek central AC vents and updated dual-zone climate control. The steering wheel retains its previous design but now features gloss black inserts.

The XUV 3XO comes with a host of new features, including a segment-first panoramic sunroof, a 10.25-inch digital driver’s display, wireless Apple CarPlay and Android Auto, a wireless phone charger, connected car tech and a 7-speaker Harman / Kardon sound system. It also includes Level-2 ADAS, which offers lane departure warning, adaptive cruise control and autonomous emergency braking.

The vehicle continues to offer dual-zone climate control, cruise control, keyless entry with push-button start, six airbags, ABS with EBD, electronic stability control and front and rear parking sensors, all carried over from the outgoing XUV300.

R Velusamy, President, Automotive Technology and Product Development, Mahindra & Mahindra, said, “Built on a durable, well-tested platform, it (XUV 3XO) is engineered to meet the highest global safety standards, including the B-NCAP. The XUV 3XO also meets the benchmarks established by our XUV700 – offering best-in-class forward visibility and the quietness of its gasoline variant is comparable to that of the gasoline.”

Under the bonnet, the XUV 3XO offers a choice of a 130PS 1.2-litre T-GDI turbo-petrol engine or a 117PS 1.5-litre diesel engine. The base 110PS 1.2-litre turbo-petrol engine previously offered has been discontinued. A 6-speed manual is standard, with an optional 6-speed torque converter available for the T-GDI turbo-petrol engine. The diesel engine continues with its 6-speed AMT.

Here’s a look at the detailed specifications:

• The 1.2-litre Turbo-petrol engine delivers a power of 110PS and a torque of 200Nm. It is paired with a 6-speed manual transmission.
• The 1.2-litre T-GDI Turbo-petrol engine delivers a power of 130PS and a torque of up to 250Nm. It is paired with a 6-speed manual transmission or an optional 6-speed torque converter.
• The 1.5-litre Diesel engine delivers a power of 117PS and a torque of 300Nm. It is paired with a 6-speed manual transmission or a 6-speed AMT.

The Mahindra XUV 3XO competes with the Tata Nexon, Hyundai Venue, Maruti Suzuki Brezza, Kia Sonet and Nissan Magnite.

Here’s the variant-specific price list:

*Variant also available in Diesel AutoSHIFT+ at an additional cost of ₹0.80 lakh

**Variant also available in TCMPFi AT at an additional cost of ₹1.50 lakh

***Variant also available in TGDi AT at an additional cost of ₹1.50 lakh

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Mahindra Bolero Neo scores 1-star in Global NCAP rating, Honda Amaze and Kia Carens also underperform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown automaker Mahindra’s 7-seater sports utility vehicle (SUV) Bolero Neo, in the latest safety assessments conducted by Global NCAP as part of the #SaferCarsForIndia campaign, scored a disappointing one star for both adult and child occupant safety.

Alejandro Furas, Secretary-General at Global NCAP, in a statement, said, “We were disappointed to see Mahindra’s one-star rating for the Bolero Neo. This falls well below the safety performance we have come to expect from the manufacturer.”

The Bolero Neo’s low protection in the frontal crash, unstable structure, and weak chest protection for the driver were among the factors contributing to its low score. The vehicle’s child occupant protection was also affected by the lack of 3-point belts in all seating positions and the decision to only allow one CRS to be installed in the car.

The Honda Amaze scored two stars for adult safety and zero for child safety. The Kia Carens, which was tested under the previous Global NCAP protocols, after improvements and a retest, managed to achieve three stars for adult safety and five for child safety.

The Honda Amaze, also equipped with two standard airbags, was rated two stars for adult safety and zero stars for child occupant safety. Furas remarked, “Regrettably Honda did not take the opportunity to update the Amaze with more safety features which explains its disappointing score.”

The Amaze’s adult protection scored low due to the lack of optional side head protection, driver-only Seat Belt Reminder and standard ESC. The child protection showed head contact in the frontal impact for both dummies, high loadings in the chest and neck of the three-year-old child and ejection risk in the 1.5-year-old dummies.

Interestingly, in 2019, the Honda Amaze, a model made in India and sold in South Africa, secured a 4-star rating for adult safety and a 1-star rating for child safety. Recently, Honda updated its entire line-up in India, adding safety features like seat belt reminders for all seats.

Honda Cars India, in an official statement, claimed that the safety rating might have differed if the updated model had been tested. “The South Africa spec 2nd Generation Amaze has already been tested as 4 star by GNCAP in 2019. The latest test basis new protocol shows that the total score is of 5 star level. However mainly due to requirement of certain equipment like Electronic Stability Control and Side Curtain Airbags, it resulted in lower rating,” it added.

The company added, “At Honda, our commitment to safety is evident in the meticulous engineering of our products. We integrate advanced active and passive safety technologies across our entire model range. We are dedicated to continuously work to enhance our vehicles on all parameters of Safety and improve them further at model change timing.”

Lastly, the Kia Carens, fitted with six standard airbags, initially scored zero stars for adult protection. However, after improvements from the manufacturer and a retest, it achieved three stars in adult safety and five stars for child occupants.

Despite the improvements, Furas noted, “However, we were expecting a better performance in the retest given the Carens is fitted with six airbags as standard.” Under the previous Global NCAP protocols, the Carens received three stars for adult and child occupant protection.

David Ward, President of Towards Zero Foundation, said, “This mixed set of results demonstrates that more effort is still needed from some manufacturers to prioritise vehicle safety in the Indian market.”

Ward emphasized the importance of maintaining safety momentum and announced that key vehicle safety matters for India would be discussed during an NCAP24 panel session later in the day.

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Exclusive | Amitabh Kant: If BYD can take on Tesla, why can’t Tata and Mahindra?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Expressing his optimism about the future of the electric vehicle (EV) market in India, Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog stated, “I’ll be truly delighted if the new EV policy leads to many Indian companies, such as Tata and Mahindra, challenging Tesla in the market and even surpassing it both domestically and internationally.”

In an exclusive interview with CNBC-TV18, Kant said he believes that by 2047, India will provide almost 30% of the world’s skilled manpower. He emphasised the need for increased competition among the states.

Kant’s statement comes just days before the highly anticipated Indian visit of Tesla CEO Elon Musk as the global EV leader battles a slowdown in its key markets, the US and China. The Indian government is hopeful that Tesla’s investment will help position the country as a hub for EV manufacturing.

Also Read: Tata Motors to manufacture JLR cars in Tamil Nadu

Kant also pointed out the potential of Indian companies to compete with global giants like Tesla. He said, “It’s quite possible. If BYD can take on Tesla, people don’t realise that BYD controls the EV market. These are companies that should all think globally. Once you start thinking global, you will penetrate global markets, but you will do a lot of good to the Indian consumers.”

Kant stated that Tesla would face stiff competition in India and it will do good to customers.

“The Indian consumer is going to benefit in a big way because there will be competition as far as electric vehicles are concerned. And competition will lead to better products and it’ll lead to prices coming down for electric vehicles.”

Kant also highlighted the need to support two-wheelers and three-wheelers, which comprise 70% of the Indian market. Kant had recently stated that combustion vehicles will eventually die out and the future will be dominated by electric vehicles charged with renewable energy.

Also Read: Tata Punch tops March sales, Hyundai Creta close second, Maruti slips to No. 3 for the first time

While pointing out the challenges in the Indian market, such as the high import duty on automobiles, Kant praised the government’s strategic move to reduce the import duty.

“We are going to reduce the import duty so that you can bring vehicles and test out the Indian market. But we’ll do it only if you will, in the long run, do manufacturing in India, the import should actually lead you to manufacturing in India, that’s the objective. So it’s strategically a very good move.”

Kant emphasised the need for a large number of charging stations in India and commended Tesla for opening up its IP for the charging stations, making them interoperable.

“The good thing is that Tesla has opened up its IP for the charging stations and made it interoperable. Several other vehicles can also get charged on the Tesla charging stations.”

Also Read: Indian auto industry sees 12.5% rise in domestic sales, SUVs lead with 25.8% growth: SIAM

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Mahindra Susten aims to build 5,500 MW projects in five years: CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra Susten is committed to building about 5,500 megawatts of sustainable projects in the next five years, says the MD and CEO Deepak Thakur of Mahindra and Mahindra’s green energy arm.

On April 15, Mahindra Susten announced its plan to develop a 150 MW hybrid renewable energy (solar + wind) project at a cost of about ₹1,200 crore.

In a conversation with CNBC-TV18, Thakur said the project being set up in Maharashtra, as a group captive project, is only a part of the bigger plan that the Mahindra Susten group has committed to.

Below is the verbatim transcript of the interview.

Q: Mahindra Susten will be developing this project, give us a sense of where is the funding coming from, is it entirely from the Mahindra Group, and what is the 2030 target across Mahindra Group businesses.

A: For the Mahindra Group is concerned, we have made a commitment with respect to sustainability goals and within that the RE transition commitment that we have made is that we would like to move to 100% power by 2030. With regard to this particular project, this project that we are setting up in Maharashtra as a group captive project, actually is part of the bigger plan that the Mahindra Susten group has committed to.

So we have committed to building about 5,500 megawatts of projects in the next five years. And for this, the shareholders, that is the Mahindra Group and Ontario Teachers’ Pension Plan, which has a 39.9% stake within Susten, have committed equity for this particular build up. This 150 MW is, as I mentioned, of this entire 5,500 megawatt plan that we have approved at our end.

Q: Would Mahindra Group like to expand such hybrid capacity to provide renewable energy to other manufacturers, other companies, is there a plan on the cards?

A: So yes, I think even this group captive project that we have set up currently, I think close to about 55-56% of the total capacity is committed by auto and farm sector and other group companies, which are based in Maharashtra which will actually utilise this power. The balance 35-40% of the power is something that we would look at contracting with third-party entities.

Q: Tell us about your key growth drivers for your portfolio in FY25.

A: So if I will just take a step back, so if we look at Susten’s growth, we have already done about 1,540 megawatts of projects, solar projects that we have built as a developer in the last six years. And now, as I mentioned, we have planned to build up about 5,500 megawatt, which is almost 3.5 times of that capacity in the next five years. Of this capacity, we already have about 2,000 megawatts including this 150 megawatt project that we just spoke of, of capacity which has already been won or acquired by my Mahindra Susten and we are in the process of now constructing and building this capacity.

The video of the entire interview will be uploaded shortly. Do check back in some time.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow