Economic Performance
 
At Mahindra, we strongly believe that you are as good a company as the suppliers you keep. Mahindra as a group has diverse businesses that operate in diverse geographies. In India, we operate across various states and have therefore always defined local for Mahindra as "within India." It has been our constant endeavour to encourage local supply because it provides a dual benefit of good corporate citizenship and better business sense.
Local supply enables us to provide global platform to local talent, add value to local resources and help fuel a vibrant local economy which has a large stake in the success
of Mahindra.
Local supply also translates into a shorter supply chain, greater certainty and predictability
of delivery times, a heightened degree of responsiveness to demand spurts, increased speed to market and mitigation of climate risks as posed by air traffic suspension due to
a volcanic activity. It also enables a higher degree of control and auditing of vendor's operation to strengthen our reputation management.
Marking a change in approach towards ensuring shorter supply chains, the Mahindra Group has set
up Supplier Parks around its manufacturing facilities
in Chakan, Maharashtra. We encourage our major suppliers to establish their manufacturing units in this park to exclusively cater to the needs of Mahindra Navistar. Some of the major suppliers who have already set up their manufacturing unit include Imperial Auto and International Automotive Component.
Along with proximity, other significant vendor selection factors include quality, delivery performance, pace of procurement, logistic advantages, ISO certifications, factory visits, reports, reputation and past relationship.
We analyse the share of local suppliers in the total monetary value of significant suppliers every year. AD, MVML, MMFSL, MHRIL, MLDL, MLL & MSB source 100% of the requirement from local suppliers. In fact, only 2 sectors Tech M and MTWL source less than 80% of their requirements from local suppliers.
Analysing the Top 10 suppliers as per monetary value for each business, we find that on an aggregate basis 84.93% of the Group's supply is from local suppliers.
     
AD 24,106 24,106
MSat 1,217 1,025
MVML 4,455 4,455
MTWL 2,251 1,420
MMFSL 78 78
MHRIL 107 107
MIL 18,110 14,735
MLDL 537 537
MLL 1,898 1,898
AM-MSB 1,381 1,381
MWC 104 103
Systech 5,623 5,357
Tech M 7,962 967
FD 11,964 11,598
Total 79,794 67,769
 
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