The six SBUs of Mahindra & Mahindra
20 Nov 1999
In 1994, the Mahindra & Mahindra management decided that, in order to bring about a focus in the company's activities it was imperative to recast it in the SBU, or strategic business unit, mode. Earlier, the company was organised in functional departments that saw, for instance, a marketing person selling jeeps in the morning and tractors in the evening.
The reorganisation resulted in six core SBUs or sectors being identified. Each such division or SBU was to be put under the charge of a sector president -- who would ‘own’ the sector and be entirely responsible for its performance. In addition, a corporate centre was created, to include some of the company’s brightest staffers, who would pool their efforts to strengthen the work of the sector presidents.
Control is exercised through monthly meetings in the company's war room at Mahindra Towers at Worli in Mumbai.
The six sectors are:
Automotive: which covers the entire range of activities of the erstwhile "jeep" division. This sector is headed by Alan Durante, who has a degree in engineering. Mr. Durante has been with the company since 1962.
Farm equipment: covers the entire range of activities of tractors and tractor equipment. This sector is headed by K. J. Devasia, who has a degree in engineering and has been with the company since 1962.
Trade and financial services sector: which covers the entire trading-, export- and financial services-related activities of the company. This sector is headed by Bharat Doshi, a fellow member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India, and has a law masters to boot and participation in a Harvard Business School management development programme. Having joined the company in 1973, Mr. Doshi is also responsible for the finance and accounts, corporate affairs, legal and IT functions of the company.
Infrastructure development sector: which covers the hotels and property and construction of the company. This sector is headed by Arun Nanda, a fellow of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. He also holds a degree in law. With the company since 1973, Mr. Nanda additionally holds responsibility as company secretary.
Information technology and telecom
sector: which covers the company's forays into the sunrise industries of IT and telecommuniations. These sectors are headed by Ulhas Yargop, who has a management degree from Harvard Business School.
Automotive components sector: which covers the entire acitivities of the company in the componenets business. This sector is headed by B M Kataria.
