Organization Description

Mahindra Spares Business (MSB) is a part of After Market Sector and caters to Spares parts requirement of Mahindra vehicles in use for repair and maintenance.
MSB procures parts from various Mahindra approved vendors and plants across India and supplies to the market through channel partners, whom we consider our valued customers.

Foundation

Mahindra Spares Business (MSB) was established in August 2002 to provide Mahindra customers the best possible and quicker solutions to their Spare Parts needs through our abilities in sourcing, warehousing and distribution. This massive structural change was also expected to bring direct focus on the business potential of the vital operation in terms of turnover and profit.
The formation of MSB has resulted in excellent growth not just in dealer business but also in the bazaar business. It has also helped improve customer satisfaction through increased availability of genuine spare parts in the market even in remote areas and even for vehicles beyond warranty period.
As a part of business expansion, Mahindra Renault Spare Parts Operations (MADL) was annexed with MSB in 2006 to support Logan / VERITO Customers. MSB now Exports to Mahindra USA and other countries. The initial success of the MSB has encouraged the Group management to entrust MSB with spares operation of new businesses like Mahindra Navistar, Mahindra Two wheeler, Mahindra Construction last year.

Milestones

MSB has achieved many milestones from its inception; these are given as follows:

Industry Background

Spares and auto component requirements of the vehicle users in India is met by Original Equipment Manufacturers (OEM) their vendors and a large number of other component manufactures who supply materials in branded or non-branded condition.
With the advent of new technology in vehicles and desire to have more reliable and durable performance, the vehicle owners have started preferring genuine parts. In after market, more and more organized players are setting up workshops which use genuine spare parts cannibalizing the consumption of spurious parts which are generally used by the road-side garages.
In addition, insurance companies are aligning to provide cashless facility through these Service Stations. Impact of GST (General Sales Tax) leading to uniform landing cost will further help the business to grow favorably in the country.

Business Model

The MSB’s business model comprises of highly synergistic interaction with various sectors which manufacture and market vehicles, channel partners, supplier of spare parts and service providers for the warehouse operations and logistics.
MSB model has evolved to help sectors meeting long term business plans and effectively service the customer while maintaining the growth and profitability focus of spares business.
MSB takes responsibility for sales price of product and maximize revenue and profit through efficient warehouse management. It is also accountable for supply for right material at the right time in right quantity.
MSB has outsourced warehouse operations and inbound and outbound logistics while ensuring smooth order fulfillment.
Besides meeting the sector requirement of supplying materials to the dealers and authorized service centers MSB has been able to develop a new channel called Bazaar to serve out of warranty vehicles thru distributors and retailers which has helped to increase market share.

Products and Services

MSB supplies entire range of spares for M & M vehicles in domestic and overseas markets. The product range is maintained and supplied in the market not just for profitability but also for supporting vehicles on road as per the commitment of sectors to end users.
These products are categorized based on vehicle categories, types of sources, level of aggregation, types of aggregate and service requirement.

The basic classification of Spare Parts is based on vehicle categories which are as follows:

• Tractor (FES)
• Utility Vehicles (UV)
• SUVs like Scorpio, Xylo
• Light, Medium & Heavy Commercial Vehicles (MNAL)
• Bottom of Pyramid (BOP) Products like GIO, Alfa, Champion and Maxximo
• Two Wheeler (MTWL)

The product categories based on source supply are as follows:

• Manufactured parts – 14 % by value
• Bought out parts - 86 % by value

MSB deals in Spare Parts which are supplied in following forms:

• Kit
• Aggregate
• Child parts

The spare parts supplied in the market in kit and aggregate form attracts less competition and provides convenience to end users. Over a period, MSB has introduced 315 kits in the market which contributes to 10 % of MSB turnover. Three % of sales turnover comes from sale of aggregates.

Core Customer Value Proposition

Customers prefer Mahindra Genuine parts because of perceived

• Trust
• MSB Procures Mahindra range of Spares Parts only from the approved supplier base and its own plants
• Mahindra Genuine Parts are same as those used in ‘My’ vehicle / Tractor manufacturing
• Reliability
• Mahindra Genuine Parts meet performance and fitment guarantee
• Mahindra Genuine Parts are available to customers through their exclusive channel network of authorized Dealers, Service Centers and Distributors
• Convenience
• Mahindra ranges of Spare Parts are available through nationwide distribution network & CFA facilities.
• MSB provides solution to various customer service requirements (e.g. Kits, Aggregates etc.) than just parts.
• Availability of full range at one counter.

Competitive advantages
MSB has tremendous advantage over other suppliers of parts for Mahindra vehicles because of following reasons:

• Brand Mahindra (Reliable OEM Brand)
• Sourcing of parts from OEM Suppliers
• Established Channel Network
• Complete Product Range

Unique selling proposition
Competitive advantages mentioned above are also unique selling proposition for our customers. "Shaan se becho, sakoon se kharido", which means "Sell with pride and buy peace of mind". Because M&M Genuine spares are supplied by the manufacturer itself, who has manufactured ‘My’ vehicle / Tractor.