Mahindra & Mahindra has established an African unit as it believes its business there has the potential to expand to US$1bn in the next five to seven years.
At present, the company records annual earnings of around $150m from Africa.
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Ashok Sharma, Mahindra agriculture business president and group executive board member, will lead the African initiative. Sharma said, “The channel partners, government and the other stakeholders may not be able to understand the impact brand Mahindra can have. When we go as ‘One Mahindra’, then they will be able to see the impact we can have on the local economy.”
Mahindra executive director Pawan Goenka said, “We have multiple businesses in Africa. Instead of each business going independently, we are treating the African business unit as our virtual distributor.”
The company plans to open offices in Kenya, Nigeria and Egypt. It already has one in South Africa.
The new business model will enable Mahindra to have synergies in branding, advertising, service, spare parts, supply chain and distribution.
Andreas Strasser
