Mahindra sharpens focus on scalable growth businesses

The Rs 1.59 trillion Mahindra Group is sharpening its growth strategy by concentrating on a select set of high-potential businesses it believes can deliver outsized returns over the next five years. The refined focus comes amid growing interest in India as a reliable global partner in manufacturing and sourcing, as global firms look to diversify beyond China.

Chairman Anand Mahindra, in his message to shareholders in the company's latest annual report, noted, “China’s adversarial stance may create opportunities for India to position itself as a supply chain alternative.” He added, “The potential exists, but achieving it will require a concerted focus on manufacturing and a palpable increase in private investment.”

The context has become more urgent with China tightening controls over exports of key rare earth materials like gallium and germanium — elements critical to electronics, semiconductors, and defence applications. With global supply networks under stress, Indian industry is being seen as a viable alternative — but credibility, capacity, and consistency will be critical.

In this backdrop, Mahindra is refining its “Growth Gems” framework — a strategic filter for identifying businesses with the potential to scale 5x by FY30. Group CEO and MD Anish Shah said, “We are going deeper where we see the right platforms, scalable economics, and a clear path to leadership. This also means sharper capital allocation and disciplined execution.”

In the auto segment, investments are underway in EV platform development, battery localisation, and charging infrastructure, with export markets in Southeast Asia, Africa, and Latin America also being tapped to widen market coverage.

In renewable energy, Mahindra Susten has outlined plans to grow capacity from 1.5 GWp to 7.0 GWp by FY30. Solar, hybrid, and storage projects will anchor this expansion, financed via the Group’s renewable InvIT to ensure asset-light growth and financial flexibility.

Mahindra Finance is pushing further into rural credit and underserved segments with a digital-first model. New business lines in MSME and affordable housing finance are being developed to diversify risk and boost long-term profitability.

Mahindra Holidays & Resorts India Ltd (MHRIL) is pursuing an expansion plan to double its inventory base to 10,000 keys by FY30. The strategy includes targeted member acquisition, property upgrades, and enhanced experience-led offerings to build stickier customer relationships.

Tech Mahindra is recalibrating for profitability-led growth with an eye on the second half of FY26. Investments continue in GenAI, cloud, and automation platforms, while telecom and BFSI verticals remain core focus areas.

“This is not just about mitigation… It is a moment to proactively pursue growth,” Mahindra said, referencing the churn in the global economic order. “The poison is real — but so is the Amrit.”

With macro shifts aligning with internal realignment, Mahindra Group is betting on tighter focus and disciplined execution to drive its next phase of growth.