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Industry Needs Capital Investments: Anand Mahindra Addressing shareholders in the company's annual report for 2023-24, the industrialist emphasized the role of geopolitics and economic linkages in the post-COVID era which has strengthen India's position

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Anand Mahindra, Chairman of Mahindra & Mahindra Ltd, has emphasized the importance of capital investment in order to take advantage of the growth opportunities in India and abroad.

Addressing shareholders in the company's annual report for 2023-24,the industrialist said that the interplay of geopolitics and economic linkages in the post pandemic world has seen India's position strengthen. "How can we, in private industry, ensure that we ride this upsurging tide? ..In the spirit of 'ask not what your country can do for you; ask what you can do for your country', I would argue that the most important thing industry can do at this critical juncture is to increase private investment," Mahindra said.

There is a good supply of labour and the need for jobs for young people is high. "Externally, too, conditions are working in our favour. It's time to seize the day. I would argue that the most important thing the industry can do at this critical juncture is to increase private investment. Private capital investment is the key to capitalizing on this opportunity. It's a key driver of growth, jobs, and demand," he said.

After the economic reforms of the 1990s, it rose from around 10 per cent to around 27 per cent of GDP. However, from 2011-12 onwards, private investment as a percentage of GDP has been falling, "We need to remedy that situation," said Mahindra.

The company saw volumes increase by 18.1 per cent in total automotive volume in FY24, with a 20.4 per cent market share in SUVs and a 41.6 per cent market share in farm equipment. The automaker has also announced an investment of INR 37,000 crore across all its segments.

"We have already announced an investment of INR 37,000 crores across our auto, farm and services businesses (excluding Tech Mahindra) in F25, F26 and F27. These investments will, to a large extent, go towards building capacity, with a pipeline of 26 new models/ facelifts in the next five years," he explained.

The contribution of services businesses (Mahindra Finance, Tech Mahindra and growth gems) to M&M's net cash generation was almost INR 7,000 crore over the FY22-FY24 period.

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