Mahindra Powerol: powering entrepreneurial growth within a corporate group

Abstract

Subject area Corporate Strategy, Vertical integration, Diversification. Study level/applicability Graduate. Case overview The case discusses the evolution, decline and turnaround of Mahindra Powerol, a division inside the large Indian business group, Mahindra & Mahindra (M&M). The Powerol division had its genesis from the then Farm Equipment Sector, when they used the surplus capacity in the tractor manufacturing facilities to produce and sell power generators (Gensets). Powerol capitalized on the rapid growth of the Indian telecommunications sector and the need for power backup at remote locations for the mobile communication towers. Adopting a lean asset model, it transformed the industry ecosystem and grew rapidly. As the telecom opportunity saturated, Powerol performance declined, but quickly rebound as it diversified into other products. As Powerol continues its diversification journey, there are questions about how Powerol can leverage the lean asset model that was their source of competitive advantage in the Gensets market, into other businesses. Expected learning outcomes Introduce the fundamental logic of vertical integration. The case elucidates how and when a firm vertically integrates/outsources its operations. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request Teaching notes Instructional Note and Case consent form.