Mahindra & Mahindra has revamped its strategic sourcing unit (SSU) to ensure speedier parts supplies to its vehicle and tractor divisions, with a greater emphasis on electrical, electronic components, and software, according to an internal circular sent to workers.
The action comes at a time when the XUV700 and Thar manufacturers have been struggling to match production with demand due to a scarcity of essential parts. Robust demand for its new SUV lineup increased the company’s order book to 292,000 units as of May 1, 2023.
The reorganization will allow the company to capitalize on shared AFS (auto and agricultural sector) sourcing scale while also providing proactive and collaborative sourcing support to each of the business units for future growth.
The company established three distinct divisions as part of the changes: one for the sourcing of common commodities for the auto and farm sectors, another for the auto sector, and the third for sourcing of electrical and electronic parts and software for all businesses, including auto, farm, and last-mile mobility.
R Veeraraghavan will be in charge of sourcing for FES (farm equipment sector) and AFS common commodities. Casting, forging, steel, and tyres are all common goods. Ritesh Agrawal will look after sourcing for Mahindra’s car division, which comprises the truck and bus divisions as well as construction equipment.
Ashish Jangale will be in charge of the car and last-mile mobility business’ sourcing for electric and electronic parts, software, and ePT (electronic powertrain). Shailesh Pednekar, who manages asset management, will now oversee capital budgeting and monitoring as well.
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