Publications
Publications
- July 2016
- HBS Case Collection
Mahindra Tool: Project Economics
By: Joseph B. Fuller and Christopher Payton
Abstract
The case describes Mahindra Lifespace Developers’ (MLDL), a unit of Indian conglomerate Mahindra and Mahindra, foray into the affordable housing segment. MLDL sees a huge opportunity in selling apartments to the burgeoning population of urban workers, which is badly underserved. Hoping to draw on skills developed in building higher end residential projects and industrial parks, MLDL aims to have fifteen projects of one thousand units each under construction when it reaches scale. MLDL’s CEO, Anita Arjundas, launches two projects to test the business hypothesis. The results are discouraging. What lessons can she draw from the results? Were the tests sufficiently definitive for her to alter her strategy and endure what she describes as a “bitter defeat.” The case provides a vehicle for discussing how to develop and assess tests in high fixed costs, long lead time environments. It also describes a large corporation’s efforts to develop a major new, entrepreneurial business and the challenges involved in implementation. The case also touches on interesting issues of a leading company's role in addressing a glaring societal need.
Keywords
Business Conglomerates; Business Startups; Development Economics; Developing Countries and Economies; Corporate Entrepreneurship; Social Entrepreneurship; Housing; Emerging Markets; Business and Government Relations; Human Needs; Social Issues; Urban Development; Real Estate Industry; India
Citation
Fuller, Joseph B., and Christopher Payton. "Mahindra Tool: Project Economics." Harvard Business School Spreadsheet Supplement 317-701, July 2016.
About The Author
