MUMBAI, India and
ARMONK, N.Y., Nov. 30, 2016 /PRNewswire/ -- The Mahindra Group,
one of the largest diversified multinational group of companies
based in India, and IBM (NYSE:
IBM) today announced the development of a blockchain solution that
has the potential to reinvent supply chain finance across
India by enhancing security,
transparency and operational processes.
This cloud-based application, one of the first projects of its
kind in India outside of
traditional banking, is designed to transform
supplier-to-manufacturer trade finance transactions through a
permissioned distributed ledger. The blockchain-based supply chain
finance solution will enable all parties involved in the
transaction to act on the same shared ledger, with each party
updating only their part of the process, ensuring efficiency,
consistency, trust and transparency, while safeguarding sensitive
information.
Invoice discounting, the process of bundling and selling
invoices at a discount, is a major source of working capital
finance for many suppliers. This new solution aims to enable more
suppliers to access credit, with the goal of driving more financial
inclusion throughout the supply chain. Supplier-to-manufacturer
invoice discounting processes have historically been said to be
difficult, slow and risky, requiring each party to maintain and
manually update separate ledgers. Human errors during this process
have been known to create inconsistent records, ultimately
resulting in delayed payments and capital that cannot be
accessed.
"The Mahindra Group is pioneering the use of blockchain to
disrupt its traditional businesses and drive future growth. We are
actively looking at other applications across the Group in
financial services, auto, mobility and
agritech," said Anish
Shah, Group President (Strategy), Mahindra
Group. "This proof of concept represents a
significant step forward in making blockchain, still a new
technology, a more compelling and efficient supply chain solution
for Mahindra Finance's small and mid-sized enterprises loans
business. Working with IBM, we will work to build, test, scale and
refine this solution over time."
Blockchain technology can help enable Mahindra Finance access
transactions recorded on a shared ledger in near real-time,
enabling it to develop and offer new products to small and
mid-sized enterprises. This is a radical process and technology
shift which has the potential to drive business growth into the
future.
"Blockchain is poised to revolutionize business like the
Internet did, and IBM is at the forefront of the revolution. We
offer a comprehensive enterprise-class blockchain solution that is
secure, scalable and reliable. The work with Mahindra has the
potential to fundamentally transform the way businesses interact
with one another and their customers and suppliers, and we're
confident that this engagement can be replicated not just in the
finance industry but across other sectors as well," said
Lula Mohanty, Managing Partner of
IBM Global Business Services, IBM ISA.
IBM is rapidly expanding its blockchain consulting services and
capabilities and actively working with clients to understand what
it takes to make Blockchain ready for business. Through its open
source contributions to the Hyperledger Fabric and its blockchain
services on IBM Bluemix cloud, developers can easily and quickly
develop applications while testing security, availability and
performance of a permissioned blockchain network. IBM is committed
to advancing the science of blockchain, helping to remove
complexity, and making it more accessible and open. Financial
services, supply chains, trade finance and logistics, IoT, risk
management, digital rights management and healthcare are some of
the areas that are poised for dramatic change using blockchain
networks.
About Mahindra
The Mahindra Group focuses on enabling people to rise through
solutions that power mobility, drive rural prosperity, enhance
urban lifestyles and increase business efficiency.
A USD 17.8 billion multinational
group based in Mumbai, India,
Mahindra provides employment opportunities to over 200,000 people
in over 100 countries. Mahindra operates in the key industries that
drive economic growth, enjoying a leadership position in tractors,
utility vehicles, information technology, financial services and
vacation ownership. In addition, Mahindra enjoys a strong presence
in the agribusiness, aerospace, components, consulting services,
defence, energy, industrial equipment, logistics, real estate,
retail, steel, commercial vehicles and two wheeler industries.
In 2015, Mahindra & Mahindra was recognized as the Best
Company for CSR in India in a
study by the Economic Times. In 2014, Mahindra featured on the
Forbes Global 2000, a comprehensive listing of the world's largest,
most powerful public companies, as measured by revenue, profit,
assets and market value. The Mahindra Group also received the
Financial Times 'Boldness in Business' Award in the 'Emerging
Markets' category in 2013. Visit us at www.mahindra.com.
Our Social Media Channels:
Twitter - https://twitter.com/MahindraRise
Facebook - https://www.facebook.com/MahindraRise
About IBM: For more information on IBM Blockchain, please
visit
http://www.ibm.com/blockchain/.
Contact:
Hannah Slocum
IBM Communications
hslocum@us.ibm.com
978-877-0105
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SOURCE IBM