Mahindra and Mahindra to invest Rs 550 crore

After Tata-Fiat and General Motors which entered Mahashrta a month back, its time for Mahindra and Mahindra to announce fresh capacity additions in Maharashtra.

Through a new vehicle plant and auto ancillary unit, Mahindra & Mahindra, the major utility vehicle Company, is enlarging its base in Maharashtra.

The company is investing Rs 550 crore to set up these facilities near its manufacturing unit in Nashik.

Mahindra & Mahindra today signed a memorandum of understanding (MoU) with the state government of Maharashtra to set up a Rs 550 crore project, code-named Ingenio.

The plant will manufacture the company’s new multi-utility vehicle, code named as Ingenio. The upcoming multi-utility vehicle is likely to hit the roads in 2008. Owing to the additional investment, the production capacity of the existing plant in Nashik will increase to 1, 50,000 vehicles per annum and will provide employment to over 500 people.

Mahindra and Mahindra have two plants in Maharashrta for the manufacture of tractors and sports utility vehicles. It also has an engine unit set up in Maharashtra. The leading automobile manufacturer has a three-wheeler manufacturing facility at Haridwar in Uttaranchal and a commercial vehicles division at Zaheerabad in Andhra Pradesh.

The company also wants to have its own component supplier and the auto ancillary unit will not only furnish company’s growing requirements, but will also help in tapping the very palmy export market.

The company has traced plans to export auto components worth a $1 billion through its joint venture with US-based International Truck & Engine Corporation.

The MoU was signed by secretary of the government of Maharashtra, V K Jairath, and Pawan Goenka, president of Mahindra and Mahindra. It was signed in the presence of Chief Minister of Maharashtra, Vilasrao Deshmukh and the chairman of Mahindra and Mahindra, Keshub Mahindra.

Goenka said that their decision to set up a plant in Maharashra depicts the faith that they have in the state. He also said that the state is a huge reservoir of skilled and technical manpower which will prove to be beneficiary for the company.

The Company is a market leader in the Utility Vehicle segment. The Company is also the first Indian auto manufacturer to launch CRDe (common rail diesel engine) technology in India, offering it in the Scorpio. The Company enjoys a share of around 45% in the UV segment today. The Scorpio is Mahindra Automotive Sector´s brand mascot while the Bolero is India´s largest selling UV brand.