Mahindra and Mahindra on Wednesday said it will invest Rs 10,000 crore in the next three years on capex and launching new products. The company is...
Mahindra and Mahindra on Wednesday said it will invest Rs 10,000 crore in the next three years on capex and launching new products. The company is scouting for locations, including options outside its Chakan plant in Maharashtra, to set up its new plant to manufacture new products and will take final decision within this fiscal.
"In the next three years we are investing Rs 10,000 crore out of which Rs 7,500 crore are for capex on automotive and farm equipment and another Rs 2,500 crore investment will be on group companies," Pawan Goenka, President (Automotive and Farm Equipment), Mahindra and Mahindra told reporters on the sidelines of the annual convention of Society of Indian Automobile Manufacturers (SIAM). As part of overall capex, the company is developing two-three new platforms for brand new products which will hit the market around FY-2016."These new products will be rolled out from completely new plant.
Location for which will decided within this fiscal," Goneka said. The company is still in discussion with the Maharashtra government. Earlier, the company had decided to put on hold all investment at its Chakan plant due to VAT refund issues with Maharashtra Government.
Elaborating on new products, he said: "Out of the two platforms, one will be led by Mahindra and Mahindra and its Korean subsidiary Sangyong will also have a vehicle on the platform. The other platform will be led by Sangyong and Mahindra and Mahindra will have a vehicle on the platform." The company is also working on six new engines out of which three be from Mahindra and Mahindra and three from Sangyong. Mahindra and Mahindra is also working on smaller engines with higher power, Goneka said.