The Hindu Business Line : Mahindra to set up unit in Maharashtra

Gearing up
The Maharashtra Government has offered three locations within the Pune district for the project
M&M likely to have 51 per cent or more holding
Plant to have 2,50,000 annual production capacity

MR ANAND MAHINDRA

Mumbai , Jan. 16

Mahindra & Mahindra (M&M) and its joint venture partner, International Truck and Engine Corp (ITEC) of the US, will form a new subsidiary to set up a medium and heavy commercial vehicle plant near Pune at an investment of Rs 2,500 crore, which will be invested in a span of five to six years.

Dr Pawan Goenka, President, automotive sector, said that M&M would have a 51 per cent or more holding in the new subsidiary.

The exact location for the plant has not yet been decided. The Maharashtra Government has offered three locations within the Pune district for the new project.

The new plant will be set on a 700-acre plot that will have an annual production capacity of 2,50,000 units. Of these, 50,000 units will cater to the domestic market for the US joint venture partner while the remaining will be Mahindra products. Production is likely to commence in two years (2009).

According to a press release, the plant will have the capacity to produce a wide range of commercial vehicles, and will include cab assembly, vehicle assembly, and a paint shop. The vehicles will have 90 per cent local content from the start due to the availability of quality parts and materials from Indian suppliers.

Fresh investments

Besides investing in a new plant, M&M announced fresh investments of Rs 750 crore to double and upgrade its existing auto components units.

For the fourth Mahindra automotive plant to be set up in Maharashtra, a memorandum of understanding was signed with the State Government.

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