Mahindra to set up new tractor facility in South India
Mahindra & Mahindra said it will set up a new tractor facility by 2012-13 fiscal with a production capacity of up to 100,000 units per annum, for which it is looking at South India including Tamil Nadu.
Mr Pawan Goenka president (Automotive and Farm Sector) of Mahindra & Mahindra told reporters that "We are running out of capacity in India and we are looking to set up a new plant, possibly in South India as we don't have any facility in that region. Tamil Nadu is one of the potential states."
Mr Goenka said that "We are looking at a capacity of 100,000 units from the new plant." But he did not disclose the exact investment that will go into the new plant.
Mr Goenka said that "M&M had announced a INR 4,500 crore CAPEX for next three years and the investment for the new tractor plant is included in this. The facility will by ready by 2013 fiscal."
The company currently has four facilities in Nagpur, Mumbai, Jaipur and Chandigarh with a total production capacity of 200,000 units annually.
The firm had sold 165,633 units of tractors in the domestic market in last fiscal as compared to 112,695 units in 2008-09, registering a jump of 46.97%. It sells a range of products between 16 horsepower and 75 horsepower category.
(Sourced from ET)
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