Fresh investment planned by Mahindra & Mahindra would take total investment upto INR 8,000 crores which will be directed towards building up of infrastructure, enhanced product development and expansion of capacities for all models produced at the plant. The company plans to increase vehicle manufacturing capacities over the next 18 months from a present 3.20 lakhs to 4.50 lakhs.
The decision to infuse fresh investment comes following a joint declaration signed by M&M and the Government of Maharashtra with Chief Minister Prithviraj Chavan in attendance. It is due to the various industrial policies and efficient government strategies that have allowed to company to take this step to enhance facilities at their Chakan plant.
Mahindra plant at Chakan is from where the company produces its medium and heavy range of commercial vehicles besides the Maxximo, Single and Double Cab Pik-Ups and Mahindra Trucks along with the XUV500 and assembly of SsangYong Rexton.
Mahindra to invest an additional Rs 4,000 crore in Chakan in its next phase of expansion
· Company to boost investment and employment at Chakan, Maharashtra
· Government of Maharashtra confers status of ‘Ultra Mega Project’ to proposed expansion
Mumbai, August 28, 2014: Mahindra & Mahindra, India’s leading SUV manufacturer, today announced, in the presence of the Government of Maharashtra, that it would make an additional investment at its Chakan plant in Maharashtra. As part of its expansion plans, the company will invest additional Rs. 4,000 crore over a 7-year period taking the total investment in Chakan to Rs. 8,000 crores.
A Joint Declaration was signed today by Shri Apurva Chandra, Principal Secretary (Industries), Government of Maharashtra and Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd. in the presence of Shri Prithviraj Chavan, Honourable Chief Minister, Government of Maharashtra, Shri Ajit Pawar, Honourable Deputy Chief Minister, Government of Maharashtra, Shri Narayan Rane, Honourable Minister for Industry, Government of Maharashtra, Shri Sachin Ahir, Honourable Minister of State for Industry, Government of Maharashtra and Mr. Anand Mahindra, Chairman, Mahindra Group, amongst other dignitaries.
Discussing the expansion plans, Mr. Anand Mahindra, Chairman, Mahindra Group, said, “The Mahindra Group would like to express its deep and sincere gratitude to the Government of Maharashtra for its visionary industrial policies and efficient governance practices. This has prompted us to take the decision to scale up our world class Chakan plant, making Maharashtra a key partner in our growth over the coming years”.
Speaking on the occasion, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra said, “We are delighted to announce the next phase of our expansion plans at Chakan and would like to thank the Govt. of Maharashtra for their continuous and unstinted support. I am sure that with this expansion, Mahindra will continue to play an integral part in the development of not only the region of Chakan but the state of Maharashtra, as well as the Indian auto industry in times to come”.
A total of Rs. 4,000 crore will be utilized towards infrastructure development, product development and capacity expansion for vehicles to be rolled out from the Chakan plant. The Government of Maharashtra has conferred the status of ‘Ultra Mega Project’ to this proposed expansion. In addition there will be further investment by suppliers to cater to our increased requirement.