Mahindra to Expand Operations in Maharashtra, Invest Rs. 8,000 Crore
Published On Feb 16, 2016 02:17 PM By Nabeel
Mahindra is planning on investing Rs. 8,000 Crore in its automotive plants, in Maharashtra. These investments will be made over a period of 7 years. This information was conveyed by Mahindra & Mahindra to the Bombay Stock Exchange (BSE). Pawan Goenka, executive director, Mahindra & Mahindra signed an agreement (MoU) with Apurva Chandra, principal secretary (Industries), Maharashtra, in the presence of Devendra Fadnavis, chief minister, at the ongoing 'Make in India' Week.
The company during a regulatory filing said, "The company plans to make an investment of Rs. 8,000 crore at the automotive plants in Maharashtra as part of its expansion plans." It added, "The investment will be made over a period of seven years and will be utilised towards infrastructure development, product development and capacity expansion for vehicles to be rolled out from the company's plants in Maharashtra." The company currently has plants in Nashik, Kandivali, Chakan (Pune), Igatpuri, Zaheerabad (Telangana) and Haridwar (Uttarakhand).
Mahindra recorded a growth of 10% last month by selling 43,789 units during January 2016 as against 39,930 units sold during January 2015. The Passenger Vehicles segment sold 22,088 units in January 2016 as against 19,573 units during January 2015, recording a growth of 13%. The company’s domestic sales stood at 40,693 units during January 2016 as against 37,045 units during January 2015. Exports for January 2016 stood at 3,096 units as against 2,885 units in January 2015. Speaking on the auto sales performance for January 2016, Pravin Shah, president and chief executive (Automotive), M&M Ltd. said, "We are happy to have achieved a growth of 10% during January 2016 which has been possible due to the demand for our products especially the newly launched KUV100 and TUV300. The ensuing Auto Expo is expected to provide a strong fillip for the auto industry which would be beneficial for all OEMs. We are also hopeful that the upcoming Union Budget will have significant sops for the automotive industry, enabling it to post sustainable growth in times to come. We are also happy to see good growth in MHCV & Exports performances."
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