M&M to invest Rs 400 cr on tractor capacity hike, new products

With an eye on giving a boost to its farm equipment sector business, Mahindra & Mahindra Ltd today said it would invest Rs 400 crore in the next two to two-and-half years on capacity expansion, including a greenfield plant, and development of new products.

New Delhi, Oct 05: With an eye on giving a boost to
its farm equipment sector business, Mahindra & Mahindra Ltd
today said it would invest Rs 400 crore in the next two to
two-and-half years on capacity expansion, including a
greenfield plant, and development of new products.

"We have been gradually increasing our farm equipment
manufacturing capacities of our different plants and in the
next two to two-and-half years, we will invest Rs 400 crore on
these and new product developments," Mahindra & Mahindra Ltd
president farm equipment sector A Choudhari told reporters
here.

He said the capacity expansion would include setting up
of a greenfield plant, for which the company is currently
scouting for location.

"There are about two to three possible locations and we
are talking to state governments," he said without disclosing
details.

The company expects the new plant to have a minimum
annual production capacity of 40,000 units of tractor, he
added.

"We expect the new plant to be operational in the next 18
to 24 months," Choudhari said, adding in the next few months,
the production from its Jaipur facility will go up to 15,000
units from the current 10,000 units, while that of Nagpur
plant was being increased up to 50,000 units.

The company will also be hiking the production capacity
at its Rudrapur plant to 39,000 units, he added.

Choudhari said M&M expected to end this year with a
production capacity of 1,20,000 units.

Bureau Report

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