The Hindu : Business : M&M plans Rs. 1,000 cr. investment on expansion

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Saturday, Sep 09, 2006

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M&M plans Rs. 1,000 cr. investment on expansion

Special Correspondent

Proposal to set up assembly units in Russia and Malaysia

NEW DELHI: Mahindra and Mahindra plans to invest Rs. 1,000 crore on capacity expansion over the next three years in the automotive division as well as on engine development. It is also set to launch a new Scorpio model by the end of 2008.

Disclosing this here on Friday, M&M President, Automotive Sector, Pawan Goenka, said the company proposed to set up assembly units in Russia and Malaysia.

Of the total investment, he said, Rs. 550 crore would be utilised in the Nashik plant and the balance would be for product development. The company was considering capacity expansion in the Uttaranachal plant, while its assembly unit in Egypt was to launch production by the end of the current financial year. This unit, he said, would produce the Scorpio model with a capacity of about 5,000 units annually. It would be used as a base for exports to West Asia, he added.

Mr. Goenka said a final decision on setting up assembly units for the Scorpio in Russia and the Scorpio Pick-up in Malaysia would be taken by December. Development of the hybrid Scorpio had been intensified and it was expected to be launched within two years, he said.

Referring to M&M's medium and heavy commercial vehicle venture with Intec, he said production was expected to start by the end of next year.

The trucks were meant for a market similar to India like South Africa, he said.

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