The Hindu : Business : M&M plans additional investment in Chakan

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Tuesday, Apr 01, 2008
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M&M plans additional investment in Chakan

Special Correspondent

Signs MoU with the Government of Maharashtra

— PHOTO: SHASHI ASHIWAL

FRESH APPROACH: Keshub Mahindra (left), Chairman, Mahindra Group, shakes hands with Vilasrao Deshmukh Chief Minister of Maharastra at a function in Mumbai on Monday.

MUMBAI: Mahindra & Mahindra (M&M) on Monday signed a memorandum of understanding (MoU) with the Maharashtra Government to further boost its investment at the upcoming greenfield project at Chakan. The company will invest an additional Rs. 1,500 crore to the already earmarked Rs. 2,500 crore taking the total to Rs. 4,000 crore. This will be utilised towards the development and production of all vehicles slated to be rolled out from the proposed greenfield project.

The new facility will house the manufacture of medium and heavy commercial vehicles, to be produced by the joint venture company — Mahindra International — and other products slated to be launched in the domestic and global markets at strategic timelines.

Jobs for locals

Keshub Mahindra, Chairman, Mahindra Group, said, “M&M’s new investment at the upcoming Chakan facility, besides contributing to the State’s economic growth, will produce jobs for the locals in that region. We have always been at the forefront to add value to the Indian automobile industry.

This project is in keeping with this tradition of mutual growth.”

Pawan Goenka, President, automotive sector, M&M, said, “we are very pleased to expand our activity in the State of Maharashtra. We have decided to make the State the launch pad for our commercial vehicles.

The additional investment plan of Rs. 1,500 crore will allow us to create a world-class manufacturing facility for three lakh vehicles.”

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