The Hindu : Business : M&M to set up tractor unit in Chennai

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Tuesday, Apr 08, 2008
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M&M to set up tractor unit in Chennai

K. T. Jagannathan

CHENNAI: The Mahindras have decided to set up a tractor plant in Chennai, adding one more feather to Tamil Nadu. The Mumbai-headquartered industrial house will also be setting up an automotive plant.

The move assumes considerable significance, coming as it does in the wake of their pull-out from a proposed three-way car joint venture between Mahindras, Renault and Nissan. Since their (Mahindras) disengagement from the joint venture, the other two had gone ahead and announced a modified two-way car project.

Pawan Goenka, President (Automotive Projects), M&M, told The Hindu that the tractor project would start straightway once the land was obtained. Construction work on the automotive project would, however, begin two-and-a-half years hence, he added. Mr. Goenka said the Mahindras had to find the land for the projects. He said the group had already initiated discussions with the State Government for land allotment.

Asked about the capacity of the tractor project, he said it could be around 50,000 tractors a year. He expected the tractor project to go on stream in 18 months from the zero date. The proposed tractor plant would make a range of tractors, he said. Asked further to elaborate, he merely said “we have not defined the project as yet.”

Mr. Goenka said the Mahindras would be keen to have both the projects in adjacent locations.

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