India's home-grown company, Mahindra & Mahindra recently announced its plans for expanding base in India by investing Rs. 10,000 crore in the next three years out of which a sizeable amount will be taken out for setting up a new plant. At the company's annual general meeting, the Managing Director of company, Anand Mahindra was quoted as saying “We are bullish about our future and will continue on our path of investing in that future. We are planning Rs. 10,000 crore investment in the next three years, including a new auto plant."
Further adding to the above statement, he said "Our past experience suggests this will pay dividends. In 2008, when the economy was slowing down, M&M was one of the few companies that continued to invest; and that investment is one of the major reasons why we significantly outperformed the industry over the last two financial years. And today as well, despite the difficult situation, we will continue along our investment path, not only in capacity building but also in R&D." However, on being asked about the details of the proposed new plant, Mahindra did not gave any information about it. Talking about the feasibility of the investment he said "We will invest with an even greater focus on the frugality and efficiency of that investment. Mahindra Group is well prepared to take on a challenging environment."
Mahindra also stressed on the fact that Indian economy is going through a repressive phase with rising fuel costs, de-valuation of Rupee against Dollar and increasing inflation diminishing the growth rate. Further talking about the falling value of Rupee, he said that it is a major concern and needs to be addressed as soon as possible in order to give the auto Industry the much needed boost it requires now. However, he also said that with de-valuation of Rupee against Dollar, the rising valued of latte works in favour of IT Industry and export sector.
He later said that the falling Rupee will attract more investment and capital from NRI businessmen in the real estate sector. Stressing on the need for promoting exports, he was noted as saying that as India is a export powerhouse it needs to create more Special Economy Zones, which can contribute to taking exports to a new level.
Commenting on the stagnant growth of economy, Mahindra said amidst the slowdown, a glimmer of hope on the horizon still lies ahead. He told that if the agriculture sector performs well this monsoon season then food inflation would eventually decrease and the personal income of rural masses might increase, which can very much stimulate the demand for goods and services.
Meanwhile, Mahindra and Mahindra posted an increase of 29 per cent in its net profit for the quarter, which ended in June. The sector that contributed to this rise was the utility vehicle and tractor segment. The company made amends for the fall in the passenger car sales through its tractor sales.
