Mahindra & Mahindra set to invest additional INR 4000 Cr in Chakan plant

Sunday 31 August 2014, 11:07 AM by

Mahindra & Mahindra, India’s premier Sports Utility Vehicle (SUV) manufacturer, is set to go on a spending spree for facilitating expansion of production units. In a recent announcement made by the company, Mahindra & Mahindra is going to make large scale additions to the Chakan production facility, which is located in Pune, Maharashtra. The firm made an announcement that an added expenditure of INR 4000 Cr is going to made to this plant. Incredibly, after the company has invested the INR 4000 Cr over the seven-year period, the total expenditure on the plant is slated to be a colossal INR 8000 Cr.

Anand Mahindra, Chairman of the Mahindra Group, was present at the meeting where the announcement took place and went ahead to thank the official authorities involved. “The Mahindra Group would like to express its deep and sincere gratitude to the Government of Maharashtra for its visionary industrial policies and efficient governance practices. This has prompted us to take the decision to scale up our world class Chakan plant, making Maharashtra a key partner in our growth over the coming years,” he said.

Mahindra & Mahindra set to invest additional INR 4000 Cr in Chakan plant | CarTrade.com
Mahindra & Mahindra set to invest additional INR 4000 Cr in Chakan plant

Mahindra & Mahindra, primarily a manufacturer of SUVs, has produced some of the most successful models in recent years, which have performed exceptionally well in the Indian market. Mahindra Scorpio and XUV500 are two SUVs that have been appreciated by everyone including customers and critics. Other models sold by the firm include Xylo, Quanto and Verito Vibe.

Dr. Pawan Goenka, who is Executive Director at Mahindra & Mahindra, spoke about how the expansion scheme of the firm will help not only the automobile market but the region of Chakan via creation of employment. “We are delighted to announce the next phase of our expansion plans at Chakan and would like to thank the Govt. of Maharashtra for their continuous and unstinted support. I am sure that with this expansion, Mahindra will continue to play an integral part in the development of not only the region of Chakan but the state of Maharashtra, as well as the Indian auto industry in times to come,” he was quoted as saying.

It is being said that the firm is going to make an investment of around INR 4000 Cr, which will be used for development of infrastructure for facilitating fast and efficient production. Other target areas that this expenditure will focus on are product development, conceptualisation and an expanded base for models that will be manufactured at the Chakan plant. Industry experts feel that the biggest benefit drawn by Mahindra & Mahindra in this will be the rise in the volume of production, thereby reducing any sort of waiting for customers or at least diminish it as much as possible.

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