Mahindra Navistar, Mahindra & Mahindra’s joint venture unit with US-based Navistar International Corporation, announced on Tuesday that it is planning to inject a sum of Rs 250 crore at the Chakan plant, to increase the production along with ramping-up the distribution network in the country.
Speaking to the reporters in Mumbai, Mr. Pawan Goenka, Mahindra Navistar director, said, "We have already invested Rs 710 crore at the Chakan unit, out of the total project cost of Rs 1,000 crore. We will be investing around Rs 250 crore in the next couple of years to increase production capacity of HCVs and expand our distribution network."
The Mahindra Navistar is 50:50 joint venture, in which they have Rs 750 crore of equity. According to Mr. Goenka, the company is not making any profits, as their volumes are very small as present. But as the firm ramps up its production capacity, in the next 12 months, it expects cash break-even.
The company is looking forward to have a strong network of 940 service points, spread on the strategic trucking routes. From the current dealership count of 48 dealers, the company plans to enhance it to 100 dealers by year 2013-14.
