M&M to set up new facility in Tamil Nadu, invest Rs 1,800 crore

Mahindra & Mahindra is decked up to start its second manufacturing unit in Tamil Nadu with an investment of 1,800 crore. The location selected for setting up this automobile manufacturing plant is Cheyyar, about 100 km from Chennai, known as 'The Detroit Of Asia'. Tamil Nadu houses about a dozen of major auto manufacturers like BMW, Renault, Nissan etc and now Mahindra & Mahindra will try their luck here. This would be the second plant by the M&M, the first being at Chakan in Maharashtra which is also home to Volkswagen manufacturing plant. The company decided to take on Tamil Nadu as the location of new plant after it had some issues with Maharashtra Government.

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400 acres of land is allotted to Mahindra & Mahindra by an MoU signed earlier this year. Along with this, the company is also consolidating on its research and development (R&D) unit at Mahindra World City in Tamil Nadu. 150 acres of the total 400 acres of land would be utilized for constructing a testing facility in the first phase. Pawan Goenka, the President of Automotive and Farm Equipment sector at Mahindra & Mahindra clarified that the plant would be a single line plant which will manufacture only one product as the plant is not big enough to produce multiple products.

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Mr. Goenka also talked about the long term goals of the company. He brought into light that Mahindra & Mahindra will invest 1,800 crore spread over seven years. As of now the company is concentrating on its Chakan plant which is spread over 700 acres and the focus will shift to Cheyyar afterwards. On the front of performance of their products, Mr. Goenka was particularly happy with the sales of Mahindra Verito. After dissociation with Renault, the company worked on the rebranding of Logan and rolled down this model. Mahindra Verito got huge success in Indian market and the sales are souring high. The company is still receiving components like engines and transmission from French manufacturer Renault.Mahindra & Mahindra also has huge expectations with the upgraded electric car Reva and looking forward to its launch. The car would be launched in the last quarter of this financial year.

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