Mahindra to set up new plant in Tamil Nadu

Mahindra & Mahindra has chosen the state of Tamil Nadu to set up a new manufacturing unit. An official statement regarding the same is expected to be made in June, after the general elections in the country are over.

The new plant, which will be the company's seventh is expected to start operations by 2015-16. The company plans to invest Rs. 4,000 crore in the next 7-8 years for a new line of products, which will be rolled out from this facility. It is a part of the Rs. 10,000 crore investment that Mahindra has announced for the expansion of production capacity and new product development.

At the moment, Mahindra is reported to be in the process of signing a Memorandum of Understanding with the Government of Tamil Nadu for the new plant. Though there is no official word on it, the facility is believed to be located at Cheyyar in Southern Tamil Nadu. Spread over 400 acres, this plant will be used to manufacture upcoming products like the S101 compact SUV, W202 global MPV and P601 LCV, which is expected to replace the Maxximo.

Mahindra has already invested Rs. 600 crore in the Mahindra Research Valley, an R&D facility that employs about 2,500 people and is located near Chennai.

Source: Financial Express