Mahindra & Mahindra (M&M), the home-grown automajor, is planning to invest a massive sum of Rs. 4000 Crores in order to set-up a new production facility in Tamil Nadu. The new manufacturing unit would wheel out the future company products, which include three all-new SUVs. The state government has assured Mahindra for the allocation of 255 acres of land in Cheyyar in Kancheepuram district for the proposed facility.
"Our investment will be Rs 4,000 crore in two stages. It will be spread across seven years. In the first phase, we will set up the test track facility. Second will be an automotive plant," Executive Director of Automobile Division, Pawan Goenka told reporters here. "We have been promised that the land will be allocated very soon. The MoU will be signed during the Global Investors Meet (in May this year)", Goenka, who was here to participate in the curtain raiser for the meet, said. "After land has been alloted to us, immediately, we will start off with the test track facility. After that we will set up the automotive factory. But, it depends on how the auto industry grows," he said.
"This is a future plant. As we develop new products, those products will come from this plant. It will be for both domestic and exports", he said. While asked about what he expects from the union budget, which would be out at the end of this month, he said, "There has to be a clear roadmap for GST (Goods and Services Tax). We are also expecting policies on 'Make in India' concept. It has been talked about. It is not specific to auto industry. If there is an impetus on 'Make in India', that will certainly help all companies that are involved."