M&M's tractor plant in AP goes on stream

Shared values to help businesses survive, says chairman and managing director Anand Mahindra

Only thosebusinesses that understand the shared values would survive and thrivein the 21st Century, said Anand Mahindra, chairman and managing director ofthe $16-billionMahindra & Mahindra group on Wednesday.

Mahindra took part in the inauguration of the company's new tractor plant at Zahirabad in Andhra Pradesh, touted to be Asia's largest with a capacity of 100,000 unit, and the first unit in South India.

Terming the plant as a significantmilestone in the company's journey, Mahindra said the new plant was indeed a templeto the companys philosophyof creating shared values.

We have to acknowledge that today around the world and not just in India there is a widespread dislike and distrust on large corporations and business in general.Unfortunately, even in India increasingly big businesses are seen more as a big bad wolf, he said.

Businesses that make a profit but at the same time make a positive impact on the lives of those they work with and those they serve will be the leaders of the future, according to him.

Mahindra has invested about Rs 300 crore in the tractor manufacturing plant with many environmental-friendly features, including zero discharge facility adjacent to the existing small truck and SUV unit located some 100 km from the state capital.

Built in 18 months, the factory, however, will start producing 1,000 units a monthand expects to utilise the full capacity in four years owing to the steep dip in demand for tractors since last year.

Responding toa suggestion of chief minister N Kiran Kumar Reddy, who inaugurated the facility, Mahindra announced to partner with the AP government in developing a world city project in the state besides joining hands with the government in skill development endeavour. Itcommands over 40 per cent marketshare in tractorsales in India.

May consider one more plant in AP
The company may consider setting up a passenger carrier plant in AP. Pawan Goenka, president of automotive and farm equipment division of Mahindra, while responding to a request made by industries minister J Geeta Reddy, said they would respond to the request soon.

Geeta Reddy said the company was understood to be planning a four-wheeler passenger carrier and truck plant. She requested Anand Mahindra to establish the new unit also in AP.