Mahindra aims to invest Rs 5,000 cr in next 3 yrs

The company is ambitious to explore new locations for expanding capacity

Auto major Mahindra & Mahindra (M&M) plans to invest Rs 5,000 crore over the next three years towards infrastructure upgradation, product development and capacity expansion.

The company is also planning to introduce 8-10 new variants and upgrades of its products this year.

"Adding new products is a continuous process...We have grown consistently over the last few years. We plan to invest Rs 5,000 crore over the next three years to continue this momentum," M&M Chief Executive - Automotive Division Pravin Shah told PTI.

He added the investment will be made to enhance capacity and infrastructure as well as development of new products.

Talking about new manufacturing units, he said the company is exploring new locations for expanding capacity.

"We are introducing new vehicles, new models and so, expansion of capacity has to happen. We are in conversation with the Maharashtra government and if we get the things (incentives) we are looking for, then we will expand the capacity there itself," Shah said.

M&M is also aggressively and extensively looking at other locations, he added.

The Mumbai-headquartered firm has two manufacturing units at Zaheerabad and Haridwar and another four units in Maharashtra at Igatpuri (engine plant), Nasik, Chakan and Kandivali.

On the industry, Shah said the vehicle segments like SUVs, MPVs and UVs are growing at a higher pace than other categories.

"SIAM has predicted that the car sales would grow 5-7% this year. On the other hand, the products like UVs, SUVs and MPVs are growing at a stronger pace," he said.

Last month, M&M reported 13.77% decline in total sales at 42,685 units. The company had sold 49,503 units in the same month previous year.

Its sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, stood at 19,792 units during the month as against 26,555 in January 2013, down 25%