Mahindra Group plans Rs 40K cr investment in Karnataka over next few years

Mahindra Group is planning an investment of nearly Rs 40,000 crore in Karnataka over the next few years, said Anand Mahindra, chairman of Mahindra Group, at the Invest Karnataka 2025 summit.

 

He said Karnataka plays a vital role in the organisation’s renewable energy portfolio. Mahindra Susten, the group’s renewable energy arm, intends to invest Rs 35,000 crore to develop over 5 GW of solar and hybrid projects over the next five years, generating 6,000–8,000 new jobs.

 

Mahindra Holidays already operates several resorts in Karnataka and is evaluating further expansion into areas like Gokarna and Hampi.

 

“We intend to invest a further Rs 1,000 crore and are in talks with government officials, and I look forward to their support, particularly regarding land aggregation,” said Mahindra.

 

Mahindra told Karnataka Chief Minister Siddaramaiah that industry status for tourism and single-window clearance would be very helpful. He said Mahindra Defence Services and Mahindra Aerospace are both looking at strategic expansion opportunities in the state, worth several hundred crore.

 

As a key step in the organisation’s mission to electrify India’s last-mile logistics industry, Mahindra said Karnataka is the hub for its ambitions to stay the market leader in the E3W (electric three-wheeler) space. This includes 60 patent applications, 54 trademarks, and 10 design registrations.

 

“Our last-mile mobility is deeply entrenched in the state with its R&D, product development, and manufacturing units,” said Mahindra.

 

Mahindra Lifespaces, the group’s real estate arm, is developing projects worth over Rs 5,000 crore in Bengaluru and plans to develop projects worth another Rs 6,000 crore in the near future.

 

“Our projects are industry-leading net zero energy and net zero waste homes, and our customers love them. We are committed to maintaining Bengaluru’s vibrant ecosystem through these green homes,” he said.

 

Lessons from coffee plantation

 

Mahindra recalled that the state of Karnataka is deeply entwined with memories of his childhood because his family is closely connected with Kodagu.

 

“My parents were enchanted by the beauty of Karnataka and wanted a base here where their children could be close to nature,” he said.

 

He spent a lot of time in the late sixties in Kutta village near Nagarhole, where his parents took on the challenge of developing a working coffee plantation from scratch. There, he learned the basics of growing coffee simply by observing what was going on.

 

“I was a child at that time, but in retrospect, I now realise that those years on the coffee plantation were definitive ones,” said Mahindra. “Watching the coffee grow taught me life lessons that have defined my life as an adult and a business leader.”

 

Mahindra shared three major lessons that he has carried over from coffee growing. First, successful coffee growing requires the bushes to be carefully planted and deeply rooted. The same applies to personal and business relationships. They also need to be firmly and deeply rooted.

 

Another essential element of coffee growing is that the plants need help to grow. The coffee bushes are nurtured and protected by growing them under the shelter of shade-giving trees.

 

Mahindra said people and businesses, too, grow best when nurtured and protected by those who can provide the necessary shade and support.

 

Thirdly, growing up on the plantation taught Mahindra the virtues of patience. Coffee does not give returns overnight. It takes at least five years for the first harvest—five years of toil and care. “But it teaches you to have faith in the future, to believe that your hard work will pay off. The returns are worth the long gestation period—whether in life or in business,” said Mahindra.

 

In many ways, he said the Mahindra Group’s relationship with Karnataka mirrors the lessons he learned on that Kodagu coffee plantation.

 

“First, our involvement with Karnataka is firmly rooted and deeply intertwined. Most of our major businesses, including the jewels in our corporate crown, like auto, IT, farm equipment, financial services, and hospitality, have operations here,” he said. “The group employs over 25,000 people directly. Second, our relationship has flourished over the years thanks to the nurturing, encouragement, and support provided by the Karnataka government.”

 

He said policies such as the ‘New Industrial Policy’ and the ‘GCC Policy’ showcase this supportive outlook.

 

“This approach to business gives us faith in our future here. We have no hesitation in investing in long-gestation businesses like renewable energy, aerospace, hospitality, and real estate in Karnataka,” said Mahindra. “The lessons of the coffee plantation are proving to be invaluable as we move into the future.”