In an attempt to boost manufacturing capacity, auto major Mahindra & Mahindra on Friday announced its plan to establish its biggest-ever production hub for automobiles and tractors in Nagpur district of Maharashtra.
The company is prepared to invest ₹15,000 crore over the coming decade to set up this facility.
"The state-of-the-art facility will be developed across an area of 1,500 acres in Vidarbha, complemented by a 150-acre supplier park in Sambhajinagar," the Mahindra Group said in a statement.
"The facility will have an annual production capacity of over five lakh vehicles and one lakh tractors, making it Mahindra's largest integrated manufacturing footprint in the country," said the statement.
The company made the announcement during the "Advantage Vidarbha" summit in Nagpur. A memorandum of understanding (MoU) was signed between the Maharashtra government and Mahindra & Mahindra in this regard.
Supplier Park in Sambhajinagar
Additionally, Mahindra is developing a 150-acre supplier park in Sambhajinagar. This hub will produce components for the upcoming Nagpur plant and the firm's current plants in Chakan and Nashik.
This strategy is designed to assist the firm in collaborating more tightly with its associates and producing more parts domestically.
According to the company, the Nagpur site will be outfitted to manage next-generation vehicle designs. It will be capable of producing conventional gasoline and diesel engines, electric cars, and additional prospective technologies.
The firm is obtaining additional land in the Igatpuri-Nashik zone to boost its motor manufacturing and facilitate its sophisticated technology initiatives.
Rajesh Jejurikar, Mahindra & Mahindra's Executive Director and CEO (Auto and Farm Sector), characterized the roadmap as "a bold step forward" for the organisation. He observed that the site is "designed to support our next generation of vehicles and tractors" by merging sophisticated manufacturing with massive-scale output.
Jejurikar also stated that the initiative will help the firm "deliver world-class products" while bolstering the "Make in India" campaign.
The Vidarbha territory was selected due to its robust logistical connections. The site will possess convenient proximity to the Samruddhi Expressway and primary railway routes, simplifying the distribution of units to both domestic and global markets.
Welcoming the move, Maharashtra Chief Minister Devendra Fadnavis said the investment is a "strong endorsement of the state's robust industrial ecosystem".
"It will be an integrated factory, which will manufacture EV cars, next-gen cars and tractors," the CM said.
The project will create many jobs and help the Vidarbha region grow faster, Fadnavis added.
Jejurikar said the company has experienced people and gets support from the state government.
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