M&M to invest ₹100 crore, double jobs at Telangana plant by 20242 min read . Updated: 17 Nov 2020, 03:57 PM IST
- Mahindra & Mahindra plans to produce the new K2 series of tractors at the unit.
Mumbai: Mahindra & Mahindra Ltd. (M&M), India’s largest tractor manufacturer, plans to invest an additional ₹100 crore at its Zaheerabad plant in Telangana to gear up to produce the new K2 series of tractors at the unit, the company said on Tuesday.
Touted as M&M’s most ambitious tractor programme, the K2 series is going to be a range of lightweight tractors under development involving four platforms and 37 models across various horsepower and application categories such as sub-compact, compact, small utility and large utility.
M&M also said that while expanding operations at its Telangana unit, it plans to double the employment by 2024.
The company, which also is the only tractor manufacturer in Telangana, has already invested close to ₹1,087 crores at the said facility in Zaheerabad, where the farm equipment-manufacturing unit employs more than 1,500 people. The unit has a current annual production capacity of about 100,000 tractors on a two-shift basis.
Setup in 2012, M&M produces the Yuvo, Jivo as well as the recently launched Plus series of tractors at its Zaheerabad unit.
While the K2 range of tractors would be exclusively produced at the company’s Zaheerabad plant, the company did not disclose when it plans to commence the production of the same.
M&M said that the K2 series is being developed by the engineering teams of Mitsubishi Mahindra Agricultural Machinery of Japan and Mahindra Research Valley in Chennai.
“The K2 series aims to create a lightweight tractor program for both domestic and international markets including USA, Japan, and SouthEast Asia," the company said in a note.
“One of the most remarkable features of Telangana‘s investment landscape over the last six years is a series of repeat investments by our existing investors. The new investment by M&M is one such example," said K.T. Rama Rao, minister for IT, industries, MA & UD, government of Telangana.
According to Rajesh Jejurikar, executive director, automotive and farm equipment sector, M&M, the K2 project is focused on diversity and scalability to meet the varied expectations and different regional requirements of customers and markets across the world.
“Our Zaheerabad facility, which has always received tremendous support from the government of Telangana, is very well equipped to meet this challenge and we hope to substantially improve employment opportunities through this project," he said.
M&M produces over 330 tractor variants ranging from 30-100HP at Zaheerabad, with about 65% of all tractors produced exported overseas. Besides tractors, the company also produces farm equipment, such as rice transplanters and tractor-mounted combine harvesters.