M&M to set up biggest manufacturing unit in Vidarbha with ₹15,000 crore investment

Mahindra and Mahindra Ltd. on Friday, February 6, said it plans to set up its largest-integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra.

The 1500-acre area in Nagpur’s Vidarbha, alongside a 150-acre supplier park in Sambhajinagar, will be equipped to produce over 5 lakh vehicles and 1 lakh tractors once it becomes operational in 2028. 

This is part of the company’s broader plans to invest ₹15,000 crore in the next decade to acquire over 2000 acre across three locations to expand manufacturing.

M&M has its hopes pinned on the upcoming facility to manufacture traditional internal combustion engine (ICE) vehicles, electric vehicles (EV), and support evolving tech in automobiles. 

The plant, featuring advanced automation and digital manufacturing systems, the group’s focus on innovation, quality and sustainability, the company said in a release.

Maharashtra Chief Minister Devendra Fadnavis remarked that the investment will generate significant employment and accelerate regional development in Vidarbha and surrounding areas.

M&M also said Vidarbha was chosen for its strong connectivity via the Samruddhi Expressway, rail links, and access to domestic and export markets, alongside a growing industrial ecosystem. The Sambhajinagar supplier park will support the manufacturing value chain and supply components to the new Nagpur facility as well as Mahindra’s existing plants at Chakan and Nashik.

The automaker has further plans to acquire land in the Igatpuri-Nashik region to expand product and engine capacities and support the growth of its advanced technology business.

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., said, “This facility represents a bold step forward in Mahindra’s manufacturing journey. Designed to support our next generation of vehicles and tractors, it brings together scale, flexibility.”

More recently, the company posted strong double-digit growth in earnings for the third quarter ended December 2023. Net profit rose 61% year-on-year (YoY) to ₹2,454 crore from ₹1,528 crore in the year-ago period. Revenue and EBITDA also rose 17% and 15%, respectively.

M&M shares were down 0.12% at ₹3,567.8 apiece around 2.30 pm on Friday. The stock has gained 13.6% in the past year.

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