Auto major Mahindra & Mahindra today inaugurated its Rs 5,000-crore new manufacturing plant at Chakan (Maharashtra) that will enable the company to produce its entire range of products under one roof.
The 700-acre facility will have an initial annual installed capacity of three lakh units and will manufacture products ranging from the 0.75-tonne Maxximo to the 49-tonne Mahindra Navistar truck and the sports utility vehicle (SUV) range it plans to launch in the US.
"The plant has been envisioned as the hub of innovation and technology for the Mahindra Group, with several new products, including our new SUV and pick-up line rolling out from here," Mahindra & Mahindra (M&M) President (Automotive Sector) Pawan Goenka said in a statement.
He said the Chakan facility incorporates flexible features, which will allow the company to respond rapidly to changing customer needs.
The company has invested Rs 2,500 crore in the first phase of construction of the plant for a capacity of three lakh units, which will be scaled up to Rs 5,000 crore.
The plant was inaugurated today in the presence of Maharashtra Chief Minister Ashok Chavan and M&M Vice Chairman and MD Anand Mahindra.
Its inauguration comes close on the heels of M&M's announcement to launch nine new vehicles till March next year.
In the initial stages, M&M will make the full range of medium and heavy commercial vehicles from the joint venture with Navistar ranging from 25-49 tonne tippers and trucks. It will also accommodate production of other models if required by the future market demand, the company said.