Mumbai, Mahindra Chakan, a 700 acre, future-ready facility set up by automaker Mahindra and Mahindra Ltd (M&M) at Chakan, was inaugurated this Saturday by the Maharashtra Chief Minister, Mr Ashok Chavan.

Initially, the plant will have an annual installed capacity of 300,000 units, including 50,000 trucks. This will enable M&M to manufacture its entire range of products ranging from the 0.75-tonne Maxximo to the 49-tonne Mahindra Navistar truck, as also its sports utility vehicle (SUV) range it plans to launch in the U.S. The plant will initially 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. We will manufacture all new products here, including the range that will be exported to the US, Dr. Pawan Goenka, President, Automotive Sector, M&M said.

Rs. 5,000 Cr. will be invested in the first phase of the plant, making this the largest single investment in the Indian auto sector. According to Dr. Goenka, half of this has already been made, while the other half will be invested over the next 18 months.

Built as a green facility, the plant will tap alternate energy sources such as solar energy and waste heat for use in factory operations. This will reduce the consumption of LPG and electricity in the paint shop, in addition to lowering carbon dioxide emissions by 3,500 tonnes at full volume. Upon completion, Mahindra Chakan will be amongst the most eco-friendly auto plants in the world.

M&M Chakan will house paint shops, press shops and body shops, as also an engine plant with an installed capacity of 1,20,000 engines for utility vehicles and 40,000 engines for trucks. The facility employs around 1,400 people at present. At full capacity, the plant will provide 5,000 direct jobs and five times as many indirect jobs.

Notes to Editor

About The Mahindra Group

Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $6.3 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world and has made an entry in the two-wheeler segment, which will see the company emerge as a full-range player with a presence in almost every segment of the automobile industry.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

Mahindras Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute ranked Mahindra among the top 10 Indian companies in its Global 200: The Worlds Best Corporate Reputations list.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.