Utility vehicle and tractor major Mahindra & Mahindra today announced plans to invest around Rs8,600 crore over the next five years, in various projects, even as the company reported a 40.30 per cent jump in its quarterly net profit.
M&M posted a net profit of Rs562.39 crore for the fiscal first quarter (April-June 2010-11) against Rs400.85 crore in the corresponding quarter of the previous financial year (April-June 2009-10).
Total income of the company increased 21.63 per cent to Rs5,160.10 crore during the April-June 2010 quarter from Rs4,242.59 crore in the year-ago quarter.
"We have earmarked around Rs8,600 crore for the next five years", said Pawan Goenka, president (automotive and farm equipment), adding that a major chunk of Rs5,600 crore of this would be invested in the Chakan plant.
M&M said it has a current surplus of about Rs2,500 crore while its total debt, including foreign currency, was about Rs3,000 crore.
The Chakan plant, originally estimated to cost around Rs4,500 crore over a three-year period, would manufacture a range of M&M products, including the 0.75-tonne Maxximo, the 49-tonne Mahindra Navistar truck and the sports utility vehicle (SUV) range that it plans to launch in the US, under one roof.