M&M plans Rs5,000-crore expansion projects in three years
28 May 2009
Utility vehicle major Mahindra & Mahindra (M&M), plans to invest Rs5,000 crore in expansion projects over the next three years, a top company official said.
"We plan to invest Rs5,000 crore in the three-year period from financial year 2008-09 to 20011-12 and launch several new vehicles," M&M president-automotive Pawan Goenka said at a press meet in Pune.
He said the company will invest Rs2,500 crore in its Chakan plant, which will have a capacity to manufacture 250,000 vehicles.
Besides, he said, M&M will launch some models in the four-wheeler category by the third quarter of the current fiscal and medium heavy trucks by the fourth quarter.
"We are also manufacturing a new premium SUV from this plant," Goenka said, adding that the development of its third SUV will cost Rs600-700-crore.
The company has also tied up with 300 dealers in the US for its proposed SUV launch. Exports to the US will start by end of FY10, he said.
Mahindra and Mahindra today announced its financial results for the quarter ended 31 March 2009 and the audited results for the year ended 31 March 2009 for the Mahindra Group.
Gross revenues and other income of Mahindra & Mahindra Ltd for the quarter ended 31 March 2009 stood at Rs4,171.6 crore as against Rs3,666.3 crores during the corresponding period last year – a growth of 13.8 per cent. Net profit before tax from ordinary activities for the quarter rose to Rs508.6 crore as against Rs304.8 crore in Q4 last year – a growth of 66.9 per cent. After providing for tax, the same is Rs418.1 crore for the current Q4 as against Rs221.1 crore in the same period last year – a growth of 89.1 per cent.
The Punjab & Haryana High Court, meanwhile, approved the scheme of arrangement for the merger of Punjab Tractors Ltd (PTL) with the company during the current quarter and the company has given effect to the same with effect from 1 August 2008.