Mahindra to invest Rs1,500 crore in Nasik project
10 Feb 2017
Mahindra & Mahindra (M&M) said on Friday it will invest Rs1,500 crore at its Nasik and Igatpuri plants in Maharashtra, mainly for the manufacturing of a new product codenamed U321. The investment in the Nasik plant will be towards manufacture of vehicles, while investment in the Igatpuri plant will be for manufacture and supply of engines.
The Government of Maharashtra has confirmed 'Ultra Mega Project' status to proposed investment.
The Mahindra Group would like to express its deep and sincere gratitude to the government of Maharashtra for its visionary industrial policies and efficient governance practices. This has enabled us to undertake the next phase of our expansion plans at Nasik. We would like to thank the State Government of Maharashtra and local bodies for their continuous and unstinted support,'' said Pawan Goenka, Managing Director at Mahindra & Mahindra said.
''I am sure that with this expansion, Mahindra will continue to play an integral role in the development of not only the region of Nasik but the entire state of Maharashtra,'' he added.
M&M also posted a 33.29 per cent rise in standalone net profit at Rs 1,112.27 crore for the third quarter ended December 31, 2016, compared with Rs834.47 crore during the same period a year ago. The company's total income rose 1.47 per cent to Rs 11,777.98 crore from Rs11,607.35 crore earlier, it said in regulatory filing.
The auto industry was adversely impacted in Q3 F2017 due to demonetization with all segments of the industry showing significant drop in demand in the months of November and December 2016. This was in contrast to the overall positive sentiment and demand that prevailed in the period April to October 2016.