Mahindra To Invest Rs. 8600 Crore For Expansion

By Denise Baptiste

Published: Friday, July 30, 2010, 18:21 [IST]

Mahindra & Mahindra will invest about Rs 8,600 crore to facilitate its expansion plans in the next five years. Mahindra reported a massive 40.30 percent jump in its net profit for the quarter ended in June 30th. Mahindra is planning to invest Rs.5,600 crore out of the Rs. 8600 crore in its Chakan plant.

According to M&M Executive Director and Group Chief Financial Officer Bharat Doshi, Mahindra is also planning to set up a new plant in the next five years at Chakan and the investment will be done in phased manner.

During the quarter, Mahindra sold 53,948 units of utility vehicles compared to 48,720 units, which is 10.73 per cent rise. Mahindra also posted 13.73 per cent rise in tractor sales at 47,916 units against 42,130 units same period last year. Most of the vehicle manufacturers face problem with the increasing cost of raw materials, mainly for tyres and this issue may likely to "cause a dent" in M&M's performance during the current quarter.

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Article Published On: Friday, July 30, 2010, 17:24 [IST]

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