M&M to invest Rs 6,400 crore in three years

Written by Corporate Bureau | Agencies | Mumbai, Jul 30 | Updated: Jul 31 2007, 05:09am hrs
Diversified company Mahindra & Mahindra (M&M) on Monday said it will spend Rs 6,400 crore over the next three years towards capacity expansion, product development and research and development.

M&M, which has tied up with auto major Renault of France for the Logan passenger car, is also reported to be in the race for Fords Jaguar and Land Rover.

The company needs to incur considerable expenditure for expansion of capacities, investment in research and development and product development in the next few years, M&M chairman Keshub Mahindra said at the companys AGM here. With the economy poised to continue its growth, the future outlook remains positive and the demand for our products is robust, Mahindra said. The company proposes to incur capex amounting to Rs 6,400 crore in the next three years, he added.

Mahindra & Mahindra has plans to set up two greenfield plants, one near Pune and another one near Chennai, in the coming year, Mahindra said.

All subsidiaries of the company continued to maintain a high level of growth and add to shareholders value, he said. Tech Mahindra, Mahindra & Mahindra Financial Services, Mahindra Holidays & Resorts and Mahindra Gesco developers have all registered a significantly improved performance, he said.