Mahindra & Mahindra Ltd on Wednesday launched its first tractor manufacturing plant in Zaheerabad, Andhra Pradesh.
The new plant was inaugurated by Andhra Pradesh Chief Minister N. Kiran Kumar Reddy in the presence of State Minister for Major Industries J. Geetha Reddy.
Anand Mahindra, Chairman, Mahindra Group, and Pawan Goenka, President, Automotive and Farm Equipment Sectors, Mahindra & Mahindra, were present along with other senior officials.
Located about 100 km from Hyderabad in Medak district on Hyderabad-Mumbai Highway, the plant was set up in 18 months.
Goenka said that the plant will achieve full capacity over four years. The market for tractors is subdued now but is expected to pick-up, he added.
The plant, set-up with an investment of over Rs 300 crore, will have an installed capacity of 1,00,000 tractors per annum. This can be scaled-up to meet the additional demand.
The facility, equipped to meet international standards, is spread across 80 acres and is built over 60,000 sq.mt., making it the largest tractor plant in India.
“The new facility rejuvenates the manufacturing sector of Andhra Pradesh by means of superior technological processes, large-scale manufacturing set-up and eco-friendly focus undertaken at the plant. It will not only provide an impetus to industrial growth in the region but will also present significant employment opportunities to local residents,” the Chief Minister said.
M&M will facilitate setting up of a suppliers' park. Seven suppliers are in various stages of setting them up, Goenka said.
Geetha Reddy requested M&M to make AP a base for the company's small passenger mover vehicle.