M&M to set up CKD warehouse in Nashik

Auto major Mahindra & Mahindra (M&M) is setting up a CKD warehouse adjacent to its second plant (die-making unit) in Satpur area of Maharashtra Industrial Development Corporation (MIDC), Nashik.

Besides, M&M has bought a 20-acre land in front of its proposed CKD warehouse, where it is setting up parking and dispatch units. Both the projects will be completed by February 2007.

Speaking to Business Standard, Pawan Goenka, president (automotive sector), M&M, said the company recently bought 7,000 sq mt plot (including a vacant building and structures) at Nashik from the multinational pharma company Wyeth Ltd at Rs 2.5 crore.

Earlier, Wyeth used to make Forhans brand of toothpaste and toothpowder at the factory, but it sold the business to John Oak Remedies Pvt Ltd for Rs 3.6 crore in April 2005, according to sources. The company is constructing the warehouse to store the Logan parts coming from Europe and products meant for export, he said.

"We have also acquired 20 acres of land in front of the proposed CKD warehouse project where we are setting up parking and dispatch units for parking trucks and dispatching vehicles. With the capacity of the plant touching 540 vehicles per day (from the current 300 vehicles per day), we have 200-300 trucks coming every day," Goenka said. He did not divulge investment details of both the projects.

M&M manufactures utility vehicles 'Bolero' and 'Scorpio' at its state-of-the-art facility in Nashik. Mahindra-Renault, a 51-49 joint venture between the automobile group M&M and French car-maker Renault, has set up its Logan car plant adjacent to the company's existing Nashik facility.

The plant will be operational soon.