Mahindra & Mahindra to expand Haridwar unit

Capacity to be raised to 50,000 three-wheelers a year.

After setting up its automotive plant for producing three-wheelers at the integrated industrial estate (IIE) here, auto major Mahindra and Mahindra (M&M) would expand its unit shortly, company officials said.

The plant is the company's fifth full-scale automotive plant, constructed with a total investment of Rs 70 crore, which also includes Neel Metal Product Ltd, exclusively set up for M&M to supply cabs, cargo bodies and other sub-assemblies and aggregates.

The plant is set up primarily for manufacturing three-wheelers of different load capacities and range. The choice of the product is made in consonance with the market in the region, availability of skills, and vendor base.

The plant will initially produce 30,000 three-wheelers per year, which will soon be ramped up to 50,000. "We may further increase the capacity of this plant from 50,000 to 100,000," a company official said. However, the official did not give any exact time frame for the expansion programme.

Stating that the company was looking at a three-fold strategy, the official said primarily, the plant was intended to give a flip to the three-wheeler business. Secondly, Uttaranchal offers attractive benefits in terms of quick clearance, efficient state machinery and skilled work force.

Thirdly, the company officials said the plant was in line with efforts to continuously update capacities to fuel Mahindra's overall growth. Significantly, all the spare parts needed for the three-wheeler plant here would be set up around the factory only.

The officials also said the company will launch its new three wheeler model champion Electric early next year.

The company has so far provided employment to 100 local people here. "More people would also be accommodated as and when the capacity of the plant increases," the official added.