Mahindra & Mahindra (M&M) today said it will set up a new tractor facility by 2012-13 fiscal with a production capacity of up to 1 lakh units per annum, for which it is looking at South India, including Tamil Nadu.
"We are running out of capacity in India and we are looking to set up a new plant, possibly in South India as we don't have any facility in that region... Tamil Nadu is one of the potential states," Mahindra & Mahindra (M&M) President (Automotive and Farm Sector) Pawan Goenka told reporters here.
The company currently has four facilities in Nagpur, Mumbai, Jaipur and Chandigarh with a total production capacity of 2 lakh units annually.
"We are looking at a capacity of 1 lakh units from the new plant," Goenka said but did not disclose the exact investment that will go into the new plant.
"M&M had announced a Rs 4,500 crore capex for next three years and the investment for the new tractor plant is included in this...The facility will by ready by 2013 fiscal," he said.
The firm had sold 1,65,633 units of tractors in the domestic market in last fiscal, compared to 1,12,695 units in 2008-09, registering a jump of 46.97 per cent. It sells a range of products between 16 horsepower and 75 horsepower category.
On its overseas operations, Goenka said: "We are looking at global expansion now, and China and the US are the two key markets... Both markets need more products."
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Without giving details, he said the company is working on developing new higher powered products for these two overseas markets.
"We require products beyond the M&M range and therefore we are working on it," Goenka said.