Rs 64 cr M&M unit in Haridwar

Plant to produce three-wheelers

Mahindra & Mahindra is setting up a Rs 64-crore plant in the Haridwar industrial estate in Uttaranchal for producing three-wheelers.

The plant, which is expected to begin production in October this year, will be the company's second three-wheeler manufacturing facility after its Zaheerabad plant in Andhra Pradesh.

The company will manufacture both goods carriers and passenger vehicles from this plant. At a later stage, the plant will also produce soft-roof jeeps.

According to sources, another company, Neel Metal Products Ltd, is also setting up a Rs 64-crore plant in the same industrial estate as Mahindra & Mahindra.

This plant will produce painted bodies of vehicles and assemblies exclusively for Mahindra & Mahindra. Neel Metal will produce sheet metal stampings, machined components and welded assemblies.

Confirming this, Pawan Goenka, chief operating officer (automobiles division) of Mahindra & Mahindra said, "It makes good business sense for us to set up a plant there as most of our three-wheeler customers are from the north and the north-west region," adding that the plant would produce 50,000 units per year once it reached full capacity.

The company will start operations by producing diesel versions of three-wheelers and at a later stage will begin producing the CNG version of these vehicles.

Goenka said Mahindra & Mahindra had entered into a partnership agreement with Neel Metal Products for supplying certain intermediate products to be used in the manufacturing process. He said the relationship was purely one of "supplier-buyer" without any cross holdings.

As per data submitted by both the companies to the Uttaranchal government, the Mahindra & Mahindra plant will employ 360 people, whereas the Neel Metal plant will have 270 people.

---

Exploring new areas

• This will be the company's second three-wheeler manufacturing plant after its Zaheerabad plant in Andhra Pradesh
• M&M had entered into a partnership with Neel Metal Products for supplying certain intermediate products to be used in the manufacturing process
• Neel Metal Products Ltd is also setting up a Rs 64-crore plant in the same industrial estate to produce painted bodies and assemblies
• M&M will start with the diesel versions of the three-wheelers in the first stage and will take up the production of the CNG version later
• The plant would cater for the north and northwestern markets of the country