Two of the leading automobile companies of India, the Tata Motors and Mahindra & Mahindra (M&M) have recently announced that they are planning to make a huge investment of about Rs. 7,500 crore very soon. The officials of the company have informed that the investment would be made in their plants at Chakan, near Pune in the state of Maharashtra and out of the total investment, Tata Motors would bring in a Rs. 6,000 crore, over the next five years of period. The rest of the Rs. 1,500 crore will be invested by M&M for increasing the capacity of its upcoming Chakan factory.
The sources related to the development have informed that these announcements from the two companies have came just after a week of the formation of the Fiat India Automobiles Ltd. The company is actually a 50:50 joint venture between the Fiat and Tata Motors, and the company has already signed a pact with the State Government of Maharashtra for doubling its Ranjangaon plant capacity to 2,00,000 units with a huge investment of Rs 4,020 crore. The sources added that the Principal Secretary of Maharashtra, Mr. V.K. Jairath and the Managing Director of Tata Motors, Mr. Ravi Kant have signed the Rs 6,000-crore MoU, one behalf of their respective companies. The sources added that the Tatas will also be establishing vehicle testing facilities in the Pune district, very soon.
While talking about the MoU, the Chairman of Tata Sons, Mr. Ratan N. Tata said, "This MoU with the Government of Maharashtra is a step towards realizing Tata Motors plans to augment capacity at Pune plants to meet the increasing demands both in India and abroad". Mr. Ravi Kant was also talking about the MoU and said that the company would use the fresh investments for increasing the capacity of its plant to six lakh units.
The M&M has also signed a similar MoU with the state government of Maharashtra and while speaking on the in the MoU signing occasion, the President of Mahindras Automotive Sector, Dr Pawan Goenka said, "We had decided to make Maharashtra the launch pad for our commercial vehicles. The additional investment plan of Rs 1,500 crore will allow us to create a manufacturing facility for 3,00,000 vehicles". He added that the company has already formed a Joint Venture (JV) company with the US-based Navistar International Corporation for building the facility.
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| Posted : 4/2/2008 |
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