Mahindra & Mahindra seeks 350 acres in Igatpuri for a supplier park & production expansion. Plans to invest ₹27,000 Cr & increase output to 7.5L units/year at Chakan plant.
Auto Giant Plans Supplier Park and Capacity Boost to Reach 7.5 Lakh Units/Year
Mumbai, India – In a significant move to scale its automotive operations Mahindra & Mahindra (M&M) has submitted a letter of interest to the Maharashtra government for 350 acres of land in Igatpuri. This expansion aims to strengthen the company’s existing manufacturing ecosystem in the Nashik-Igatpuri belt and support its ambitious plan to ramp up annual production to 7.5 lakh units.
The proposed land parcel, located near Mahindra’s existing facilities in Nashik and Igatpuri is envisioned for multiple uses, including setting up a supplier park and supporting future expansion needs for both plants. This strategic move aligns with the company’s planned investment of ₹27,000 crore in its automotive business between FY2025 and FY2027.
Strategic Expansion for Domestic and Global Markets
Mahindra’s expansion strategy focuses on two key areas:
- New Facility in Igatpuri: The 350-acre land will potentially host a supplier park reducing logistics costs and improving supply chain efficiency by co-locating key component manufacturers. This aligns with global best practices for automotive manufacturing.
- Increased Capacity at Chakan Plant: The company is working to expand production at its Chakan plant by 2.4 lakh units, aiming for total annual production of 7-7.5 lakh units to meet growing domestic and export demand.
Leadership Insights
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), M&M, stated:
“We have submitted a letter of interest for 350 acres in Igatpuri, which is part of our ecosystem. The land could be used for multiple things, including setting up a supplier park and anything we may need for Nashik or Igatpuri plants.”
Nalinikanth Gollagunta, CEO (Automotive Division), M&M, emphasized the production ramp-up:
*“We are working to expand production by 2.4 lakh units, targeting 7-7.5 lakh units annually.”*
Why This Expansion Matters?
- Supply Chain Efficiency: A supplier park will streamline logistics, reduce costs, and enhance production agility.
- Job Creation: The expansion will generate significant employment in Maharashtra’s automotive sector.
- Global Competitiveness: Increased capacity will help Mahindra meet export demand and compete with global automakers.
- Investment Boost: The ₹27,000 crore investment underscores Mahindra’s commitment to India’s automotive growth.
Next Steps
The proposal is currently at a preliminary stage and will undergo due diligence, followed by regulatory and internal approvals. If approved, this expansion will solidify Maharashtra’s position as a key hub for automotive manufacturing in India.
