Thursday, July 29, 2010

Mahindra to Invest $1.8 Billion in Capital Expenditures

In continuation of yesterday’s news of Mahindra’s impressive 40% gain in net profit for the first fiscal quarter of 2010, Mahindra has also announced that they will be making a USD $1.8 billion capital investment over the next five years for various purposes.


"We have earmarked around Rs 8,600 crore (USD $1.8 billion) for the next five years. Out this, Rs 5,600 crore (USD $1.2 billion) will be for the Chakan plant," – Pawan Goenka, President Automotive and Farm Equipment, Mahindra & Mahindra

In January, Goenka announced that Mahindra’s Chakan plant (which builds light trucks and SUVs) would receive USD $1 billion in capex (Mahindra Scorpio Platform Replacement Moving Forward). It appears that another USD $200 million will be added to this investment. It is unclear where the remainder of the investment is going.

The question begs to be asked: Will any of this have an effect on the US launch of Mahindra pickups and SUVs?

Source: Economic Times

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