Monday, August 16, 2010

Mahindra Planning to Increase Production by 60% in Two Years

Mahindra & Mahindra, the leading tractor maker in India, wants to increase its yearly production by 60% in two years. The company is currently struggling to meet the rising demand in the agricultural sector in the country. Last year, Mahindra sold 1.6 lakh tractors in total, and thus, becoming the leading tractor maker in the world.

Mahindra is now looking to set up a new production plant, most probably in Tamil Nadu, with a production capacity of 1 lakh tractors annually. This would help Mahindra meet the market demand and grab more market share. The tractor company is going to invest Rs. 600 crore to set up this plant.

Mahindra’s two tractor brands, Mahindra and Swaraj, are very popular in India as well as in some neighboring countries. The company sells around 1,00,000 units of Mahindra and about 60,000 units of Swaraj tractors annually.

At the moment, Mahindra is suffering a lot because of lack of production capacity as the market demand is pretty high. So, the tractor maker wants to complete the new plant by 2012. Even during the April-June quarter, the company experienced a 13% growth in sales as it sold 61,250 tractors.

Mahindra & Mahindra has been leading India’s tractor market for many years now. Besides a strong presence in the domestic market, the company has been doing pretty good in the overseas markets too. In fact, the company has seen extensive growth in exports in the recent years.

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