Mahindra to set up commercial vehicle plant

Mumbai, Jan 16 (UNI) Mahindra and Mahindra will set up a world class plant in Maharashtra to manufacture commercial trucks through its joint venture with US-based truck major International Truck and Engine Corporation.

A Memorandum of Understanding to the effect was signed today by V K Jairath, principle secretary (industries) Maharashtra and Dr Pawan Goenka, President automative sector, M&M.

This joint venture will produce medium and heavy commercial vehicles which would be designed and developed with in-house capabilities.

The project will be set up in Pune and the greenfield plant will also produce new generation of M&M vehicles that will principally be used for commercial purposes including manufacturing of engines, transmission and other aggregates for the vehicles.

US consul general in Mumbai Michael Owen said ''Maharashtra is the best destination for the foreign Direct investment and since 1991 six billion dollars have been invested from various companies in US in India.'' Maharashtra industries minister Ashok Chavan said Maharashtra is signing a series of MoUs with various companies in automobile sector and urged the Mahindras to invest in undeveloped parts of the State also to do away with regional imbalance.

Commenting on the project, Anand Mahindra, M&M, vice chairman and managing director said ''state-of-the-art facility which would be located in Maharashtra, is of strategic value in plans to expand product specturm to commercial vehicles and feed our aspirations to be a global player.'' ''The ITEC joint venture is a significant step in our evolution as an integated player in the global player.the itec joint venture is a significant step in our evolution as an integraed player in the global automotive market,'' he added.

Welcoing the decision to set up the manufacturing base in Maharashtra, John Lamoureux, Director of Mahindra International said, the new facility would be key to our global expansion that the company wish to achieve by partnering with M&M.

The JV will produce the new range of commercial trucks and buses. The venture will leverage M&M's extensive distribution network to rapidly launch and full range of medium and heavy commercial vehicles based.

The venture is also expected to export vehicle through its own distribution channle, as international's and M&M overseas network upto 20 per cent of its production.

International truck and engine Corporation is the North American market leader in commercial vehicles of eight tonne GVW and above with sales of approvimaely 100,000 vehicles per year.

UNI