Mahindra & Mahindra signs MOU with State Government for Project Ingenio at Nashik

Mahindra & Mahindra Ltd has announced that the Company and the State Government of Maharashtra on August 16, 2006 inked a memorandum of understanding (MOU) to set up a Rs 5500 million new project code-named "Ingenio" at its world-class manufacturing facility in Nashik, Maharashtra. This plant will manufacture the Company´s new Multi-Purpose vehicle platform code named "Ingenio". The Production for new product is expected to commence by the year 2008. With this additional investment the production capacity at existing plant at Nashik will increase to 1,50,000 vehicles per annum and will generate employment for over 500 employees in the Company´s Nashik Plant and will also generate additional opportunity of more than 2500 employment in & around Nashik.

The MOU was signed on August 16, 2006 by Mr. V K Jairath, Secretary (Industries), Government of Maharashtra and Dr. Pawan Goenka, President- Automotive Sector, of the Company, in the presence of the Hon. Chief Minister of Maharashtra, Mr. Vilasrao Deshmukh, the Minister for Industries, Government of Maharashtra, Mr. Ashok Chavan, state officials and the Chairman of the Mahindra Group, Mr. Keshub Mahindra.

Speaking on the occasion Mr. Vilasrao Deshmukh, Hon. Chief Minister of Maharashtra said, "I am delighted that Mahindra & Mahindra has chosen Nashik as the site for its new product. Given the success of Mahindra Scorpio and with launching of Logan car in the next year. I am sure that this new project INGENIO too will bring prosperity to the people of Maharashtra by attracting investment and creating employment opportunities for the youth of the state."

Mr. Keshub Mahindra, Chairman of the Mahindra Group, said, "Our decision to launch our most prestigious project after Scorpio & Logan in Maharashtra is a tribute to a partnership that began with our inception. Our earliest plant was in Mazgaon in Maharashtra. Now, some of our most advanced facilities are in this state. In keeping with this tradition, I believe our latest plant will contribute to sustain the economic and industrial momentum of the state. The success of this venture, as with all our projects, is inextricably wedded to the development of this state and society in general."

Dr. Pawan Goenka, President, Automotive Sector - of the Company said, "Our decision to set up the new manufacturing facility in Maharashtra affirms our belief in the state. Importantly Maharashtra offers many advantages including access to a large reservoir of skilled and technical manpower and a well developed supplier base. It is our positive experience with our existing facilities in Nashik, Kandivali, Igatpuri and Nagpur that helped in making the decision to get Ingenio home.

The Minister for Industries, Government of Maharashtra, Mr. Ashok Chavan, said, "It is a moment of pride for us. Mahindra & Mahindra has continued to contribute to Maharashtra´s industrial prowess and the development of Nashik in particular. The latest venture is an embodiment of the trust that Mahindras and the state government share and is a sign of our combined vision for progress and development of the State of Maharashtra."

The vehicles will be built on an all-new platform with state-of-the-art technology. The "Ingenio" will come with contemporary styling and spacious interiors.

The Company is a market leader in the Utility Vehicle segment. The Company is also the first Indian auto manufacturer to launch CRDe (common rail diesel engine) technology in India, offering it in the Scorpio. The Company enjoys a share of around 45% in the UV segment today. The Scorpio is Mahindra Automotive Sector´s brand mascot while the Bolero is India´s largest selling UV brand.

Source : Equity Bulls

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