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-   -   Mahindra to set up new plant in Tamil Nadu (https://www.team-bhp.com/forum/indian-car-scene/150060-mahindra-set-up-new-plant-tamil-nadu.html)

Mahindra & Mahindra has chosen the state of Tamil Nadu to set up a new manufacturing unit. An official statement regarding the same is expected to be made in June, after the general elections in the country are over.

The new plant, which will be the company's seventh is expected to start operations by 2016-17. The company plans to invest Rs. 4,000 crore in the next 7-8 years for a new line of products, which will be rolled out from this facility. It is a part of the Rs. 10,000 crore investment that Mahindra has announced for the expansion of production capacity and new product development.

At the moment, Mahindra is reported to be in the process of signing a Memorandum of Understanding with the Government of Tamil Nadu for the new plant, which is believed to be located at Cheyyar in southern Tamil Nadu. Spread over 400 acres, this facility will be used to manufacture upcoming products like the S101 compact SUV, W202 global MPV and P601 LCV, which is expected to replace the Maxximo.

Mahindra has already invested Rs. 600 crore the Mahindra Research Valley, an R&D facility that employs about 2,500 people and is located near Chennai.

Link to Team-BHP News Article

Source: Financial Express

Makes absolute sense. M&M already has the bulk of their R&D activities located at MRV (Mahindra Research Valley), Mahindra World City, 45 kms south of Chennai. A plant nearby will complement R&D, Testing activities and aid overall vehicle development. Due to the proximity of a couple of ports, export logistics should also be good. Also most component vendors have their bases in and around Chennai so sourcing will also be easy at competitive prices.

The South of India traditionally always had a very strong car culture - am sure this will get a leg up with another OEM setting up shop in TN.

Tamilnadu is also perhaps the leading state when it comes to the quality of human resources available for this industry, of different skill- and education-levels. I also have the impression that the work culture in this part of the state is excellent for skill-intensive manufacturing industry. Free land and tax-abatements are not and should not be allowed (to over-determine locational decisions.)

Number 1 in Automobile Industry, Number 2 in IT and Film Industries, top spots in Tourism and Medical Industries, and the most urbanized state in India. Good to see Tamil Nadu on its way to become self reliant for employment.

Migration for employment is one of the hardest things in human life. I wish and hope every state creates opportunities for employment and becomes self reliant.

Mahindra's Plant at Cheyyar was originally reported way back in 2009. The original thread-
http://www.team-bhp.com/forum/indian...y-cheyyar.html

Subsequently it was again reported in 2011 this time mentioning an investment of 1800Cr-
http://articles.economictimes.indiat...cility-cheyyar

In 2012 there were reports of delay-
http://www.rediff.com/money/slide-sh...y/20121226.htm

So it took such a long time for a project to even come to fruition. Hopefuly atleast this time it comes through.
Apart from business sentiments which could have made M&M go slow I think setting up a large plant is such a painstaking and long process in our country even for a large group like Mahindra:Frustrati

I can't imagine how it will be for smaller investors.

I agree that public processes are tough but I have to add that is much more for Aam Aadmi-s and Aurat-s than for corporates, big or small: the land and tax freebies and tolerated/encouraged illegalities the latter enjoy more than makes up for their pain, believe me. Our corporate- and business-environment is well down the road (pun unintended:)) to oligarchy and crony capitalism. And so I wonder why the wails of complaint of the corporates are taken quite so seriously as our own!

Glad to hear that this project is still on. Cheyyar however is in northern part of Tamil Nadu (in Tiruvannamalai District - of famed Sri Ramana Maharishi & temple town).

It is still better that, they are moving a little further away from Chennai. For all the talks on Tamilnadu being No.1 in Automobile Industry, these units only crowd around Chennai.

Would be nice if they get at least one project of this size in southern Tamil Nadu. It would also benefit exports with major port Tuticorin is nearby (& also the upcoming Vilinjam Port near Trivandrum).