M&M to invest Rs 100 crore
The company will launch the new Scorpio with 43 new features in existing foreign markets as well as new ones.india Updated: Mar 14, 2006 12:11 IST
Utility vehicle and tractor manufacturer Mahindra and Mahindra said on Monday that it will invest Rs 100 crore on capacity expansion and hoped exports to chip in as much as 20 per cent to overall revenues in next three years from the current levels of four-five per cent.
"We have set a target of 20 per cent for the next three years," M&M Managing Director and Vice Chairman Anand Mahindra said after the company unveiled an all new Scorpio for the market.
Mahindra said the company would launch the new Scorpio with 43 new features, including a brand new suspension, in existing foreign markets as well as new ones.
"We will expanding the capacity of our Nasik plant to 570 vehicles per day from the current levels of 330, for which we will be investing around Rs 100 crore spread over 12 to 18 months," M&M President Automotive Sector Pawan Goenka said.
The company sells the Scorpio in the SAARC countries, South Africa, Kenya, France Italy and South and Central America. It will be shortly be launched in Spain, apart from the utility vehicles.
M&M has exported 4,900 units of utility vehicle in April-February period this fiscal as compared to 3000 units in the corresponding period a year ago. The company said 60 per cent of the exports were that of Scorpio.
It said the new Scorpio would be not carry any additional price, though it would review this in the next 45 days. Currently it is priced between Rs 7.69 lakh and Rs 8.12 lakh.
Overall, M&M has invested Rs 600 crore on the development of Scorpio, which was launched in June 2002. The company has spent an additional Rs 30 crore in the development of the new Scorpio.