Mahindra & Mahindra (M&M) is scouting for land in Punjab and other states to set up a new manufacturing facility to meet future demand as its existing plants are operating over 100 percent capacity.
The company is actively looking at an additional factory and for this it may need a land parcel of about 50 acre. The maker of Swaraj brand of tractors is fully maxed out on capacity. The debottlenecking measures the company has taken across its manufacturing units will improve its output incrementally and help meet the demand in FY22.
The company is already in touch with several state governments and the decision is likely to be taken shortly. The new tractor plant is expected to have a minimum capacity of 50,000 units a year. However, the exact quantum of investment is yet to be defined as the company is deliberating over what operations to outsource or manage internally.
The company currently has three tractor plants across Mumbai, Zaheerabad and Nagpur with a combined capacity of 3.6 lakh units a year.