Mahindra Engineering Services (MES), part of the Mahindra & Mahindra group, is planning to set up a Mahindra Research Valley (MRV) in Chennai.

The "valley project", estimated to cost Rs.500 crore, will be implemented on an area of 150 acres of land and is located close to Mahindra Infrastructure Company's township project Mahindra City.

The proposed project will focus on automotive and aerospace engineering and design services and plans to involve 3,000 engineers in the next 6-12 months. MRV will do the prototyping and designing of auto components for Boeing, Airbus, Volkswagen, BMW, Daimler Chrysler, and Ford.

Mahindra Research Valley will also be focusing on computer aided engineering and design. The company is in talks with US-based engineers and scientists in the automotive and aerospace sectors to collaborate with the project.

The project will be financed by the group's internal accruals.