Tractors and Farm Equipment (TAFE), the Chennai-based tractor manufacturer will invest Rs 250 crore by the end of FY15, in order to increase its manufacturing capacity and for development of new products.
TAFE has four manufacturing facilities which have a capacity of about two lakh units per year. The company is planning to increase its capacity by around three lakh units per year in the next two years.
For capacity expansion and new product development, the company will have to make an investment of Rs 500 crore. Out of the Rs 500 crore, the company has already invested Rs 250 crore in the last two years and will invest another Rs 250 crore by end of FY15.
Apart from four manufacturing facilities, the company also has an engine factory and two engineering plastic units.