Mahindra And Mahindra

Mahindra and Mahindra is setting up a Greenfield tractor plant in Mohali. Fueled by a strong domestic demand in the expansion is the first in a decade by the world's largest tractor maker. In 2012 the company had set up a facility at  Zaheerabad in Telangana. The demand for tractors in the world's largest market has seen a sharp 44% jump year on year in the first two months of 2022- 23 after some moderation in growth in 2021 - 22. M&M which controls 40% of the market is leading the growth chart. Hemant Sikka, president  tractor and farm equipment sector of M & M told that " they have grown faster than the industry in the last 2 months. To further their overall capacity they were setting up a brand new Green Field plant in Punjab near Mohali. Investing 400 crore in the plant and the construction has been going on in full swing". The plant will be 35 km from its existing unit of Swaraj Tractors. In the first phase it will have a capacity to make 30000 tractors  per annum. Mahindra's current tractor plants in Maharashtra,Gujarat, Haryana and Telangana running at 90 % capacity utilisation rate leaving no room for further expansion. The new facility will only feed the domestic demand, the units in Zaheerabad and Nagpur will continue to address the export demand. The move to invest in a new unit comes at a time when the companies market share grew to 40% in the financial year 2021-22 from 38.2% YoY. Its domestic sales for financial year 2022 declined to percentage to  337052 units in the same period. M&M tractor sales for the first two months of FY 23 increased to 50 percent to 73558 units YoY.