Mahindra Bets Big on Vidarbha: INR 15,000 Crore Mega Manufacturing Hub in the Making

In a recent announcement, Mahindra Group detailed their plans to invest INR 15,000 crore over 10 years to build their largest integrated manufacturing complex in Nagpur. The project will produce automobiles and tractors. When fully operational, the factory can produce 500,000 automobiles and 100,000 tractors. In 2028, production is expected to start at the Nagpur site. At the Advantage Vidarbha industrial summit, the region was positioned as an emerging hub for industrial growth in India. A 150-acre supplier park at Sambhajinagar (formerly Aurangabad), around 400 km away from Vidarbha, and 1,500 acres in Vidarbha would make up the facility.

Mahindra’s Expansion Plans in Vidarbha

Located near Sambhajinagar and Vidarbha, Mahindra will purchase approximately 350 acres of property in the Igatpuri-Nashik region. In addition to bolstering the expansion of its advanced technology business, this will also increase the capacities of its current products and engines. In order to expand its manufacturing footprint, Mahindra is purchasing more than 2,000 acres in three different locations.

The investment, according to Maharashtra Chief Minister Devendra Fadnavis, would speed up regional development in Vidarbha and the neighbouring districts while also creating a large number of jobs. Executive director and chief executive officer of M&M's auto and agriculture sector, Rajesh Jejurikar, stated that the Vidarbha region was developed to accommodate the company's next lineup of tractors and automobiles.

On the other hand, it seamlessly integrates scale, flexibility, and cutting-edge technology into a single footprint. In August, Mahindra & Mahindra (M&M) announced plans to increase production at its Chakan facility by 240,000 units per annum by FY27. This would help fulfil demand and accommodate future models, and the company is also exploring greenfield sites for additional expansion. It had already notified the Maharashtra government of its intention to purchase 350 acres of property in Igatpuri, close to Nashik, through a letter of intent. Between fiscal years 25 and 27, the corporation intends to pour more than 27,000 crore rupees into its car division.

Why Mahindra Group Chose Vidarbha?

According to Mahindra, the Vidarbha region has significant strategic benefits. It has strong rail connections, quick access to important local and export markets, and great road connectivity via the Samruddhi Motorway. Additionally, an industrial ecology that is constantly changing. In a statement, the business announced that the Sambhajinagar supplier park will increase logistical efficiency, localise operations, and foster closer partnerships, all of which will strengthen the manufacturing value chain.

Along with Mahindra's current facilities in Chakan and Nashik, it will also supply components to their new factory in Nagpur. The automobile plant will be able to produce cars with a variety of powertrains, including internal combustion engines, electric vehicles, and future technologies, and it will be able to support Mahindra Auto's next-generation platforms, such as the NU IQ architecture.