M&M to pump in 7,500cr on capacity expansion.

The $16.9 billion Mahindra Group will invest Rs. 7,500 crore in its automotive and tractor businesses over the next three years.

The capex will be spread out at an average of around %Rs 2,500 crore a year, a top M&M official said. The capex will cover the firm's auto and farm equipment businesses including SUVs, two wheelers, commercial vehicles and tractors.

The spend will cover brand new product platforms in several segments and a fresh product pipeline across the board.

'We have had some product gaps (which affected sales volumes across segments) but new product launches have started and these new products will pull us out,' said Pawan Goenka, M&M group president, auto & farm sector. 'The Rs. 7500 crore capex will include two new compact SUV platforms as well as new intermediate commercial vehicles (ICV) and medium commercial vehicles (MCV) platforms,' he added. 'We will invest around Rs 300 crore on the new platform for ICV and MCV products and we will start launching new products from these platforms in calendar 2017,' he said. The compact SUV platform products are expected to debut this year. The Rs. 7500 crore spend 'is purely capex not counting any equity investment,' said Goenka.

TOI