The Farm Equipment Sector of Mahindra & Mahindra, a part of the $ 11.1-billion Mahindra Group, announced that it will soon open a new tractor plant in Zaheerabad, Andhra Pradesh. The ground-breaking ceremony for the new plant was performed by the Chief Minister of Andhra Pradesh, Kiran Kumar Reddy, in the presence of Dr J Geeta Reddy, Minister of Major Industries, Sugar, Commerce & Export Promotion, Government of Andhra Pradesh and other dignitaries. The company will be investing over Rs 300 crore in the plant which will be spread across a hundred acre. The installed capacity of the plant will be 100,000 tractors which can be scaled up to meet additional demand. The new plant is scheduled to commence production in 2012, with the following manufacturing lines installed - Tractor Assembly, Engine Assembly, Gearbox Assembly, Hydraulic Assembly and Sheet Metal Painting.

"We are delighted to extend our national footprint to Andhra Pradesh where Mahindra Tractors is the market leader. With its advanced technological processes, large-scale manufacturing set up and eco-friendly focus, the plant is all set to create new benchmarks in manufacturing excellence in the tractor industry. Once complete, the new facility will not only add to industrial growth in the state but will also generate significant employment opportunities for local residents," said Dr Pawan Goenka, President, Automotive and Farm Equipment Sectors, Mahindra & Mahindra.