Mahindra & Mahindra will manufacture a new tractor series called the ‘K2’ exclusively at its tractor manufacturing plant in Zaheerabad, a decision translating into incremental investments of ₹ 100 crore on the facility.
Also, it is expected to double employment at the plant by 2024. Result of collaboration between the engineering teams from Mitsubishi Mahindra Agricultural Machinery of Japan and Mahindra Research Valley, India, the K2 series is aimed to create a lightweight tractor programme for domestic and international markets, including the U.S. and Japan, a release from M&M’s Farm Equipment Sector said on Tuesday.
The new series would enable Mahindra to introduce products across four new tractor platforms — sub-compact, compact, small utility and large utility tractor — covering 37 models across various horsepower (HP) points.
Describing the K2 series development as one of the most ambitious tractor programmes of Mahindra, executive director, Automotive & Farm Equipment Sector Rajesh Jejurikar said the project is focused on diversity and scalability, to meet the expectations and different regional requirements of customers and markets across the world. “Our Zaheerabad facility, which has always received tremendous support from Telangana government is very well equipped to meet this challenge. We hope to substantially improve employment opportunities through this project,” he said.
Established in 2012, the facility is Mahindra’s youngest and largest tractor manufacturing plant in terms of capacity. It also manufactured the next-generation range of Yuvo and Jivo tractors, including the Plus Series of tractors launched recently.
The Farm Equipment manufacturing unit has a capacity of over one lakh tractors per year on a two-shift basis and employed over 1,500 workers. Mahindra has invested nearly ₹1,087 crore on the Zaheerabad facility, the release said.
Thanking Mahindra for the investment, Industries and IT Minister K. T. Rama Rao said one of the remarkable features of Telangana’s investment landscape is a series of repeat investments by existing investors. The new investment by Mahindra is one such example and “goes on to show existing investors find the policy is working on the ground and the going to be good, leading them to invest continuously.”
The release said the Zaheerabad plant is technologically advanced, with flexibility to roll-out over 330 different tractor variants ranging from 30 to 100 HP. Around 65% of its tractor production is being exported. The plant also makes Rice Transplanters and Tractor Mounted Combine Harvesters. Besides manufacturing farm equipment, Mahindra’s Automotive Division also manufactures a range of cargo and passenger vehicles at the plant.