M&M plans Logan facility in Andhra

Close on the heels of Volkswagen announcing its decision to set up a manufacturing facility in Vizag, Mahindra & Mahindra is learnt to have indicated that it is likely to locate its joint venture facility for manufacturing Renault's Logan cars at Zahirabad in Andhra Pradesh.

Zahirabad, a small town in the Medak district, is nearly 100 km from Hyderabad. The company has an LCV (light commercial vehicle) manufacturing plant at Zahirabad. The LCVs are sold under the Allwyn Nissan brand.

Andhra Pradesh government sources told Business Standard on Tuesday that the company's executives had informally communicated to the industry department Mahindra & Mahindra's willingness to set up a facility in Zahirabad.

It may be recalled that Anand Mahindra, vice-chairman and managing director, M&M, while announcing the JV in Mumbai some time ago, had said the Logan factory would be located at any of their present facilities in Nashik, Haridwar or Zahirabad.

"The company's management representative said they were going to announce the plan to set up Logan car manufacturing facility after meeting Andhra Pradesh chief minister YS Rajasekhara Reddy," an industry department official said.

The company has formed a JV with French automobile manufacturer Renault to produce its popular C-segment passenger car in the country from 2007. M&M will have 51 per cent stake in the project, which is expected to cost about Rs 700 crore (Rs 7 billion).