M&M Slashes Capex by Rs. 500 crore for 3 years
Posted on March 16th 2009Welcome back!
Auto major Mahindra & Mahindra has decided to cut its capital expenditure plan for next 3-years (March 2009) by 500 core, thanks mainly to contract re negotiation with the vendors and focus on its outsourcing.
But this won’t change M&M’s previous plans including the launch of its 3 new platforms (including trucks) and its expansion also. The company was previously planning to spend 5000 crore, 2500 crore of which was putted aside for its green field plant at Chakan near Pune.
We are not going slow on any projects. We are being more prudent on cost management. The savings will essentially come from better cost management, renegotiating better terms with vendors and less automation.
- Mr. Pawan Goenka (M&M’s president, Auto Sector) said.
M&M also has planned to unveil pick-up in the United States as per plan, but currently it would be exporting it from India facility, instead of manufacturing the pick-ups in US.
By editor in Auto Finance, Auto India News, Mahindra & Mahindra
dreamthecar responded on 17 Mar 2009 at 7:00 am #
As mentioned by the car manufacturer, the plans would not be affected is a good thing.As the decision to cut its capital expenditure plan for next 3-years is a wise way of cost cutting.
Rahul,
Indian Car Advisor