Mumbai: Uttaranchal chief minister N D Tiwari inaugurated Mahindra & Mahindra''s three-wheelers plant at Haridwar. The plant is M&M''s fifth full-scale automotive plant.

The other Mahindra plants are located in Mumbai, Nashik, Igatpuri and Zaheerabad. The Haridwar plant has been set up primarily to manufacture three-wheelers of different range and load capacities requirements of the market in the region and availability of skills and vendor base.

Inaugutrating the plant the chief minister, said, "Mahindra''s plant will promote engineering skills, industrial culture, fruitful engagement of manpower, direct and indirect employment, work ethics and prosperity in the region, which is quite in line with the government''s vision of development for Uttaranchal."

Anand Mahindra, vice chairman and managing director, M&M, said, "We are looking at a three-fold strategy here. Primarily, the plant is intended to give a fillip to our three-wheeler business. Two, Uttaranchal offers attractive benefits in terms of quick clearances, efficient state machinery and skilled work force.

"Uttaranchal is a young but fast-growing state with a progressive chief minister and a forward thinking bureaucracy. This plant and our tractor operations in Rudrapur will add momentum to the industrial growth of the state. Finally, the plant is in line with our efforts to continuously update our capacities to fuel Mahindra''s growth."

Investments have been carefully controlled to economise on manufacture costs. M&M envisages substantial outsourcing to control cost, promote effective supply chain, reduce overheads and simplify operations.

Dr Pawan Goenka, president, M&M''s automotive sector, said, "Mahindra & Mahindra has a very large presence in the North and North-western regions of the country. It, therefore, makes good business sense to set up a plant at Haridwar. We are looking at producing 50,000 units per year once the plant reaches full capacity to cater to the demand from the region. We would also develop a strong vendor base around the plant in Haridwar."

The company selected Uttaranchal as the preferred destination because of the state''s impetus for growth of the industry, single window service by the state industrial development corporation of Uttaranchal Ltd proximity to the thriving three-wheeler markets of North India, an efficient state machinery and the incentives offered by the government to industry.

The government has also set-up an integrated industrial complex at Haridwar to facilitate accelerated industrial development, where the Mahindra plant is located.

Also located at the complex is Mahindra''s body supplier, Neel Metal Product Ltd., a subsidiary company of Jay Bharat Maruti Ltd, which has created an exclusive set-up for Mahindra & Mahindra Ltd, to supply cabs, cargo bodies and other sub-assemblies and aggregates. Other aggregates and components will be supplied by vendors from in and around Uttaranchal.

The $2.59 billion- (Rs11,400 crore) Mahindra Group is the market leader in multi-utility vehicles and tractors in India. It also has a significant presence in key sectors of the economy that include trade and financial services (Mahindra Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information technology & telecom (Mahindra British Telecom, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd.).

To commemorate its 60th anniversary this year, the company has dedicated 1 per cent of its PAT for community development.