Mahindra & Mahindra Ltd on Thursday said it would invest Rs 400 crore in its tractor business over the next two to three years to set up a new greenfield plant, expand capacity and develop new products.

"We have been gradually increasing our farm equipment manufacturing capacities at our existing plants. The capacity expansion would include setting up of a greenfield plant, for which we are in talks with two to three different States," said the Mahindra & Mahindra Ltd President Farm Equipment Sector, Mr A. Choudhari. The company expects the new plant to have a minimum annual production capacity of 40,000 tractor units, he added.

"We expect the new plant to be operational in the next 18 to 24 months," Mr Choudhari said, adding that over the next few months the production at its Jaipur facility will go up to 15,000 units from 10,000 units, while that at the Nagpur plant was being increased to 50,000 units.

The company will also be hiking the production capacity at its Rudrapur plant to 39,000 units, he added.

The company on Thursday rolled out a locally manufactured multi-utility tractor in this range, `Shaan'. The `Shaan' range is powered by a 25-HP engine and equipped with in-built trolley.

Mr Choudhari said M&M expected to end this year with a production capacity of 1,20,000 units.

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