Mercedes Benz to invest Rs 2,000 crore more to upgrade its Chakan plant, India

Wednesday, Sep 30, 2015

Mercedes Benz has Rs 2,000 crore decided to invest in upgrading its factory at Chakan in Pune, which the Maharashtra government says is an endorsement of its commitment to the ease of doing business in the state.

Earlier the government was successful in luring Foxconn to set up manufacturing units in the state.

"The Maharashtra government has received an application from Mercedes Benz, seeking to upgrade its manufacturing capacity in Pune which manufactures luxury cars from 40,000 to 80,000 units per year. This will also help in creating more jobs in the state and it shows the state's commitment to industries is being reciprocated," said Apurva Chandra, industries secretary, Maharashtra.

The company is planning to invest Rs 2,000 crore over five years in the unit.

Chief Minister Devendra Fadnavis who met Roland Folger, managing director and CEO of Mercedes India on Monday said that the state will ensure speedy clearance for the company's new unit.

State government officials said that the additional investment came after the company was impressed with the work done by the state in granting clearances.

"Environmental clearance for a new unit which the company had earlier sought was pending for more than a year. When the CM visited Germany, he ensured that the clearance was granted immediately. The company was impressed and hence they are ready to invest more," said an official.