MUMBAI, May 9: The Rs 3,000 crore Mahindra & Mahindra (M&M) will invest in a state-of-the-art foundry to meet the demand of critical castings such as engine blocks, heads and transmission cases.

Mahindra & Mahindra managing director and Indo-Spanish joint business council president Anand Mahindra, who is heading a delegation to Spain, signed a memorandum of understanding with Mondragon Corporation Cooperative (MCC).

This will help obtain the technical know-how of Victorio Luzuriaga, a part of Fagor Group of Spain, which, in turn, is a member of MCC.The Indo-Spanish joint business council president said, "Victorio Luzuriaga is one of the leading foundries in Europe. It manufacturers engine blocks and heads for almost all the big names in the European automobile and tractor industry". The quality levels achieved by them are amongst the best in Europe,the Indo-Spanish joint business council president added.

Mahindra & Mahindra have decided to design a foundry with a capacity of 50,000 tonnes per annum. The investment in the project will be approximately Rs 150-170 crore spread over the next four years. The company is in the process of short-listing a suitable site.

The foundry will help meet the growing demand for critical castings and will have access to the most modern techniques for producing castings to international standards.

For the year ending March 31, 1997, sales of Mahindra & Mahindra utility vehicles showed a growth of 22 per cent over the previous year while it was 15 per cent in tractors.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.