Mahindra group to pump in $1 bn in US over next 5 years
Diversified Mahindra group plans to invest $1 billion across business verticals in the US over the next five years as it aims to double revenues from the American market to $5 billion.
The Mumbai-headquartered group, which currently employs around 3,000 people in the country, also plans to double the headcount over the next five years as it looks to expand operations.
"We have so far invested around $1 billion in the US among all the businesses and we should invest another billion over the next five years," Mahindra & Mahindra Managing Director Pawan Goenka said here in an interview. The quantum of investment, however, would depend on various factors like market conditions and success of various projects that are currently underway in the US, he added.
Elaborating on various strategic projects, Goenka said the company has bid for a US postal service contract and if it comes through it would help the company grow exponentially in the country.
When asked about the group's ambitions in terms of revenues in the US, Goenka said: "In the next five years, we are targeting doubling revenue to about $5 billion."
The $19 billion group currently generates around $2.5 billion from its seven business verticals in the US. The major group firms active in the country include IT major tech Mahindra and Mahindra USA which sells tractors and utility vehicles in the country.
When asked to elaborate on the factors that would help the company achieve desired results, Goenka said the growth would be led by various factors like the launch of a new off road vehicle by its arm Mahindra North America Technical Centre (MNATC) besides other group entities.
"The growth will be led by Mahindra USA where we intend to double revenues from $500 million to $1 billion in next five years and then there is Tech Mahindra," he added. Mahindra is also looking at doubling its manpower in the country over the next five years.