Bengaluru: The Mahindra Group has announced plans to invest Rs 40,000 crore in Karnataka, with a major share allocated to renewable energy, electric mobility, real estate, aerospace, and tourism. Chairman Anand Mahindra made the announcement at the Invest Karnataka 2025 summit, citing the state’s strategic importance to the company’s expansion plans.
Renewable Energy to Get the Largest Share
A significant portion, Rs 35,000 crore will go into renewable energy projects. Mahindra Susten, the group’s renewable energy arm, aims to develop over 5 GW of solar and hybrid energy projects within five years. The initiative is expected to create between 6,000 and 8,000 jobs and strengthen Karnataka’s position as a key hub for clean energy.
Expansion in Electric Mobility and Real Estate
Karnataka is also set to play a key role in Mahindra’s electric three-wheeler (E3W) segment. The company has filed 60 patent applications, 54 trademarks, and 10 design registrations in the sector. Mahindra highlighted that the company’s last-mile mobility efforts, including research, product development, and manufacturing, are already deeply rooted in the state.
Investments in Tourism and Aerospace
Mahindra Holidays is exploring an additional Rs 1,000 crore investment in Karnataka’s tourism sector, particularly in locations such as Gokarna and Hampi. Mahindra urged the state government to grant industry status to tourism and introduce a single-window clearance system to streamline approvals. In aerospace and defence, Mahindra Defence Services and Mahindra Aerospace are considering investments worth several hundred crore, though specific project details have not been disclosed.
Karnataka’s Business Environment Attracting Long-Term Investments
Mahindra noted that Karnataka’s policies, including the ‘New Industrial Policy’ and ‘GCC Policy,’ have encouraged the company to invest in long-term projects. He also highlighted the group’s existing presence in the state, with over 25,000 employees working across its businesses, including automotive, IT, farm equipment, financial services, and hospitality.
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