Mahindra Group's Massive Rs 40,000 Crore Investment in Karnataka
The Mahindra Group is set to invest a staggering Rs 40,000 crore in Karnataka, focusing on renewable energy, tourism, electric mobility, real estate, and aerospace. This investment highlights the group's long-term commitment to the state's development.
Mahindra GroupRenewable EnergyTourismReal EstateElectric MobilityReal EstateFeb 12, 2025
Chairman Anand Mahindra announced this at the Invest Karnataka 2025 summit, underscoring the state’s pivotal role in the group's long-term expansion strategy.
The biggest chunk of the investment, Rs 35,000 crore, will be directed towards renewable energy.
Mahindra Susten, the group’s renewable energy segment, plans to develop over 5 GW of solar and hybrid projects within five years.
This initiative is expected to create 6,000 to 8,000 new jobs, further cementing Karnataka’s status as a green energy hub.
In the tourism sector, Mahindra Holidays is looking to expand its presence in Karnataka’s popular travel destinations like Gokarna and Hampi.
The company is planning to invest an additional Rs 1,000 crore and is in discussions with government officials for support, especially in terms of land aggregation.
Mahindra has also called for industry status to be granted to tourism and the implementation of a single-window clearance system to streamline processes.
Mahindra Defence Services and Mahindra Aerospace are exploring strategic expansion opportunities worth several hundred crore.
Karnataka is set to become a key hub for Mahindra’s electric three-wheeler (E3W) projects, with the company filing 60 patent applications, 54 trademarks, and 10 design registrations in this space.
“Our last-mile mobility is deeply rooted in the state, with its R&D, product development, and manufacturing units,” Mahindra noted.
In real estate, Mahindra Lifespaces is developing projects worth over Rs 5,000 crore in Bengaluru and plans to invest another Rs 6,000 crore in the near future.
The projects are designed to be net zero energy and net zero waste homes, and the company is committed to maintaining Bengaluru’s vibrant ecosystem.
“Our customers love these green homes, and we are dedicated to ensuring the city remains a lively and sustainable place to live,” Mahindra added.
Beyond business, Mahindra shared a personal connection with Karnataka, recalling his family's coffee plantation in Kodagu from the late 1960s.
“My parents were captivated by Karnataka’s beauty and wanted a place where their children could connect with nature,” he said.
He learned valuable life lessons from coffee growing, such as the importance of deep roots for long-term success, the need for nurturing and protection, and the virtue of patience.
“Coffee does not yield immediate returns; it takes at least five years of hard work and care for the first harvest.
This teaches you to have faith in the future and believe that your efforts will pay off,” he noted.
Mahindra sees these principles reflected in the company’s journey in Karnataka.
“Our presence in Karnataka is deeply rooted and intertwined with most of our major businesses, including autos, IT, farm equipment, financial services, and hospitality, all of which have operations here,” he said.
The group currently employs over 25,000 people directly in Karnataka.
Mahindra also praised Karnataka’s business-friendly policies, such as the ‘New Industrial Policy’ and the ‘GCC Policy,’ which have fostered growth.
“These policies give us confidence in our future here.
We are confident in investing in long-term businesses like renewable energy, aerospace, hospitality, and real estate in Karnataka,” he said.
“The lessons from our coffee plantation are proving invaluable as we move forward.”
Frequently Asked Questions
How much is the Mahindra Group investing in Karnataka?
The Mahindra Group is set to invest Rs 40,000 crore in Karnataka.
What are the major sectors Mahindra Group is focusing on in Karnataka?
The major sectors include renewable energy, tourism, electric mobility, real estate, and aerospace.
How many new jobs will the renewable energy projects create?
The renewable energy projects are expected to create 6,000 to 8,000 new jobs.
What is Mahindra Lifespaces' role in real estate development in Bengaluru?
Mahindra Lifespaces is developing projects worth over Rs 5,000 crore in Bengaluru and plans to invest another Rs 6,000 crore in the near future, focusing on net zero energy and net zero waste homes.
What personal connection does Anand Mahindra have with Karnataka?
Anand Mahindra has a family connection with Karnataka, specifically a coffee plantation in Kodagu from the late 1960s, where he learned valuable life lessons.
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