India's largest farm equipment manufacturer, Mahindra & Mahindra (M&M) is planning to scale up its production capacity by over 60% in the next two years to satisfy the growing demand in the agricutural sector.

Mahindra sells two cult brand tractors Mahindra and Swaraj which are produced at the rate of 1,00,000 units and 60,000 units respectively.

According to Pawan Goenka, president of automotive and farm-equipment sector, the farm equipment production is constrained by capacity and hence, they are looking for a new location and this factory must be ready by 2012.

Mahindra will produce tractors having capacity between 30 and 50 horsepower, the category which suffered a volume dip lately.

Mahindra had been a leader in the tractor segment of India enjoying a healthy 42% share of this market. Mahindra has sold 61,250 units of tractors during April to July of the current year which is a 13% growth.

Mahindra has made a record by becoming the world's largest tractor company by selling 1.6 lakh tractors last year surpassing John Deere of US. Mahindra has achieved this Numero Uno position by exporting its tractors to various countries.