MRF Announces Rs 5,300 Crore Investment for New Tyre Facility

MRF, a top-tier manufacturer of tyres in India, has entered into a non-binding MoU with Tamil Nadu, the nodal agency of the Tamil Nadu Government. In this joint venture, a new plant for manufacturing tyres and other related products will be set up at SIPCOT Industrial Park, Tamil Nadu.

The suggested project provides a major investment of about 5300 crore in 12 years. It should also create direct jobs for approximately 1,000 people, which should also improve the industrial and economic environment in the state.

The MoU is not binding but requires the approval of tailor made incentive package, infrastructure assistance and statute approvals subject to the laws of the Tamil Nadu Government.

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The growth of the tyre manufacturer is in line with its strategic goals to increase production volume and boost its market within the local market.

The new venture will enable MRF to expand its leadership in the rubber products industry through the production of a variety of rubber products such as tyres, tubes, flaps, and tread rubber. The company also has the opportunity to expand to other markets in the world and its products are sold in more than 65 countries.

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The investment is a major move in the prognosis of the automotive manufacturing industry of India, where the tyre business in India has a potential of 65,000 crore. The growth by MRF is timed when India is putting more emphasis on infrastructure expansion, which is boosting the process of the manufacturing sector in general.