CHENNAI: Tyre major MRF Ltd has announced that it will be investing Rs 4,500 crore in its Perambalur and Arakonam plants in Tamil Nadu.
The investment is part of the earlier announced expansion plans by the company, which produces around 1.2 lakh tyres per year through its plants across the country.
“The company, as part of its expansion plan, proposes to invest Rs 4,500 crore in its plants at Perambalur and Arakonam in Tamil Nadu over a period of 7 years,” the company said in its BSE filing, adding the project has been given an Ultra Mega Project Status by the Tamil Nadu government.
Further, the company is expected to sign an memorandum of understanding with the Tamil Nadu government during the forthcoming Global Investor Meet.
“The Government of Tamil Nadu considered the above proposal and has decided to accord ‘Ultra Mega Project Status’ under the Tamil Nadu Industrial Policy, 2014. The MoU between the Government and the company in this regard is expected to be signed shortly,” the company said in the filing.
The proposed investment is likely to be funded from internal accruals.