MRF to invest Rs 5,300 crore in new tyre plant in TN's Sivaganga
CHENNAI: MRF Limited has entered into a non-binding memorandum of understanding (MoU) with the Tamil Nadu government to facilitate the setting up of a greenfield tyre manufacturing facility in Sivaganga district, involving a proposed investment of about `5,300 crore over a period of 12 years.
The MoU was signed at an event held at the secretariat on Wednesday in the presence of Chief Minister M K Stalin.
Under the MoU, signed through the state’s nodal investment promotion agency, Guidance, MRF plans to establish a greenfield manufacturing unit for automotive tyres and allied products at the SIPCOT Industrial Park in Sivagangai district.
An official release said MRF Ltd chairman and managing director KM Mammen, vice-chairman and managing director Arun Mammen exchanged documents with Guidance MD and CEO Darez Ahmed. The project, when implemented, is expected to generate direct employment for around 1,000 people.
MRF said the MoU is non-binding in nature and is subject to the sanction of a customised incentive package, infrastructure support including land, and statutory approvals under applicable laws by the Tamil Nadu government. Meanwhile, the company disclosed the development in a regulatory filing to the National Stock Exchange of India. The event was attended by Deputy Chief Minister Udhayanidhi Stalin, Industries Minister T R B Rajaa, chief secretary N Muruganandam, and industries secretary V Arun Roy, among others.
MRF, one of India’s largest tyre manufacturers, produces tyres, tubes and flaps for domestic and international markets.
While the company operates manufacturing facilities at 10 locations across the country, Tamil Nadu hosts the highest concentration of its plants, including units at Tiruvottiyur, Arakkonam and Perambalur.