MRF Inks ₹5,300 Crore Tyre Plant MOU In Tamil Nadu

MRF Limited has informed the stock exchanges that it has signed a non-binding memorandum of understanding with the Government of Tamil Nadu for a new tyre manufacturing project in Sivaganga district. The proposed unit will come up at SIPCOT Industrial Park in Sivaganga. 

The MoU has been signed with the state’s nodal agency, Guidance, for setting up a greenfield manufacturing facility for automotive tyres and allied products. MRF has said that the understanding is a facilitation MoU and is not binding on either party at this stage. The company has also said that the project will depend on a customised incentive package and infrastructure support from the Tamil Nadu government. 

According to the filing, the project involves an estimated investment of about Rs 5,300 crore over a period of 12 years. The investment plan is linked to the implementation of the plant at the state industrial park. MRF has said the proposal will require various statutory approvals under applicable laws. 

The company has told the exchanges that the project is expected to generate direct employment for about 1,000 persons when it is implemented. The filing does not give a timeline for the start of construction or production. It also does not disclose details of the product mix or capacity of the planned facility.