MRF Plans ₹5,300 Crore Tyre Manufacturing Plant in Tamil Nadu

MRF Ltd has signed a non-binding Memorandum of Understanding with the Government of Tamil Nadu to establish a new greenfield manufacturing facility for automotive tyres and related products in the Sivaganga district. The proposed project is expected to involve an investment of about ₹5,300 crore over a period of 12 years.

The company informed both National Stock Exchange of India and Bombay Stock Exchange about the agreement, stating that the MoU was signed through the state’s nodal investment promotion agency, Guidance Tamil Nadu.

Investment Plan and Project Scope

According to the company’s regulatory filing, the proposed manufacturing facility will focus on producing automotive tyres and allied products. The investment of ₹5,300 crore will be made in phases over the next 12 years as the project develops.

The MoU remains non-binding and the final execution of the project will depend on the Tamil Nadu government providing a customised incentive package, infrastructure support such as land, and the required statutory approvals under applicable laws.

Proposed Location and Employment Generation

The new tyre plant is planned to be set up at the SIPCOT Industrial Park Sivaganga. The agreement is intended to facilitate the process of establishing the manufacturing facility in the industrial zone.

Once operational, the plant is expected to generate direct employment for around 1,000 people. The company stated that the project will move forward after receiving all necessary approvals and infrastructure support from the state government.