MRF To Invest ₹5,300 Cr. For Setting Up A Greenfield Project In Tamil Nadu

One of India’s leading tyre manufacturing companies, MRF Ltd, has announced a big investment plan. It is signing a non-binding memorandum of understanding (MoU) with the Government of Tamil Nadu to establish a greenfield tyre manufacturing facility in the state. The proposed investment of ₹5,300 Cr. will be made over the next 12 years and is expected to generate around 1,000 direct jobs.

Project Details And Strategic Implications

Under the agreement signed on March 4, 2026, MRF will develop a new manufacturing plant for automotive tyres and allied products at the SIPCOT (State Industries Promotion Corporation of Tamil Nadu) Industrial Park in Sivaganga district. The company signed the agreement through Tamil Nadu’s nodal agency Guidance, subject to requisite approvals, including land allocation, customised incentive packages, infrastructure support and other statutory clearances by the state government.

The proposed plant will help MRF expand its manufacturing presence and also reduce dependence on its existing locations by adding a new production base.

The presence of the Chief Minister of Tamil Nadu, Mr. M K Stalin, and the Minister for Industries, Mr. TRB Rajaa, at the ceremony, further highlighted the importance of this investment.

MRF’s Current Business And Financial Context

While the project is a future commitment, MRF’s existing operations continue to perform strongly:

• The company operates roughly 10 manufacturing facilities in India, producing a wide range of tyre products, including passenger car radials, truck and bus radials, two-wheeler tyres, OTR tyres, and specialised segments.

• MRF also manufactures tubes, flaps, conveyor belts and other rubber products for domestic and export markets.

In the equity markets, the MRF share has always captured the attention of investors due to the company’s strong brand presence and premium positioning in the domestic tyre segment. The stock is among the highest-priced in India.

Economic And Regional Significance

The new tyre plant is expected to have a positive impact across various areas, such as:

• Creating around 1,000 jobs and boosting local incomes.

• Supporting suppliers and logistics companies.

• Enhancing Tamil Nadu’s manufacturing position and attracting more domestic and global auto investments.

• Improving roads, utilities, and logistics, supporting overall regional growth.

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Next Steps And Outlook

Key next steps include:

• Approval of the final terms and conditions by the Tamil Nadu government.

• Land allocation and development support through SIPCOT.

• Statutory clearances and environmental approvals, as mandated.

• A detailed project plan and construction timeline.

Once all these requirements are fulfilled, the project can formally begin. But this can take a while due to the size and scale involved.

Sources:

ET

Financial Express