MRF Ltd., India’s largest tyre manufacturer, has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu to invest Rs 5,300 crore in establishing a new greenfield manufacturing facility in Sivaganga district. The agreement was signed on March 4, and marks one of the largest single investments in the state’s automotive components sector in recent years. The plant is expected to expand MRF’s capacity to produce tyres for passenger vehicles, commercial vehicles and two-wheelers.
The MoU was executed in the presence of senior officials from MRF and Tamil Nadu’s industry department. According to a statement from the company, the proposed facility will be located on about 350 acres of land in at SIPCOT Iluppaikudi near Sivaganga, and will include state-of-the-art technology for tyre manufacturing. It is expected to create around 1,000 direct jobs and several thousand indirect jobs in the region during construction and operations.
MRF has informed that the new plant will support the company’s long-term capacity expansion plans in both domestic and export markets. A senior company official said that the facility would help meet growing demand for tyres across categories as well as strengthen the firm’s presence in the southern market. The exact timeline for the plant’s commissioning is yet to be finalised, but preparatory work on infrastructure and land development is expected to begin soon.
In a press interaction, an official from the Tamil Nadu industrial development department welcomed the investment, emphasising that the project aligns with the state’s goal of attracting large manufacturing units that boost employment and local economies. The official noted that the government would facilitate clearances and support infrastructure development to ensure timely implementation of the project.
The MoU also outlines that MRF will collaborate with local suppliers and service providers to build an ecosystem around the new plant. The company plans to source a significant portion of raw materials and auxiliary services from within the state, aiming to increase regional participation in tyre manufacturing value chains.
MRF Ltd. shares listed on Indian stock exchanges responded positively to the news following the announcement, reflecting market interest in the company’s expansion plan. The firm reiterated that the investment underscores its commitment to scaling production and supporting India’s automotive sector growth through strategic capacity additions.
The investment adds to Tamil Nadu’s profile as a key destination for automotive and auto-component manufacturing in India, complementing existing clusters of passenger vehicle, commercial vehicle and two-wheeler manufacturing units already present in the state.
– Magizh
