Mumbai, Mar 05 : The proposed MRF tyre plant Sivaganga project moved a step forward after MRF Limited signed a non-binding memorandum of understanding with the Government of Tamil Nadu to establish a greenfield manufacturing facility in the district.
The agreement was formalised at the state secretariat in Chennai in the presence of Chief Minister M. K. Stalin. The investment, estimated at around Rs 5,300 crore, will be spread over a 12-year period.
Facility Planned at SIPCOT Industrial Park
The upcoming unit will be located at the SIPCOT Industrial Park and will focus on producing automotive tyres and allied products. The MoU was executed through the state’s investment promotion agency, Guidance Tamil Nadu.
According to an official statement, MRF chairman and managing director KM Mammen and vice-chairman and managing director Arun Mammen exchanged documents with Guidance MD and CEO Darez Ahmed during the event. Once operational, the facility is expected to create nearly 1,000 direct jobs.
Subject to Approvals and Incentives
The company clarified that the understanding remains non-binding and will depend on approvals for a customised incentive package, land allocation, infrastructure support and statutory clearances from the state authorities. The development was also disclosed in a regulatory filing to the National Stock Exchange of India.
The signing ceremony 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 other officials.
Strong Manufacturing Presence in Tamil Nadu
MRF is among India’s leading tyre makers, manufacturing tyres, tubes and flaps for domestic and export markets. The company currently operates 10 production facilities nationwide, with Tamil Nadu housing the largest concentration, including plants at Tiruvottiyur, Arakkonam and Perambalur.
The new project is expected to further strengthen the state’s position as a key hub for automotive manufacturing.