MRF Limited has entered into a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu for the establishment of a major Greenfield manufacturing facility. This proposed plant, focused on Automotive Tyres and Allied Products, will be located in the Sivaganga District. The project involves an estimated investment of approximately Rs.5,300 Crores over 12 years and is expected to create around 1000 direct jobs.
Agreement for Greenfield Manufacturing Project
MRF Limited announced on 4th March, 2026, that it has executed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu. The MoU is facilitated through the state’s Nodal Agency, “Guidance.”
The purpose of this agreement is to facilitate the establishment of a new Greenfield manufacturing facility dedicated to producing Automotive Tyres and Allied Products. The intended location for this significant industrial unit is the SIPCOT Industrial Park, Sivaganga District, Tamil Nadu.
Project Scale and Investment
The proposed project represents a substantial commitment to manufacturing growth within the region. Key details regarding the scale of investment and employment generation are as follows:
- Estimated Investment: Approximately Rs.5,300 Crores.
- Implementation Period: The investment is planned to be deployed over a period of 12 years.
- Employment Generation: The facility is anticipated to generate direct employment for approximately 1000 persons.
Conditions and Next Steps
It is important to note that the MoU is non-binding in nature. Its execution is conditional upon several factors being sanctioned by the Government of Tamil Nadu. These prerequisites include the sanctioning of a customised incentive package, provision of necessary infrastructure support (including land), and receipt of all required statutory approvals under applicable laws.
The Company has duly submitted this information for record to the National Stock Exchange of India Ltd and the Bombay Stock Exchange Ltd.
Source: BSE
