MRF To Invest Rs 53 bn In Tamil Nadu Tyre Plant
ECONOMY & POLICY

MRF To Invest Rs 53 bn In Tamil Nadu Tyre Plant

MRF has signed a memorandum of understanding with the Tamil Nadu government to establish a greenfield manufacturing facility for automotive tyres and allied products at Sipcot Industrial Park in Sivaganga district. The plant will be the company's fourth in the state after units in Tiruvottiyur, Perambalur and Arakonam. The proposed project envisages an estimated investment of about Rs 53 billion (bn) over 12 years and is expected to generate direct employment for approximately 1,000 people. The memorandum is non-binding and subject to sanction of a customised incentive package, infrastructure support and statutory approvals by the state government.

Apart from Tamil Nadu, the company operates units in Kerala, Goa, Telangana and Gujarat. MRF's consolidated total income rose by 15 per cent to Rs 81.75 bn in the third quarter ended December 2025 from Rs 70.99 bn a year earlier. Consolidated profit before tax was Rs 9.17 bn for the quarter after an exceptional provision of Rs 0.77 bn for the new labour code, compared with Rs 4.24 bn in the corresponding quarter of 2024.

The state has unveiled the Tamil Nadu Ship Building Policy 2026 to develop shipbuilding clusters capable of supporting large commercial vessels, defence craft, submarines, green vessels and offshore structures. The policy sets out structured incentives to attract global shipyards and marine manufacturers, including equity participation, asset leasing, capital support and production-linked incentives to encourage long-term investment in shipbuilding and related manufacturing. Sustainability and industry four point zero skill development are central to the plan, with institutions such as the Indian Maritime University and the State Shipbuilding Skill Council to support workforce development.

Tamil Nadu's natural advantage includes a 1,076 km coastline and deep water access capable of handling vessels above 200,000 deadweight tonnage, supported by a manufacturing ecosystem with more than 40,000 factories. The policy aims to convert that strength into a clear maritime manufacturing strategy and to position the state to lead future shipbuilding growth. Implementation will depend on approvals and investment commitments, and the new tyre project will proceed subject to final incentives and clearances.

MRF has signed a memorandum of understanding with the Tamil Nadu government to establish a greenfield manufacturing facility for automotive tyres and allied products at Sipcot Industrial Park in Sivaganga district. The plant will be the company's fourth in the state after units in Tiruvottiyur, Perambalur and Arakonam. The proposed project envisages an estimated investment of about Rs 53 billion (bn) over 12 years and is expected to generate direct employment for approximately 1,000 people. The memorandum is non-binding and subject to sanction of a customised incentive package, infrastructure support and statutory approvals by the state government. Apart from Tamil Nadu, the company operates units in Kerala, Goa, Telangana and Gujarat. MRF's consolidated total income rose by 15 per cent to Rs 81.75 bn in the third quarter ended December 2025 from Rs 70.99 bn a year earlier. Consolidated profit before tax was Rs 9.17 bn for the quarter after an exceptional provision of Rs 0.77 bn for the new labour code, compared with Rs 4.24 bn in the corresponding quarter of 2024. The state has unveiled the Tamil Nadu Ship Building Policy 2026 to develop shipbuilding clusters capable of supporting large commercial vessels, defence craft, submarines, green vessels and offshore structures. The policy sets out structured incentives to attract global shipyards and marine manufacturers, including equity participation, asset leasing, capital support and production-linked incentives to encourage long-term investment in shipbuilding and related manufacturing. Sustainability and industry four point zero skill development are central to the plan, with institutions such as the Indian Maritime University and the State Shipbuilding Skill Council to support workforce development. Tamil Nadu's natural advantage includes a 1,076 km coastline and deep water access capable of handling vessels above 200,000 deadweight tonnage, supported by a manufacturing ecosystem with more than 40,000 factories. The policy aims to convert that strength into a clear maritime manufacturing strategy and to position the state to lead future shipbuilding growth. Implementation will depend on approvals and investment commitments, and the new tyre project will proceed subject to final incentives and clearances.

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