MRF Tyres, one of the leading tyre makers of India, has decided to invest Rs 4,500 crore in Tamil Nadu in a bid to increase its production capacity. The company will invest the proposed amount of money over next 7 years as part of an expansion plan and will soon sign a contract with the Tamil Nadu state government in this regard.
MRF Ltd said, “The company, as part of its expansion plan, proposes to invest Rs 4,500 crore in its plants at Perambalur and Arakkonam in Tamil Nadu over a period of seven years.”
The Chennai-based tyre manufacturer added, “The Government of Tamil Nadu considered the proposal and decided to accord Ultra Mega Project Status under the Tamil Nadu Industrial Policy, 2014. The Memorandum of Understanding between the State Government and the company in this regard is expected to be signed shortly.”
Presently, MRF Ltd has eight production plants in South India. One of the largest automaker of India, Mahindra and Mahindra is also planning to sign a Memorandum of Understanding with Tamil Nadu state government during the Global Investors Meet that is going to be held next month. Under this agreement, the Indian auto maker will propose an investment of Rs 4,000 crore to set up a project at Cheyyar in Kancheepuram district. MRF scrip closed at Rs 38,439.10, down by 3.53 per cent, on the BSE.