MRF Signs MoU with Tamil Nadu Government for Greenfield Tyre Plant in Sivaganga

MRF Limited has entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a Greenfield manufacturing facility for automotive tyres and allied products in Sivaganga District. The agreement was signed on 4th March 2026 through the state's nodal investment facilitation agency, Guidance, and was disclosed to Indian stock exchanges the same day.

The proposed plant is to be located at the SIPCOT Industrial Park in Sivaganga District, in the southern part of Tamil Nadu. The company estimates a total investment of approximately Rs 5,300 crore over a period of 12 years. Upon completion, the facility is expected to generate direct employment for around 1,000 persons, with the potential for additional indirect employment in ancillary and support industries in the region.

The MoU is explicitly non-binding in nature. Its progression to a formal investment commitment is contingent on the Tamil Nadu government sanctioning a customised incentive package for the company, providing infrastructure support including land allocation at the SIPCOT park, and granting all necessary statutory approvals under applicable laws. Until these conditions are met, the agreement serves primarily as a statement of intent by both parties to work toward the establishment of the facility.

Sivaganga District, located approximately 450 kilometres from Chennai, has historically been an agrarian region. Industrial investment of this scale could represent a shift in the district's economic profile. SIPCOT's presence in the area through its industrial park infrastructure is part of a broader state effort to distribute industrial development beyond the traditional manufacturing corridors of the Chennai metropolitan region.

MRF Limited, headquartered in Chennai, is India's largest tyre manufacturer by revenue. The company holds a dominant position in the domestic market across multiple segments, including passenger vehicles, commercial vehicles, two-wheelers, tractors, and off-road tyres. It also has a presence in international markets, exporting to over 65 countries. MRF's existing manufacturing network spans several states, including Tamil Nadu, Kerala, Goa, Puducherry, and Andhra Pradesh, with its flagship plant located in Arkonam, Tamil Nadu.

The tyre industry in India has been experiencing demand growth driven by rising vehicle sales, fleet expansion in the commercial segment, and increased infrastructure spending. Manufacturers have responded by announcing capacity expansions across the country. A Greenfield facility of this scale would allow MRF to increase production capacity in anticipation of continued demand growth over the coming decade.

Tamil Nadu has in recent years positioned itself as a preferred destination for manufacturing investment, particularly in the automotive and auto-components sector. The state government, through agencies such as Guidance and SIPCOT, has actively sought to attract investment through incentive packages, land facilitation, and single-window clearance mechanisms. Several domestic and multinational manufacturers have announced or expanded operations in the state in recent years.

The disclosure was made to the National Stock Exchange of India and the Bombay Stock Exchange by S Dhanvanth Kumar, Company Secretary of MRF Limited, in accordance with the listing and disclosure requirements applicable to publicly traded companies in India.