MRF Limited has informed the Exchange about execution of Non-Binding facilitation Memorandum of Understanding with the Government of Tamil Nadu
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Awaiting price reaction for this filing.
MRF Limited has signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a greenfield manufacturing facility for automotive tyres and allied products at SIPCOT Industrial Park in Sivaganga District, Tamil Nadu. The proposed project involves an estimated investment of approximately Rs. 5,300 crores to be spread over 12 years and is expected to create around 1,000 direct jobs. The MoU is non-binding in nature and remains subject to a customised incentive package, infrastructure support including land allotment, and statutory approvals from the state government. This represents a significant capacity expansion move by India's largest tyre manufacturer in its home state of Tamil Nadu.
Positive for long-term shareholders as the Rs. 5,300 crore capex plan signals major capacity expansion, though the non-binding nature and 12-year timeline mean there is no immediate financial impact. Near-term stock reaction is likely muted pending concrete approvals and incentives from the state government.