MRF Limited has signed 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 March 4, 2026, through the state’s investment facilitation agency Guidance Tamil Nadu, and was subsequently disclosed to Indian stock exchanges.
The proposed facility will be located at the SIPCOT Industrial Park, in southern Tamil Nadu. The project involves a planned investment of approximately ₹5,300 crore over the next 12 years. Once operational, the plant is expected to create around 1,000 direct jobs, with additional employment opportunities likely to emerge across ancillary industries and regional supply chains.
The MoU is non-binding in nature, and the project’s progression toward a formal investment commitment will depend on several conditions. These include the approval of a customised incentive package by the state government, the provision of infrastructure support such as land allocation within the SIPCOT industrial park, and the receipt of necessary statutory approvals under applicable regulations. Until these conditions are fulfilled, the agreement represents a mutual intent by both parties to pursue the project.
Located about 450 kilometres from Chennai, Sivaganga District has historically been an agrarian region. A large-scale industrial investment such as this could help reshape the district’s economic profile. The development also aligns with the state’s strategy of expanding industrial activity beyond the traditional manufacturing clusters surrounding Chennai.
Headquartered in Chennai, MRF Limited is India’s largest tyre manufacturer by revenue, with a strong presence across segments including passenger vehicles, commercial vehicles, two-wheelers, tractors, and off-road tyres. The company exports its products to more than 65 countries and operates manufacturing facilities across Tamil Nadu, Kerala, Goa, Puducherry, and Andhra Pradesh, including its flagship plant in Arkonam.
The Indian tyre industry has been witnessing steady demand growth, supported by rising vehicle sales, expanding commercial fleets, and increased infrastructure spending. Establishing a greenfield facility of this scale would allow MRF to expand production capacity and meet anticipated demand over the coming decade.
In recent years, Tamil Nadu has strengthened its position as a key manufacturing hub, particularly for the automotive and auto components sectors. Through agencies such as Guidance Tamil Nadu and SIPCOT, the state has been actively promoting investments by offering incentives, land facilitation, and streamlined single-window clearance mechanisms.
The disclosure regarding the MoU was submitted to the National Stock Exchange of India and the Bombay Stock Exchange by S Dhanvanth Kumar, Company Secretary of MRF Limited, in accordance with listing and disclosure requirements applicable to publicly traded companies in India.
