MRF to invest Rs 4,500 cr in Tamil Nadu to ramp up capacity

Tyre firm MRF will invest Rs 4,500 crore in Tamil Nadu over the next 7 years as part of its expansion plan and will soon sign a pact with the state government.

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, MRF said in a BSE filing.

The Tamil Nadu government considered the above proposal and decided to accord Ultra Mega Project Status under the Tamil Nadu Industrial Policy, 2014, said the Chennai-based company. The Memorandum of Understanding between the state government and the company in this regard is expected to be signed shortly, it said.

Currently, MRF has eight manufacturing facilities in South India. Auto firm Mahindra and Mahindra also plans to sign MoU with the state government during the Global Investors Meet scheduled next month for setting up a project at Rs 4,000 crore investment at Cheyyar in Kancheepuram district. The MRF stock closed at Rs 38,439.10, down by 3.53 per cent, on the BSE.