MRF Tamil Nadu tyre plant planned with Rs 5,300 crore investment in Sivaganga

The MRF Tamil Nadu tyre plant has been proposed under a Memorandum of Understanding signed between MRF Limited and the Government of Tamil Nadu. The agreement outlines plans to establish a new greenfield manufacturing facility for automotive tyres and allied products in Sivaganga District. The MoU was signed on 4 March 2026 through the state’s investment facilitation agency Guidance and disclosed to Indian stock exchanges the same day.

Greenfield Facility Planned at SIPCOT Industrial Park

The proposed facility is planned at the SIPCOT Industrial Park located in Sivaganga District in southern Tamil Nadu. According to the company’s estimates, the project could involve a total investment of approximately Rs 5,300 crore spread across a 12-year period. Once fully operational, the plant is expected to generate direct employment for about 1,000 people while also creating additional indirect opportunities through supplier networks and regional service providers.

MoU Subject to Incentives and Approvals

The memorandum signed between the parties is non-binding and primarily signals intent to pursue the project. Progress toward final investment commitment depends on several conditions being met by the state government. These include the approval of a customised incentive package, infrastructure support such as land allocation within the SIPCOT industrial zone, and the completion of statutory approvals required under applicable regulatory frameworks.

Role of SIPCOT in Industrial Expansion

The industrial park infrastructure developed by SIPCOT forms part of Tamil Nadu’s broader strategy to expand manufacturing activity beyond the Chennai metropolitan region. Large-scale investments in districts such as Sivaganga are intended to diversify industrial development across the state and strengthen regional economic ecosystems.

MRF’s Manufacturing Network and Market Presence

Headquartered in Chennai, MRF Limited remains India’s largest tyre manufacturer by revenue. The company maintains a strong domestic presence across multiple vehicle categories including passenger vehicles, commercial vehicles, two-wheelers, tractors and specialised off-road applications. In addition to its domestic operations, the manufacturer exports tyres to more than 65 international markets.

MRF currently operates manufacturing facilities across several Indian states including Tamil Nadu, Kerala, Goa, Puducherry and Andhra Pradesh. Its flagship production plant is located in Arkonam, Tamil Nadu. Expanding manufacturing capacity through projects such as the MRF Tamil Nadu tyre plant could help the company meet anticipated demand growth across multiple automotive segments.

Industry Demand Driving Capacity Expansion

India’s tyre industry has been witnessing steady demand growth supported by rising vehicle sales, expanding commercial fleets and sustained infrastructure spending. Manufacturers across the sector have responded by planning new investments and capacity expansions. A project of this scale would position the company to support long-term demand growth expected in the coming decade.

Tamil Nadu’s Position as an Automotive Manufacturing Hub

Tamil Nadu continues to attract major automotive and auto-component investments due to its established industrial ecosystem, supplier base and supportive policy framework. Agencies such as Guidance and SIPCOT have played a central role in facilitating investment through land allocation, incentive packages and single-window approval systems. Several domestic and global manufacturers have announced projects or expansions in the state in recent years.

The proposed investment was formally disclosed 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.