MRF to invest Rs 900 cr for TN greenfield plant

The plant will be the company's third in the state and seventh in the country. A memorandum of understanding (MOU) in this regard was signed between MRF Chairman and Managing Director K M Mammen and M F Farooqui, TN's industry secretary, today.

In addition, the investment also includes expansion of its existing facilities at Tiruvattiyur and Arakonam, the release said. "The first phase of the project, involving production of 3.50 lakh radial tyres, will commence by October 2009," Koshi Varghese, executive vice-president, MRF told Business Standard.

The new unit is expected to help the company meet the rising demand in the passenger and truck radials segment, the release said. In the first phase of project, 3.50 lakh tyres would be manufactured, which would double in the second stage.

Besides the two existing facilities in the state, the company has manufacturing facilities at Puducherry, Kottayam (Kerala), Goa, and Medak (Hyderabad).

MRF shares ended the day up 1.41 per cent at Rs 4,606.85 on the Bombay Stock Exchange.