MRF's 3,000 crore expansion plan
Leading tyre maker MRF is embarking on a major expansion plan involving an investment of Rs 3,000 crore to set up greenfield factories and planning to ramp up capacity at its existing plants to maintain market share. The com-pany also indicated that it is aggressively pursuing inorganic growth opportunities.
Of the proposed inves*tments, about two-thirds will be spent on greenfield factories in Tiruchi (Tamil Nadu) and Medak (Andhra Pradesh). “We are expan*ding radial tyre capacity across our plants. While we have commenced civil works at Tiruchi, a greenfield factory is being established at our existing manufacturing complex at Medak,” K M Mammen, chairman and managing director of the company, said at the company’s 49th annual general meeting in Chennai.
The Rs 900-crore Tiruchi plant, likely to be one of the largest manufacturing facilities of MRF, will commence production next year. The plant is being set up to make passenger car radials to meet growing demand. “Most of our expansion plans are funded through internal accruals,” added Mammen.
Of the proposed inves*tments, about two-thirds will be spent on greenfield factories in Tiruchi (Tamil Nadu) and Medak (Andhra Pradesh). “We are expan*ding radial tyre capacity across our plants. While we have commenced civil works at Tiruchi, a greenfield factory is being established at our existing manufacturing complex at Medak,” K M Mammen, chairman and managing director of the company, said at the company’s 49th annual general meeting in Chennai.
The Rs 900-crore Tiruchi plant, likely to be one of the largest manufacturing facilities of MRF, will commence production next year. The plant is being set up to make passenger car radials to meet growing demand. “Most of our expansion plans are funded through internal accruals,” added Mammen.
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