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MRF to Invest ₹5,300 Cr in Tamil Nadu Tyre Plant, Creating 1,000 Jobs

MRF has entered a non-binding MoU with the Tamil Nadu government to set up a major greenfield tyre manufacturing facility in Sivaganga. The proposed project represents an estimated investment of about ₹5,300 crores over 12 years and is projected to create direct employment for around 1,000 people. The company also reported strong quarterly financial results, with consolidated net profit soaring to ₹692 crores for the quarter ended December 2025. Robust demand from both original equipment and replacement markets, aided by GST rate reductions and a positive rural economy, drove the performance.

Key Points: MRF's ₹5,300 Cr Tamil Nadu Tyre Plant MoU & Q3 Results

  • ₹5,300 Cr investment over 12 years
  • MoU for Sivaganga greenfield plant
  • Expected 1,000 direct jobs
  • Q3 net profit jumps to ₹692 Cr
2 min read

MRF enters into MoU with Tamil Nadu for a greenfield plant at Sivaganga

MRF signs MoU for a greenfield tyre plant in Sivaganga, Tamil Nadu, with a ₹5,300 Cr investment. Q3 profit surges to ₹692 Cr.

"The demand buoyancy arising from reduction in GST rates is expected to continue - MRF"

New Delhi, March 4

MRF on Wednesday announced it entered into a non-binding Memorandum of Understanding with the Tamil Nadu government, through its Nodal Agency "Guidance" to facilitate the setting up of a greenfield manufacturing facility for automotive tyres and allied products at SIPCOT Industrial Park, Sivaganga District, Tamil Nadu.

The MoU is non-binding in nature and is subject to the sanction of a customised incentive package, infrastructure support, including land and statutory approvals under applicable laws by the Government of Tamil Nadu.

The proposed project, when implemented, envisages an estimated investment of about Rs 5,300 Crores over a period of 12 years and is expected to generate direct employment for approximately 1000 persons, MRF said in a statement.

MRF's consolidated total income increased by 15 per cent to Rs 8175 Crores for the quarter ended 31st December, 2025, as compared to Rs 7,099 Crores for the corresponding quarter ended 31st December,2024.

The consolidated profit before tax stood at Rs 917 Crores for the quarter ended 31st December,2025 (after providing for an exceptional item of Rs 77 Crores on account of the new Labour Code) as compared to Rs.424 Crores for the corresponding quarter ended December,2024.

Provision for tax for the quarter is Rs 225 Crores. After making provision for tax, the consolidated net profit for the quarter ended 31st December, 2025 is Rs 692 Crores as compared to Rs.315 Crores for the corresponding quarter ended 31st December,2024.

In the third quarter, both OE & Replacement sales were robust on account of increase in demand following the reduction in GST rates.

Rural economy also picked up against the background of good and widespread monsoons.

"The demand buoyancy arising from reduction in GST rates is expected to continue in 4th quarter also. Moreover, OEMs are expected to increase production levels due to higher sales expected in the last quarter and also due to reduced channel inventory," MRF had said earlier. "Trade Agreements, being finalized by the Government with various countries, including with EU and US, will open up opportunities for exports in the coming future."

- ANI

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Reader Comments

S
Sarah B
Rs 5,300 Crores over 12 years is a massive commitment. It's interesting to see the direct link between GST reduction and increased demand mentioned in their results. Smart policy can really drive manufacturing growth.
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Rohit P
Good monsoon leading to a better rural economy, which then boosts tyre sales... it shows how interconnected everything is in India. A positive cycle for the economy. MRF's profits have jumped impressively.
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Priyanka N
While the investment is welcome, I hope the Tamil Nadu government ensures strict environmental norms are followed. Sivaganga is not just an industrial park; it's someone's home. Development should be sustainable.
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Michael C
The focus on future export opportunities through trade agreements is the key takeaway for me. If Indian manufacturing can scale and meet global quality standards, we can become a major export hub for automotive components.
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Aman W
Non-binding MoU... let's see if it actually materializes. Many such announcements are made. The real test is ground-breaking. That said, MRF is a solid Indian company, so chances are good. 🤞

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