MRF Initials Greenfield Memorandum

Confirming news first reported in December 2007, on May 2 India’s MRF Ltd initialled a memorandum of understanding with the government of the state of Tamil Nadu for establishing a greenfield facility. This new factory, at Perambulur, will be the tyremaker’s third in the state. The memorandum was signed by company chairman and managing director K.M. Mammen and M.F. Farooqui, Tamil Nadu secretary to government for the Industries Department.

An investment of Rs 9 billion (£112.4 million) will see the new factory have an initial capacity for 350,000 passenger car and truck radials, and capacity is expected to double in the second phase of development. According to Koshy Varghese, executive vice-president, Marketing, for MRF, the first tyres will be produced in October 2009. Mr. Varghese expressed confidence that the arrival of further international automakers in India and the release of the Tata Nano (for which MRF is an OE supplier) will offer huge opportunities for radials in India, and export possibilities also beckoned.