MRF to build new tyre factory

Tyre maker MRF Ltd reportedly plans to establish a new manufacturing facility in India’s Gujarat state. According to a state government official quoted in The Times of India, the company looks set to build at a greenfield site in Bharuch. The publication suggests that around Rs 40 billion (£398.6 million) will be invested in the greenfield plant project, and gives planned initial production capacity at one million tyres per month. No details about the type of tyre to be manufactured at the plant were disclosed, and The Times of India commented that MRF Ltd “could not be contacted for its comment.”

This investment comes on top of the Rs 45 billion (£448.5 million) that MRF intends to invest in expanding its Perambalur and Arakonam plants in Tamil Nadu state over a period of seven years and the Rs 9 billion (£89.5 million) expansion of its Sadasivpet tyre factory in Telangana state.

MRF will be in good company in Gujarat; Apollo Tyres, Ceat Ltd, BKT and ATG all operate tyre making facilities within the state, and Maxxis also intends to set up a factory there.