Tyre major MRF has signed a non-binding memorandum of understanding (MoU) with the Tamil Nadu government to facilitate the establishment of a greenfield manufacturing facility for automotive tyres and allied products.
The proposed plant will be located at the SIPCOT Industrial Park, Sivaganga and represents a significant step in expanding MRF’s manufacturing footprint in southern India. The MoU is subject to the sanction of a customised incentive package, infrastructure support including land allocation, and statutory approvals uder applicable laws by the state government.
The project, when implemented, envisages an estimated investment of about ₹5,300 crore over a 12-year period and is expected to generate direct employment for around 1,000 people, contributing to industrial growth and job creation in the region.
Strong Financial Performance
The announcement comes amid robust financial momentum for MRF. The company reported a 15% increase in consolidated total income to ₹8,175 crore for the December quarter of 2025, compared with ₹7,099 crore in the corresponding quarter of the previous year.
Consolidated profit before tax stood at ₹917 crore, after accounting for an exceptional item of ₹77 crore related to the new Labour Code, compared to ₹424 crore in the year-ago period. After providing ₹225 crore towards tax, consolidated net profit rose sharply to ₹692 crore for the quarter ended December 31, 2025, more than doubling from ₹315 crore reported in the corresponding quarter last year.
Demand Tailwinds and Export Opportunities
Operationally, both original equipment (OE) and replacement segment sales remained strong during the third quarter, supported by increased demand following the reduction in GST rates. The rural economy also witnessed an uptick on the back of favourable and widespread monsoons, further driving demand.
The company expects demand buoyancy arising from GST rationalisation to continue into the fourth quarter. Additionally, OEMs are likely to scale up production levels in anticipation of stronger sales and reduced channel inventory.
Looking ahead, trade agreements being finalised by the Government of India with key markets, including the European Union and the United States, are expected to open up new export opportunities for the tyre major.
With the proposed Sivaganga facility and sustained financial growth, MRF is positioning itself to capitalise on domestic demand expansion while strengthening its export prospects in a dynamic global trade environment.