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MRF plans to invest $125 Mn in Tamil Nadu
By siliconindia
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Friday, 21 December 2007, 18:36 IST
Mumbai: MRF (Madras Rubber Factory), Indian radial tire manufacturing company will set up a greenfield facility for two and four wheeler radials to meet the growing demand in the country,reported the Economic Times.
The company's $125 million (Rs 500 crore) facility will be in Trichy, Tamil Nadu. The company is in talks with the state government for acquiring land.
A rising demand from automobile companies and a increase in vehicle ownership in the country have led all leading tire manufacturers to set up additional facilities or hike output.
According to a study, by 2010 the vehicle productions in the country will grow from the current 2.2 million to around 4.4 million units.
"We are carrying out capacity expansion at all our facilities. Besides, we are also setting up a greenfield unit in Trichy for two- and four-wheelers," said Koshy Varghese, VP, Marketing, MRF Tyres.
The comapny's turnover crossed the Rs 5,000 crore mark this year, and became the first Indian tyre company to reach the landmark. The company registered a 20 percent growth during this financial year.
The new plant may also cater to the export markets.
"Although exports will remain a priority for us, we are worried about the appreciating rupee. The rupee has been affecting us and hence we have reduced our focus on it," added Varghese.