MRF to invest ₹5,300cr in new tire manufacturing plant
What's the story
Leading tire manufacturer MRF has announced plans to set up a greenfield manufacturing facility in Tamil Nadu. The company will invest around ₹5,300 crore in the project over the next 12 years. The announcement was made after signing a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu today.
Employment boost
Proposed plant to be located at SIPCOT Industrial Park
The proposed plant will be located at the SIPCOT Industrial Park in Sivaganga district and will manufacture automotive tires and allied products. Once operational, the facility is expected to directly employ around 1,000 people. However, this timeline is contingent upon the state government's approval of a customized incentive package as well as infrastructure support including land and statutory approvals.
Financial growth
MRF reported a strong Q3 performance last month
Last month, MRF reported a strong Q3 performance with a 68% year-on-year growth in EBITDA to ₹1,399 crore for the quarter ending December 31, 2025. The figure for the same period previous year was ₹834 crore. Margins also expanded by nearly 450 basis points to 17.4%, doubling profitability from ₹316 crore last year to ₹691.8 crore this time around.
Income increase
Total income up by 15% YoY
MRF's consolidated total income for the quarter ending December 31, 2025, stood at ₹8,175 crore, up 15% from ₹7,099 crore in the same quarter previous year. The company's consolidated profit before tax was ₹917 crore for Q3 FY25-26 (after an exceptional item of ₹77 crore on account of new Labor Code), compared to ₹424 crore in the corresponding period last fiscal.