MRF plans Rs 500 cr TN facility

MRF (Madras Rubber Factory), the country's leading tyremaker will set up a greenfield facility for two- and four-wheeler tyres to meet the growing demand in the country.

MRF's Rs 500 crore facility will come up in Trichy, Tamil Nadu. The company is in talks with the state government for acquiring land.

A surging demand from automobile companies and a spurt in vehicle ownership in the country have led all leading tyremakers, including Bridgestone, Apollo Tyres, Michellin and Ceat Tyres, either to set up additional facilities or hike output.

According to a study, the vehicle production in India will swell to 4.4 million units by 2010 from the current 2.2 million.

The company is in the process of a Rs 600 crore brownfield expansion at all its six plants.

Koshy Varghese, vice-president, marketing, MRF Tyres, said, "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."

By crossing the Rs 5,000-crore turnover this year, MRF became the first Indian tyre company to reach the landmark, registering a growth of 20 per cent compared with the last year's numbers.

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.

Apollo Tyres, the second largest tyremaker in the country, has announced plans to set up a truck, bus and passenger car radial plant in Tamil Nadu.

The world's largest tyre company, Bridgestone, may set up a radial facility for commercial vehicles.