Tyre major MRF has said it is looking to set up a new plant to ramp up production as its existing nine units are running to full capacity. The company confirmed that Gujarat is one of the states on its radar.
Speaking to FE, Koshy K Varghese, executive vice president (marketing), MRF said no call has been taken yet on the location. “We look at options outside the South wherever opportunities throw up. Gujarat could be one of them. We are looking at opportunities both within and outside the country”, he said. Almost all its plants are now in south India.
He said the company’s R4,500 crore investment plan is on course. Most of the expansion has been taking place in the company’s Tiruchirappilly plant.
“Our yearly average spend is R800 to R1,000 crore. That continues even now and most of it is in our existing plants,” he said adding, “We need to look at long term. We should not say, the market is down, so let’s not invest. We have to keep investing to maintain our market leadership position.”
“We were all hoping that the new government will take measures but that has not come through,” he said.