Anticipating a surge in demand from existing clients, newer original equipment manufacturers (OEMs), replacement market, and on the export front, tyre major MRF Ltd has decided to ramp up its radial tyre manufacturing capacity to over one million units per annum from the existing 3,50,000 tyres per annum. Towards this, the company has decided to set up a new plant in Tamil Nadu.
The company has entered into a MoU with the state government on Friday to set up a new plant at Perambalur near Trichy with an initial capacity of 3,50,000 radial tyres per annum, which will be scaled up to 7,00,000 units in the second phase. The company will be investing Rs 900 crore towards this, said Koshy Varghese, executive vice-president, MRF Ltd.
The state government has allotted 290 acre of land and this will be the third plant in Tamil Nadu after Tiruvottiyur and Arakonam and seventh overall. The other plants are in Puducherry, Kottayam, Goa, and the Medak district of Andhra Pradesh, he said.
Speaking to FE here, he said, the company is in the process of procuring equipment and work will commence soon. ?We expect the first phase to go on stream in the third quarter of 2009 and the second phase will follow in a few months after the first phase,? he said. Post second phase of production, the total radial tyre capacity will go up substantially to 10.50 lakh units per year from the existing 3,50,000 tyres per annum.
MRF has been chosen by Tata Motors to supply radial tyres for its forthcoming small car ?Nano?. The company will supply different types of tyres for the `Nano? car. Unless other cars, `Nano? will have a different set of tyres for front and back wheels, said Koshy Varghese, executive vice-president, MRF.
