MRF has signed a memorandum of understanding (MoU) with the Tamil Nadu government to come up with a greenfield manufacturing facility for automotive tyres and allied products at Sipcot Industrial Park in Sivaganga district.
This is the fourth manufacturing unit that is coming up in the state, with three others located in Tiruvottiyur, Perambalur and Arakonam.
The proposed project when implemented envisages an estimated investment of about Rs.5,300 crore over a period of 12 years and is expected to generate direct employment for approximately 1,000 people.
"The company has entered into a non-binding MoU with the government of Tamil Nadu, through its nodal agency 'Guidance' to facilitate the setting up of a greenfield manufacturing facility for automotive tyres and allied products at Sipcot Industrial Park in Sivaganga district", the company informed in a stock exchange filing.
The MoU is non-binding in nature and is subject to sanction of a customized incentive package, infrastructure support, including land and statutory approvals under applicable laws by the Tamil Nadu government.
Apart from Tamil Nadu, the company currently operates its manufacturing units in Kerala, Goa, Telangana and Gujarat. Tamil Nadu Chief Minister M K Stalin on Wednesday unveiled the Tamil Nadu Ship Building Policy 2026.
As part of this, the state will develop world class shipbuilding clusters that can support the construction of large commercial vessels, defence craft, submarines, green vessels and offshore structures.
"The policy introduces structured incentives to attract global shipyards and marine manufacturers. Equity participation, asset leasing, capital support and production-linked incentives will encourage long term investment in shipbuilding, marine engineering and related manufacturing", said industry minister TRB Rajaa on a social media post.
Green ship recycling, environmentally responsible shipbuilding practices and industry 4.0 skill development will shape the sector's growth. Institutions such as the Indian Maritime University and the State Shipbuilding Skill Council will support workforce development for this emerging ecosystem.
Tamil Nadu has a natural advantage with 1,076 km coastline, deep water access capable of handling vessels above 200,000 deadweight tonnage and a manufacturing ecosystem with more than 40,000 factories that already power India's industrial economy.
"This policy converts that strength into a clear maritime manufacturing strategy. Tamil Nadu has always been a maritime state. From the Chola era to modern global trade, our coastline has connected us to the world. Now, the chief minister is building the industrial capability to lead the next phase of shipbuilding", he said.