MRF has signed a non-binding Memorandum of Understanding with the Tamil Nadu government to establish a new greenfield manufacturing facility for automotive tyres in Sivaganga district. The agreement aims to boost production and export capabilities, subject to government approvals and incentives. This move comes amid strong financial performance for the company in recent quarters.
On March 4, 2026, MRF announced a non-binding Memorandum of Understanding (MoU) with the Tamil Nadu government through its nodal agency Guidance. The pact facilitates the setup of a greenfield manufacturing facility for automotive tyres and allied products at the SIPCOT Industrial Park in Sivaganga district.
The MoU depends on approvals for a customized incentive package, infrastructure support including land, and statutory clearances under applicable laws. This development aligns with MRF's recent financial growth. For the quarter ended December 31, 2025, the company's consolidated total income rose 15% to ₹8,175 crores from ₹7,099 crores in the same period of 2024. Profit before tax reached ₹917 crores, after a ₹77 crore exceptional item related to the new Labour Code, compared to ₹424 crores previously.
After a ₹225 crore tax provision, net profit stood at ₹692 crores, up from ₹315 crores. Both original equipment (OE) and replacement sales were strong due to increased demand following GST rate reductions. The rural economy improved thanks to good monsoons.
MRF stated earlier, “The demand buoyancy arising from reduction in GST rates is expected to continue in fourth quarter also. Moreover, OEMs are expected to increase production levels due to higher sales expected in the last quarter and also due to reduced channel inventory.” The company also noted that ongoing trade agreements with countries like the EU and U.S. could enhance export opportunities.
