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MRF Ltd will invest over ₹4,500 crore in two of its tyre factories in Tamil Nadu, said the company in an announcement on the BSE.
The investment will be made at its factories in Perambalur and Arakonam over the next seven years as part of its expansion plan.
The Tamil Nadu Government had granted it Ultra Mega Project Status under its latest industrial policy announced in 2014. The company will enter into an agreement with the State Government, MRF said in the announcement to the stock exchange.
According to reliable sources, the agreement will be signed at the Global Investors Meet being organised by the State Government in May. Of the total investment envisaged by the company, ₹4,000 crore will go towards expanding the Perambalur plant and the balance for the Arakonam factory expansion.
Under the Ultra Mega Project Status, the investment will be eligible for a package of incentives and uninterrupted power supply.
MRF first set up the Perambalur plant as a greenfield project with an investment of ₹900 crore announced in 2008 to manufacture truck and car radial tyres. The initial capacity was about 3.5 lakh tyres a month to be doubled in stages.
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