MRF to invest Rs 1,000 crore on Andhra Pradesh plant expansion
Posted by: MRF Tyres
Published: Mon, Oct 21, 2013
HYDERABAD: Even with the ongoing turmoil over the bifurcation of Andhra Pradesh, India's leading tyre maker MRF said it will invest about Rs 1,000 crore to double its capacity at a facility located near Hyderabad.
This is the second largest investment that the state has attracted after the announcement of its bifurcation into Telangana and Seemandhra by the Congress Working Committee on July 30. Confectionary and beverages maker Cadbury India said on August 7 it would set up a facility at Sri City in Chittoor for Rs 1,000 crore.
MRF approached the Andhra Pradesh industries ministry last week to double capacities. The company is learnt to have told Andhra Pradesh government officials that the expansion would provide employment to over 1,000 people. MRF is the market leader in India with some 32% market share in the Rs 41,000-crore domestic tyre industry. It also exports its products to some 65 countries across the globe.
The Andhra Pradesh facility contributed about Rs 4,300 crore of sales, or over a third of the total, in 2011-12. By end of 2011-12, MRF has Rs 2,853 crore of reserves and surplus in its books. In all, MRF has eight manufacturing facilities spread across the country.
"We have received the proposal from MRF for expansion and it is currently under the consideration of the industries ministry," a senior ministry official told ET on condition of anonymity. The MRF officials sought time to provide details on the expansion and capacities involved.
Originally established as Madras Rubber Factory, MRF had set up its first unit at Sadasivpet in Andhra Pradesh in 1990 and has set up another unit at Ankanpally in 2009, which went on stream recently with an investment of Rs 424 crore.Article Courtesy- http://economictimes.indiatimes.com/