MRF to expand Capacity

MRF, a leading automotive tyre manufacturer is planning to expand the capacities of its existing units. The project involves increasing the radial tyre unit at Puducherry from 1 lakh units/year to 3 lakh units/year, 2-wheeler tyre capacity at Arakonam from 5 lakh units/year to 6 lakh units/year and commercial vehicle tyre unit capacity at Medak in AP from 60,000 units/year to 80,000 units/year. The projects are estimated to cost Rs.10,000 million. As of April 2007, the projects are in various stages of implementation and are scheduled to be commissioned in the first quarter of 2008.

In addition to the expansion programme, the company is also exploring the possibility of setting up two greenfield tyre units.