MRF to invest Rs 1,000 crore for expansion of its Andhra Pradesh plant

MRF Tyres has announced that it will invest Rs 1,000 crores to double the capacity of its plant in Andhra Pradesh. Coming at a time when the auto industry is going through one of the worst slowdowns, the doubling of capacity is expected to help the Chennai-based tyre manufacturer to carve a higher market share, both at the OE level as well as at the after market level. The announcement also comes at a time when Andhra Pradesh is facing a political situation is wake of its impdening bifurcation. Expected to create over 1,000 jobs, the capex announcement also comes hot on the heels of Michelin announcing a plan to set up a manufacturing facility near Chennai. The Michelin plant is expected to go on stream soon. Controlling over 32 per cent of the Rs 41,000 crore domestic tyre industry, MRF exports its products to over 65 countries around the globe. Having over eight manufacturing facilities across the country, production from the Andhra Pradesh plant alone contributed about Rs 4,300 crore in sales, over a third of the total sales seen by MRF in FY12.