MRF to expand capacity at three locations
India’s largest tyremaker, MRF, recently outlined its plans for expansion at three of its factories. The expansion is estimated to cost somewhere between £58 and 70 million, and will be implemented over a period of two years.
At a press conference to announce the company’s audited financial results for the year ended September 2006, chairman and managing director K.M. Mammen said that the expansion of existing facilities would require only incremental investments as the cost of overheads were being shared. The funds for expansion would be drawn from internal accruals, as has always been the case.
MRF’s marketing director Phil Eapen said that the company had plans to expand its radial capacity by 100,000 units at each of its factories in Puducher and Arakkonam, and by 20,000 to 30,000 units at its Medhak factory.
The tyremaker’s total income increased by 22 per cent to approximately £465 million during 2005-6, with the Board of Directors approving a total dividend for the year of 200 per cent.