MRF Limited has executed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu for establishing a greenfield manufacturing facility for automotive tyres and allied products. The facility will be located at SIPCOT Industrial Park in Sivaganga District, Tamil Nadu.

Project Investment Details

The comprehensive investment plan outlines significant financial commitment and employment generation:

Facility Specifications

The proposed greenfield project represents a strategic expansion of MRF's manufacturing capabilities in Tamil Nadu. The facility will focus on automotive tyre production and allied products, positioning the company to serve the growing automotive sector demand in the region.

Government Partnership Framework

The MoU has been executed through the nodal agency "Guidance" representing the Government of Tamil Nadu. The non-binding nature of the agreement provides flexibility for both parties while establishing the foundation for future collaboration. The project implementation remains subject to several key conditions including sanction of a customised incentive package, infrastructure support including land allocation, and statutory approvals under applicable laws.

Strategic Impact

The 12-year investment timeline indicates a phased approach to facility development, allowing for systematic infrastructure development and gradual scaling of operations. The project is expected to generate direct employment for approximately 1,000 persons, contributing significantly to the local job market in Sivaganga District and supporting Tamil Nadu's industrial development objectives.

MRF Limited has announced a postal ballot seeking shareholder approval for revising the remuneration terms of its Managing Directors and Whole-time Directors. The Notice of Postal Ballot, dated February 26, 2026, was communicated to stock exchanges in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Executive Remuneration Restructuring

The company proposes to revise commission structures for five key executives, moving from the current system with monetary caps to a performance-linked model tied directly to net profits. The restructuring affects:

The fixed components including salary, residential accommodation, perquisites and allowances, and other benefits remain unchanged for all executives.

Current Executive Compensation Details

The company disclosed the total remuneration paid to each executive for 2024-2025:

Voting Process and Timeline

The postal ballot will be conducted exclusively through electronic voting (e-voting) facilitated by National Securities Depository Limited (NSDL). Key dates and details include:

Regulatory Compliance Framework

The proposed remuneration structure adheres to regulatory limits prescribed under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The total remuneration for any individual Managing Director or Whole-time Director will not exceed 2.5% of the company's net profits, while the aggregate remuneration for all Managing Directors and Whole-time Directors will remain within 5% of net profits.

Company Performance Context

The explanatory statement highlights the company's strong financial performance over the past five years, with significant growth in turnover, profits, and cash flow from operations. The company's total income on a standalone basis increased from ₹2608 crores in 2003 to ₹28068 crores in 2025 under K M Mammen's leadership.

The Board of Directors, based on recommendations from the Nomination and Remuneration Committee, approved these revisions on February 6, 2026. The changes take effect from April 1, 2025, for the remaining tenure periods of each executive, with tenures extending until dates ranging from August 2027 to February 2029 depending on the individual executive.