Tyre major MRF Ltd has proposed to increase capacity at its eight manufacturing facilities across the country as part of its capital expenditure plan.
“The company, in line with its long term strategy, proposes to increase capacities across all its existing factories,” MRF said in its reply to the BSE.
The stock exchnage had sought clarification from the company over reports about its investment plans.
Reports had said MRF planned to invest around Rs 4,000 crore over the next three years to build up additional capacity and for introducing new products.
“These proposals are an ongoing process in the company as part of its capex plan over a period of time, for its eight factories situated at various places in the country,” the Chennai-based company said.
About the Rs 4,000 crore investments, MRF said the capex mentioned in the reports were “broad estimation” which would depend upon cash flows and review of capital expenditure needs.
“These proposals are currently tentative and as and when becomes definite, we note to keep the stock exchanges informed”, the company said.
Shares of the company ended at Rs 34,400, up by 2.59 per cent over previous close at BSE.