The country's largest tyre maker MRF said on Sunday that its new Rs 900-crore Tiruchi plant would begin commercial production soon despite the threat of lower growth being faced by the industry.

“We are continuously upgrading our capacity and the new Tiruchi plant will begin operation very soon,” the MRF DGM, Mr Rajat N. Nangia, said on the sidelines of inauguration of Sunderlal Tyres, the company's first branded sales and service franchisee in city.

The Tiruchi plant, which is the seventh plant of the company, can produce truck tyres and car radials. Mr Nangia said there has been some signs of slowdown in the industry and even carmakers are also apprehending lower growth in car sales.

“Though it cannot be predicted right now but I think there growth could ease by five per cent deom over 20 per cent growth last fiscal,” Mr Nangia said.

He said the company would have to take a call on the hike of prices of tyres between 5-10 per cent depending on the category of tyres owing to pressure on input costs.

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