French tyre maker Michelin is expected to sign a MoU with the Tamil Nadu government within a month’s time. The tyre company is planning to formalise its greenfield tyre venture by standing against Japanese tyre major Bridgestone.
It has been revealed that all paper-works for formalising Michelin’s investment in Tamil Nadu have been processed. World’s second largest tyre maker Michelin has lined up an investment of Rs 4,000 Crore and the project is scheduled to receive the official seal very soon.
Earlier this year, Michelin had announced its India investment plan of upto Rs 7,000 Crore over a 10-year horizon to make and market radial tyres and tubes.
Michelin had sought government approval to acquire 100 per cent stake in a new company, Michelin India Tamil Nadu Tyres, formed in April 2009. This entity was to set up the proposed greenfield plant, which was to absorb investment worth Rs 4,000 Crore in the first phase running into 2016.
Bridgestone, which is seeking an area of 100 acres, has been on the negotiating table for over six months now. The company is looking at Thervaikandikai, near Gummidipoondi, in Kanchipuram district as its location.
Incidentally, this is the same location where Michelin is putting up its project on 290 acres. Tyre maker Michelin zeroed in on this particular site as it felt this to be the ideal location, given its proximity to the sea port and 40-km distance from the city.
For Bridgestone, the finer details are still being worked out. When the venture is signed and sealed, it would join the bandwagon of radial tyre companies that have been either expanding their presence or setting up greenfield projects in the state. The project in Chennai would be in excess of Rs 1,000 crore.
Moreover, Bharat Forge, J K Tyres and Hidromas are also in the last lap of finalising their investments in this state. As on date, the investment pour into Tamil Nadu since the last three years has crossed Rs 40,000 Crore mark, with the auto sector topping the contributions.
It has been revealed that all paper-works for formalising Michelin’s investment in Tamil Nadu have been processed. World’s second largest tyre maker Michelin has lined up an investment of Rs 4,000 Crore and the project is scheduled to receive the official seal very soon.
Earlier this year, Michelin had announced its India investment plan of upto Rs 7,000 Crore over a 10-year horizon to make and market radial tyres and tubes.
Michelin had sought government approval to acquire 100 per cent stake in a new company, Michelin India Tamil Nadu Tyres, formed in April 2009. This entity was to set up the proposed greenfield plant, which was to absorb investment worth Rs 4,000 Crore in the first phase running into 2016.
Bridgestone, which is seeking an area of 100 acres, has been on the negotiating table for over six months now. The company is looking at Thervaikandikai, near Gummidipoondi, in Kanchipuram district as its location.
Incidentally, this is the same location where Michelin is putting up its project on 290 acres. Tyre maker Michelin zeroed in on this particular site as it felt this to be the ideal location, given its proximity to the sea port and 40-km distance from the city.
For Bridgestone, the finer details are still being worked out. When the venture is signed and sealed, it would join the bandwagon of radial tyre companies that have been either expanding their presence or setting up greenfield projects in the state. The project in Chennai would be in excess of Rs 1,000 crore.
Moreover, Bharat Forge, J K Tyres and Hidromas are also in the last lap of finalising their investments in this state. As on date, the investment pour into Tamil Nadu since the last three years has crossed Rs 40,000 Crore mark, with the auto sector topping the contributions.
That was a little bit too business for me. In short, is Michelin trying to increase its market share over Bridgestone by buying more property?