MRF limited is the largest producer of tires with a 22% market share. Over 95% of its revenues comes from tires. It has six plants spread over south India. MRF derives almost all of its revenue from the sale of automobile tires, automobile tubes, tread rubber and pre-cured treads. A Small portion of the revenue comes from sale of conveyor belts, automobile coating, leather skins, and other products. MRF also targets the lucrative replacement market (76% of market) and bulk original equipment segment. The company reported decline of profits in June 2001. The fall of profits is mainly because of the rise in the prices of rubber. MRF consumes 90000 to 100000 tones of rubber every day.
MRF manufactures automobile tires, automobile tubes, tread rubber and pre-cured tread. In the year 2001-2002, net sales increased by a sluggish1.67%. Just exceeding 23 billion, reminiscent of the phlegmatic performance of the auto industry, which was again an offshoot of the pessimism of the overall economy? Moreover, the company was affected by a rise in raw material prices, especially nylon tire cord and carbon black that was attributor but not the main cause of its predicament. Net profits nose-dived by a whooping 35% from Rs986mn to around Rs640.6mn in the 2001-2002 fiscal. This was mirrored by the relative fall in the operating profits of the company, which was again due to the relative fall in the operating profits of the company, which was due to the relative increase in input prices, which was not accompanied by an equal increase in prices.
Tires are basically of two types- cross-ply and radial. In cross-ply tires, nylon or rayon tire cords are arranged diagonally across. In radial tires, polyester, nylon, fiberglass or steel cords are arranged perpendicular to the circumference. Radial technology is an improvement over cross ply and radial tires are priced at (of 25-30%) premium. They are long lasting and have lower incidents of flats.
[...] Indian roads generally not being suitable for ideal plying of radial tires; (older) vehicles produced in India not having suitable geometry for fitment of radial tires (and hence the general, and wrong, perception that radial tires are not required for Indian vehicles; unwillingness of consumer to pay higher price for radial tires etc. However, the situation has radically changed in recent years, especially for the passenger car tire segment where radicalization has crossed 50% mark and is expected to reach 70% in two years. [...]
[...] It has to contend with the likely tie- up between Apollo tires and continental tires and other like Bridgestone, Michelin, Pirelli and Kumho in the radial car tires segment in which MRF has a significant market share. Demand determinants Growth of automobile industry, will increase vehicle population and thereby the demand for tires in OEM as well as replacement market albeit at decrease rates. Relative importance of road transport, and long distance travel by road leading to increase need to replace tires. [...]
[...] MRF has emerged as the largest tire manufacturer in India and 13th largest in the world with a built capacity of six million tires from 6 factories. It boasts of 68 sales centers; 2,500 distributors and exports to 65 countries. MRF has also made its mark as the number one toy manufacturer in India with 24 percent market share in the organized sector. The entire range of over 200 Funskool toys produced in collaboration with the US major Hasbro incorporation, has also been arrayed in one section of the expo. [...]
[...] Conclusion The inference of different findings comes under the heading conclusion: The result analyzed in order to accomplish the objective Comparative study between radial tires and nylon tires and motivating factors of purchasing car tires” of the survey was that most of the respondents preferred radial tires in comparison to cross-ply and nylon tires. It was also analyzed that MRF and Bridgestone has captured the market share of radial tires whereas Ceat is going well in the nylon tires. By research it was found that most of the respondents were aware of the particular brand of tire used by them. [...]
[...] This facility will focus on creating capacities for truck and bus radial tires to meet the emerging demand. MRF HISTORY 1946 A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shad at Tiruvottiyur, Madras (now chennai) 1949 Although the ‘factory' was just a small shed without any machines, a variety of products, ranging from balloon and latex-cast squeaking toys to industrial gloves and contraceptives, were produced. During this time, MRF established its first office at 334, thambu chetty street, Madras, Tamil Nadu, India MRF ventured into the manufacturing of thread rubber. [...]
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