Madras Rubber Factory Limited (abbreviated as MRF) is a private-sector company, which is the largest manufacturer of tyres inIndia.It is headquartered in Chennai, India.The company manufactures rubber products including tyres, treads, tubes and conveyor belts, paints and toys. MRF also runs the MRF Pace Foundation, Chennai and MRF Challenge in motorsport.
History
Madras Rubber Factory was started by K. M. Mammen Mappillai as a toy balloon manufacturing unit in 1946 at Tiruvottiyur, Madras (now Chennai). In 1952, the company ventured into the manufacture of tread rubber.Madras Rubber Factory limited was incorporated as a private company in November 1960 and ventured into manufacture of tyres in partnership with Mansfield Tire & Rubber company based in Ohio, USA.The company went public on 1 April 1961 and an office was established in Beirut, Lebanon to develop the export market in 1964 and its current logo of the muscleman was born. In 1967, it became the first Indian company to export tyres to USA.
In 1973, MRF started manufacturing Nylon tyres for the first time. The Company entered into with a technical know-how collaboration with B.F. Goodrich in 1978.[5] The Mansfield Tire & Rubber Co sold out is share in 1979 and the name of the company was changed to MRF Ltd in the year. The company finalized a technical collaboration agreement with Marangoni TRS SPA, Italy for the manufacture of pre-cured tread rubber for retreading industry. MRF tyres supplied tyres to Maruti 800, India's first modern small car. In 1989, the company collaborated with Hasbro International USA, the world's largest toy maker and launched Funskool India. Also, they entered into a pact with Vapocure of Australia to manufacture polyurethane paint formulations and with Italian tyre manufacturer Pirelli for conveyor and elevator belt manufacture.During the year 2004-05, the product range of the company expanded with Go-kart & rally tyres and tyres for two/three wheelers.
Products
- Tyres – manufactures various tyres for passenger cars, two–wheelers, trucks, buses, tractors, light commercial vehicles and off–the–road tyres.The major products include MRF Nylogrip for bikes, MRF ZVTs and MRF Wanderers for cars and SUVs, MRF Meteor all terrain tyres, MRF Steel Muscle for trucks and buses.
- Conveyor Belting – manufactures its in-house brand of Muscleflex conveyor belts.
- Pretreads – MRF has the most advanced precured retreading system in India. MRF forayed into retreading in 1970 and manufuctures pretreads for tyres.
- Paints - manufactures polyurethane paint formulations and coats used in automotive, decorative and industrial applications.
Manufacturing Facilities
The company has manufacturing facilities for tyres at Usgao in Goa, Kottayam in Kerala, Puduchery, Arakonam and Perambalur in Tamil Nadu, Medak in Telengana.[5] The company manufactures toys at its facility in Goa. The paints and coats are manufactured at two facilities in Chennai , Tamil Nadu.
Funskool
Funskool India was established in 1989 in corroboration with Hasbro toys, USA. Funskool manufactures and markets toys, board games among others. It has a manufacturing facility in Goa, India. The company has manufacturing licenses for toys and games from Disney, Warner Brothers, Rummikub, Dora and IIT Bombay. Funskool also has partnerships with renowned toy brands Hasbro, Lego, Hornby, Ravensburger, Tomy Toys, Leap Frog, Siku, Jumbo and New Bright for manufacture and marketing in India.
MRF to expand global presence and up domestic production
Chennai-based MRF Tyres is investing around $656 million to ramp up production in its eight facilities across India within the next three years. The market leader is also looking to expand its global footprint by signing on as the sponsor of the Cricket World Cup 2015.
As part of the strategy to expand its global presence and visibility, MRF recently signed on as the global partner for the Cricket World Cup 2015. Chairman and Managing Director of MRF, K M Mammen said, “We intend on leveraging the partnership to bring further awareness to MRF as a global brand to millions of potential consumers and partners across the world.”Executive VP of Marketing at MRF, Koshy Varghese added, “We are one of the largest tyre companies in India. We are going to leverage this in other geographies. There are quite a few geographies where cricket is looked forward to, with very large Indian Diaspora in these markets.”
The tyre company plans to invest INR4000 crore (~USD656 million) over the next three years to increase production capacity of its eight plants across the country. MRF stated that, “The company, in line with its long term strategy, proposes to increase capacities across all its existing factories.” In 2010, MRF had invested around INR3000 crore (~USD492 million) to ramp up production and set up a new facility in Trichy (Tamil Nadu). This plant is likely to receive a significant portion of the capex set aside for expansion plans. MRF said, “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.” MRF produces about 1.2 lakh tyres every day. These figures are ‘broad estimates.’ Its facilities in Goa and Hyderabad will also be part of the ‘expansion strategy.’
Varghese also spoke out saying, “The Indian automobile market will definitely see a strong growth. Even at 5 per cent plus GDP growth, it is worth investing in additional capacity expansion as the demand for automobiles will remain robust in the country.” With the asset investment ratio in the tyre industry being 1:1:1, the company is likely to rake in added revenues totalling INR4500 crore (~USD738 million) in the midterm with the proposed expansion plans. For the quarter ended September 30, MRF reported, on a standalone basis, a net profit of 72 percent; the rise in Q4 profits was attributed to lower costs of raw materials – that is, falling rubber prices. The company is in cost cutting mode and investment for the proposed expansion is likely to be through internal accruals and not through fund raising.
Billion-dollar India-based tyre major, Madras Rubber Factory (MRF) Limited, has a diverse portfolio that caters to many markets. The Chennai tyre company is one the top 16 tyre majors worldwide. It has a turnover of INR14,000 crore (~USD2.3 billion). MRF exports to 80 nations and has an office in vital markets. Less than one percent of its turnover is spent on advertising. The overseas market contributes to 10-12% of the company’s turnover at present. MRF has outdone its peers, emerging as market leader with a 27 percent share in 2013. Analysts believe that the company’s success stems from its superior product mix and ‘a larger share of the replacement market to revenues.’
Motorsports
MRF Racing
MRF built is first Formula 3 car in 1997.MRF in collaboration with Maruti established the Formula Maruti racing, a single-seater, open wheel class motorsport racing event for race cars made in India.[1] MRF Challenge is a Formula 2000 open-wheel motorsport formula based series organized by Madras Motor Sports Club in association with MRF. Thelatest season consisted of races organized at Madras Motor Racing Track, Chennai, Bahrain International Circuit, Losail International Circuit, Doha and Buddh International Circuit, Noida. Freddie Hunt, son of 1976 Formula One champion James Hunt and Mathias Lauda, son of 1975, 1977 and 1984 Formula One champion Niki Lauda both competed in the series.[9] MRF has sponsored Indian racing drivers including Narain Karthikeyan, Karun Chandok, Ashwin Sundar, N. Leelakrishnan and Raj Bharath.
MRF Rally Team
MRF have also been a long-running sponsor of MRF rally team participating in Asia-Pacific Rally Championship and Indian National Rally Championship. Associating with Czech car manufacturer Škoda, MRF Skoda is the three time reigning champion in Asia-Pacific Rally Championship with Chris Atkinson winning in 2012, Gaurav Gill in 2013 and Jan Kopecký in 2014.[10] MRF also participates in Raid De Himalaya, the world's highest rally.
MRF Motocross
MRF promotes a national motocoss championship, a form of all-terrain two wheeler racing held on enclosed off-road circuits annually across several cities.
MRF Karting
MRF sponsors major karting championships in India. MRF is the first Indian tyre company to develop FIA approved karting tyres.
Cricket
MRF Pace Foundation[edit]
Main article: MRF Pace Foundation
MRF Pace Foundationis a coaching clinic for training fast bowlers established by MRF with the help of former Australian pace spearhead Dennis Lillee in Chennai, India. Through this program, young aspiring fast bowlers are trained in a special facility. Fast bowlers who trained with foundation and went on to represent the Indian Cricket Team includeJavagal Srinath, Irfan Pathan, Munaf Patel, Venkatesh Prasad, R. P. Singh, Zaheer Khan and S Sreesanth. Besides Indian players, foreign players like Chaminda Vaas, Henry Olonga, Heath Streak and Australian fast bowlers Glenn McGrath, Mitchell Johnson and Brett Lee have also trained at the foundation. Sachin Tendulkar in his early days trained in the MRF Pace Foundation to become a fast bowler. Glenn McGrath was appointed director of the Foundation on 2 September 2012, replacing Dennis Lillee, who has held the post since its inception in 1987.
Sponsorships and endorsements
MRF was the bat sponsor of famous batsmen including Brian Lara, Sachin Tendulkar and Steve Waugh.MRF is currently the bat sponsor of Indian batsmen Shikhar Dhawan,Virat Kohli, Gautam Gambhir and Sanju Samson. At IPL 2010, MRF sponsored moored balloons floating above the cricket grounds with a high-definition camera recording live actions of the cricket match. MRF joined as a global partner of International Cricket Council for 2015 Cricket World Cup.
Awards and Recognition
MRF won the JD Power Award for the record tenth time in 2013. The award is widely considered by peers to be the automotive equivalent of the Oscar and is the highest recognition in the automobile industry.The company has won several awards and accolades including the All India Rubber Industries Association's (AIRIA) award for 'Highest Export Awards (Auto Tyre Sector)', 'Top Export Award' from Chemicals & Allied Products Export Promotion Council (CAPEXIL) for 2009-10. In 2014, MRF was ranked 48th among India's most trusted brands according to the Brand Trust Report, a study conducted by Trust Research Advisory.
