87322743-mrf-tyres

8/13/2019 87322743-MRF-TYRES

1/69

INTRODUCTIONINTRODUCTION

8

8/13/2019 87322743-MRF-TYRES

2/69

MRF Ltd., incorporated in 1960 to take over the business of the

Madrass Rubber Factory, MRF later ent public in 1961. !he co"pany has

its orks at !iruvottiyour, #rakkona", "edak, kottaya" and $oa. !he

%o"pany "anufactures tyres and tubes in collaboration ith Mansfield tyres

and Rubber, &'. (ts products include )ylo*rip. +i*"a, !yredro"e, etc. (ts

subsidiary co"panies are Funskool (ndia-, MRF %orp and MRF

(nternational.

MRF diversified into conveyor belts in collaboration ith ierelli,

(taly, in 1991/6, tied up ith apocure, #ustralia, to "anufacture

polyurethane paint for"ulations and later into tyre "achines in collaboration

ith #be2, &'. (t also diversified into speciality surface coatin*s, conveyor

belts and leather.

MRF is plannin* to take over 3unlop, hich is a 4(FR co"pany. (t

has undertaken a study to e2a"ine 3unlop5s operations before fir"in* up

its stand on the issue,. MRF is to e2tend support to the "anufacturers,

includin* investin* in like "oulds and to finalie a proposal for

develop"ent of area tyres for different aircraft ith the (#F in consultation

ith 3$#7# 3irectorate $eneral of #ir 7uality #ssureance.- (t has

launched a steel/belted pre"iu" radial ty8re variant called MRF +!'5.

hile this tyres au*"ents the co"pany5s overall ran*e of radials, it also

"arks a step forard in ter"s of technolo*y, perfor"ance and superior ride

uality, +!' in available in "ore than 11 sies to fit all Maruti vehicles

and Fiat, $M, For, :onda, :yundai, Mitsubishi and 3aeoo cars, +!'

9

8/13/2019 87322743-MRF-TYRES

3/69

has been develope;d especially for (ndian road conditions. (t has beco"e an

ori*inal euip"ent supplier of radial tyres to !ata (ndica,. MRF has been

selected as one of (ndia5s !op 10 co"panies for the si2th consecutive year

by the Far

10

8/13/2019 87322743-MRF-TYRES

4/69

&nlike past years, the study deals only ith radial tires, as nearly all

ne passen*er vehicles sold in (ndia are no fitted ith radial tires,> @3

oer said.

MRF !R

8/13/2019 87322743-MRF-TYRES

5/69

HISTORYHISTORY

1

8/13/2019 87322743-MRF-TYRES

6/69

!he MRF L(M(!

8/13/2019 87322743-MRF-TYRES

7/69

leader ith a ?0 share of the tread/rubber "arket in (ndia.

'o effective as MRF5s hold on the "arket, that the lar*e "ultinationals had

no other option but to *radually ithdra fro" the tread rubber business in

(ndia.

1961 !he uality of the product "anufactured as of such a hi*h standard

that by the close of 19?6, MRF had beco"e the "arket leader ith a ?0

share of the tread/rubber "arket in (ndia. 'o effective as MRF5s hold on

the "arket, that the lar*e

"ultinationals had no other option but to *radually ithdra fro" the treadrubber business in (ndia.



share of the tread/rubber "arket in (ndia. 'o effective as MRFs hold on the

"arket, that the lar*e "ultinationals had no other option but to *radually

ithdra fro" the tread rubber business in (ndia.



share of the tread/rubber "arket in (ndia. 'o effective as MRFs hold on the"arket, that the lar*e "ultinationals had no other option but to *radually

ithdra fro" the tread rubber business in (ndia.

1;

8/13/2019 87322743-MRF-TYRES

8/69

8/13/2019 87322743-MRF-TYRES

9/69

1984 'ales crossed ()R to billion. MRF tyres ere the first tyres selected

for fit"ent onto the Maruti 'uuki 800 / (ndia5s first s"all, "ode" car.

1985 MRF )ylo*rip tyres for to/heeler vehicles ere launched.

1986 MRF as selected by the )ational (nstitution of 7uality #ssurance for

their "ost presti*ious aard. itted a*ainst 0 tyre co"panies orldide,

MRF also on si2 7uality ("prove"ent #ards instituted by the 4.F.

$oodrich !yre %o"pany fro" &'#.

1987 MRF crossed the ()R three billion "ark and also beca"e the )o. 1

tyre co"pany in (ndia. MRF Le*end, the pre"iu" nylon car lyre as

introduced.

1988 !he MRF ace Foundation as set up, ith international pace boler,

3ennis Lillee as its 3irector. )ot lon* thereafter, pace bolers trained at the

Foundation ere selected for the (ndian %ricket !ea".

1989 4y 1989, MRF as the clear "arket leader in every lyre se*"ent. Bnce

a*ain, in reco*nition of e2cellence, MRF as aarded the isvesvaraya

#ard for the 4est 4usiness :ouse in 'outh (ndia and the

8/13/2019 87322743-MRF-TYRES

10/69

'eries %ricket !ourna"ent for the @aaharlal )ehru !rophy sposered by the

co"pany. !he %hief. Minister of !a"il )adu, 3r. M. Harunanidhi, aarded

MRF the 'pecial

8/13/2019 87322743-MRF-TYRES

11/69

on the Ford "a*aine in its survey.

2000 MRF5 launched the '"ile ca"pai*n on (ndian roads.

2002 MRF5s turnover crossed ()R A0 billion "ark.

2004 MRF on @.3. oer #sia acific study alon* ith

4rid*estone for the custo"er satisfaction. Mrf Ltd. has infor"ed the

8/13/2019 87322743-MRF-TYRES

12/69

reliability and durability O e"bodyin* the very ualities of the tires it

represents. !he Robotic "uscle"an introduced in the "id/805s, a si*n of the

chan*in* ti"es. :is ne appearance as silent testi"ony.

!he "uscie"an5s appearance chan*ed once a*ain in 1996, MRF5s *olden

ubilee year. :e started appearin* in full for", and ca"e to be knon

affectionately as the MRF !yre"an by "otorists across (ndia and 6?

countries orldide, ho have co"e to rely on hi" for a safe co"fortable

ride.

!hen a*ain in the year 00 MRF has crossed the ()R A0 billion "arkand fro" that onards it has on %usto"er 'atisfaction #ard continuosly

for five years in seven years of @.3. oer acific 'tudy.

Recently in 008 MRF Ltd. Launched a near ran*e of to heeler

tyres called =+apper>.

HISTORY BEHIND THE TRADEMARK

19

8/13/2019 87322743-MRF-TYRES

13/69

!he 4irth of !he M&'%L

8/13/2019 87322743-MRF-TYRES

14/69

COMPANYCOMPANY

PROFILEPROFILE

1

8/13/2019 87322743-MRF-TYRES

15/69

MRF Ltd. (s the first (ndian co"pany to e2port tyres to the &', the very

birthplace of tyre !echnolo*y. (t is the first co"pany in (ndia to "anufacture

and "arket )ylon tyre passen*er tyres co""ercially. (n 00;, the

co"pany5s turnover crossed ()R A0 billion "ark. !he co"pany as *iven

the title of "ost ethical co"pany by G 4usiness orld5 "a*aine after a

survey conducted in 1999.

Founder H.M.Mannen Mappillai

%ountry (ndia

ear of

8/13/2019 87322743-MRF-TYRES

16/69

Li*ht co""ercial,@eep and &tlity ehicle tyres

assen*er %ars !yres

Bff the road tyres

!o/heelers !yres

Far" 'ervice !yres

MRF I"#e&"$#()"$* )++(,e'

4an*ladesh

69Dk.$reen Road

anthaath

3haka

10?

4an*ladesh

MobileC Q 880-/1EA000810

8/13/2019 87322743-MRF-TYRES

17/69

OB-ECTI.ES OFOB-ECTI.ES OF

THE STUDYTHE STUDY

;

8/13/2019 87322743-MRF-TYRES

18/69

1. !o study attitude and satisfaction a"on* the consu"er for "rf

tyres

. Jto study and analyse various factors influencin* the consu"er

to purchase the "rf tyres

A. !o analyse the factors influencin* perception and buyin*

;. Find out effectiveness of advertise"ent

?. !o study atte"pts to find the reach of "rf tyres hich ould

help the co"pany in for"ulatin* suitable strate*ies

6. 'tudy also identifies the attitude and preference pf consu"er

E. !he study finds the different types used in pro"otion throu*hhich product reaches the end user.

?

8/13/2019 87322743-MRF-TYRES

19/69

PRODUCTIONPRODUCTION

DEPARTMENTDEPARTMENT

6

8/13/2019 87322743-MRF-TYRES

20/69

P&)%/,#()" M$"$e!e"#is concerned ith the acuisition K the

use of the physical resources e"ployed in the provision of *oods K

services. roduction Mana*e"ent ill nor"ally be responsible for the

"ana*e"ent of inventories , uality, the "aintenance K replace"ent

of faTilities K schedulin* of activities as ell as responsibility for

location, layout, capacity K "ana*in* of a syste". Mana*ers orkin*

in this function ill also nor"ally have so"e involve"ent in the

desi*nDspecification of a product or services process, "annin* prices

K "easure"ent perfor"ance .

E

8/13/2019 87322743-MRF-TYRES

21/69

8/13/2019 87322743-MRF-TYRES

22/69

PRODUCTION INFORMATION

RA MATERIAL

#part fro" bein* capital intensive, the tyre industry is also ra

"aterials accountin* for about E0 of the cost production. Labour

cost is another si*nificant overhead. !he !yre industry has a narro

product ran*e, hu*e operatin* overheads and hi*h break/even levels.

!he "aor Ra "aterials used are natural rubber, nylon tyre cord,

carbon black, synthetic rubber Ra "aterial costs for the last threeyears have been risin* constantly, especially those of rubber and crude

oil/linked ra "aterials. !he steep rise in ra "aterial prices has

i"pacted profit "ar*ins of all players. %onsistent rise in "aor ra

"aterials costs ith li"ited pricin* fle2ibility, has resulted in pressure

on "ar*ins of tyre co"panies, despite a *ood topline *roth.

%onseuently, hile the revenues shoed a healthy *roth,

profitability re"ained depressed. (n fact, so"e of the "aor tyre

co"panies are operatin* at break/even situations. !he folloin* is the

brief description of the "aor ra "aterialsP

9

8/13/2019 87322743-MRF-TYRES

23/69

RUBBER PRICES

(n 00E/08 production and consu"ption of rubber *re by ?.? and

6., respectively, hile e2ports increased by ?1. for the sa"e

period-, on account of the i"balance in the *lobal de"and/supply

position. !he avera*e do"estic price of rubber increased by 0.A,

hile the international prices soared by A1.? in the sa"e period. (n

#pril/@une 006, 3o"estic/Rubber prices increased ?9 y/o/y, hile

the international prices increased E6.6.

)atural/Rubber prices have been continuously on the rise in the

international "arkets, ith eather conditions playin* a "aor role in

disruptin* supplies. 3urin* F06, %hina lost rubber plantations in the

:ainan province due to a typhoon in 'epte"ber 00E, folloed by

floods in !hailand and Malaysia in 3ece"ber, the sa"e year.

roduction suffered in "ost rubber/producin* re*ions in (ndia, due to

bad "onsoons, hich in turn led to the soarin* of rubber prices. ith

international natural/rubber prices rulin* hi*h, and (ndia bein* a part

of the *lobal "arket, e2ports of rubber fro" the country affected the

de"and and supply positionin* in its do"estic "arket. !he *roth in

e2ports is drivin*/up avera*e do"estic prices of rubber. ith risin*

de"and fro" the !yre sector, the supply situation is e2pected to

re"ain constrained in the "ediu" ter". %urrently, rubber prices have

depleted to around Rs.80/ levels, but there is hi*h level of volatility

and hence, their behaviour is difficult to predict. (f current levels

persist, it ould result in better profitability for tyre co"panies.

A0

8/13/2019 87322743-MRF-TYRES

24/69

N*)" T&e C)&% NTC F$&(,

)ylon tyre cord accounts for around of the total ra

"aterial costs. 3urin* 00E/08, the production of )!% fabric declined

by 1., hile its consu"ption *re by 9. !his i"balance in the

production/consu"ption pattern has led to a E.? increase in do"estic

)!% prices in 00?/06. !he international prices are "uch hi*her than

do"estic rates and have shon a 1?. increase in 00E/08 the price

of caprolacta", the "ain feedstock for )!% fabric, increased by 6.

in the sa"e period. :oever, the avera*e international anddo"estic

prices durin* #pril/@une 006 ere loer, by and 18,

respectively, due to carpolactarn prices, hich declined by 10.8 .

A1

8/13/2019 87322743-MRF-TYRES

25/69

OTHER RA MATERIALS

!he prices of other ra "aterials like carbon black, styrene

butadiene rubber '4R- and poly butadiene rubber 4R- are closely

linked to *lobal crude oil prices.

!he avera*e do"estic price of carbon black increased by E.E

in008/09 and the avera*e international prices of both '4R

and 4R increased by 16.9 and 1A.;, respectively, durin* 008/

09. 3urin* #pril/@uneB6, the avera*e do"estic price of carbon black

increased by E. and this "o"entu" is e2pected to continue. !he

avera*e international prices of both '4R and 4R fell by 10 and

1.;, respectively, durin* #pril/@uneB6. !he prices are e2pected to

be in line ith *lobal oil prices.

!he risks K concerns are risin* due to the rise in Ra Material

prices. !he consistently risin* natural/rubber and crude oil prices.andthe resultant increase in petroleu"/based inputs has been posin* a bi*

challen*e to tyre operators. (n a "ove to protect their profitability, the

players have increased tyre prices by 0, across cate*ories.

:oever, the continuously risin* trend itnessed in the prices of ra

"aterials re"ains an area of concern. !hou*h the rubber prices have

co"e don fro" their peaks of Rs.1 1?, to Rs.8 currently, the trend

is very volatile. !yre co"panies ould definitely sho i"prove"ent

in the "ar*ins, seuentially, and if prices re"ain at these levels,

profitability ould i"prove. 4ut then, it is hi*hly dependent on the

prices of "aor ra "aterials like Rubber, %arbon 4lack, )!% Fabric,

A

8/13/2019 87322743-MRF-TYRES

26/69

'4R and 4R, hich are hi*hly volatile. :oever, ith sur*in*

auto"obile sales, if de"and for tyres increases ithout the supply

catchin* up ith it, then, prices of tyres are likely to increase. !his

"ay provide so"e benefit to the tyre co"panies.

AA

8/13/2019 87322743-MRF-TYRES

27/69

FINANCE

DEPARTMENT

A;

8/13/2019 87322743-MRF-TYRES

28/69

INTRODUCTION TO FINANCE

FINANCIAL MANAEMENT is that part of "ana*e"ent

hich is concerned "ainly ith raisin* funds/ in the "ost econo"ic K suitable "anner. &sin* these funds as

profitability as possible C plannin* future operations K controllin*

current perfor"ances K future develop"ents throu*h financial

accountin* , bud*etin* , statistics K other "eans. (t holds

i"portance as it has an i"pact on al the activities of a fir". (ts

pri"ary responsibility is to dischar*e the finance function

successfully K it also touches on all other business functions. #ll

business decisions have financial i"plications and a sin*le

decision "ay financially affect different depart"ents of an

or*aniation.

#ccordin* to :unt illia"s K 3onald 'onsP

=Finance function is defined as a task of providin* funds reuired

by an enterprise on the ter"s "ost favourable to it in the li*ht of

the obectives of the business>.

A?

8/13/2019 87322743-MRF-TYRES

29/69

#ccordin* to #rcher K #"brosiv,

=Financial Management is the application of plannin* K controllin*

functions to the finance function>.

!hus, Financial Mana*e"ent is that specialied function of *eneral

"ana*e"ent hich is related to the procure"ent of finance K it5s effective

utiliation for the achieve"ent of the co""on *oals of the oranisation.

A6

8/13/2019 87322743-MRF-TYRES

30/69

RESOURCES OF FINANCE

!he Mi*ration research Foundation focuces on receivin* proect

specific fundin*, and efforts are "ade to secure financial support in there*ions here they conducted. For proects of particular si*nificance to

conservation i.e., %ritically endan*ered species and habits- , MRF seeks

international support hen local fundin* is insufficient. !ele"etry units and

data retrieval are very costly, and it is critical to secure the support of all

interested parties.

!he foundation ill ensure that its proects are "ana*ed efficiently

and that its operatin* costs are "aintained at a level no hi*her than 0 of

the total operatin* bud*et. MRF is co""itted to focusin* the vast "aority

of its financial and hu"an resources toards the develop"ent,

i"ple"entation and co"pletion of scientific research proects. #ll profits

derived fro" trackin* contracts for third party or*aniations ill be directed

toards the foundation5s operatin* costs. !he (R' reco*nies MRF as

&nited 'tates ?01U A- re*istered charity and as a %anadian re*istered

charity ith the %anadian %usto"s Revenue #*ency.

AE

8/13/2019 87322743-MRF-TYRES

31/69

SOURCES OF FUNDIN

1 ):e&"!e"#

$overn"ents are faced ith needin* to publicity involvin* a third party,

they sho they are handlin* the situation in obective and non/political

"anner. $overn"ent realies that properly done research is e2pensive and

desi*nate funds each year for such ork. MRF ill take advanta*e of this

public need to obtain lon*/ter" fundin* and e2pand the foundation5s

reputation for hi*h uality scientific ork.

2 C)&)&$#()"'

%orporations are an effective public relations tool, as they de"onstrate

the corporation5s active participation in environ"ental protection and *ivin*

back to the co""unities in hich they operate. !he *eneral public is

increasin*ly focused on this corporate co""unity responsibility.

%orporations can feel secure that funds donated to MRF ill be used forsound scientific research ithout e"otional or political bias.

3 P/*(, $"% P&(:$#e F)/"%$#()"

!here nu"erous foundations that sponsor conservation research via funds

dedicated to individual proects. 'uch or*aniations are i"portant for the

support of specific research proposals developed by MRF. For proectsconducted in partnership ith other or*aniations, MRF ill arran*e for

oint fundraisin* ca"pai*ns, as proects ith to lead partners have *reater

potential for securin* the necessary financial support.

A8

8/13/2019 87322743-MRF-TYRES

32/69

4 C&e$#(:e F/"%(" C$!$("'

!he directors ill develop creative fundraisin* ca"pai*ns to establish

ne partners and pro"ote continued support fro" current sponsors. #ne2a"ple of such a ca"pai*n is enterin* into a partnership ith re*ional

ineries to obtain royalties off the sale of specially labeled ine, if you have

ideas that pertain to this type of oint venture.

5 I"%(:(%/$* D)")&'

!he private sector is an i"portant source of fundin* for MRF. (f you

ould like to contribute, please visit our.

:B B& %#) :

8/13/2019 87322743-MRF-TYRES

33/69

CURRENT SENARIO

MRF Li"ited, (ndias lar*est tyre co"pany and the 1?th lar*est tyre

co"pany in the orld. !oday MRF is at its peak, it is the only "arket leader

a"on* tyre "anufacturers in (ndia, ith a ; share in ter"s of revenues.

(ts leadership position, coupled ith its stron* brand recall and hi*h uality,

MRF co""ands the price/ "aker status. MRF has a stron* presence in the

!K4 se*"ent, the lar*est se*"ent of the tyre industry. (t is the leader in the

toV three/heeler se*"ent includin*

"otorcycles- and tractor front tyres, and holds second place

in the passen*er cars and tractor / rear tyres. MRF has

e"er*ed as the sole supplier of truck tyres to olvo. (t is the lar*est supplier

of radial car tyres ;0 share- to !elco5s (ndica, ith a "onthly supply of

10,000 tyres. !he %o"pany has a distribution netork of ,?00 outlets

ithin (ndia and e2ports to over 6? countries orldide.

(ndia s $lobal !he *lobal tyre "arket currently is esti"ated at &'3

E0 billion hile the (ndian "arket is around Rs. 100 "illion. !he *lobal

"arket is do"inated by $oodyear/'u"ito"o ith a share of . Bn the

other hand, the do"estic industry is do"inated by MRF Ltd. 'everal

"er*ers and acuisitions have characteried the *lobal "arket, in the recent

past. %urrent 'cenario ricin* .

;0

8/13/2019 87322743-MRF-TYRES

34/69

'cenarioricin* is influenced by the de"and. 'ince the tyre de"and has

not si*nificantly increased in the last one year, "any of the tyre co"panies

have surplus stocks.

:ence, in the last /A "onths the lyre co"panies are offerin*

discounts beteen 0 to ;0 percent to car "anufacturers, but the car

co"panies are tryin* to sueee "ore discounts. !he cheap i"ports of non/

radial tyres especially fro" %hina, 'outh Horea, @apan, !hailand and

(ndonesia, hich sell at very lo prices, have been posin* a challen*e to the

industry. (ndia5s si*nin* of the 4an*kok a*ree"ent ith #'

8/13/2019 87322743-MRF-TYRES

35/69

H(;e (" T&e P&(,e'

!he risin* ra "aterial prices have been the key concern for the tyre

industry, especially due to the lack of pricin* fle2ibility. 'ince the tyre

industry is hi*hly co"petitive and price sensitive, players have been very

conservative about increasin* the prices. :oever, after the constant rise in

ra "aterial costs, al"ost every player has, in different branches, stepped up

their product prices. (n 006/0E, the avera*e tyre prices have been hiked

thrice and the cu"ulative increase in truck K bus tyres is ;.6, in car nylon

is 1. and in car radial tyres is ?.1 , over the sa"e period last year. !he

price hikes in 00E/08 have resulted in a cu"ulative price hike of 0

across all cate*ories, by al"ost all players, ith MRF an e2ception, hich

did not increased prices in @uly B6. %o"bined ith the price hikes, if the

current price/levels of ra "aterials persist, it ould result in better

profitability for tyre co"panies. !here also e2ists a possibility of tyre

co"panies rollin* back the price hikes, since the prices of rubber and oil/

related ra "aterials have co"e don. :oever, it is very difficult to

predict rubber and other ra "aterial prices.

MRF Ltd has infor"ed that the 4oard of 3irectors of the %o"pany at

its "eetin* held on Bctober ?, 0 inter alia, has declared A0 second

interi" dividend on the paid/up capital of the %o"pany.

;

8/13/2019 87322743-MRF-TYRES

36/69

MRF Ltd. has infor"ed re*ardin* the

standalone Results for the uarter ended on AB/@&)/008 Ws

follosC )et 'ales of Rs.1 1A A;AD/ for uarter endin* on A0/

@&)/009 a*ainst Rs.99;EED/ for the uarter endin* on A0/ @&)/00E )et

rofit D Loss- of Rs.;?0 lacs for the uarter endin* on A0/@&)/009

a*ainst Rs.81E lacs for the uarter endin* on A0/@&)/008.

;A

8/13/2019 87322743-MRF-TYRES

37/69

TECHNOLOY

!he tyre industry has evolved fro" the "ore basic cross ply to

the "ore sophisticated radial tyres. )ylon cords that i"part loei*ht and additional stren*th to the tyres have also replaced %otton

piy. )ylon tyre cord accounts for around of the total ra "aterial

costs. 3urin* the production of )!% fabric declined by 1., hile

its consu"ption *re by 9. !his i"balance in the production/

consu"ption pattern has led to a E.? increase in do"estic )!%

prices in 00?/06. !he international prices are "uch hi*her than

do"estic rates and have shon a 1?. increase in 00?/06P the price

of caprolacta", the "ain feedstock for )!% fabric, increased by 6.

in the sa"e period. :oever, the avera*e international and do"estic

prices durin* #pril/ @une 006 ere loer by and 18,

respectively, due to carpolacta" prices, hich declined by 10.8

.!his industry is stron*ly linked to the auto"obile sector and is also

driven by a*ricultural and infrastructural activity that takes place in

the re*ion, as these to have an i"pact on the transport sector.

(n ter"s of technolo*y, radial tyre usa*e has been catchin* up at

a uick pace in the *lobal "arket. #l"ost all the auto"obile se*"ents

have shifted to radial tyres and the usa*e of cross ply is restricted to

trucks and buses only. Bn the other hand, in the do"estic "arket, the

radial tyres are

;;

8/13/2019 87322743-MRF-TYRES

38/69

4

8/13/2019 87322743-MRF-TYRES

39/69

'o"e "o"entu"P levels of radialisation in M:% is predicted

to be 10 in five years ti"e, hile in L%, around 0.

!he future is e2pected to see "any strate*ic alliances a"on* the

do"estic and *lobal players to enable the" to have access to latest

technolo*y and e2pand their distribution netork. # better distribution

ill also ensure easy availability. !he introduction of neer auto

"odels ill si*nificantly have a bearin* on the tyres de"and. !he tyre

co"panies ill also be lookin* for tie/ups ith the ) B

8/13/2019 87322743-MRF-TYRES

40/69

'everal "er*ers and acuisitions have characteried the *lobal

"arket, in the recent past. !his is essentially to acuire technolo*y,

*ain ider access to "arkets and be co"petitive. (ndian players are

also reen*ineerin* their businesses and lookin* at strate*ic tie/ups in

this se*"ent.

;E

8/13/2019 87322743-MRF-TYRES

41/69

HUMANHUMAN

RESOURCERESOURCE


;8

8/13/2019 87322743-MRF-TYRES

42/69

:u"an Resource Mana*e"ent :RM- is the function ithin an or*aniation

that focuses on recruit"ent of, "ana*e"ent of, and providin* direction for

the people ho ork in the or*aniation.

Flippo5s definitionC =(t (s a process of searchin* for prospective e"ployees

and sti"ulatin* and encoura*in* the" to apply for obs in an or*aniation.>

!hus the purpose of recruit"ent is to locate sources of "anpoer to "eet ob

reuire"ents and ob specifications.

F$,#)&' $++e,#(" Re,&/(#!e"#

1. !he sie of the or*aniation.

. !he e"ploy"ent conditions in the co""unity here the or*aniation

is located.

A. !he effects of past recruitin* efforts hich sho the or*aniation5s

ability to locate and retain the *ood perfor"in* people.

;. orkin* conditions, salary and benefit packa*es offered by the

or*aniation.

?. Rate of *roth of the or*aniation.

6. !he future e2pansion and production pro*ra"s.

E. %ultural, econo"ic and le*al factors.

:oever these factors "ay be divided specifically as (nternal and

8/13/2019 87322743-MRF-TYRES

43/69

I"#e&"$* F$,#)&'

1. Recruit"ent policy of the or*aniation

. :u"an resource plannin* strate*y of the co"pany

A. 'ie of the or*aniation and nu"ber of people e"ployed

;. %ost involved in recruitin* e"ployees

?. $roth and e2pansion plans of the or*aniation

E

8/13/2019 87322743-MRF-TYRES

44/69

!he criteria for selection and preferences should include "erit and

suitability.

. Recruit"ent or*aniationC (t is necessary to centralie the recruit"ent

and selection function in a sin*le office. !his ill brin* about

"a2i"u" efficiency and success in hirin*. !his centralied office is

knon as the

8/13/2019 87322743-MRF-TYRES

45/69

b. (ndirect O !his involves advertisin* in nespaper, radio,

!., ournals etc. #dvertisin* can be very effective if its

"edia is properly chosen.

c. !hird arty "ethods O !his include use of co""ercial

or private p7y"er aieoXes, place"ent officials of

schools, recruit"ent fir"s etc. Friends and relatives of

present e"ployees are also a *ood source fro" hich

e"ployees "ay be dran as part of the =4uddy Referral>

pro*ra"s.

?

8/13/2019 87322743-MRF-TYRES

46/69

MARKETINMARKETIN


?A

8/13/2019 87322743-MRF-TYRES

47/69

8/13/2019 87322743-MRF-TYRES

48/69

MARKET INFORMATION

#lthou*h the tyre industry faces hu*e co"petition, price K cost

pressures and hi*h entry barriers, the chan*in* dyna"ics, ith the *roin*

econo"y and the escalatin* auto industry, provide a fillip to the industry.

!he oo"in* auto industry, ith sales *roin* at a %#$R of 1?.8 durin*

the 00/06 period, has driven the *roth in the tyre industry, keepin* both

the B

8/13/2019 87322743-MRF-TYRES

49/69

Market share in the co""ercial vehicles lyre cate*ory and is around

0 in the to heeler lyre cate*ory.

!he (ndian lyre industry has itnessed a %#$R of E.E over the last

decade. !hou*h the replace"ent "arket has driven the industry *roth for a

lon* ti"e, the B

8/13/2019 87322743-MRF-TYRES

50/69

DEMAND FOR TYRES

T=e De!$"% C,*e

ROIN ECONOMY

(ncrease in inco"e increase in de"and increase in

Level, hi*her dis/ of frei*ht "ove"ent ear K tear

osable inco"e of tyres

(ncrease in dern/ increase in corner/ creates repla

and for passen*er cial vehicles ce"ent

cars de"and de"and for

tyres

increase in de"/ increase in tyres

and for passen*er de"and fro"

car tyres B

8/13/2019 87322743-MRF-TYRES

51/69

INCREASE IN TYRE SALES

E>PLAINATION

De!$"% for #&e' can be cate*orised under four se*"ents /

Replace"ent Market RM-, the Bri*inal

8/13/2019 87322743-MRF-TYRES

52/69

!he Replace"ent Market is one of the "ore sou*ht/after "arkets by

!yre players, since the "ar*ins are better, co"pared to those of B

8/13/2019 87322743-MRF-TYRES

53/69

distances, "ainly on inter/city and intra/state routes, re/treadin* is hi*h.

:oever, the or*anised or lar*e/fleet operators prefer to replace the tyres

after an avera*e usa*e of ;0,000/;?,000 k"s. !hese operators do not risk

usin* old or re/treaded tyres on lon*/distance trips because breakdons costs

are i""ense. !he substantial *roth that the auto and tyre industries have

seen in the last fe years is bound to keep the replace"ent de"and hi*h, in

the years to co"e. 'i"ilarly, the current *roth in the auto industry and

"ountin* B

8/13/2019 87322743-MRF-TYRES

54/69

the leader in the toV three/heeler se*"ent includin* "otorcycles- and

tractor front tyres, and holds second place in the passen*er cars and tractor /

rear tyres.

A)**) T&e'AIL

MRF T&e' is the second lar*est player in the (ndian tyre industry,

ith $ "arket share of , in ter"s of revenues, and the lar*est player in

the !K4 se*"ent, ith around "arket share and 8 of its product

"i2 co"in* fro" this se*"ent. (t also enoys a stron* brand recall. #!L

derives 80 of its revenues fro" the replace"ent "arket, here the

8/13/2019 87322743-MRF-TYRES

55/69

(n ter"s of profitability, %

8/13/2019 87322743-MRF-TYRES

56/69

!he industry is definitely set to *ro, but the hu*e co"petition, hu*e

buyer poer, pricin* infle2ibility and cost pressures prove as detri"ents.

!yre co"panies are operatin* at very thin "ar*ins and their return ratios are

also not attractive. Bne can look at tyre stocks but only fro" a tradin*

perspective

Bn the positive side, it is esti"ated that there ould be a 7ooc )

volu"e *roth of 1/1; in 009/10. !he perfor"ance of the tyre.

6A

8/13/2019 87322743-MRF-TYRES

57/69

industry is linked to the auto"obile and infrastructure sectors, the *roth of

hich is dependent on the erfor"ance of the econo"y. !he current

esti"ated econo"ic *roth is over 8. !he continuous thrust bein* placed

by the $overn"ent on the develop"ent of infra/structure, particularly roads,

a*riculture and "anufacturin* sectors, ould lead to an i"pressive

acceleration in the auto"obileV tyre sector, *eneratin* "ore de"and for

tyres.

%o"panies keep on developin* different sies and desi*ns to "atch

the co"petitor5s products. :oever, the future is likely to be different sinceco"panies are investin* in technolo*y. Marketin* too is *oin* to beco"e

technolo*y/driven.

6;

8/13/2019 87322743-MRF-TYRES

58/69

E>PORTS

(n 196E, MRF be*an to e2port tyres to &'# / the birthplace of

tyre technolo*y. %urrently, MRF !yres are e2ported to 6? countries,

includin* &nited 'tates, 'outh #"erica, #frica, Middle the MRF %M3 said, pointin* out that

international tyre prices reflected the hi*h input costs.MRF has been

able to achieve this throu*h its co""it"ent and confor"ity to a level

of uality that has been accepted not only in (ndia but in E? countries

around the orld. 3M% is the sole a*ent for MRF "otorcycle and

three/heeler tyres in 'ri Lakethe %o"pany has set up shop in 3ubai

to tar*et "arkets in the < as part of its e2port thrust. Bn the other

hand, in tonna*e ter"s MRF has not *ron "uch due to the

slodon in M:% tyre and have recorded a 0.A *roth, in the

de"and for tyres.

8/13/2019 87322743-MRF-TYRES

59/69

$lobal "arket, in the recent past. !his is essentially to acuire

technolo*y, *ain ider access to "arkets and be co"petitive. (ndian

players are also reen*ineerin* their businesses and lookin* at strate*ic

tie/ups in this se*"ent.

!he e2port "arket for (ndia has been predo"inantly to the &'#

that accounts for nearly A0 of e2ports fro" the country. !hese are

"ostly of the cross ply variety. :oever, of late (ndia5s share in the

&' "arket is bein* threatened by %hina and @apan. !hese to

countries are able to offer prices that are loer than that offered by

(ndian "anufacturers. (n addition, these to nations are lo*istically

better placed than (ndia hen it co"es to e2portin* to the &'#.

3o"estic tyre "anufacturers are also facin* threat fro" i"ports fro"

%hina and 'outh Horea. !he landed cost of tyres fro" %hina is loer

than the (ndian price by A0. (n addition, tyres fro" 'outh Horea are

i"ported at A0 custo"s duty hile fro" other countries the duty

levied is A?. !hus in both cases the do"estic tyre "anufacturers are

feelin* the heat.

66

8/13/2019 87322743-MRF-TYRES

60/69

INTRODUCTION TO PROMOTIONAL ACTI.ITIES

ro"otion consists of those activities hich are desi*ned particularly

to help easy sale of *oods or services to the favourable attention ofconsu"ers. 'ales pro"otion is one of the part of pro"otional "i2 hich

sti"ulates custo"ers K dealers for the purpose of increase in sales.

(t can be defined asP

1. =#n e2ercised infor"ation, persuation K influence>.

. ='ales ro"otion includes all the activities K tools of "arketin*

"ana*e"ent hich sti"ulates the tar*et custo"ers for the purpose of

increase in sales volu"e>.

(n the above definitions, the "ain the"e is that the sales pro"otion does not

include #dvertise"ent, ersonal 'ettin* K ublicity, instead these activities

are perfor"ed purely on te"porary basis or at certain ti"es 'uch asP 3isplay,

Free sa"ples,

8/13/2019 87322743-MRF-TYRES

61/69

PROMOTIONAL ACTI.ITIES

ro"otion consists of those activities hich are desi*ned

particularly to help the easy sale of *oods .'ales pro"otion is one ofthe part of pro"otional "i2 hich sti"ulates custo"ersK dealers for

the purposes of increases in sales. !here are "any pro"otional

activities undertaken by GMRF !R

8/13/2019 87322743-MRF-TYRES

62/69

ACHI.IEMENTS OF MRF

achieve"ents YEAR

'pecial

8/13/2019 87322743-MRF-TYRES

63/69

%usto"er 'atisfaction #ard 008/009

CONCLUSIONCONCLUSION

E0

8/13/2019 87322743-MRF-TYRES

64/69

MRF !R

8/13/2019 87322743-MRF-TYRES

65/69

SUESTIONSUESTION

E

8/13/2019 87322743-MRF-TYRES

66/69

STREANTH

1.

8/13/2019 87322743-MRF-TYRES

67/69

OPPORTUNITIES

$roin*

8/13/2019 87322743-MRF-TYRES

68/69

BIBLIORAPHYBIBLIORAPHY

E?

8/13/2019 87322743-MRF-TYRES

69/69

MARKETIN MANAEMENT

By Philip Kotler

EBSITES

???!&+#&e',)!

???))*e,)!

????ee;e%($,)!
http://www.mrftyres.com/http://www.google.com/http://www.mrftyres.com/http://www.google.com/

87322743-mrf-tyres

Documents