MRF starts production at Rs 900-cr plant in TN

Chennai: MRF has started production at its new plant in Tiruchi (Tamil Nadu).

The company has invested around Rs 900 crore on the 200-acre plant, which will manufacture a full range of tyres, including truck tyres and radials. It will cater to both domestic and export requirements.

The plant has just begun rolling out tyres, for both commercial and non-commercial vehicles. “Ramp-up is happening. We expect it to reach full capacity in six months,” said Mr Koshy Varghese, Executive Vice-President – Marketing.

This facility was proposed as its existing six manufacturing units were operating at full capacity.

MRF's other manufacturing units are in Arakonam, Tiruvottiyur (Tamil Nadu), Medak (Andhra Pradesh), Goa, Kottayam (Kerala) and Puducherry.

Net sales, profit up
The company has posted a 25 per cent increase (year-on-year) in net sales at Rs 3,264 crore. Net profit rose 68 per cent to Rs 150 crore.

Mr Varghese says the driver of growth this quarter has been the replacement market. According to an analyst, the after-market sales give pricing power to companies, enabling them to post high margins.

Rubber prices have also cooled off substantially, from the peak of Rs 240 a kg to Rs 190 now.

This has had a positive impact on operating margins which have grown from 8.4 per cent a year ago to 10 per cent now.

MRF's share price was down 1.77 per cent to close at Rs 11,234.20 on the BSE on Thursday.

MRF turnover crosses Rs 10,000 cr; eyes acquisitions abroad

CHENNAI: MRF today said its turnover for the first time has crossed Rs 10,000 crore in one year, becoming the first Indian tyre maker to achieve this mark, and announced plans to acquire plantations or companies abroad to neutralise the impact of high import duty on rubber. "MRF is the first Indian tyre company to have crossed the turnover of Rs 10,000 crore in one year. It registered growth in excess of 30 per cent over the previous year," MRF Chairman K M Mammen told reporters here. "In 2007, we reported Rs 5,000 crore. Rs 10,000 crore is something we are proud of, because we are the first Indian (tyre) company to achieve this," Mammen said. Talking about future plans, he said MRF was seriously thinking of going out of the country or acquire companies. "We are reviewing a lot of these wonderful ideas," he said. He also expressed hope that the company would double the revenues in future. Stating that the high import duty was having an impact on its bottom line, he said they were looking to acquire plantations in any region or acquire companies. When asked whether the company has zeroed in on any company or any plantations, he only said, "We are looking at the whole world." MRF exports tyres to 65 nations. It has seven facilities in the country. To another question whether putting up a factory outside India would be a feasible option for the company, Mammen said it was not a right option. "But taking over (of overseas companies) is fine. We are looking at all over the world. I would say, there are lot of opportunities in Europe, South east Asia, China," he said.