INTRODUCTION

About The Tyre Industry,

The tyre industries in India come into existence with establishment of trading outlets by U S based Fire
Stone Tyre and Company in1922 and followed by Dunlop Rubber Company in 1926.The Indian Tyre
industry has witnessed a Cumulative Annual Growth Rate (CAGR) 7.7% over the last decade. Economic
expansion, investments and road developments have all contributed to this

Increase in demand for vehicles. This has helped the growth in the tyre industry. The tyre industry is the
major consumer of the domestic rubber production. The tyre industry is mainly dominated by organized
sector; the unorganized sector holds in bicycle tyres. The major players in the organized sector consist of
MRF, Apollo tyres, ceat, and J K Industries, which account of the 63% of the organized tyre market.

About The Company

MRF Ltd was established in the year 1946. The company name is an acronym for “Madras Rubber
Factory”. It was started by KM Mammen Mappillai at Thiruvottiyur Chennai. In the year 1951, the
company took up the manufacture of trade rubber. MRF Ltd was incorporated towards the end of 1960
and was converted into Public Limited Company in 1961. Since then it has emerged as the largest tyre
manufacturer in India and 12th largest in the world with turnover of Rs 5800 Cr. with capacity of six
million tyres from six production units in India. With a profit margin of 1.3% in tyre manufacturing
sector, MRF hold 24% of market share. MRF tyres are rolled out of six interdependent facilities, which
are built over 450 acres and with over 15,000 dedicated people. MRF has over 3000 strong dealer
network with 180 offices. What this means is that the company boasts of the largest range of tyres in
India - from heavy duty truck tyres to 2-wheeler tyres, The MRF Pace Foundation is synonymous with
training and teaching the world's best fast bowlers.

Production units of MRF are located at:

Tiruvittiyur ,Tamil Nadu

Kottayam, Kerala

Medak, Andhra Pradesh

Arkonam, Tamil Nadu

Pondicherry

Ponda, Goa

Sri Lanka.
IMPORTANCE OF THE STUDY

The study was conducted at Madras Rubber Factory Limited (MRF), Vadavathoor, Kottayam.
MRF Ltd. is one of the well known, most advanced and leading manufacturers and exporters in tyres.
The organisation study was conducted in order to understand the functioning of the various
departments and activities undertaken by them; organisational structure; roles and functions of
different departments; the vision, mission, and objectives of the company, its product profile, rules and
regulations in the company etc. Organisational study covered all functional aspects of the organisation.

The study gives us some corporate working exposure. It helps to know about the rubber,
and tyre industry which is very important as far as the Indian economy is concerned. It also gives a clear
picture of working of a manufacturing organisation and importance of industry in the economic
development of a country. The study mainly concentrates on the important functions of the
organisation. The activities of each area are carefully studied.

OBJECTIVES OF THE STUDY

To study about the operations performed at various levels of departments.

To know the quality standards of the products.

To know about MRF Ltd as an organisation

To know the functioning of the various departments

To observe the routine activities of the workers in various level

To understand the organisation structure.

METHODOLOGY

Research cannot be contacted abruptly; the researcher has to plan the research process systematically.
The research process includes a number of steps. If all the steps are taken in systematic manner the
research conducted become quite effective.

Types of Data

There are two types of data;

Primary data

Secondary data

Primary data

Primary data is those data collected by the researcher for the first time, it is fresh in nature. This data do
not exist in records or publications. Here primary data is collected through departmental study through
interactions with different department heads and staffs.

Secondary data

Secondary data comprises of the data which have already been collected by another
researcher for some other purpose and currently available. The secondary data was collected from the
internal records of the company, library reference and internet.

LIMITATIONS

Less time available for an interview or conversation with the workers.

Only limited persons could be covered under the study

The workers were busy with their work

Sensitive information was not shared by the company.

 INDUSTRY PROFILE

RUBBER INDUSTRY

Rubber is an organic substance from natural resources or synthesized artificially which has the
prescribed properties of extensibility, strechability and toughness. The scientific name of Rubber is
“Heaven Brasiliensis”. It acquired this name because of its ability to erase.

Nearly 85% of the plantations are in the hand of small farmers. The industry pays highest wages to its
workers more than those who can earn from other plantations. A rubber tree can help tap regularly
throughout the tree remains productive for 30 to 40 years. Indians per hector yield of rubber is the
highest in the world (about 1500 kg)

The natural rubber from just 25%of the world requirements the rest is made up with synthetic rubber
items from petroleum. But natural rubber is still essential for certain products-nearly 50%to60% of auto
and track tyres is natural rubber where synthetic rubber is used for production of tubes.

The Indian Tyre Industry

The foreign companies dominated the Indian tyre industry till 1960; however in the latter part of 60’s
and early 70’s the Indian industrial, Entrepreneurs’ made a stylish entry into the market alongside
collaboration with the automobile sector foundation with in the country. The tyre industry saw the entry
of players and with the winds and liberation blowing a midst hue and cry, swept the entire land in 1992
and brought about the role of joint ventures within the industry.

Ever since the first Indian tyre company, Dunlop Rubber Company (Indian) was incorporated in 1926, the
type industry has grown rapidly and today it is an Rs.9000 crore industry. The Indian tyre industry
produce the complete range of tyres required by the Indian automotive industry, except for aero tyres
and some specialized tyres. Domestic manufactures produce for trucks, buses, passenger cars, jeeps,
light trucks tractors (front, rear, and trailer), animal drawn vehicles, scooters, motorcycle, mopeds, and
bicycles and off the road vehicle and special defense vehicle.

Indian has 2.61 lakh vill ages, connected by 6.23 lakh kms to metal led roads and 9.81 lakhs kms of
unmetalled roads. These villages are linked to small town and cities. There exists a vast potential for the
tyre industry in India. The fortune of the tyre industry depends on the agricultural and industrial
performance of the economy, the transportation needs and the production of vehicles. Hence, this is a
very sensitive industry, which has to adapt itself to a highly volatile environment.

While the tyre industry is mainly dominated by the organized sector, the unorganized sector holds away
in bicycle tyres. The major players in the organized tyre segment consist of MRF Tyres, Apollo Tyres,
Ceat, and Jk Industries, which account for 63 percent of the organized tyre market. The other key
players include Modi Rubber, Kesoram industries, and Goodyear India, with 11 percent, 7 percent and 6
percent respectively. Dunlop, Falcon, lyre Corporation of India Limited (TCIL), TVS Srichakra, Metro tyres
and Bal Krishna Tyres are some of the other players in the industry
 The Indian tyre industry evolves itself around some silent features like:

 Adaptability

 Innovation

 Export

 Technology progression

 Wide product range for divers’ usage.

The Original Indian tyre market can be categorized into three. They are;

 equipment market

 Replacement market

 Export market

MRF, the largest tyre manufacture in the country, has strong brand equity. While it rules
supreme in the industry, other players have created richest markets of their own. The tyre industry is a
major consumer of the domestic rubber production. Natural rubber constitutes 80% of the material
content in Indian tyres. Synthetic rubber constitutes only 20% of the rubber content of the tyre in India.
Worldwide, the ratio of natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic
rubber, rubber chemical are also widely used in tyres. Most of the RSS- 4 grade natural rubber required
by the Indian tyre industry is domestically sourced, with only a marginal amount being imported. This is
an advantage for the industry, since natural rubber constitutes 25% of the total raw material cost of the
tyres.

The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and styrene
Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is mainly used in the
radials for passenger cars. Synthetic rubber accounts for 14% of the raw material cost. Unlike in the case
of natural rubber, India imports 60% of its synthetic rubber requirements.

On the export front, the Indian tyre companies need to explore newer markets as the existing
market for bias truck tyre which accounts for about 45% of the total export volume is nearing
saturation. This apart, with rationalization caching up in the foreign markets, the Indian tyre companies
need to graduate to radial tyres so as to protect their share in the export market.
 At present, radicalization of tyre is low in India except of the car tyre market where 95% of the
tyres are radicalized while cross ply tyres is preferred in all other categories. Cross ply tyres are
preferred owing to poor road conditions, overloading in trucks, higher cost of radial tyres and poor
awareness among the tyre users in the country.

The tyres basically produced in India are

Crossply

Radial tyre

Raw materials

The main raw materials for tyre are;

Rubber

Carbon black

Nylon cord

Chemicals.

GLOBAL SCENARIO

Thailand, Indonesia, China, Malaysia, Vietnam are the major producers of rubber in the world.

The global production fluctuates between 6-8 million tons, with the production of

Million tons in 2003, of which Asian countries have produced 6.76 million tons.

On the consumption front, global natural rubber consumption is 7.89 million tons of which 1.9 million
ton was consumed in India and China alone. The total synthetic rubber consumption was 1.13 million
ton.

Around 60% of the global rubber production is used by the transportation sector. In this sector, natural
or synthetic rubber cannot be used individually and has to be blended.
Predicted scenario of the industry

Globally, the original Equipment Manufacturer segment constitutes only 30 percent of the tyre market,
exports 10 percent and the balance from the replacement market. In India, the scenario is quite
different. Nearly 85 percent of the total tyre demand in the country is for replacement. This anomaly
has placed the retreaders in a better position than the tyre manufacturers. Retreading is looming over
the tyre industry as a colossal threat. The Coimbatore based Elgi Tyres and tread Ltd., the largest
retreader in India, is giving the tyre barons sleepless nights.

Retreading is replacing the worn-out tread of the old tyre with a new one. The popularity of retreading
stems from the fact that it costs only 20 percent of a new tyre but increases its life by 70 percent to 80
percent. Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet
owners even retread thrice. In their zealousness to economize costs, they overlook the reality that
retreading reduces the quality of the tyre. It is highly popular in the south unlike in the north where the
transporters overload their trucks and have to ply their vehicles in a rough terrain, an environment in
which buying a new tyre is the best option.

THREATS

The industry, already bogged by over capacity, is facing a severe threat of dumping of cheap tyres by
South Korea. Under the Bangkok agreement, signed between India and South Korea in 1976, import of
tyres from the latter into India would attract a concessional duty of 33 percent as against the normal
tariff of 40 percent.

Two years ago, the industry estimated the growth in the passenger car radial demand at 20 percent per
annum. However, the auto recession has hit them badly. But South Korea made a killing by dumping
cheap car radial tyres and walked away with 11 percent of the tyre market.

Another threat to the industry is the price of its raw materials, most of which are petroleum by-
products. Carbon, synthetic rubber and nylon tyre cord are offshoots of petrochemicals. Thus, the future
of the industry will swing with the supply of crude oil.

The biggest threat, however, is yet to fully materialize. It will be from global majors like Bridgestone and
Michelin, which control 36 percent of the global tyre market. These players have set up their bases in
South-east Asia and the slump of the markets in this region coupled with the vast growth potential of
the Indian market, is beckoning them towards India.

Bridgestone has tied up with ACC for a 100 percent radial tyre unit and Michelin is also marketing its
products through retail outlets. The industry is driven more by volumes than by margins and each of the
big five in the global tyre industry Continental, Michelin, Goodyear India, Pirelli and Bridgestone
generate an annual tyre production equivalent to the total demand of the Indian market.
. Name of the company Market Share

MRF Ltd (Market Leader) 24%

Apollo Tyres Ltd. 21%

JK Tyre & Industries 18%

Ceat Ltd. 13%

Others 24%

The prospectus of tyre exports from India appears healthy; following efforts by Indian
companies to increasing entering into out sourcing agreement with tyre producers in South-east Asia,
Eastern Europe and Latin America. Overall, tyre manufacturers are likely to tap the export market in an
effort to boost sales. The increasing exports of bus and truck tyre from India to developing countries is
because of the fact that developing countries is because of the fact that developing countries are unable
to source them from developed countries as these are no more

produced there. Tyre imports are unlikely to pose a threat to the domestic industry, given that domestic
prices are lower than international tyre prices.

In the domestic market, tyre manufacturers are expected to increasingly focus on expanding their
dealership networks and explore possibilities of tie-ups among themselves to penetrate the growing
customer base. They are also likely to pursue innovative measure to improve customer awareness.

The consolidation of the Indian tyre industry is likely to continue in the coming years through mergers
among existing players. The industry is likely to expand through a combination of organic and inorganic
growth. While organic growth would come from raising efficiency levels, inorganic growth would be
achieved through alliances and mergers & acquisitions.
COMPANY PROFILE

Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company located in
Chennai, Tamil Nadu, and India. MRF is mainly involved in making vehicle tyres. It is India's largest tyre
manufacturing company.

The company was established in the year 1946. The company name is an acronym for Madras
Rubber Factory. MRF Ltd was started by a young pioneer called K.M.MAMMEN MAPILLAI as small toy
balloon manufacturing unit in a small shed at Thiruvottiyur in Chennai. Since then over this long golden
60 years it has emerged as the largest tyre manufacturer in India. It is also the world’s 13th largest tyre
manufacturing company. It is one of the largest rubber companies both worldwide and in Indian private
sector. MRF holds more than 20% of the market share. It is the only tyre company to straddle the
continent with giant manufacturing facilities at Chennai, Arakonam, Kottayam, Goa, Medak, and
Pondicherry.

The company carters to all vehicle segment from commercial vehicle and passenger cars to 2 -3
wheelers and tractors and has a strong presence in both radial and cross ply segments. It is also involved
in a range of other activities via subsidiaries. Funskool India, a joint venture between Hasbro and MRF
LTD. is a major toy manufacturing company in the country. MRF Pretreads offers world class procured
tyre retreading service, and MRF Muscleflex is involved in making conveyor belts. It is presently under
the leadership of Vinoo Mammen, son of the Late K.M.Mammen Mappillai.

It has a distribution network of more than 2500 outlets in the country, overseas offices in United
Arab Emirates, Bangladesh and Vietnam and export tyres in over 75 countries globally. MRF LTD. enjoys
of manufacturing the largest range of tyres in India and it has the highest brand preference for superior
quality, appearance and wearability. It manufactures the largest range of tyres in the country and is the
market leader with the largest market share in almost every segment of the tyre industry.

MRF LTD. is the first Indian company to export tyres to the U.S., the very birth place of the tyre
technology. It is also the first company in India to manufacture and market Nylon tyres and passenger
tyres commercially. In 2007, the company’s turnover crossed INR 50 billion mark.

MRF LTD. is the pioneer in motor racing tyres in India. MRF tyres are made to run at speeds
exceeding 150 kmph, at which they are exposed to extreme conditions of speed and traction. The
molecular stability of the rubber compounds is tested against severe gravitational stress. MRF’s tyre
experts and rubber technologists are present at every stage to observe, analyze and gather information
at the pits and the dirt track, which they pass on to the R & D department. This is then reviewed and
used to safer and better quality tyres, not only for the formula cars and racing bikes, but also for cars
that rough it out on the tough Indian roads every day.

MRF MISSION

To continue developing an aggressive, independent national advocate for the advancement of

motorcycling and its associated lifestyle which is financially stable and exceeds the needs of
motorcycling enthusiasts.

MRF VISION

MRF will be a significant global player delighting customers worldwide through

Leadership in technology

Excellence in manufacturing

World class systems

Driven by a team of motivated by high performers to achieve profitable growth.

Major brands.

Superlug - country’ largest selling truck tyre.

Shakthi - country’ largest selling tractor tyre.

Zigma - country’ largest selling radial car tyre.

Nylogrip - country’ largest selling two wheeler tyre.

Legend - country’ largest selling conventional car tyre.

OBJECTIVES OF THE COMPANY

The main objective of the company is ‘to attain global standard through continuous improvement in the
quality products and service in order to maintain market leadership’. The main strategy of the company
in today’s competitive world is ‘cut cost and win the battle’. As the number of accidents in similar
factories is comparatively more, the emphasis of the company is ‘accident free safe production’.

MRF Ltd achieves the objectives by taking the following actions;

Product / process improvement by performance monitoring and prompt service to the customer.

Upgradation of all the machinery to meet the increasing needs of customer.

Continuous training is given to all employees in order to acquire necessary skills and knowledge and
improve the quality of work life

The six production units of MRF are located in:-

1.Tiruvottiyur, Tamilnadu. For automobile tyres.

2.Arkonam, Tamilnadu. For bicycle, scooter, auto rickshaw tyres.

3.Goa for automobile tyres and procured tread rubber.

4.Kottayam, Kerala. For automobile tyres, tubes, procured tread rubber.

5.Medak, Andrapradesh. For automobiles.

6.Pondicherry for radial tyres.

EVOLUTION OF MRF

A race from the birth to success…………

1946

A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a
shed at Tiruvottiyur, Madras (now Chennai).

1949

Although the factory was just a small shed without any machines, a variety of products, ranging from
balloons 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 (now Chennai),
Tamil Nadu, India.

1952

MRF ventured into the manufacture of tread rubber. And with that, the first machine, a rubber mill, was
installed at the factory. This step into tread-rubber manufacture was later to catapult MRF into a league
that few had imagined possible.

1956

The quality of the product manufactured was of such a high standard that by the close of 1956, MRF had
become the market leader with a 50% share of the tread-rubber market in India. So effective was MRF's
hold on the market, that the large multinationals had no other option but to gradually withdraw from
the tread rubber business in India.

1961

With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF established
a technical collaboration with the Mansfield Tire & Rubber Company of USA. Around the same time, it
also became a public company.

It set up a pilot plant for tyre manufacture at Tiruvottiyur, Madras (now Chennai). The Chief Minister of
Madras Mr. K. Kamaraj released the first tyre from the tyre plant.

1963

On June 12, 1963, India's first Prime Minister, Late Pandit Jawaharlal Nehru laid the foundation stone for
the Rubber Research Centre at Tiruvottiyur to commemorate the inauguration of the Tiruvottiyur
factory.

1964
With the commissioning of the main plant in 1964, MRF also made progress in the export of tyres. An
overseas office at Beirut (Lebanon) was established to develop the export market, and it was amongst
India's very first efforts on tyre exports. This year also marked the birth of the now famous MRF
Muscleman.

1967

MRF became the first Indian company to export tyres to USA - the very birthplace of tyre technology.

1970

MRF inaugurates its Kottayam unit

1971

MRF opens its factory in Goa

1972

MRF's Arakkonam plant is inaugurated

1973

MRF scored a major breakthrough by being among the very first in India to manufacture and market
Nylon passenger tyres commercially.

1978

MRF developed the MRF Superlug-78, a sturdy tyre for heavy-duty trucks. The tyre was a significant
improvement over its existing products, and went on to become the country's largest selling truck tyre
in later years.

1979

MRF's turnover crossed INR one billion.

1980

MRF entered into a technical collaboration with the B.F. Goodrich Tyre Company of USA, which was
involved with the development of tyres for the NASA space-shuttle. With this began a significant
exercise in quality improvement and new product development.

1984

Sales crossed INR two billion. MRF tyres were the first tyres selected for fitment onto the Maruti Suzuki
800 - India's first small, modern car.

1985
MRF Nylogrip tyres for two-wheeler vehicles were launched.

1986

MRF was selected by the National Institution of Quality Assurance for their most prestigious award.
Pitted against 20 tyre companies worldwide, MRF also won 6 Quality Improvement Awards instituted by
the B.F. Goodrich Tyre Company from USA.

1987

MRF crossed the INR three billion mark and also became the No. 1 tyre company in India. MRF Legend,
the premium nylon car tyre was introduced.

1988

The MRF Pace Foundation was set up, with international pace bowler, Dennis Lillee as its Director. Not
long thereafter, pace bowlers trained at the Foundation were selected for the Indian Cricket Team.

1989

1989, MRF was the clear market leader in every tyre segment. Once again, in recognition of excellence,
MRF was awarded the Visvesvaraya Award for the Best Business House in South India.

MRF collaborated with Hasbro International USA, the world's largest toy makers, and launched Funskool
India. Company also entered into collaborations with Vapocure, Australia to manufacture polyurethane
paint formulations and with Pirelli for MUSCLEFLEX Conveyor & Elevator Belting. MRF opens its MDK
unit

MRF launched the MRF ZIGMA CC Radial. Synchronizing with the MRF World Series Cricket Tournament
for the Jawaharlal Nehru Trophy sponsored by the company. MRF also opened the MRF Tyredrome,
India's first tyre company-owned wheel care complex at Madras (now Chennai).

1990

MRF brought the 6th World Cup Boxing Championship to Mumbai - the first of its kind - with 39
countries participating.

1993

K. M. Mammen Mappillai was awarded the Padmashri Award of National Recognition for his
contribution to industry - the only industrialist from South India to be accorded this honour until that
time.

MRF became the first tyre company in India to cross the INR 10 billion mark.
In 1993 and 1995, the company was voted by the Far Eastern Economic Review, as one of the ten
leading Corporate Groups in India and a Leader in Asia. During the same time MRF was selected as one
of India's most admired Marketing Companies by the readers of the A & M magazine.

1995

The company's turnover crossed INR 15 billion. MRF was chosen for fitment on the Daewoo Cielo.

1996

In the Golden Jubilee year, Mr & Mrs. Mammen Mappillai received gold medal for being the first 2
employees of the company. A special factory dedicated entirely to the manufacture of radials was
started at Pondicherry. MRF Tyres were also chosen for fitment on the Ford Escort, Opel Astra and Fiat
Uno. Further proof of its superior quality.

1997

MRF launches its first ever F3 car

1998

MRF launches its Super Lug tyre for trucks

2000

MRF Launched ZVTS tyres for passenger cars. MRF launched the Smile campaign on Indian roads.

2001

The MRF rally team wins the APRC rally

2002

MRF wins the JD Power award. The MRF Nylogrip Zapper for two-wheelers is launched

2003

MRF wins the JD Power award. MRF registers its second APRC victory.

2004

MRF's turnover crossed INR 30 billion mark

2005

MRF wins its third APRC rally

2006

MRF's turnover crosses the 5000 crore mark

2007

MRF launches ZSLK tyres. MRF launches the Super Lug FS which many users claim to have provided them
fuel savings. MRF launches the Super Lug 505 - A premium mileage, rear fitment truck tyre for national
highway operations on rated roads. MRF wins the JD Power award. Australian PM visits the MRF Pace
Foundation.

2008

MRF wins the JD Power award again for the 6th time

Present

It is also involved in a range of other activities via subsidiaries. Funskool India, a Joint venture between
Hasbro and MRF, is a major toy manufacturing company in the country. MF Pretreads offers world class
procured tyre retreading service, and MRF Muscleflex is involved in making conveyor belts. It is
presently under the leadership of Vinoo Mammen, son of the late K.M. Mermen Mapp illai

POLICIES OF MRF

QUALITY POLICY

The main quality objective of the company is to ‘maintain market leadership through continuous quality
performance”

SAFETY POLICY

Safety and health of the employees shall be the first priority of the company. It is the responsibility of
each and every individual in the organisation, regardless of the position he occupies, to ensure that
everyone in the factory returns home without any injury. The company offers ‘ACCIDENT FREE SAFE
PRODUCTION’ not only in letter but also in spirit, for the benefit of one and all through this policy.

ENVIRONMENT POLICY

The environment Policy of MRF LTD. is ‘to manufacture the company’s products in an environmentally
friendly and safe manner’.

This is to maintain our products in an environmentally friendly and safe manner. To achieve this goal, all
the MRF plants, together with corporate office shall
Minimize the impact of our manufacturing activities on the environment especially the air, water, and
soil.

Comply with all applicable regulatory requirements

Develop environmental performance evaluation procedures for continuous monitoring

Optimizes the consumption of resources (water, energy and raw materials) by minimizing wastage,
recovering and recycling where ever possible.

Up gradation of the machinery and pollution control equipment when required

Train all our employees to perform their activities in an environmentally responsible land safe manner

At the plant level, the respective Senior General Managers/ General Managers are assigned the
responsibility of carrying out the environmental system by collaborating with corporate functions..

TRAINING POLICY

The training policy of MRF LTD. is ‘to provide and develop knowledge, skills and behavior of the
company’s employees to continuously improve their performance’.

MRF plants along the corporate office join hands to accomplish the following.

Competency evaluations conducted each year identify and document the training needs of the
employees.

Design and publish the training calendar and schedule.

Monitor and evaluate training process and out come to asses and to decide the next training cycle
requirement.

Collaboration of the activities along with the activities of human resource department plants
MANAGEMENT

The success or failure of a company is determined by the performance of its management. It has to
play a major role in functions such as decision making. Management of MRF LTD. is lead by

Mr. K.M.Mammen, son of Mr. Mammen Mappillai who started this company almost 60 years ago.

BOARD OF DIRECTORS

K.M. Mammen – Chairman & Managing Director

Arun Mammen – Joint Managing Director

K.M. Philip – Whole Time Director

Dr. K.C.Mammen – Director

C.G.Rangabashyam – Director

K.D. Parakh – Director

Ashok Jacob – Director

S. Nandagopal – Director

V. Shridhar – Director

Vijay R. Kiriloskar – Director

N. Kumar – Director

Ranjith I. Jesudasen – Director

D.M. Choksi – Secretary

Awards and Achievements

TNS

MRF voted the "Most Trusted" Tyre Company in India by TNS 2006 global CSR study.

J D POWER ASIA PACIFIC

MRF won the award for customer satisfaction not once but 6 times in the last 7 years.

CAPEXIL

MRF won the award for exports.

(MRF, 2010)

brand ambassadors

Former brand ambassadors

Leading batsmen in world cricket - Sachin Tendulkar, Steve Waugh, and Brian Lara.

Current brand ambassadors

India - Gautam Gambhir, Rohit Sharma

Bangladesh

Ashrafull.

COMPANY’S PRODUCT PROFILE

Automotive tyres are main products of the company

Truck tyre – Tube tyre and Tubeless tyre

Light Truck tyre

Special tyre for defense

Tyre for industrial application

Agricultural tractor and tiller tyre

Off the road tyres – Solid tyres and earth mover tyres

Passenger tyre – Bias ply and radial

Two/ Three wheeler tyres

Specialized tyre for motor rallies

Non – tyre products

Automotive tubes

Flaps

Conventional tread rubber

Pre- cured tread rubber

Vulcanizing solution

Tyre repair materials

Conveyor belts

Toys

MRF metal coat

MRF wood coat

MRF glass coat

MRF velour

MRF auto coat

BEYOND TYRES

Paint & Specialty Coatings

MRF LTD. manufactures specialist coatings for a wide range of applications. Major MRF paints and
specialist coatings are:

MRF Metal Coat

MRF Wood Coat

MRF Glass Coat

MRF Vapocure

MRF Brass Coat

MRF auto Coat

FUNSKOOL TOYS

Funskool India Ltd. is a joint venture between MRF LTD. and Hasbro Inc., USA, the world’s largest toy
company. This plant is at Goa. The plant produces various models of toys.

MRF MUSCLE FLEX CONVEYOR BELTING

MRF LTD.’s collaboration with Pirelli came at a time when the Indian conveyor belting industry was
seeking technological momentum. MRF Muscle Flex offers several advantages to buyers of belting in
India. The conveyor belt is made from superior rubber compounds with better ageing characteristics

MRF – KOTTAYAM UNIT

MRF tyres, Kottayam are one of the most modern plants that were established in 1969 at Vadavathoor
about 7 km from Kottayam town in the state of Kerala. About 10 crores of land was purchased in
Vadavathoor village 1968 and the foundation stone for the factory building was made by late Sri.K.M.
Cherian, a factory building with in the area of 34200 sq.ft flat was constructed during the period of 1968
– 69 and Ban- bury of 3A size with a capacity of to mix of 10 meter per day was erected and
commissioned on 21st July, 1969, with the strength of seven workmen, but presently it is most
advanced technology mixing 10 and a full- fledged manufacturing unit providing work and technologies.

In the view of high productivity and very good performance in general, the mixing capacity was
enhanced by installing a second Ban-bury of 11 A size with a capacity to mix 48 meter per day during
March 1970, with the permission of Goa Government A license to manufacture 4 lacks of automotive
tube per annum was transferred and started production of tubes with seven quarrying presses.

To enhance the mixing capacity Ban-bury of 1 ID size with a capacity of 54 meter per day was
established in 1972. The number of tube presses was increased to 45 presses. A fourth Ban-bury of 1 id
size was installed in 1978 to meet the increasing demand for mixing. At present 6000 tones of various
compounds are dispatched to different units. The level of the tube production has been increased
technology and now it has touched a level of 3 lakh number per month.

Another new product introduced in MRF Kottayam unit during 1993 was flap production. The
management also decided to stilt tyre production in Kottayam unit taking amount of the various
incentives on tax and power announced though a new industrial policy by the Kerala Govt. the tyre plant
with an initial plan to produce 200 numbers of tractors rear to 600 numbers of tractors front tyres per
day inaugurated by Chairman Sri. K.M.Mammen Mappilai on 30th May 1994.

The present turnover of finished goods of kottayam units is Rs. 350 crores per annum. Kottayam units
also started procured tread rubber (PCTR) production in August 1993. Their fourth place started in 1998.

The present lack of production is 450 mt of PCTR per month. Regarding repair materials accrued
70 mt of PCTR cushions ZEG cushions are manufactured and sent all over India. The working capital
required per month by the Kottayam unit constitutes more the Rs. 20 Crores. The company mainly goes
for credit transaction and the payment is made within one month time duration

TRADE UNION

MRFEU - MRF Employee’s Union(CITU)

MRFEA – MRF Employee’s Association(INTUC)

PLANTS WITHIN KOTTAYAM UNITS.

The kottayam production unit of MRF has got four plants mainly

Tube Plant

Tyre Plant

Mixing Plant

PCTR Plant
Products at Kottayam Plant

Automotive tyres, tubes, conventional tread rubber, pre-cured tread rubber, repair materials,
vulcanizing solution, flap, bladder, envelope, curing bags and solid tyre.

AUTOMOTIVE TYRES

This is the basement on which the whole super structure of automobile rests. Here only conventional or
bias tyres of passenger, jeep, truck and farm tyres are manufactured.

AUTOMOTIVE INNER TUBE

This component is kept inside the tyre and when inflated, renders strength and impacts profile to the
tyre.

RETREADING RUBBER

It is the material used for retreading the tyre when it gets worn out on usage. These are of two types,
conventional and pre-cured tread rubber (PCTR).

TYRE REPAIR AND PCTR REPAIR MATERIALS

These include PCTR cushion, tread backing cushion. E.g. cushion used for the repair of tyre and PCTR.

VULCANIZING SOLUTION

This is an aid for vulcanization and is used for retreading of tyres.

FLAP

This is kept in between the tubes and tyres. This serves as a protective sheath for the tube from the
external damages of the tyre and also as isolation medium, which filters the passage of the heat from
the tyre to the tube. This is generally used for bigger tyres.

BLADDER

This is an element used for curing of tyres, which carries the internal media and is mainly used for
captive consumption.

CURING BAGS / ENVELOPE

It is also used for retreading of tyres. It is spread as a layer over the tyre after application of PCTR and it
retains thermal input processes of manufacturing tubes and tyres

MASTICATION
The Kottayam plant caters the stock requirement of all the other MRF LTD. units. Mastication is one of
the principal activities of the Kottayam unit. The stock generated is also used for captive consumption.
The main ingredients for mastication are polymer (rubber), carbon, chemicals and oils. The process of
making a homogeneous mixture is carried out in banburies and mills.

INTERNATIONAL CERTIFICATIONS

The Kottayam unit of MRF LTD. has got four different categories of International certifications from the
respected authorities. They are as follows:

1. ISO – 9001-2000 QUALITY MANAGEMENT SYSTEM

This is the quality management system and quality assurance standard brought into force by the
International Standard Organisation (ISO), a certification comprising of the state of the world
facility which aims at the standardization of the quality of the products and services to cater to the
complete satisfaction of the customer.

2. ISO – 14001-1996 ENVIRONMENT MANAGEMENT SYSTEM

This is the quality assurance standard prepared for the automobile and related companies.
Through this certification, MRF LTD. is to manufacture their products in an environment friendly
and safe manner.

3. ISO TS: 16949

Up gradation of ISO – 9000 from 1 July 2000. It is more customers oriented and works in plan-
do-check-act policy. TS – 16949 is awarded for certification of technical standards in this
industry.

4. CQC
Built-up area Six lakh square feet

Management staff 252

Regular workmen 1115

Casual workmen 399

Total finished goods production 3400 MT/ month

Total turnover of finished goods Rs.42 crores/ month

Mixed stock sent to other units 7000 MT/ month

Tyre production 52000 tyres/ month

Total production of tubes, envelopes and curing 263000/ month

bags

Flap production 82000/ month

Tread Rubber Production (conventional) 160 MT/ month

PCTR production 330 tonnes/ month

Repair materials 83 tonnes/ month

Vulcanizing solution 32500 liters/ month

DEPARTMENTS

MRF LTD gives an insight about the functioning of the different departments. Each department is headed
by the general manager who possesses expertise, knowledge in the area under his supervision. There
always exists an ergonomic atmosphere which is often made possible by the close interaction between all
members in each department. The top management moulds the strategies and policies that make sure that
the middle management implements them. Weekly interdepartmental meeting aims at bringing
coordination between the different departments. Open forums are held once in a week in all plants where
the employees can raise their concerns, suggestions etc…

he various departments headed at MRF Ltd Kottayam can be enlisted below;

 Production department

 Production Planning Department

 Quality Assurance Department

 Technical Engineering Department

 Plant Purchase Department

 Raw materials Store Department

 Shipping (dispatch) Department

 Accounts Department

 Industrial Engineering Department

 Safety Department

 Security Department

 Human Resource Department

1. PRODUCTION DEPARTMENT

Production is the primary function of the company and hence all other functions are support functions.
Production is carried out in four plants at kottayam unit.

They are

 Tube plant plant 1

 Tyre plant plant 2

 Mixing plant plant 3

 PCTR plant plant 4

The following are the main functions of production department.

 Planning for production process

Every month, a monthly plan is given to the plant by central planning. Based on the monthly
plan- planning department will prepare a simulation plan by dividing the month into 3
segments of 10 day each.

 Material indent and receipt

The daily requirement of raw material is calculated at each plant after considering the
available inventory and the schedule production for the next day raw material indented
is made to raw material store.

 Processing

Processing is carried out per the technical specification.

 Product identification and traceability

 Inspection
2. PRODUCTION PLANNING DEPARTMENT

Production plan for the coming month will be issued form the Central Planning at Corporate office.
Based on this, plant planning in-charge will issue the monthly simulation plan to central planning, plant
production and to shipping. Based on the monthly plan and the inventory norms the monthly requirements
of raw materials and consumables will be prepared by plant planning and is sent to central planning,
Corporate purchase and to Raw material stores. Monthly requirement of raw materials is calculated from
software and it is validated every six months.

Based on the monthly simulation plan for the whole of kottayam unit, each plant make its own
simulation plan and indents required materials from raw materials stores. The simulation plan for 3
segments of 10 days each is prepared and micro planning is done based on that.

Since the plant sends work-in-process materials to other plants, a simulation plan is also prepared
for work-in-process material production and is send to concerned departments of MRF units to which
these in process materials are sent. In case of any revision in monthly plan, the revised requirements and
plan will be sent to the concerned parties.

Production details report is sent to central planning on a daily basis for the previous day’s
production. Plan Vs Production report is published every 10 days and also on a monthly basis.

3. QUALITY ASSURANCE DEPARTMENT

Quality is considered as the most effective tool to improve productivity, to achieve cost
effectiveness, to improve profitability and market share and to remain competitive in the global market. In
the business environment of today, quality impacts not only the products and services but also many other
relevant entities such as process, systems, people and organisation.
 A low level quality can be caused by the weakness either in the design of the product, or in its
manufacture. It is therefore appropriate to distinguish between quality of design and quality of
manufacture. Two products which have the same use but which are designed in different ways can

be of different quality of design. Quality of design is evident in the specifications to which the product
will be manufactured. A product may confirm in varying degrees to the specification. This varying degree
of confirmation to the specification will lead to varying degree of quality of manufacture.

Functions of Quality Assurance Department

 Quality assurance department’s primary aim is customer satisfaction. Hence its prime duty is to
ensure that all customer complaint should be taken seriously and is to be communicated to all
concerned. Problem solving tools are employed to ensure that the problem is solved and error
proofing methods are adopted to ensure that such problems don’t occur again.

 Improve the profitability of the company by reducing defects and waste generation. This is done
by initiating projects for waste reduction and forming task forces for close follow up. Specific
targets are fixed in each area for waste reduction and forming task forces for close follow up.
Specific targets are fixed in each area for waste reduction and quality improvement and it is done
in co-ordination with all other connected departments.

 The main function of quality assurance department is process audit and final product inspection.
This will include monitoring the inspection status of incoming materials, in-process materials,
process parameters and finished product inspection. Ensuring identification and traceability of all
materials is also the function of QA.

 Educating workmen on Quality Standards and the consequences of not following quality norms
is also done.
 Audits on suppliers and outside godowns are conducted periodically to ensure the materials are of the
required quality and also to ensure that they are stored in the proper manner.

Whenever a finished product is returned to the factory due to any defect those products are inspected,
the reasons found out and communicated to everybody concerned. It is then disposed in a suitable
manner and recorded.

Slow moving and non-moving items are tracked at regular intervals to avoid material getting
deteriorated due to prolonged storage and to avoid producing material which is not needed by the
market.

Quality Policy of MRF

The quality policy of MRF is to maintain market leadership through continuous quality
improvement. To achieve this goal, all the MRF plants and the corporate office shall pay particular
attention to the following:

 Product process improvement by field or plant performance monitoring and prompt service to the
customer

 Upgradation of machinery to meet the increasing needs of the customer.

 Continuous training of all employees in order to acquire necessary skills and knowledge.