Industry Profile: Indian tire industry has been reporting good growth figures over the past few years, spurred by the growing passenger vehicle and two-wheeler market. It has emerged as one of the most competitive markets in the world. With the emergence of new technology, ultra-modern production facilities, and availability of raw materials, the sector is poised to grow further. Significant technological changes have taken place in tire design from conventional bias or diagonal ply from the past to the current steel radial tires, tubeless tires, with low aspect ratio tires, puncture-resistant tires, etc. Testing standards have also evolved accordingly to ensure the tires’ high performance, mileage, safety, reliability, and longevity. The Indian tire industry has quickly adopted the latest technology trends through foreign collaborations and tailoring these to Indian needs. The manufacturers are also investing in developing green tires ‘and capacity expansion for radial tires. Innovative technologies like self-inflation and run-flat tires (RFT) are also gaining popularity in the Indian market. As a result, the demand for radial tires in the commercial vehicles segment has recently seen rapid growth.
Company profile: Madras Rubber Factory Limited, commonly known by the abbreviation MRF, is an Indian multinational and the largest manufacturer of tires in India and the fourteenth largest manufacturer worldwide. It is headquartered in Chennai, India. The company manufactures rubber products, including tires, treads, tubes and conveyor belts, paints, and toys. In addition, the company manufactures tires for vehicles like two-wheelers, trucks, buses, passenger cars, tractors, light commercial vehicles, and off-road tires for special needs vehicles. The major products include MRF Nylogrip for bikes, MRF ZVTs and MRF Wanderers for cars and SUVs, MRF Meteor all-terrain tires, and MRF Steel Muscle for trucks and buses. In addition, MRF is one of the leading players in the Tyre retreading system in which old tires are processed for reuse.
The company has manufacturing facilities for tires at Kottayam in Kerala, Puducherry, Arakonam, Goa, and Trichy 2; plants in Perambalur in Tamil Nadu, Medak and anakpally in Telangana have two facilities. The company manufactures toys at its facility in Goa. The paints and coats are manufactured at two Chennai, Tamil Nadu facilities.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=143 /]
Future prospectus: Till we will keep using automobiles, we need tires. India is one leading manufacturer of cars, and so the demand for Tyre will not stop. The company’s fundamentals are good, and there is no significant risk of bankruptcy.
