Lalit Mrf Tyres
Transcript of Lalit Mrf Tyres
INDEXSR NO . PARTICULARS PAGE
NO .1) INTRODUCTION 032) INDUSTRY PROFILE 043) COMPANY PROFILE 054) VISSION AND MISSION 075) BACKGROUND OF THE COMPANY 086) MAJOR COMPANY 117) COMPETITORS IN INDIA 128) PRODUCT PROFILE 269) AREA OF OPERATIONS 2810) AWARDS AND ACHIEVEMENT 3211) FUTURE GROWTH PROSPECT 35
INTRODUCTION
MRF Tyres was established in the year 1946 by a young entrepreneur, K. M. Mammen
Mappillai, opened a small toy balloon manufacturing unit in a shed at Thiruvottiyur,
Madras (now Chennai). On its start, the company had no machines in the unit but it
just had an employee bubbling with great enthusiasm, innovative ideas and great
vision, the owner himself.
Any product that could be produced out of rubber without any machinery was
produced. From toy balloons to latex cast squeaky toys, industrial gloves,
contraceptives, the list is very long. The company name is an acronym for “MADRAS
RUBBER FACTORY”. Since 1946 MRF has emerged as the largest tyre manufacturer in
India and 13th largest in the world with a turnover of Rs.5000 crores. It has a built
capacity of six million tyres from six production facilities in India.
MRF Ltd. was incorporated towards the end of 1960 and was converted into a public
limited company in 1961. The company caters to all the vehicular segments from
commercial vehicles and passenger cars to two-three wheelers and tractors and
tractors. It has its strong presence in both the radial and cross ply segments. MRF
TYRES, India's No. 1 tyre manufacturing company manufactures an extensive range of
superior quality tyres in six production facilities in India. It boasts of 68 sales centers
and 2500 distributors and exports its products to over 75 countries worldwide - a
standing testimony to MRF's outstanding leadership.
The main quality objective of the company is to “attain global standards through the
continuous improvement in the quality of products and services and also to maintain
market leadership.”
The main strategy of this company in today`s competitive world is to:
“Cut Cost and Win the Battle”
OBJECTIVES OF THE STUDY
To identify the organizational culture and structure of MRF Ltd., Kottayam. To study the various departments and their functions. To study about the various products and services offered by the company. To study the day to day activities of MRF Ltd. To make a SWOT analysis of this organization to understand and suggest measures to overcome the weaknesses and threats within the scope of this study.
SCOPE OF THE STUDY Useful for academic purpose and further reference. Provides information about the functioning of the tyre industry in India.
LIMITATIONS Time was a limiting factor during the study. Limited number of employees who were selected for the survey of this study. Some core data could not be collected due to confidentiality policies of the company.
INDUSTRY PROFILE
TYRE INDUSTRY
Robert W Thompson a Scottish Engineer invented the pneumatic tyre in 1845. In 1970
the first
solid rubber tyre appeared in England. Hon Dunlop, a Scottish veterinary surgeon
improved on
Thompson`s invention in 1988.
Till 1960`s foreign companies dominated the tyre industry. During late 60`s and early
70`s
Indian Industrial Entrepreneurs entered the market with foreign collaborations. As
automobile
sector began to take its roots in the country, the tyre industry witnessed the entry of
many players
and with the waves of liberalization sweeping the land in 1922; the industry saw the
same as a
part of joint ventures.
GLOBAL MARKET MAJORSBridgestone Michelin Good Year Continental Sumitomo Pirelli Yokohama Kumho Cooper Toyo
Oust Hankook MRF Shangai Chinghi Gajab Tungsad
The tyre industry in India came into existence with an established trading outfit by US
based Fire
Stone Tyre and Rubber Co. in 1922 followed by Dunlop Rubber Co. of UK in 1926.
Initially
they were trading companies but subsequently diversified into manufacturing sector
with plants
in West Bengal by Dunlop and in Mumbai by Fire Stone in the year 1932.
This Rs.19000 crore industry fully depends on agricultural and industrial performance
of the
economy, the transportation needs and the production of vehicles in the country.
Indian tyre
industry is one of the largest in the world with more than 100 million motor vehicles
on the
Indian roads.
SALIENT FEATURES OF INDIAN TYRE INDUSTRY
Adaptability and absorption Innovativeness Exports Technology progression Wide product range for diverse usage
INDIAN MARKET MAJORSMRF Ceat Apollo Good Year J K Tyres Modi
BridgestoneThe Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes) garnering Rs. 19,000crores in FY 07-08. MRF Ltd. was the market leader (22% market share) followed closely byApollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries Ltd (18%) andCeatLtd.(13%).
Market Share OF INDIAN TYRE INDUSTRY-FY 07 MRF 22% Apollo Tires 21% J K Tires 18% Ceat 13% Others 26%
Market of Tyre can be classified into 3 categories
Original Equipment Manufacturer (OEM) Replacement Market Export MarketGlobally, the OEM segment constitutes only 30 per cent of the tyre market, exports 10
per cent
and the balance from the replacement market. In India the major demand comes from
the replacement market accounting for around 48.70 per cent. It is followed by 42.80 per cent
from the Original Equipment manufacturers (OEM) and 8.50 per cent from the exports.
Retreading is looming over the tyre industry as a colossal threat.
Simply put, rethreading is replacing the worn-out tread of the old tyre with a new one.
The popularity of rethreading stems from the fact that it costs only 20 per cent of a
new tyre but increases its life by 70 per cent to 80 per cent. Most of the transporters
in India retread their tyres twice during its lifetime, while a few fleet owners even
retread thrice. Though retreading has penetrated 25 per cent of the tyre market, it
has not made much of a dent in the rapidly growing two-wheeler and passenger car
segments.
The Tyres produced in India are
Cross Ply Radial
Cross ply tyres have been used in India for several years. The cross ply trestle pooly
cords run
across each other or diagonally to the outer surface of the tyre. Rayon and Nylon
cords are used
as the reinforcing medium. These tyres can rethread twice during their lifetime and
hence preferred by the Indian transporters who normally overload their trucks. In
India 90-95% tyre is
sold of this type. Radial tyre have their cord running radially from bead at 90* angles
to their rim or along the outer surface of the tyre. The reinforcing mediums used in
these tyres are polyester, nylon, fiberglass and steel. Hence it provides for a longer
life time and lower fuel consumption, with better consumption, better control over
vehicle and road holding.
Radial tyre usage has shown has shown significant increase in usage every year. In
India almost
all automobile segments have shifted to radial tyres and the usage of cross ply is
restricted to trucks and buses only.
The Indian tyre industry is mainly dominated by the organized sector and consists of
four major
players who together account for almost 85% of the industry`s turn over- MRF Ltd.,
Apollo
Tyres Ltd., JK Tyre &Industries Ltd. and Ceat Ltd.
Unlike the international tyre industry where passenger car radials dominate the
market, in the
Indian tyre industry commercial vehicle tyres take the lead and account for
approximately 70%
of the industry`s turnover. As a result, the growth of the entyre industry depends
upon primary
factors like agricultural growth, industrial production, growth in vehicle demand and
secondary
factors like infrastructure development, prevailing interest rates and financing
options.
The tyre industry is highly raw material intensive and a major consumer of rubber.
With raw
material costs accounting for 70% of the cost of production, any change in the price of
rubber or
the crude basket has a direct impact on the cost of production. The comparatively
stable raw
material prices in the first half of FY 2007-08, coupled with price rises undertaken by
the
industry in FY 2006-07, resulted in all major players reporting improved operating
profit margins. This was after a four consecutive years of raw material cost push, both
for natural
rubber and crude oil linked raw material basket. The second half of FY 2007-08, saw
an upward
trend for all major raw material prices and the same is anticipated in the year ahead.
As a result
margins are once again under pressure, even while the demand-supply situation
continues to be
in favor of the industry.
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
per cent as
against the normal tariff of 40 per cent. Two years ago, the industry estimated the
growth in the
passenger car radial demand at 20 per cent 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 per cent of the tyre market.
Another threat to the industry is the price of its raw materials, most of which are
petroleum byproducts.
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 per cent of the global tyre market. These
players
have set up their bases in Southeast 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 per cent 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,
Pirelli and Bridgestone generate an annual tyre production equivalent to the total
demand of the
Indian market. These MNCs have deep pockets and can easily withstand losses for 2-3
years.
Their financial muscles also permit them to invest in R&D, which is beyond the reach
of the
average Indian tyre manufacturer.
COMPANY PROFILE
Just one year before the attainment of independence by our country in the year 1946,
a young
entrepreneur Mr.K.M.Mammen Mappillai opened a small toy balloon manufacturing
unit shed at
Thiruvottiyur, Madras (now Chennai). Over the year it started manufacturing a variety
of products.
MRF Ltd. was incorporated towards the end of 1960 and was converted into a public
limited company in 1961. Additional shares were offered to the public, in order to
raise fund formanufacturing automotive tyres and tubes in collaboration with US
based Mansfield Tyre and
Rubber Co. Since then it has emerged as the largest tyre manufacturer in India and
13th largest in
the world with a turnover of Rs.5000 crores and also built capacity of six million tyres
from six
production facilities in India. With a profit margin of approximately 1.3% in the tyre
manufacturing sector, MRF holds more than 20% of the market share. The company
caters to all
vehicular segments from commercial vehicles and passenger cars to 2-3 wheelers and
tractors
and has a strong presence in both radial and cross ply segments. It hosts 68 sales
centers, 2500
distributors and exports to over 75 countries: A standing testimony of MRF`s
outstanding
leadership.
MRF enjoys of manufacturing the largest range of tyres in India and it has the highest
brand
preference for superior quality, appearance and wears ability. 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 US, the very birthplace of
tyre
technology. It is the first company in India to manufacture and market Nylon tyres
passenger
tyres commercially. The company was given the title of most ethical company by
'Business
World' magazine after a survey conducted in 1999.
VISION
MRF TYRES Ltd. has a vision- a vision to be a significant player in the global tyre
industry and
a brand of choice providing customer delight and enhanced stakeholder value. And in
order to
make empower vision, they have strived to meet the needs of the customers through:
To be most admired Tyre Brand – Globally by 2010. Error- free service delivery Innovative products and services Cost efficiency Loved by more customers Targeted by top talent Benchmarked by more business
MISSION
MRF `s mission statement is as follows: “We will meet global standards of the
tyre industry
that delights customers through customer service focus, empowered employees,
innovative
services & Cost efficiency.
VALUES
Customer: We bill be responsive to the needs of our customer’s. Learning: We will continuously improve our service innovatively & expeditiously. People: We will trust & respect our employeesCommunity & Partners: We will be transparent & sensitive in our dealing with all stake holders.
BACK GROUND OF COMPANY
The success or the failure of a company is by the performance of its management.
Management
plays a major role in decision making. The management of MRF id led by
Mr.K.M.Mammen,
son of Mr. Mammen Mappillai who started the company 62 years ago.
BOARD OF DIRECTORS
K.M. Mammen ChairmanArun Mammen Managing DirectorK.M.Pillai Whole Time DirectorDr. K. C. Mammen DirectorC.G. Rangabashyam DirectorK.D. Prakh DirectorAshok Jacob Director
S. Nandhagopal DirectorV. Shridhar DirectorVijay .R. Kiriloskar DirectorN. Kumar DirectorRanjith. I. Jesudasen DirectorD.M. Choksi Secretary
MAJOR BRANDS Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre. Legend- Country`s largest selling Conventional Car Tyre.
SISTER CONCERNS Malayala Manorama Manorama Vision MM Foam Philips Coffee Devon Machines Plantation COLT Computers
INDIAN COMPETITORS TO MRF Ceat Apollo Good Year J K Tyres Modi Bridgestone
PRODUCT PROFILE
COMPANY`S PRODUCTS
Automotive TyresTruck tyres – tube type and Tube less type Light Truck Tyres Special Tyres for Defense Tyres for industrial application Agricultural Tractor and Tilling tyres Off the road tyres- solid tyres and earth mover tyres Passenger tyres- bias ply and radial Two/Three wheeler tyres Specialized tyres for motor rallies
Major Tyre Brands of MRF
Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre. Legend- Country`s largest selling Conventional Car Tyre Paint and Specialty Coating
MRF manufactured speciality coating for a wide range of application. The
revolutionary 100% polyurethane finishes are available in formulation for application
to metal, wood, plastic, paper, vinyl, textile, ceramics and glass. These coatings have
been developed for color and gloss retention, strong adhesion and durability.
Major MRF Paints and Speciality Coatings
MRF Metal Coat MRF Wood Coat MRF Glass Coat MRF Vapocure MRF Brass Coat MRF Auto Coat
Funskool ToysFunskool India Limited is a joint venture between MRF and Hasbro Inc., USA, the
world`s largest toy company. Since late 1991-1992 Funskool` s Goa plant has been
making its own moulds for a number of its products, the most popular of which are
Pipsqueaks, a range of low priced baby toys. These soft colorful animal toys have their
sound built into their internal construction, doing away with the traditional whistle that
breaks easily.
Funskool` s range of board games has catalyzed the phenomenal growth of this
segment in the Indian toy market. Games like Scotland Yard, Battleship, The Game of
Life, The Memory Game, and the recently launched Go to the Head of the Class have
made Funskool the undisputed market leader in the board games segment. The G. I.
Joe series of army action figures and vehicles, which has taken the children`s world by
storm has gone up to a collection of 30 figures and 20 vehicles. Two new toys, the
racing jeep and the Street Hawk motorcycle are based on MRF ads. The latest to the
Funskool range of toys are the WWF characters.
MRF Muscleflex Conveyor Belt
MRF`s collaboration with PIRELLI came at a time when Indian Conveyor belting
industry was seeking technological momentum.MRF Muscleflex offers several
advantages to buyers of belting in India.
The MRF Conveyor Belt plant is in Arakonam, Tamil Nadu, with an annual capacity of
3000 tonnes, is the most modern belting plant in India and is dedicated to the
development or manufacture of the finest Conveyor and Elevator Belting products.
The plant integrates a high degree of polymer /textile technology with definitive
standards in process control/product testing, employing the latest in conveyor belt
manufacture. MRF Muscleflex conveyor belting brings international expertise and
reliability.
MRF Pretreads
MRF Pretreads is the most advanced Pre cured Retreading system in India. MRF made
a foray in retreading as far back as 1970. Today, MRF has perfected the art of pre
cured retreading with their extensive knowledge in tyres and rubber.
In the MRF Pretreads system, the tread rubber is pre cured from MRF's factory under
carefully controlled conditions, thereby ensuring you get world class quality. Today,
MRF Pretreads has emerged as the Mileage leader in Pre cured Retreading and also
has the specialized expertise required for retreading Radial Tyres.
OTHER ACTIVITIES
MRF Pace Foundation
The MRF Pace Foundation was established in August ‘1987, with the legendary Dennis
Lillie of Australia as Director, with the singular mission of developing and breeding
strike bowlers of tomorrow.
A brain child of late Mr. Ravi Mammen, the birth of this foundation coincided with one
of the greatest events in Indian cricket-the hosting of ‘MRF World Series’ for the first
time in the sub-continent. This marked a significant forward step in Indian Cricket. The
MRF Pace Foundation is unique in its nature and objective. It selects nurtures and
scientifically develops the cricketing skills of youngsters. When it was started it
possessed very little facilities other than an unused ground on the Madras Christian
College campus. Since then, under the stewardship of Dennis Lillie and the able
guidance of Chief Coach T.A. Sekar, former Indian Pace Bowler, the MRF Pace
foundation has come a long way.
Racing and RallyingMRF is pioneer is a pioneer of motor racing in India. Every MRF tyre designed is a
result
of a special acid test on the race and rally tracks: Sharp turns, abrupt braking, straight
stretches of streaming asphalt, excruciating conditions. MRF tyres are made to run at
speeds exceeding 150kmph, at which they are exposed to extreme conditions of heat
and
land traction. The molecular stability of the rubber compounds is tested against severegravitational stress. Experts 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 develop safer, better quality tyres not only for formula racing cars that rough
it but out on the tough Indian roads every day.
MRF Powerhouse
The MRF Powerhouse speaks of commitment to raising Indian motor sports to
international standards. It provides MRF`s dedicated team of skilled motor racers, an
environment that brings out the best in them. It creates winning opportunities by
providing state of art racing equipment that maximizes the output of both man and
machine.
AREA OF OPERATION Automotive Inner Tube
This component is kept inside the tyre and which when inflated renders strength and
impacts profile to the tyre.
Automobile Tyre
This is the basement on which the whole superstructure of automobile rests. Here
only
conventional or bias tyre of passengers, jeep, truck and farm tyres are manufactured.
Rethreading Material
Both conventional and procured tread rubber are manufactured here. While the
conventional tyre requires a longer curing time, in case of PCTR , molded tread profile
is
kept on the top of the worn out tyre and pressurized, with the intermediary of steam.
Flap
This is kept in between the tubes and the tyre. This serves as a protective sheath for
the
tube from 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 the bigger
tyre.
Different tyres of flap with valve block reinforcement are also being tried out.
Bladder
This is an element used for curing of tyre, which carries the internal media and is
mainly
used for captive consumption.
Envelopes
These are made of chlorobuty and are used at the time of retreading tyres. This acts
as an
envelope and retains the thermal input supplied to the tyre.
Vulcanizing Solution
This is an aid for vulcanization and is used for the retreading of tyre
PRODUCTION UNITS Thiruvottiyur, Tamil Nadu
Arakonam, Tamil Nadu Kottayam, Kerala Medak, Andhra Pradesh Pondicherry Ponda, Goa
MAJOR OEM (Original Equipment Manufacturers) CUSTOMERSOF MRF (Tyres & Tubes): Ford India Ltd. General Motors India Ltd Maruti, Hindustan Motors Hyundai, TATA Motors Asok Leyland Honda Siel Hero Honda Bajaj LML Ltd. Honda Motors & Scooters India Ltd. Mahindra & Mahindra Eicher Motors New Holland Volvo
EVOLUTION OF MRFIN 1949 ,MRF established its first office at 334, Thambu Chetty Street, Chennai.
IN 1952 , The first machine (a rubber mill) was installed at the factory and MRF
ventured into
manufacture of tread rubber.
IN 1955 , MRF started competing with foreign companies operating in India by
becoming the only Indian company to manufacture superior, extruded, non
blooming and cushion backed
tread rubber.
IN 1956 , MRF became the market leader in tread rubber with 50% share in the
Indian market.
MRF`s hold on the market was so strong that the foreign companies started
withdrawing from the tread rubber business in India.
IN 1961 ,MRF became a public limited company.MRF entered into technical
collaboration with
Mansfield Tyre Company of USA and a pilot plant for tyre manufacture was
established at Thiruvottiyur.
IN 1963 , Full fledged tyre plant and rubber research center was inaugurated by
India`s first Prime Minister Pandit Jawaharlal Nehru.
“With the manufacture of tyres, MRF started marching ahead, capitalizing on its
strengths,
overcoming its weaknesses, exploring all opportunities and converting every threat
into an
opportunity for growth.”
IN 1964 , MRF started an overseas office in Beirut (Lebanon)to develop export
market.
IN 1967 , MRF becomes the first Indian company to export tyres to USA which is the
birth place of tyre technology.
IN 1970 , Kottayam plant became operational.
IN 1971 ,Goa plant was built in a record time of 18 months.
IN 1972 , With the setting up of Arakonam plant, MRF became the only tyre company
in India with four manufacturing facilities.
IN 1973 , MRF launched India`s first NYLON car tyre.
IN 1978 , MRF launched Super Lug 78 which later became the largest selling truck
tyre in India.
IN 1979 ,MRF`s turnover crossed Rs.100 crores
IN 1980 , MRF entered into technical collaboration with BF Goodrich Tyre Company
of USA. With this began a significant exercise in quality improvement and new product
development.
IN 1984 , MRF becomes the first tyre to be selected for fitment on Maruti-800
IN 1985 ,MRF Nylongrip tyres for two wheelers were launched.
IN 1986 , MRF won 6 awards for quality improvement from BF Goodrich, pitted
against 20 tyre
companies worldwide. It also won the National Institution for Quality Assurance Award
in the same year.
IN 1987 , MRF became the No.1 tyre company in India by crossing the Rs.300 crores
turnover.
IN 1988 , MRF Pace Foundation was setup with Dennis Lillie as its director to nurture
and develop the talents of budding cricketers. It concentrated on developing pace
bowlers and within
a few years it contributed pace bowlers to the Indian Cricket Team.
IN 1989 , MRF collaborated with the world`s largest toy maker, Hasbro international
and launched Funskool India, the most modern toy project in Asia. MRF collaborated
with Vapocure of
Australia to produce poly-urethane paint formulations. MRF Zigma radials
werelaunched along with MRF World Series cricket which was one of the country`s
most spectacular cricketing and marketing events.
IN 1990 , The fifth unit of MRF for manufacturing tyres and tubes was opened at
Medak in Andhra Pradesh.
MRF Tyre Drome became India`s first tyre company owned Wheel Care Complex. MRF
collaborated with Pirelli to manufacture conveyor belts called Muscle Flex. The same
year MRF brought the World Cup Boxing Championship to India. In this year the
company bagged the Vishveshvariah Award for the best business house in South
India. It also bagged the Howard Business school Award for best corporate
performance.
IN 1991 , MRF moved to its own corporate office which soon became a landmark in
Chennai.
IN 1993 , MRF became the first Indian tyre company to cross a turnover of Rs.1000
crores. With
this the company found a place among the ten most respected corporate groups in
India. “It was a proud moment for the company when it’s Founder and Chairman
Mr.K.M.Mammen Mappillai was honored with the “PADMASHREE” award for his
contribution to the industry, the only industrialist from South India to be accorded this
honor.”
IN 1996 , In the Golden Jubilee year, the company crossed a turnover of Rs.2000
crores and also setup a new plant at Pondicherry for manufacture of radial tyres.
IN 1999 , MRF was declared the most ethical company by the “Business World” in its
survey.
IN 2000 , MRF launched the smile campaign on Indian roads.
IN 2002 , MRF won the No.1 award for customer satisfaction by J.D.Power, Asia
Pacific.
IN 2003 ,For the second year in succession, MRF won the No.1 award for customer
satisfaction byJ.D.Power, Asia Pacific.
IN 2004 , For the third year in succession, MRF won the No.1 award for customer
satisfaction by
J.D.Power, Asia Pacific. The company crossed a turnover of Rs.3000 crores.
IN 2006 ,For the fourth time, MRF won the No.1 award for customer satisfaction by
J.D.Power,
Asia Pacific.
AWARDS AND ACHEIVEMENTTNSMRF voted the "Most Trusted" Tyre company in Indiaby TNS 2006 global CSR study.J D POWER ASIA PACIFICMRF won the award forCustomer satifaction not once but 6 times in the last 7 years.CAPEXILMRF won the award for exports.
POLICIES OF MRF
QUALITY POLICY OF MRF
This policy is to maintain market leadership through continuous quality improvement.
To
achieve this goal, all the MRF plants and the corporate office particular attention to
the
following:
Product/process improvements by field/plant performance monitoring and prompt
service
to the customer.
Up gradation of machinery to meet the increasing needs of the customer.
Continuous training of all employees in order to acquire necessary skills and
knowledge.
At the Plant level the respective General Managers are assigned the responsibility
of
carrying out quality systems by collaborating with corporate functions.
SAFETY POLICY OF MRF
MRF has a well defined safety and health policy which is as follows:
“It is the policy of our company that the SAFETY and HEALTH of our employees shall
be our
FIRST priority.
It is the responsibility of everyone in the organization, regardless of the position he
occupies to
ensure that everyone in the factory returns home to their beloved ones without any
injury today
and every day.
We shall observe this policy not only in letter but also in spirit and offer “ACCIDENT
FREE
SAFE PRODUCTION” for the benefit of one and all.”
ENVIRONMENTAL POLICY OF MRF
This policy of MRF is to ensure that products are manufactured in an environment
friendly and
safe manner. To achieve this goal, all the MRF plants and the corporate office
particular
attention to the following:
Minimize the impact of manufacturing activities on the environment-air, water, soil.
Comply with all applicable regulatory requirements.
Develop environmental performance evaluation procedures for continuous
monitoring.
Optimize the consumption of resources (water, energy and raw materials) by
minimizing
wastage, recovering and recycling where ever possible.
Up gradation of machinery and pollution control equipment when required.
Train all employees to perform their activities in an environmentally responsible and
safe
manner.
TRAINING POLICY OF MRF
This policy is to provide and develop knowledge, skills and behavior of the employees
to
continuously improve performance. To achieve this goal the following are paid proper
attention:
Identify and document the training needs of each employee through competence
evaluation each year.
Design and publish training calendar and schedule.
Providing training periodically based on identified needs and as per the documented
schedule.
Monitor and evaluate the training process and outcomes to asses and to decide the
next
training cycle requirements.
CURRENT POSITION
Highlights of First Quarter (Dec 2007): FY 07-08 Turnover (Rs. in crores) : 1155.57 Net Profit (Rs. in crores) : 51.75 EPS (in Rs.) : 122.03 Operating Profit (Rs. in crores) : 127.92
Highlights of Second Quarter (Mar 2008): FY 07-08 Turnover (Rs. in crores) : 1214.83 Net Profit (Rs. in crores) : 65.62 EPS (in Rs.) : 154.72 Operating Profit (Rs. in crores) : 154.39
FUTURE GROWTH PROSPECTS
ORGANIZATION PROFILE: KOTTAYAM PLANT
Kottayam plant was started as a small masticating unit towards the end of 1969; the
first machine
was a 3A banbury (a small internal mixer) with a mixing capacity of about 66kgs per
batch.
Later automotive tube production started in1971. The mixing capacity of the unit was
increased
with the introduction of 11A and 11D banburys. Later, tread rubber and a host of tyre
repair
materials were also produced. Kottayam became a supplier of mixed compound to
other units of
MRF. Pre cured tread rubber was also added to the product range of Kottayam unit.
The commissioning of the tyre plant in 1994 was the beginning of a new era in the
history of the
Kottayam unit. This marked the starting point of a massive expansion drive at
Kottayam. Initially
tractor front tyres were produced and then it diversified into passenger tyres, tractor
rear and
truck tyres of various sizes. Cement house was also built to prepare various cements
and paints
required at tyre plant and also for the production of vulcanizing solution.
With the commissioning tyre plant, PCTR production was also increased with more
PCTR
curing presses being commissioned. Flap production was started in tyre plant initially
with two
presses and later increased to six. (PCTR and Flap presses were later shifted to PCTR
plant when
the new plant was commissioned)
Kottayam plant supplies mixed rubber to other plants of MRF and hence with the
increase in
demand, it became essential to augment the mixing capacity of the plant. A new plant
exclusively for mixing was built with huge internal mixers (banburys) which have
automatic
carbon and oil charging facilities. It houses two banburys of P270 type and one
banbury of F620
type. With a mixing capacity of 600 tons per day, this is one of the largest mixing
units in Asia.
A BD (broken down rubber) mixing unit was also built to ensure self sufficiency in BD
production since BD mixing was earlier being done in outside mixing units. The
outside mixing
units operated with open mills and hence batch to batch consistency was low. With
the mixing of
BD in the banburys at the BD plant better consistency could be achieved in properties
of broken
down rubber. BD mixing unit has two 11D banburys and two extruders to sheet out
the mixed
rubber.
A new plant, mainly for PCTR production was commissioned in the year 2000. This
plant now
houses a 6” cold feed extruder for extruding, rethreading materials and PCTR slugs,
PCTR
curing presses, 48”calendar for production of tyre repair materials, 68”fabric
calendar, German
tuber for flap slug extrusion, flap curing presses, tyre finishing and repair, tyre clinic,
textile lab,
finished goods storage and shipping.
With the growth in the number of tyre presses and subsequent increase in the
requirement of
bladders (Supplied by other units of MRF), Kottayam unit started producing bladders
for its use
and also for supplying to other units. The bladder press is located in tube plant.As a
new product,
solid tyre production was introduced at Kottayam in 2004. The solid tyre presses are
located in
the tube plant.
KOTTAYAM PLANT – FACTS AND FIGURES (Sept 2007)
Built up area : 6 lakh sq.feet Management Staff : 252 Regular Workmen : 1,115 Casual Workmen : 399 Total finished goods production : 3,400 MT/month Total turnover of finished goods : Rs.37 crores/month Mixed stock sent to other units : 7,000 MT/month Tyre Production : 52,000 tyres /month Tubes, envelopes and curing bags total production : 2,63,000 /month Flap Production : 82,000 /month Tread rubber production (conventional) : 160 MT/month PCTR production : 330 tonnes/month Repair Material : 83 tonnes/month Vulcanizing solution : 32,500 litres/month
INTERNATIONAL CERTIFICATIONS FOR KOTTAYAM PLANT ISO 9001 in the year 2000 ISO 14001 in the year 1996
CQC
MANAGERS AT THE KOTTAYAM PLANT
Mr. Michael Ribeiro General Manager
Mr. Saji Varghese Plant Production Manager
Mr. Francis Mathew Plant Engineering Manager
Mr. C.S Joy Plant Technical Manager
Mr. Cherian Zachriah Plant Quality Assurance Manager
Mr. Anil Petre Plant Accounts Manager
Mr. Simon C.P Plant Human Resources Manager
Mr. Raghuram Plant Industrial Engineering Manager
Major. Sivadasan Security Officer
Mr. K.M Anil Kumar Safety officer
Production is the primary function of MRF and hence all other functions are supporting
functions. Production is carried out in four plants in Kottayam unit. They are:
Tube Plant called Plant1 Tyre Plant called Plant2 Mixing Plant called Plant3 PCTR Plant called Plant 4The following are the main functions of the production department:
Planning for Production Process
Every month a plan is given to the plant by the central planning department, the plant
panning department will prepare a simulation plan by dividing the month into
3segments of 10 days each. This simulation plan is taken as the guideline for each
plant to plan their production process. The available inventory and the priority of
dispatch are taken into consideration while preparing the daily schedule. Slight
changes are made in the simulation plan to obtain the objective and improve
production efficiency.
Material Request and Receipt
The daily requirement of raw material is calculated at each plant after considering the
available inventory and the scheduled production of the next day. The raw material
requestis made to the raw material store. Raw material store makes arrangements to
deliver the requested material to the plants. The receipt of material is acknowledged
by the production department to the raw material store by the production signing on
all the copies of the transfer or issue certificates. In case of in process material,
request is given 1-3 days in advance to the concerned plant which produces the
material.
Processing
Processing is carried out as per the technical specifications of the BSP (Basic Standard
Practice) and the work instructions of the respective department. Set up verification is
done for each product and each run. Once the process is stabilized, the process
parameters are checked and recorded. If the parameters are as per specification
process is continued, else the necessary correction is made and the process is
resumed.
Production department ensures that all necessary instruments and equipments are
calibrated by checking the calibration sticker on the instrument. Cases where the
instruments are overdue are for calibration is overdue are reported to the
instrumentation department through AVO (Avoid Verbal Order). The supervisor stops
usage of such equipments depending on the criticality of system violation. Whenever
machines stop or behave abnormally the engineering department is informed and a
maintenance request is made.
Product Identification and Traceability
The objective of product identification and traceability is to prevent mix up of
products and
to ensure traceability of products at various stages. This applies to raw materials, in
process
materials and finished goods.
Specific ways of identifying each material at each stage is defined. For example, in
case of
extruded tubes, details like size, month code, year code, plant code, date of extrusion,
extruder operator code are printed.
In the case of traceability, for example, while extruding treads, the details of stock
(stock
code, date and shift of mixing, batch numbers) used for extruding those treads are
entered in
the traceability register.
Inspection
Inspection is done to ensure that the materials, equipment, storage area are free from
any
contamination.
MRF Kottayam unit produces:
9202 Tubes per day
1750 Tyres per day
50 Solid tyres per day
8MT Tread rubber
2300 Flaps per day
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