History
MRF Ltd was established in the year 1946 by K. M. Mammen Mappillai as a small toy unit. Years later, on November 5, 1960, the company converted into a public limited one, after which it commenced manufacturing automotive tyres and tubes. They also established an overseas office in Beirut, Lebanon target exports. In 1967, MRF became the first Indian company to export tyres to the USA.A technical collaboration with the B. F. Goodrich Tyre Company in the USA in 1980 paved the way for better product development and quality. They introduced Nylogrip tyres in 1985 for two-wheeler vehicles and also Legend, a premium segment nylon car tyre, in 1987.In 1989, MRF collaborated with Hasbro International USA, the world's largest toy maker, to launch Funskool India. In the year 2004, the company teamed with Maruti Udyog to boost motorsports in India. In 2004-05, the company expanded its product range to Go-kart and Rally tyres and tyres for two or three-wheelers and in 2007, it launched the premium truck tyre Super Lug 50-FS.In 2016, MRF announced that ICRA had upgraded the Credit Rating for the company's Non-Convertible Debenture Programme from [ICRA] AA+ to [ICRA] AAA. In January 2017, MRF signed an MoU with the Gujarat government expressing its intention to set up a new manufacturing facility in Gujarat and to invest a sum of about ₹4,500 crore in a phased manner over 10 years. In 2022, the company launched MRF Markus, which was a tyre for Luxury SUVs like the Skoda Kodiaq and the Mahindra Alturas. MRF is also building capabilities in manufacturing tubeless tyres for Electric Scooters.
Business Segments
MRF’s primary business is in tyres. But it also produces a variety of other products, including those for children.MRF Ltd is India's largest Original Equipment Manufacturer (OEM) of tyres with a wide range of tyres offered, including tyres for two-wheelers to those for fighter aircraft. The company manufactures tyres (flagship) for Passenger cars, Two-wheelers, Three Wheelers, OTRs, Trucks, Farm tractors, LCVs (light commercial vehicles), tubes & flaps, SCVs, pick-up cars, MCVs and ICVs (intermediate commercial vehicles). It is the only company in India to have developed formula car tyres, world-class rally tyres for tarmac & dirt, motocross tyres and FIA-CIK karting tyres.MRF also manufactures sports goods, paints & coats and pretreads. It also manufactures puzzles, games, and toys for kids through its brand Funskool.Automobile tyres make up most of the company’s revenue.Domestic sales cover most of their revenue, nearly 90% in FY 2022, while the rest comes from exports. However, exports of tyres have grown due to the markets of Bangladesh, the Philippines, Indonesia, the African continent and the Middle East showing substantial growth.MRF has four subsidiaries that are:
- MRF Corp. Ltd. - Originally MRF’s Specialty Coating Division, this subsidiary provides coating for better surface finishing to protect against weathering, corrosion, abrasion, etc.
- MRF SG PTE Ltd. - This subsidiary helps maintain MRF’s operations in Singapore.
- MRF Lanka (P) Ltd. - This subsidiary focuses on manufacturing precured tread rubber to meet global demands.
- MRF International Ltd.
Key Personnel
Rahul Mammen, Managing DirectorMr. Mammen studied Economics at St. Stephens College and completed his MBA from the Ross School of Business at the University of Michigan. He has been acting as the managing director of the company since 2018. Before that, he had served at MRF as a whole time director since 2003, working on financing and corporate planning.
Corporate Actions
MRF has not issued any bonus shares, buybacks, rights shares, or stock splits in the recent past.
Financial Highlights
- Between FY 2021 and FY 2023, the company has massively increased its sales revenue from ₹16,162 crore to ₹23,008 crore.
- However, during this period, the company’s net profit has actually fallen from ₹1,277 crore to ₹769 crore.
- As of September 2023, the company has an interest coverage ratio of 6.02 and a current ratio of 0.97.
