INTERNSHIP REPORT

Submitted in partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTARTION of university of kerala

Submitted By,

BHAGYA LEKSHMI M

REG NO . 59518458022

INTERNSHIP AT

MRF TYRES LIMITED, KOTTAYAM

Faculty Guide Company Guide

Dr. KAILAS K P Mrs. PREMELA

Asst. Professor Asst. Manager

IMT PUNNAPRA MRF. Ltd Kottayam

INSTITUTE OF MANAGEMENT AND TECHNOLOGY, PUNNAPRA

ALAPPUZHA

AUGUST 2019
DECLARATION

I declare that the Internship done at MRF LIMITED, KOTTAYAM and submitted by me for
the award of the degree of MASTER OF BUSINESS ADMINISTRATION of the
UNIVERSITY OF KERALA is my own work. The report has not been submitted for the award
of any other degree of this University or any other University

Place : Alappuzha Signature :

Date : Name : BHAGYALEKSHMI M

Reg. No: 59518458022

 ACKNOWLEDGEMENT

On completion of my one month internship, I feel deeply indebted to many. Let me avail this
opportunity to express my deep sense of gratitude to DR. KAILAS KP Faculty Mentor,
INSTITUTE OF MANAGEMENT AND TECHNOLOGY PUNNAPARA for his kind guidance
and encouragement given to me during the preparation of this report. Thankfully I express my
gratitude to Mrs. PREMELA , Asst. Manager, Welfare, MRF Ltd, Vadavathoor, Kottayam,
Kerala for her help in collecting the data and valuable suggestions required for the study. My
special thanks to Ms. MR. SABU chief HR Manager, MRF Ltd, Vadavathoor, Kottayam, Kerala
for her support and help. I am thankful to all the officials of MRF Ltd, Vadavathoor, Kottayam,
Kerala for providing a good environment that helped me to complete this study within the
specified time. I take this opportunity to extend my gratitude to my parents and other family
members for their encouragement on completing this work. I extend my gratitude to my parents
and friends who all guided me lot in this work. Above all I would like to use this opportunity to
thank the almighty for his grace and kind protection

BHAGYAEKSHMI.M
 CONTENTS

Part no Title Page No

1. Introduction
Chapter 1 1.1. Objectives of the study
1.2.Significance of the Study
1.3.Scope of the study
1.4.Limitations
2.1. Industry profile
Chapter 2 2.2. Company Profile
2.3. History
2.4.Strategic Intent
2.5.products

3.1. Organizational Structure

Chapter 3 3.2. Functional area/department
3.3. Detailed study on HR Department
4.1. Task and Duties During Internship
Chapter 4 4.2. Learning Summarization
4.3.Conclusion

Bibliography

Appendix
Log Book Details
 List Of Figures

Figure Figure Name Page number

number
3.1 Organizational Structure

3.2 Organizational Structure of MRF

Kottayam
3.3 Structure of Production Department

3.4 Structure of Quality Assurance

Department

3.5 Structure of Technical Department

3.6 Structure of Engineering Department

3.7 Structure of Security Department

 CHAPTER 1
INTRODUCTION
Introduction

University of Kerala is required to complete an internship as a part of the course of curriculum

program. The basic premise of internship is to gain practical job experience outside the
traditional campus environment. It encompasses the understanding of the organization as
multiple view points

The tyre industries in India come into existence with establishment of trading outlets by US
based fire stone Tyre and company in 1922 and followed by Dunlop Rubber Company in 1926.
The Indian Tyre industry has witnessed a cumulative Annual growth rate 7.7% over the decade
.Economic expansion, investment and road development have all the contribution to this
.increased demand for vehicle‟s this has helped in the growth of tyre industries . The tyre
industry is the major consumer of domestic rubber production. The tyre industry is mainly
dominated by organized sector consist of MRF , Apollo tyres , Ceat and J k Industries which
account of the 63% of the organized tyre market

MRF Ltd was established in the year 1946 .The company name in the acronym for “Madras
Rubber Factory” . It was started by K M Mammen Mappillai at Thiruvattiyur Chennai in the year
1951 the company took up manufacture of trade rubber. MRF Ltd was incorporated towards the
end of 1960 and was converted into public ltd company in 1961 .Since then in the emerged as
largest tyre manufacturer in India and 14th largest in the world with turnover of R s 10637 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 duty truck tyers to 2 wheelers tyre .
The MRF pace foundation in synonymous with training and teaching the world‟s best fast
bowlers
1.1. Objectives of the study

The study was conducted at Madras Rubber Factory Limited (MRF Ltd), Vadavathoor,
Kottayam, Kerala. MRF Ltd. is one of the well-known, most advanced and leading
manufacturers and exporters in tyres.

 The study was conducted in order to understand the functioning of the various
departments and activities undertaken by them; roles and functions of different
departments; the vision, mission, and objectives of the company, and its product
profile, rules and regulations in the company were covered in the study.

 To study the organizational structure and day to day activities of human resource
department in depth.
 Identify the strength and weakness of the company

1.2. Significance of the study

The internship program helps to get a practical knowledge about the functioning of the company
and their department which a quite different from theoretical study.it also cover its strength,
weakness, opportunity and threat in the organization.it helps to gain knowledge about the real
life situation faced by the managers on each stage of work and how they tactically solve the
problem encountered by them. And also to identify the main factors for the extensive growth of
tyre in the market .Recognize the difficulties faced by the industry

1.3. Scope of the study

By doing this we can get a basic idea how Organizational activities are going out in the real
world and we can see how they are managing every activity, procedures and policy. As an MBA
student I also get a chance to know how organizational activities are going on and have a real
experience. The scope of the study is intended to acquire experience of overall functioning of the
organization. It provides an opportunity to see the practical constrains faced by the managers
while putting theory into practice theory. It also helps to understand the functioning of various
departments.
1.4. Limitations of the study
 An independent study was not possible due to the time constrain and the company is a
private sector manufacturing company so there will have some restrictions in gathering
certain information‟s and the entry in certain departments are restricted .
 All the plant workers and office workers were not met due to different shift
 An in-depth study was not possible due to time constraints.

1.5. CHAPTERIZATION

The report includes following 4chapter

 Chapter 1 : Introduction
 Objective of the study
 Significance of the study
 Scope of the study
 Limitations

 Chapter 2 : Industry profile and company profile

 History
 Strategic intent
 products
 Chapter 3 : Organizational structure, Department profile and activates
 Organizational structure
 Brief description each function area/department
 Detailed study of the department in which under gone
internship(including managerial function)

 Chapter 4 : Task and learning summarization

 Task and duties assigned in during internship
 Learning summarization
 conclusion
 CHAPTER 2
Industry profile and Company profile
 INDUSTRIAL PROFILE
2.1. Tyre Industry in world
The global tire market size was worth 3.1 Billion Units in 2018, growing at a CAGR of 4.3%
during 2011-2018. A tire surrounds a wheel‟s rim to transfer the vehicle‟s load on the surface
and offers a strong grip between the road and the vehicle. It is a flexible and robust structure that
is manufactured using various materials such as wire, fabric, natural rubber, carbon black and
synthetic rubber. Tires are strong and flexible and help absorb vibrations. Since they improve the
overall performance of the vehicle, they are widely utilized in buses, cars, trucks, bikes, bicycles,
wheelchairs, lawn mowers, forklifts, shopping carts and airplanes. Various factors such as rapid
urbanization, changing lifestyles, mounting income levels and rising population have led to an
increase in the sales of both commercial and passenger vehicles. Strong growth in the automotive
industry is directly influencing the sales of tires across the globe. Moreover, increasing
investments in the construction sector, the thriving tourism industry and rising vehicle
motorization rates are positively impacting the production of commercial vehicles, thereby
boosting the growth of the market. Apart from this, manufacturers are now engaging in the
development of products such as ecological tires, flat run tires and nitrogen-based tires that are
environment-friendly. For instance, they are employing orange peel extracts in the production to
diminish petroleum usage. According to IMARC Group, the market is anticipated to reach a
volume of 3.9 Billion Units by 2024. Regional Insights:

India

Japan

Europe

China

Russia

United States

Brazil
On the geographical front, China holds the leading position in the global market. This can be
accredited to the flourishing automotive industry in the region supported by increasing
population and rapid urbanization.

Competitive Landscape:

The competitive landscape of the market has also been analyzed in the report with the detailed
profiles of the key players operating in the market. Some of the leading companies include:

 Bridgestone Corporation Japan

 Groupe Michelin France

 Goodyear Tyre & Rubber Co.

 Continental AG Germany

 Pirelli & C. S.p.A.

Rubber & Tyre Industry in India

2.1.1. Rubber Industry Overview
The tyre industry in India dates back to 1921 when the first rubber goods manufacturing plant
was established in Kolkata and since then the rubber industry has been growing and expanding.
After 1947, that is, the year of India‟s independence, the quantity and range of rubber products
increased and slowly the industry saw technological evolution as well. Export front of the
industry has seen tremendous growth in the last few years along with covering all kinds of
domestic demands. The factors responsible for the exponential growth in 21st century are vast
internal market, rapid industrialisation, on-going economic reforms, and improved living
standards of the masses.

India is the

 4th largest producer of natural rubber

 2nd largest consumer of natural rubber;

  5th largest consumer of natural rubber and synthetic rubber together in the world.

 India is also the world‟s largest manufacturer of reclaim rubber.

Kerala, Punjab and Maharashtra have highest production of rubber making India 1st in
productivity all over the world. The per capita consumption of rubber in India is only 990 gms
against 9 to 16 kilos in Japan, USA and Europe. Therefore there are enormous development
prospects of the business in the future.

A wide range of rubber products are manufactured by the Indian rubber industry that serve
industries like the three wings of defence, civil, aviation, aeronautics, railways, agriculture,
transport as also textiles, engineering industries, pharmaceuticals, mines, steel plants, ports,
family planning programmes, hospitals, sports, i.e. practically to every field under the sun.

 Rubber Industry Performance:

The industry saw a price crash in 2014-15 but the performance in 2015-16 has been better. ICRA
predicted 9-10% growth in domestic tyre volumes during 2015-16. In 2014-15, production of
natural rubber dropped to 17.33% while its imports saw an increase upto 24.89%. The quantity
of rubber consumed during the first nine months of the current fiscal was up 4.32%. According
to Rubber Board estimate, the production of natural rubber for 2015-16 is projected at 7.50 lakh
tonnes with a growth rate of 16.28% and the consumption is projected at 10.56 lakh tonnes with
a growth of 3.44%.

 Rubber Industry Classification:

The industry can be classified as:

 Tyre

 Non-tyre

The tyre sector produces all types of auto tyres, conventional & radial tyres and exports to
foreign nations. The non-tyre sector comprises of different sized units that produce hi-tech
industrial items.The yardstick to measure the growth rate of the industry is rubber consumption –
natural, synthetic and reclaims rubber.
  Rubber Manufacturing Process:

Manufacturing of rubber is divided into two steps:

 Production of rubber

 Making of different rubber products

Tyre Industry Overview:

The Indian Tyre Industry originated in 1926 when Dunlop Rubber Limited set up the first tyre
company in West Bengal followed by MRF in 1946. Tyre Industry is predominantly ruled by
organized sector while the unorganized sector consists of bicycle tyres. Indian tyres are made
such that they are compatible for kutcha village roads as well as new pakka roads. Also they are
meant and expected to perform in hot, cold as well as wet climatic conditions.

Tyre Industry is raw-material intensive. Raw materials cost is 63% of industry turnover and 72%
of production cost. Obviously, the foremost among the raw materials is rubber of which 80% is
natural rubber and 20% is synthetic rubber. Thus, tyre and rubber market are totally inseparable.
Tyre Industry is not very price sensitive. The tyres produced are almost homogeneous in
functionality, quality and price excepting a few foreign players, like Bridgestone. Tyres are
produced for –

 passenger cars

 buses and light, medium, and heavy duty trucks

 cycles/motorcycles and other two-wheelers

 go-karts

 racing cars

 industrial rolling stock

 off-the-road and all-terrain vehicles

 aircrafts
  graders/earthmovers/loaders

 mining/logging equipment

 high performance or speed-rated tyres for passenger cars, and

 Agricultural and forestry equipment.

Tyre Industry Performance:

Indian tyre industry is an essential part of the auto segment and its fortunes are reliant on those of
the auto segment. With the progressing lull of the auto segment, the tyre industry saw only
moderate development in the current financial year.

Tyre Industry Classification:

Tyre Industry is classified as:

 Unorganized Sector

 Organized Sector

Unorganized Sector is small and consists mainly of bicycle tyres while organized sector covers
all other major tyre types. The organized sector players supply the tread material to the
unorganized sector players, who in turn re-tread the tyres.

On a volume basis, there are 3 major classifications of the tyre industry:

 Two-wheeler tyres

 Passenger Car tyres

 Truck and Bus (T&B) tyres

Tyre Manufacturing Process:

Tyre manufacturing process consists of several steps/processes that are

 Mixing, Milling, Extruding, Calendaring, Bead Making, Cementing and Marking,

Cooling and Culture, Tyre Building, Lubricating, Curing, Tyre Finishing
 2.1.2. Tyre Industry in Kerala

Rubber growers in Kerala have got together to form a producer company „Integrated Rubber
Farmer Producer Company‟ (IRFPC) to manufacture tyres.

Andreas Hermes Academe (AHA), an NGO based in Germany, will assist the producer company
to formulate a strategy towards formation of a professional collective to produce value-added
products under the „Farmer Producer Company‟ (FPC) model, Ajith John, technical and financial
expert of the group, said in a communication.

Natural Rubber (NR) prices dropped significantly after 2012 and soon hit levels below cost of
production, making rubber farming uneconomical and not remunerative.

“The idea for this concept took root during this period when the realisation dawned that there is
no salvation for the growers unless they move up the value chain. We have some successful
examples of farmer-led cooperatives like AMUL, among others, which became big brands
owned and managed by farmers. Recognising the various issues, the Union government had
come up with the concept of FPC in 2002 and subsequently the amendments to the Act in 2013
gave further impetus. These companies, managed and run by farmers themselves, were
conceived to be run like companies on the lines of the Companies Act with a professional
management towards realising the objectives,” John added.

The communication said the FPC will start off with two and three-wheeler tyre production with
an approximate initial investment of Rs 100 crore.

It was felt that unless the FPC is able to produce tyres of its own, it will not be able to deliver the
right value to the growers for the produce bought from them or efforts put in by them, John said,
adding that FPC decided on two and three-wheeler tyre as the initial step because the category
forms 51% of all tyres produced and is seen growing at the rate of 12-13% while the industry is
witnessing 5-6% growth
 2.2. COMPANY PROFILE

Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company
located in 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
Thiruvattiyur in Chennai. Since then over this long 67 years it has emerged as the largest tyre
manufacturer in India. It is also the world‟s 12th 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, Arkonam, Kottayam, Goa, Medak, Pondicherry, and
Tiruchirappalli. 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 Pre-treads offers world class procured is presently under the leadership of Vinu
Mammen, son of the Late K.M.Mammen Mappilai. 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 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 1st Indian company to export tyres to the U.S., the very birth place of the tyre
technology. It is also the 1st company in India to manufacture and market Nylon tyres and
passenger tyres commercially. In 2011, the company‟s turnover crossed INR 100 billion mark.

MRF Ltd. is the pioneer in motor racing tyres in India. MRF tyres are made to run at speeds
exceeding 150 km/h, 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 brands are the market leaders in almost every segment. MRF brands
are:
Super Lug (truck tyre)
Shakthi (tractor tyre)
Zigma (radial car tyre)
Nylogrip (2 wheeler tyre)
Legend (conventional car tyre)

2.3. History of MRF

A race from the birth to success . . .
 It was in late 1946, a period that was characterized by the indomitable spirit of
freedom and the “will to win” among Indians. A young pioneer called
K.M.MammenMappilai started a small toy balloon manufacturing unit in a small
shed at Thiruvattiyur in Chennai. There were no machines in the unit but it had
an employee with bubbling enthusiasm, innovative ideas and a great vision he
was owner himself.
 Any product that could be made from rubber, without machine was produced.
From balloons to latest cast squeaking toys, industrial gloves and contraceptive,
the list is very long.

 1949-Established 1st office at 334, ThambuChetty Street, Chennai.

 1952-1st machine (a rubber mill) was established at the factory and ventured
into manufacture of tread rubber

 1955-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.

 1956-Becomes the market leader in tread rubber with 50% share of Indian
market.

 1961-Becomes a public limited company. Entered into a technical collaboration

with MansfieldTyre Company of USA and a pilot plant for tyre manufacturing
was established at Thiruvattiyur.

 1963-Full fledgedtyre plant and rubber research centre were inaugurated by

India‟s 1st Prime Minister Pandit Jawaharlal Nehru.

 1964-Started an overseas office in Beirut (Lebanon) to develop export market.

 1967-Becomes the 1st Indian company to export tyres to USA, the birth place of
tyre technology.

 1970-Kottayamplant becomes operational.

 1971-Goa plant was built in record time of 18 months.

 1972-With the setting up or Arkonam plant, MRF becomes the only tyre
company in India with four manufacturing facilities.

 1973-Launched India‟s 1st Nylon car tyre.

 1978-Launched Super Lug 78 which later became the largest selling truck tyre in
India.

 1979-Turnover crossed Rs.100 crores.

 1980-Entered into a technical collaboration with BF Goodrich Tyre Company of

USA.

 1984-Becomes the 1sttyre to be selected for fitment on Maruthi-800.

 1986-Won 6 awards for quality improvement from BF Goodrich; pitted against

20 tyre companies worldwide. Also won the National Institution for Quality
Assurance award.

 1987-Becomes the No: 1 tyre company in India by crossing the Rs.300 crores
turnover. Since then MRF has maintained its No: 1 position.

 1988-MRF Pace Foundation was set up with Dennis Lillie as its Director.

 1989-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 were launched along with MRF World Series Cricket which
was one of the countries most spectacular cricketing and marketing events.

 The 5th unit for manufacturing tyres and tubes was opened at Medak in Andhra
Pradesh.

 MRF TyreDrome became India‟s 1sttyre company owned wheel care complex.

 MRF collaborated with Pirelli to manufacture conveyor belts called Muscle

Flex. The same year MRF brought the World Boxing Championship to India.
 MRF bagged Visweswarayya Award for the Best Business House in South India.
It also bagged the Harvard Business School Award for the Best Corporate
Performance.

 1991-Moved into its own corporate office which soon became a land mark in
Chennai.

 1993-Beacame the 1st Indian tyre company to cross a turnover of Rs.1000

crores. With this the company found a place among the 10 most respected
corporate groups in India.

 It was a proud moment for the company when its founder

K.M.MammenMappilai was honoured with the “Padmashree” for his
contribution to industry, the only industrialist from South India to be accorded
with this honor.

 1996-In the Golden Jubilee years the companies crossed a turnover of

Rs.2000crores and also setup a new plant at Pondicherry for manufacturing radial
tyres.

 1999-Was declared as the Most Ethical Company by the Business World in its
survey.

 2004-Crossed a turnover of Rs.3000 crores.

 2006-Turnover crosses Rs.5000 crores.

 2007-Launched Super Lug F5 and Super Lug 505, a premium mileage rear
fitment truck tyre.

 MRF launches ZSLK tyres.

 2008-Won JD Power Award for the 6th time.

 2010-Ranked highest in the Power Asia-Pacific 2010 India Original Equipment

TyreCustomer Satisfaction Index (TCSI) Study. This is for the 7th time that MRF
has been awarded this honour.
 Won the Top Export Award from Chemicals & Allied Products Export
Promotion Council(CAPEXIL) for 2009-10.

 2011-MRF launches Revz, India‟s 1st radial for 2 wheelers.

 MRF inaugurated its 7th manufacturing facility at Ankenpally at Medak District

in Hyderabad, Andhra Pradesh exclusively for radial tyres.
 Turnover crosses Rs.10000 crores mark.
 Ranked highest in theJD Power Asia-Pacific 2010 India Original Equipment
Tyre Customer Satisfaction Index (TCSI) Study for the 8th time.
 2012-New plant at Perambalur, near Tiruchirappalli in Tamil Nadu will be
operational. This will be MRF‟s 8th independent plant in India.
 2013-Won the JD power award for the 10th time.
 MRF's Aero Muscle becomes the only Indian tyre to be chosen for the legendary
fighter jet - Sukhoi 30 MKI
 Team MRF‟s Guarav Gill wins his first Asia-Pacific Rally Championship
 2014- MRF the 15th largest tyre company in the world, has been awarded for
continued outstanding performance in organizational equipment tire satisfaction
 MRF sign historic five-year agreement with BCCI
 MRF Ranks highest in overall customer satisfaction for a 5th consecutive year,
according to J D Power Asia Pacific 2014
 MRF announce association as Global partner for ICC Cricket World Cup 2015
 2015- MRF Ltd has signed a Memorandum of understanding (MOU)
 With the Government of Tamil Nadu to invest 4500cr in Tamil Nadu
 MRF sign AB De Villiers as brand ambassador
 MRF in the Forbes India‟s upper 50 list of Indian companies
 2016- MRF wins the JD power Award for a record 12th time in 16years
 MRF signs historic five-year agreement with the BCCI
 2017- MRF Signs MOU to setup plant in Gujarat
 2.2.2. The Muscle Man
The corporate ethos is perfectly represented by the brand symbol The MRF Muscleman-
embodying strength, reliability and durability; the very qualities of the tyres it represents. The
mere mention of the world “MRF” is bound to bring the muscleman to the mind of Indians. The
muscleman has evolved in 1964 soon after MRF began exporting tyres. Over the past 33 years it
has evolved from a mere corporate mascot to a symbol of strength, reliability and durability.
Now the muscleman grew to become India‟s most trusted
and well recognized symbol for tyres. In the 1960‟s the
Indian tyre market was completely controlled by the large
multinational companies. Around this time MRF opened
tyre factory at Thiruvattiyur in Tamil Nadu. With that came
a task of recognizing an appropriate corporate brand symbol.
In this process of developing suggestions for the symbol,
some enterprising employees conducted an informal market
survey by interviewing people from all over the country
about their expectations from a god tyre. One day a truck driver at a road side dhabha (tea stall)
somewhere in Western India hit upon the rigid idea when he said “a good tyre should have all the
qualities of a pehelwan (strongman). And by this simple statement, the muscle man was born.

2.4. Strategic Intent

2.4.1. Organizational Goal

The organizational goal of MRF Ltd. is “to maintain global standards through continuous
improvement in the quality of product and services 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 customers.
  Up gradation 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

2.4.2. Mission& Vision

MRF is a leader in the Indian tyre industry and a significant global player providing customer
delight and enhancing shareholder value. MRF has well defined quality environmental safety and
health training and human resource policies. The vision of MRF is “to realize their policies and
implement the contents letter and spirit.”

It is the vision of MRF to emerge as prominent global player in the field of polymers (plastic
and rubber) and make India a global super power in terms of technology and quality of life.

It is the mission of MRF to realize zero defects, zero break-downs, zero accidents, zero pollution
and thereby to have zero losses.

Values
 Customer: We will be responsive to the needs of our customers.
 Learning: We will continuously improve our service innovatively & expeditiously.
 People: We will trust and respect our employees.
 Community & Partners: We will be transparent and sensitive in our dealings with
all stake holders.

2.4.3. Policies of MRF

1. Quality Policy
The main quality objective of the company is “to maintain market leadership through
continuous quality performance”

2. 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 organization, 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.
3. Environmental 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 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.
4. 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

2.4.4. Management

The success or failure of a company is determined by the performance of its management. It has
to play a major role in many crucial functions. Management of MRF is led by Mr.K.M.Mammen,
son of Mr.MammenMappilai who started this company about 66 years ago

Chairman : K M Mammen

Managing Director : Rahul Mammen Mappillai

Company Secretary : S Dhanvanth Kumar

Promoter & Non-Executive Cibi Mammen

Director : Ambika Mammen

Vice Chairman & Managing

Arun Mammen
Director :

Non-Executive Independent : Ashok Jacob

Director V Sridhar
Vijay R Kirloskar
N Kumar
Ranjit I Jesudasen
Salim Joseph Thomas
Jacob Kurian
M Meyyappan
Vimla Abraham

Whole Time Director : Samir Thariyan Mappillai

Varun Mammen
2.4.5. Production Units

1) Thiruvattiyur, Tamil Nadu (for automobile tyres)

2) Arkonam, Tamil Nadu (for bicycle, scooter and auto rickshaw tyres)

3) Goa (for automobile tyres and procured tread rubber)

4) Kottayam, Kerala (for automobile tyres, tubes, procured tread rubber)

5) Medak, Andhra Pradesh (for automobiles)

6) Pondicherry (for radial tyres)

7) Gummidippondi, Tamil Nadu (for radial tyres)

8) Perambalur , Tamil Nadu (for future requirements)

2.4.6. Awards & Achievements

 FORD WORLD EXCELLENCE AWARDS

MRF won the silver award and is the only Indian company to win this excellence award.
 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 10 times till date.
 CAPEXIL
MRF won the award for exports.
2.4.7. Brand Ambassadors

Virat Kholi has been the brand ambassador for MRF Tyres for years
now. In 2017, the cricketer renewed his contract with the company for
the next eight years. Team India captain also uses the bat sponsorship
by MRF Tyres for his matches

Subsidiaries

 Funskool India Ltd.

 Product-o-Drome
 Paint & Specialty coatings.
 MRF Pre-treads
 MRF Pace Foundation
 MRF Power House
 MRF Tyre Drome
 MRF Muscle flux Conveyor Belting

2.5. Product Range

Automotive tyres are the main products of the company.

 Truck tyres-tube type and tubeless type

 Light truck tyres
 Special tyres for defense
 Tyre for industrial applications
 Agricultural tractor and tiller tyres
 Off the road tyres-solid tyres and earth mover tyres
 Passenger tyre-bias ply and radial
 2/3 wheeler tyres
 Specialized tyre for motor rallies
Non Tyre Products

 Automotive tubes
 Toys
 Flaps
 Conventional tread rubbers
 Pre-cured tread rubber
 Vulcanizing solution
 Tyre repair materials
 Conveyor belts
 MRF Wood coat
 MRF metal coat
 MRF glass coat
 MRF velour
 MRF auto coat
 Chapter 3
Organizational structure Department profile and
Activities
3.1. MRF Kottayam Unit

MRF limited, Kottayam are one of the most modern plants that was setup in 1969 at
Vadavathoor about 7km from Kottayam town in the state of Kerala, a hamlet lying on the
outskirts of Kottayam district. The foundation stone for the factory building was made by late
Sri. K.M.Cherian. Availability of intelligent and motivated labor, natural rubber in large quantity
(Kottayam is the land of 3 L‟s-Latex, Letters & Lakes), cheap power etc. Tariffs, tax concession
and transportation facilities were the main reason behind the choice of Kottayam as the 2nd
manufacturing facility of MRF. A factory building with in the area of 34200 sq. ft. was
constructed during the period of 1968- 69 and Ban-Bury (internal mixer) of 3A size with a
capacity to mix of 10 meter per day was erected and commissioned on 21st July 1969, with
strength of 7 workmen. Presently it is the most advanced technology mixing unit and a fully-
fledged manufacturing unit providing truck and tractor tyres. In the view of high productivity
and very good performance in general, the mixing capacity was enhanced by installing a second
Ban-Bury of 11A size with a capacity to mix 48 meter per day during march 1970, with the
permission of Goa government. A license to manufacture 400000 automotive tubes per annum
was transferred and started production of tubes with 7 quarrying presses. To enhance the mixing
capacity, Ban-Bury of 11 D size were installed in 1978 to meet the increasing demand for
mixing. At present 6000 tons of various compounds are dispatched to different units.

Another new product introduced in MRF Kottayam unit during 1993 was flap production. The
management also decided to start tyre production Kottayam unit taking amount of various
incentives on tax and power announced through a new industrial policy by the Kerala
Government. The tyre plant with an initial plan to produce 200 numbers of tractor rears and 600
numbers of tractor front tyres per day was inaugurated by Chairman Sir K.M.MammenMappilai
on 30th May 1994. Commissioning of tyre plant was the beginning of a new era in the history of
Kottayam unit. 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. A
new plant, mainly for PCTR (Pre-Cured Tread Rubber) production was commissioned in the
year 2000. This new plant now houses a 6” cold feed extruder for extruding re-threading
materials and PCTR slugs, PCTR curing presses, 48” calendar for production of tyre repair
materials, 68” fabric calendar, German tuber for flap slug extraction, 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 (which
were being 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 the tube plant. As a new
product, solid tyre production was introduced at Kottayam unit in 2004. This solid tyre curing
presses are located in tube plant.

Employee Details

Office Managers – 29
Management Staffs - 159
Clerical Staffs - 58
Sub-staffs - 8
Watchman & Fireman - 52
Workers - 1079
Trainees - 78
Casuals - 17
Temporary Workmen - 99
Canteen Contractor‟s Workmen - 40
Total – 1738

Working hours at Kottayam Plant (24 hours)

There are 3 shifts of 8 hours each.

1st shift 7 am to 3 pm
2nd shift - 3 pm to 11 pm
3rd shift - 11 pm to 7 am
General shift - 8 am to 4:30 pm
Trade Unions

MRFEU - MRF Employers Union

MRFEA - MRF Employees Association
MRFES - MRF Employees Sangh

Plants in MRFKottayam Unit

Tube Plant
Tyre Plant
Mixing Plant
PCTR Plant

Products at Kottayam Plant

 Automotive Inner Tube

 Automotive Tyre
 Retreading and repair material
 Flap
 Bladder
 Pre-cured tread rubber
 Vulcanizing solution
 Curing Bags/Envelope
 Mastication

International Certifications for Kottayam Plant

ISO 9001:2000 Quality Management System

ISO 14001:1996 Environment Management System
ISO TS:6949 Technical Standards
CQC
Kottayam Unit-Facts & Figures

 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 bags 263000/ month
 Flap production 82000/ month
 Tread Rubber Production (conventional) 160 MT/ month
 PCTR production 330 tonnes/ month
 Organization chart of MRF Corporate Office

Chairman &
Managing Director

Director
Marketing
Joint
managing
Director Director
Engineering

Whole Time Director Accounts

Director

Director R & D
Director
Materials &
Export Division Director
Manufacturing

Managing Units

Thiruvattiur Kottayam Goa Arkona Gummidippondi Perambalur Medak Pondicherry

Fig.3. 1: (Source : company records )

 Organizational Structure of MRF Kottayam Unit

GM

Plant Plant Plant

Plant Plant Plant Plant Quality Industrial Plant
productio Engineeri
Accounts HR Technical Assurance Engineer Security
Manager s ng &
n manager Manager Manager ing Officer
Manager Managem
Manager
ent

Manager Technic Quality Electrical

Assistant al Assistant Security
assurance Maintena
Plant 1 Manager Officer Manager Officer nce Civil
General officer
Plant 2 Engineeri
Supervisor ng
Time Maintena
Office nce

Technica Supervis
l Supervisor Guards
or
Staff superviso
Operator
Foremen r
s

Workers Operators Operators Workers Supervis

Staff
or
Supervisor

Fig.3. 2 : (Source: company records ) Workers

Workers
3.2. FUNCTIONAL AREA/ 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 molds 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. The various departments headed at MRF Ltd Kottayam can be enlisted below:

1. Production department

2. Production Planning Department

3. Quality Assurance Department

4. Technical Engineering Department

5. Plant Purchase Department

6. Raw materials Stores Department

7. Shipping (dispatch) Department

8. Engineering Department

9. Industrial Engineering Department

10. Safety Department

11. Security Department

12. Human Resource Department

13. Accounts 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 Plant1

Tyre plant Plant2
Mixing plant Plant3
PCTR plant Plant4

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

Product Volume

Product Volume

Tyres 2437 no./day

Tubes 8433 no./day

Flops 2677 no./day

PCTR 16 mts./day
 STRUCTURE OF PRODUCTION DEPARTMENT

Production Manager

Asst. Manager Asst. Manager Asst. Manager Asst. Manager

Production Production Production Production

Plant 1 Plant 2 Plant 3 Plant 4

Supervisor Supervisor Supervisor Supervisor

Operatives Operatives Operatives Operatives

Fig .3.3: (Source: company records )

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 organization. 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
 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.

STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

Production Manager

Quality Assurance Quality Quality Assurance Quality Assurance

In Plan1 in Plant 3 in Plant 4
Assurance in Plant2

Supervisor
Supervisor
Supervisor
Supervisor

Operatives Operatives Operatives Operatives

Fig.3. 4: (Source: company records )

 5. Technical Department

Technical department at the corporate level carries out R&D activities and the results of
those activities are transferred to the plants. Some of the activities carried out at corporate
technical are new molds, selection and evaluation of new and alternative sources, selection
and evaluation of alternative materials, finished product testing and analysis, heat
engineering and assisting plants in problem solving. The results of research and
developments are translated into practical applications at the plant level. At the same time,
other routine functions like testing of incoming materials, process monitoring and product
testing at each stage is also carried out

Activities

1) New product development.

2) New compound development.

3) Designing and inspection of new molds.

4) Selection & Evaluation of new alternative source.

5) Selection and evaluation of alternative.

6) Finishes product listing and analyzing.

7) Arresting plants in problem solving.

Raw Material Testing

All raw materials are tested and released if they confirms to the specifications. When the material
is received, raw material stores personnel arrange for collection of samples from the received
material as per sampling plan. The sample is given to raw material testing lab along with sample
transfer note/ visual inspection report.
Raw materials are tested as per BSP (Basic Standard Practices), standard test procedure and are
compared with the specification issued by corporate technical. If the material does not confirm to
specification, more samples are tested and released if it is OK. If any of the re- tested samples are
not OK, then the samples are sent to corporate lab and the material is

Accepted or rejected based on corporate advice. If the material is rejected, then raw material
rejection note is prepared and the material is returned to the supplier by raw material stores.

In-Process Material Testing

In process materials are tested by technical as per the plan to check whether any deviation from
the specification has happened either in the material used or in the process.

Finished Product Testing

Finished product testing is done both in the plant and at corporate technical departments. This is
done to ensure that the product produced confirms to the required standards. In case of tyres, ply
adhesion, mounted tyre dimension, and cut tyre analysis are done in the plant. For PCTR and
flap, cured dimensions and weight are checked

Process Control

Process control is effected by checks or tests conducted regularly. The data generated during
tests and audits are used to control the process. Changes are made if required in the
specifications to achieve process ability targets, the changes are documented through plant
changes letters. If there is any problem, the process / product will be analyzed for variations in
raw materials, or process conditions. Any deviation found will be corrected or alternative source
of raw material will be tried. Process will be repeated to check whether it is OK

New Product Introduction

Whenever a new product is introduced, a TPOR (Technical Program Opening

Report) is received from corporate technical along with corporate specification,
project schedule and new size production plan. Based on the TPOR, a micro plan
will be prepared by Head- plant technical and it will be approved by the originator
of TPOR. This is then given to theconcerned technical in-charge who prepares the
activity plan. Plant specification is generated based on the corporate specification.
Analysis of the finished products is done and necessary corrections if any are
incorporated into the specification. The product is released for re-evaluation or for
completion of the project schedule. The product is sent for in-plant testing,
corporate testing and performance report is published. The performance during
bulk evaluation is published. Then if it is satisfactory, the product is released for
regular production in consultation with corporate technical, and is documented
through a TA (Technical Authorization) or PLC (Plant Change Letter).

Control of Non-Conforming Product

It is the responsibility of technical department to dispose of the non-conforming materials in

suitable manner. Non conforming materials are tied with a red tag (non conforming material tag)
which contains all the relevant details like the MRF code of the held material, quantity, reason
for holding, date and shift of production, date and shift of holding etc. Technical in-charge
reviews the non-conformance and takes a decision on the method of disposal and this is recorded
on the non conforming material tag. The disposal is then followed up by production

Tool Change

Whenever there is a tool change the concerned specification is given by plant technical
department. In case of a new size tool, it has to be Okayed by technical before being put in
production

Finished Product Re-Classification

Finished products which don‟t confirm to first quality norms are kept separately are jointly
inspected by production, technical and quality assurance. Based on joint decision, the material is
either sent as seconds, repaired or scrapped
 STRUCTURE OF TECHNICAL DEPARTMENT

Manager Plant Technical

Technical in Technical in Technical in

Technical in
Charge Charge Charge Charge

Plant 1 Plant 2 Plant 3 Plant 4

Supervisor Supervisor Supervisor Supervisor

Workmen Workmen Workmen Workmen

Fig.3. 5 : (Source: company records )

5. Plant Purchase Department

The items purchased by the plant can be categorized as follows:

 Items which come under the head capital expenditure.

 Items which come under engineering spares (non-capital expenditure)
 Stationary and miscellaneous items (items which don‟t come under the preview of
raw materials)
 Services (repairing for machinery)

Procedure followed for purchasing

Any person who needs a material can make a purchase on request but it has to be authorized by
the department head. This has to be routed through engineering store.

In case of items involving capital expenditure, it should be capital authorization number. In case
of engineering spares of non-capital nature, this is not required.

Based on the indent, necessary quotations are invited and purchase order is released. The copy
of purchase order is sent to the supplier, intender, accounts, stores, corporate office PEM and a
file copy for plant purchase.

Procedure followed for repairing

For repair and maintenance of equipment or machinery, indent is raised and it is authorized by
PEM and item is sent to the party from engineering stores via gate pass. The item is dismantled
and the exact nature of work to be done is finalized and quotation is raised by the outside party.
This is communicated to the intender. Further clarifications and follow up is done by the
intender. After getting the approved repair quotation from the indent/department ,necessary work
order is released by purchase department. Copies are distributed as in case of spares, indenter has
to follow up the repair machinery and again when it comes back after repair; it is routed through
engineering store.
 6. Raw Material Stores

Raw material stores will receive a copy of the raw material requirement for the month which is
prepared and sent by the plant planning. This is also sent to the central planning and central
purchase by plant planning. Based on the requirement, central purchase arranges for procurement
of materials and issues a delivery schedule to the plant. Delivery schedule is the schedule by
which the supplier will release the specified quantity of raw materials at the specified dates to the
plant. Raw materials, consumables, fuel etc are received at the factory gate in line with the
delivery schedule and plant purchase orders. The documents are verified to ensure that the
materials are from approved sources and the correct quality as ordered is delivered. Weighing of
the load is done. GAE (Goods Arrival Entry) is made and the load is re-directed to the unloading
point through the security department. The unloading point is usually the raw material
warehouse, but sometimes the materials are unloaded at the plants where it is consumed. In case
of fuel, oil etc. it is unloaded at the storage area. At the unloading point, visual inspection is
carried out and then the materials are stored with the proper identification tags showing the
primary status of the material (Hold/Pending fir Test). Each material has a specified storage and
it is placed in that storage area. Sample transfer/visual inspection report is prepared and samples
are collected for testing as per the documented sampling plan. The sampled bag is identified and
the sample is sent to technical department for testing. GRN (Goods Received Note) is prepared at
this point. After testing the samples, technical department informs the test result through the
material releases/rejection/hold note printed at the bottom portion of the sample transfer/visual
inspection report. Based on the test result green color sticker captioned “OK” is affixed if the
material is OK, RED color sticker captioned “REJECTED” is affixed if the material is not fit for
use and ORANGE color sticker captioned “HOLD” is affixed if it needs further test to arrive at a
concrete decision. Materials are issued to the production as per the indent raised by the
production in each plant. Stock inventory and stock status reports are prepared every month.
Rejected materials are sent back to the supplier and the cost is recovered. Transferring of
materials to other plants is also monitored
7. Shipping (Dispatch) Department

 Finished goods will be received from inspection/ packing area size wise, batch wise or
lot wise on the basis of production Transfer Note. Physical verification of goods is done
at the time of receipt and receipt tags are put. Proper storage and identification of
finished goods is the responsibility of shipping department.
 Finished goods will be stored size wise on pallets with transfer slips showing the size,
quantity, date of receipt etc. Tractor rear tyres .truck tyres and such others will be
stacked on floor. Stacking norms for finished goods, where ever specified will be
followed.
 Shipping will publish Daily Dispatch Simulation Plan and copies of it will be sent to
plant planning, central planning and QAD. Daily Dispatch plan is prepared based on
simulation plan, allocation plan and urgency as intimated by central planning /marketing,
transportation time required, availability of truck, shelf life of the product etc. Trucks are
checked before loading to ensure that damages will not occur to goods.
 Daily production Receipts and transfer are fed into computer and reports are generated.
Daily details are transmitted to central planning /EDP/Marketing and data are
consolidated for report generation and monitoring .Dispatch report is published for every
10 day period .Non moving /slow moving items report is published monthly and
distributed to central planning ,plant planning ,QA ,plant head, marketing etc.
 Shipping coordinates with central planning to get allocation for none moving and slow
moving items. Tread rubber/cushion which exceeds the shelf life of 3 months and
damaged products/tyres packed with wrong tubes will be given to production.
 Statutory registers and returns as required are properly maintained and submitted. New
defective tyres are brought for tyres for repairs from outside godowns and inspections by
central exercise authorities are arranged .Statutory registers and returns as required are
properly maintained and submitted
8. Engineering Department

Engineering department functions are divided into Mechanical, Electrical, Instrumentation, Civil
& Environmental engineering. The main functions are new machinery lay out preparation
,erection and commissioning of new machinery ,preventive maintenance, breakdown
maintenance, condition monitoring and over hauling of machinery and other related equipments.

Erection ,commissioning ,operation and maintenance of utility items like generator ,boilers,
compressors, pumps, freezer lines and cooling towers and maintenance of material handling
systems like lift, hoist and gantry are done by engineering. The maintenance of equipments at
pump house and training centers are also done.

Mechanical Maintenance

Preventive maintenance schedule for the particular week is taken and the necessary materials
,tools, manpower and spares are arranged .The scheduled maintenance activities are carried out
based on work instructions and experience.

Based on the number and nature of breakdowns in each machine during the year, the preventive
maintenance schedule is reviewed and a new schedule is prepared for the next year

Breakdown Maintenance

The defective machinery is identified either by production or by engineering and a maintenance

request is generated and arranges for the tools, maintenance personnel and spare parts. The
machine is then released for maintenance. The required maintenance jobs are carried out and the
machine is thoroughly checked. If the machine is OK, then it is handed over to production.
Otherwise necessary corrections are again done. Every month, down time analysis is done and
permanent corrective actions are initiated in case of recurring failures. Mean time between
failure and mean time to repair are the measures adopted to track the improvement.

Electrical Engineering

MRF Kottayam unit falls under the EHT (Extra High Tension) consumer category. The incoming
power supply for this unit is 110 KV. The total connected load of the unit is roughly 30000 HP.
 The maximum demand is 10000 KVA. For backup power supply, the unit has 3 generators of
1000 KVA each and 1 generator of 5000 KVA capacity.

Civil Engineering

Civil Engineering department does the work of project proposals, drawings and estimates as per
requirements for construction and extension of factory buildings, equipment foundation, plant
offices and construction of cable and pipeline trenches, storm water drains and site development
work.

Environmental Engineering

This branch is mainly concerned with monitoring of factors which affect the environment and
finding ways by which they are minimized or eliminated. Water, air & sound pollution are the
main factors which come under preview of environmental engineering.

Structure of Engineering Department

Plant Engineering Manager

Manager Electrical Manager Mechanical

Civil Engineer
Maintenance Maintenance

Supervisors Instrumentation
Supervisors
Engineer

Electricians Mechanics

Fig.3. 6 : (Source: company records )

9. Industrial Engineering

Major Activities:

 Conducting studies for fixing Standards and Crew Strength in all areas.
 Negotiating of disputes by participating.
 Participating in discussions for setting labor disputes
 Manpower requirement assessment
 Planning o Factory Layout
 Expansion Project Coordination
 Preparation and publication of MIS Reports
 Works related to long term agreement.
 computation of production bonus
 Resource planning – manpower, machinery and equipments
 Long term agreement related works
 Calculation of chairman‟s award
 Calculation of production bonus
 Connectivity between factories, head office and others plants, maintenance of
network connectivity in all areas of the plant, administration of local e-mail
service, maintenance of computers, printers other accessories.

ERP Activities – Maintenance of leased line connectivity between factory and head office and
other plants, maintenance of network connectivity in all areas of the plants, maintenance of
network connectivity in all areas of the plant, administration of local e mail service ,maintenance
of computers printers and other accessories. ERP SYSTEMS in MRF Ltd was replaced by SAP
systems in 2009

10. Safety Department

Responsibility of this department is to ensure the working ambience to all the personnel within
the factory and the premises. The safety officer through the mechanism of audits and subsequent
reporting – Feedback, builds in the safety consciousness and the safety culture within the
personnel.
Safety policy of MRF

 “It is the policy of the company that the safety & health of the employees shall be
our 1st priority”
 “It is the responsibility of everyone in this organization, regardless of the position
he occupies, to ensure that everyone in the factory returns home to his 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.

Procedures and guidelines Necessary procedures, rules and guide lines for the effective
implementation of this policy, without prejudice to the statutory requirements, are formulated by
Chief Safety officer and Plant Safety officer. They will also render necessary advice and
assistance to all management staff in the effective implementation of these policy respective
sections, plants departments and the unit as a whole.

Methodology for Prevention of Accidents

1. Training
2. Enforcement of safety rules and guidelines
3. Safety audit
4. Corrective and preventive action
5. Safety awareness promotional activities

11. Security Department

Industrial safety in the public and private sector can be defined as protection of men, materials,
machines, buildings, classified information, and the company operations and to provide
protective services against fire, theft, damage to the company assets and the installation. Protect
the valuables of the company as well of the employees.

The main functions of security department are:

 Control over accessibility

 Check against theft, pile rages
  Control over the movement of personnel and materials at the gate
 Checking in/out raw materials, empty vehicles, carrying finished goods, vehicles
carrying scrap items etc.
 Control and checks on the company hired taxes and security of bills.
 Co-ordination of security duties with private security agencies and preparation
of bills.
 Control and check over the entry of contract works

In case of an accident in the factory, it is the responsibility of the security department to provide
the victim with first aid. The security department should also take them to the appropriate place
by using the ambulance if necessary. The inflow and outflow of inventory, personnel are
regulated and monitored by the security department.

Search Operation

All workmen is liable on entering, leaving or while remaining inside the factory premises and
searches by the security personnel. The search clause is made applicable to the workmen only.
The following are subjected to search at the gate:

 Workmen
 Contract Casual Labor
 Suppliers
 Drivers, Cleaners and Private Vehicles
 Commercial Vehicles
 Company Vehicles

Important documents to be maintained:

 Standing Orders/Security Manual

 Duty Register (Staff & Watchmen)
 General Diary
 Key Register
 Visitors Register
 Material Movement Register
 Vehicle Register
 Telephone Message Book

Structure of Security Department

Senior Security Officer

Officer Security

Watchmen Firemen

Fig.3. 7 : (Source: company records )

12. Human Resource Department

The Human Resource Department is known as the heart of an organization. It performs a number
of activities concerned with the employees of their organization. It interacts with other
departments to ensure effectiveness of the company.

Functions

 Any employee newly recruited will be exposed to the following areas.

 Introduction about the company
 Evolution of the concept of quality and its relevance to the contemporary
industrial production.
 Safety
 External competitive environment and organizational culture
 Factory discipline
 Basic process flow in the plant in which they are place.

Activities

1) Recruitment and Selection of employees

2) Performance Appraisal
3) Welfare activates
4) Training
5) Industrial relation and labor management
6) Canteen service
7) File management.

Other activities controlled by HR Department are

 Medical insurance scheme

 Family welfare canteen
 Co-operative Society
 Recreation club
Time Keeping

The office time is also come under the HR Department. The office time carries out the following
function.

 Attendance detail
 Leave details
 Wage calculation
 Daily reports.

Working hours (24 hours)

1st shift : 7am-3pm

2nd shift : 3pm-11pm

3rd shift : 11pm-7am

General shift : 8am-4.30pm

13. Accounts Department

This department keeps account of all the financial transactions of the company. The accounting
period of MRF is from October 1st of one year to September 31st of the next year. MRF has a
fully computerized accounting system that facilitates fast operations of its various functions. All
the transactions of production unit starting from the issue of goods received to the final
documentation is computerized. The strategy that the company has adopted is to go for credit
transaction and payment will be made in one month of time.

The Functions of accounts department at the plant level has been divided into:

1. Financial account

2. Cost account
3. Wages and Salaries

4. Sales tax

Financial Accounts

This branch deals with all types of cash payments and receipts. This will include payment for
engineering and raw materials purchase, petty cash payments, operation and reconciliation of
bank accounts ,payment to the government in the form of taxes and levies ,payment of PF
,deduction from salary and payment of loan outstanding and insurance premium of employees
,fright payments, payment in lieu of travel allowance ,medical re imbursement etc. Cash receipts
in the case of scrap sales and any other cash receipt will also come under this branch of accounts.

Cost Accounts

This branch deals with forecasting ,budgeting, analyzing and reporting the income and
expenditure of the company .The budget for expenditure is prepared using standard costing
principles and it is compared with the actual expenditure .Any variation from the budget is
analyzed to find the exact reason and it is reported to the top management.

Wages & Salary

Computation of wages and salary is done by this section of accounts department. Wages of
workmen are fixed in the long term agreement and are calculated on a daily basis depending on
various factors like grade, working hours, output achieved etc.

Sales Tax

All matters related to sales tax are handled by this section. Monthly returns for sales tax are filed
on behalf of sales depots. VAT (Value Added Tax) system has been introduced and all matters
related to this are also looked after by this branch of accounts. “C” forms for purchases from
outside the stare and “F” forms are issued for receipt of goods from depots.
INTERDEPENDENCE OF DEPARTMENT

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 molds 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. All the different activities that go on in a business are interdependent and work
together to create value for the customer and wealth for the business. The different departments
of the business are interdependent; that is, they rely on each other and work together to achieve
the objectives of the business. Within a business, it is the role of management to coordinate all
the organizational departments and ensure that they work together for the overall success of the
business. These departments support the main goals of the business. They are very dependent on
each other, and it is very important to understand the interrelationships between them. The way
that one functions might decide to achieve its goals could affect the whole business, so
considerable cross-functional coordination is required. District Office Sales Department Dealers
& Agents

In MRF Ltd there is a functional interdependence between different departments as different

functions communicate with each other in order to meet the business aims and objectives. In
MRF Ltd., the purchase function is carried out by the purchase department of the respective unit
or plants and is responsible for procurement of the unit requirement. The heads of the material
department and purchase department are accountable for effective discharge of purchase
functions within the framework of purchase policy of the company. The production planning
department is the most vital link between product design and the production department. The
production planning department provides the necessary facilities and technical know- how for
the manufacture of the product. Human Resource department is directly related to all the other
departments as it controls all the manpower requirements in the organization. 1Production is the
functional area where the raw materials are converted into finished products through a series of
production process. It is done by keeping quality conscious in mind. The quality assurance
department ensures the quality right from the procurement of raw materials, at each stage of
production and just before packaging. Production department also functions by collecting
information both from materials as well as marketing department. Production department checks
the quality of the raw materials and if it does not meet the standards report it to the purchase
department. The material department deals with the purchase of raw materials and supplies the
raw materials to the production department. The interdependence of quality control department
with the production, finance, quality assurance and HR department is necessary as it deals with
products, its quality, payments and man power. They check the quality of product packed before
dispatch. The interrelation of finance department is between materials, production, marketing,
advertising, export, quality assurance and HR departments. In addition to the major functions of
budgeting, raising funds internally and from financial institutions and utilization of funds for
growth of performance, it deals with all the internal and external cash and payment transactions.
Public relation has to be thought of as a long term strategy and to implement this long term
strategy in a phased manner. Appropriate short term strategy are to be evolved and implemented
to build up and maintain the tempo.
 CHAPTER 4
TASK AND LEARNING SUMMARIZATION
4.1. GENERAL TASK AND DUTIES ASSIGNED
During one month internship, MRF Company assigned certain task and duties which are as
follows:

 To learn about MRF Tyres kottayam

 Examined the structure and functioning of various departments in the company
 To get familiarized with company‟s product profile and the production process
 To study about the functioning of production department
 To get familiarize with HR department
 To have a study of quality control department
 To acquire knowledge about the sales and marketing department
 A detailed study about the Finance Department
 Interaction with the factory workers and get the knowledge about their quality of
working environment
 Analyzed the current ration of the company and reported it to the officials
 To have a study about taxation
 Analyzed the financial statement and identified that company maintains adequate
reserves and surplus as a portion of profit
 Assisted the financial statement and identified that company maintains adequate
reserves and surplus as a portion of profit
 Assist the finance manager and about his day to day function
 Study the expenses and income of the company
 Analyzed the salary calculation
 To analyze the delivery notes and bill of delivery
 Analyze the record of day to day transation
 Compare the previous financial statement of the company
 To study about employees promotion an training
 Study about export-import details of the company
 Learned about calculation of employee absenteeism
 To get familiarized with the daily shifts of employees in the company
 To get familiarized with the company‟s labor welfare scheme
  To verify the sales register and each book
 To analyze the trends in working capital of the company
 To prepare a detailed report on the study of finance department

4.2. LEARNING SUMMARIZATION

 After the successful completion of my internship programme, I got a clear idea about the
structure and functioning of MRF tyres kottayam
 MRF is India‟s largest tyre manufacturer and its market leader. Use most modern
technology to produce tyres
 The main objective of the company is to maintain global standard through continuous
improvement in the quality of product and services
 The availability of raw materials is from the nearest suppliers, it eliminates the
transportation cost and thus the cost of production is low
 The company has frequent management meeting regarding development matters and it
enables to make policy changes when it is required
 The MRF company maintain sufficient fund for proper functioning without any delay
 MRF is to enrich and gratify the human race by providing them with products and
services that gives satisfaction delight and amazement to the end users and there by
increases the good will of the company
 MRF is emerged as a pre-eminent global player in the field of polymers and make India a
global super power in terms of technology and quality of life
 Management should added more training programs to employees so that it will help in
both mental as well as physical strength of the employees
 Wage and salaries are fixed by the board .it is much more above than the minimum
salary fixed by the government
 Works of the company are satisfied with the labor welfare measures of the company
 Employees are satisfied with the working environment
 Company should improve their co-operation with the social activities
 Companies annual budget is conducted at the end of the financial year
 The corporate social responsibility (CSR) of the company should be expanded so that the
company could get some good will among the society
 MRF have proper warehousing facility
 They should maintain proper superior subordinate relationship
 Company maintain a purchase department which will helps in reducing over stock
 Success of MRF is in its efficient management of employees and better product
diversification
 In these emerging times when the performance standard are becoming more stringent the
MRF tyres are to be tested on the most torturous train for this purpose MRF is setting up
trite track on its own
 MRF kottayam plant is one of the most modern plant
 The product which are manufactured in kottayam plant are Automotive tyres ,tubes,
conventional tread rubber, pre-cured tread rubber, repair materials, vulcanizing solution,
flap, bladder, envelope, curing bags and solid tyres
 Aggressive market policy
 The company have highly evolved research and development wing and the company
export its products to more than 75 countries

Thus; the internship in MRF kottayam was very informative and as well as an excellent
exposure
4.3. CONCLUSION
The internship programme that I carried out in MRF Tyres Kottayam for the period of 30 days
has a wonderful and informative experience ,it help me to know that how an organization deals
with real issues during for 30 days. During those 30days I get familiarized with the structure and
functioning of MRF Tyres, I learn that the major objectives of MRF company .Madras Rubber
Factory mobilized itself as the market leader. The strong performance of MRF is because of
combined efforts of management and employees. MRF provides high quality and technologically
superior products to its customers. The company has the provision to find out which tyre is
manufactured by which worker. The effective management along with successful workers is very
dedicated and is aware of new developments taking place in the industry. There is “no
compromise on the quality policy” makes them King of Kings in tyre industry. If they implement
the suggestion put forward, will help them to improve profit and helpful for the workers. So the
company can attain global standard through continuous improvement in the quality products and
service in order to maintain market leadership and can be the king in tyre industry for many
years.

 MRF Kottayam unit is one of the 6 production units of MRF India.

 Its location is ideal as the major raw material -natural rubber- is locally available.
 The factory has different specialized plants for the production of various
products.
 Work is done 24 hours a day.
 Work runs smoothly with noninterference from outsiders.
 Each department in the company plays a crucial role in the smooth running of the
factory and they all work together to achieve the common goal of maintaining
market leadership and making products that meet global standards.
 The unit offers vast employment opportunities to skilled workers of the area.
 The HR department takes excellent care of its workers through various welfare
schemes.
 The company meets all the statutory requirements and runs non-statutory works
also.
 Rights are fulfilled and demands are met.
My internship was at the Human Resource department of MRF Tyres .The managers and
employees are very well cooperated with me and also they assigned certain task and
duties .It was a wonderful experience and I got a practical experience from it and also the
functioning of the Human Resource department in the company
BIBLIOGRAPHY

BOOK REFERENCES

 Human Resource Management – by Gary Dressler & Biju Varkey, Publisher –

Dorling Kindersley (India) Pvt. Ltd, licensees of Pearson Education in South
Asia. 12th Edition, year of publishing 2012
 Organizational Behavior - by Stephen P. Robbins & Thimothi A. Judge,
Publisher - Dorling Kindersley (India) Pvt. Ltd, licensees of Pearson Education
in South Asia. 14th Edition, year of publishing 2012
 Marketing Management – PHILIP KOTLER, 12th edition, year of publication
 MRF Records - MRF Ltd.,
 MRF Magazines - MRF Ltd.,
 MRF Journals - MRF Ltd.,
 MRF Manuals - MRF Ltd.,
 MRF Annual Reports - MRF Ltd., MRF accounts department.

Websites

 http://www.mrftyres.com
 http://www.moneycontrol.com
 http://www.fadaweb.com/indiantyresindustry.htm
APPENDIX
 Annexure-Log Book Details

Date Activity Location

1/08/2019 First day of internship at MRF Kottayam, Meet HR Department
company guide an she conduct me a training session

2/08/2019 Observe the personal records of employees HR Department

3/08/2019 Check the attendance and canteen recovery statement HR Department

of employees

5/08/2019 Observe the personal appraisal of employees and also HR Department

calculate and record it

6/08/2019 Check the manpower resource in various department Office

7/08/2019 Check previous months financial reports Finance Department

8/08/2019 Analyze financial statement and the insurance claim of Finance Department
workers

9/08/2019 Departmental head briefly explain the various functions Purchase

of purchasing department Department

13/08/2019 Enter the attendance details of all the employee in HR Department

computer system

14/08/2019 Record the attendance of employee and enter it into Materials

computer Department

16/08/2019 Analyze about the grievances and redessal of the HR Department

department

19/08/2019 The production departmental head conduct a class and Production

described about the various functions of the department Department

20/08/2019 My guide give me a place in her cabin and give the HR Department
instructions of the day to day working of HR
department

21/08/2019 Record the attendance of employees in the register Materials

book Department
22/08/2019 Prepare the arrear statement of head load worker HR Department

23/08/2019 Prepare the balance of arrear statement of head load HR Department

workers

26/08/2019 Record the details such as the quantity and quality of Purchase
materials purchased Department

27/08/2019 Once again attend a class in HR department HR Department

28/08/2019 Check the attendance register and collect the details of HR Department
leave of employees

29/08/2019 Visit the quality assurance department and view the Quality assurance
quality assurance methods Department
30/08/2019 Data entry HR Department

31/08/2019 Last day of my internship so madam conduct a HR Department

experience sharing session then I submitted rough
report