TABLE 0F CONTENTS

CHAPTER DESCRIPTION PAGE

NO
INDRODUCTION
1 NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
2 INDUSTRIAL PROFILE
COMPANY PROFILE
PRODUCT PROFILE
3

4 SWOT ANALYSIS
5 FINDINGS AND SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
INTRODUCTION
INTRODUCTION

Auto tyres provide traction between the vehicle and the road while providing a flexible
cushion that absorbs shock.

Europe is the largest consumption market while it is also a larger supplier of auto tyres.
Based on the high-developed automotive industry, the auto tyre industry started early and
three of the top five auto tyre manufacturers set their headquarters in Europe. They are France
based Michelin, Germany based Continental AG and Italy based Pirelli.

U.S. is the second largest market of auto tyres. With the fast development of automotive
industry in last century, many manufacturers-built plants in US, Canada and Brazil to meet
this market demand. Likely, Japan is also a major supplier of auto tyres, with its mature auto
tyre industry and developed manufacturing industry.

In the global market, the cooperation and acquisition between companies is common. When
come into a new market, cooperation with domestic companies is a good way to occupy the
market share. Through this way, companies can make use of resource adequately.

Transport sector plays a pivotal role in the development of economy of our country. Tyre
industry plays a major role in the auto sector, tyre and related products are the major part of
all automobile, hence the tyre industry is something which also grow along with the
development of auto sector. Tyre industry provides various types of financial sources from
the people and mobilize saving for investment in the industrial projects of tyre industry. This
industry has been existence in India for the past several decades.

The Indian tyre industry is one of the which has a vital role in auto segment. India produces
one of the largest varieties of tyres using latest technology and management. There are lot of
tyre manufacturing companies are functioning in India and all this company’s products are
exporting to different parts of the globe.

MRF, Apollo, JK tyres, TVS tyres, Bridgestone, falcon, CEAT etc. are the few companies
which takes a leading role in the tyre industry. MRF is the tyre manufacturing company
which has a pivotal role in the whole tyre manufacturing industry in India. It contributes a
major share in the market of tyre industry of India and export their products in to several
countries.

The tyre industry faces rise and fall in their sales and exporting in different periods. History
and functional activities, GDP growth and revenue contribution depends on factors like socio
economic factors

Production units of MRF are located at:

1. Tiruvittiyur, Tamil Nadu

2. Kottayam, Kerala

3. Medak, Andhra Pradesh

4. Arkonam, Tamil Nadu

5. Pondicherry

6. Ponda, Goa

7. Sri Lanka.
 The main objective of the company is ‘to attain global standard through continuous
improvement in the quality products and service in order to maintain market leadership’. The
main strategy of the company in today’s competitive world is ‘cut cost and win the battle’.

CHAPTER 1
NEED FOR THE STUDY

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

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

OBJECTIVES OF THE STUDY

 To know about MRF Ltd as an organisation

 To understand the organisation structure

 To know the functioning of the various departments

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

RESEARCH METHODOLOGY

This study is based on the information collected from secondary data.

SECONDARY DATA

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

LIMITATION OF THE STUDY

1. Lack of primary data collection

2. Only secondary information could be covered under the study

3. Sensitive information was not shared by the company in websites.

 CHAPTER 2

INDUSTRY PROFILE

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

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

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

THE INDIAN TYRE INDUSTRY

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

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

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

highly volatile environment.

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

The Indian tyre industry evolves itself around some silent features like:

 Adaptability
 Innovation
 Export
 Technology progression
 Wide product range for divers’ usage

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

 Equipment market
 Replacement market
 Export market

The main raw materials for tyre are;

 Rubber
 Carbon black
 Nylon cord
 Chemicals.
 Synthetic rubber
 Oil

GLOBAL SENARIO

Natural Rubber is a commercial plantation crop from the tree species, Hevea brasiliens is
grown in tropical humid climatic conditions. Thailand, Indonesia, Malaysia, Vietnam, China
and India are the major NR producers globally. The current world production and
consumption of NR is around 12.40 million tonnes and 12.60 million tonnes respectively.
The major NR consumers are China, India, USA, Japan, Thailand, Indonesia and Malaysia.
Rubber is largely perceived as a strategic industrial raw material and accorded special status
globally for defence, national security and industrial development. Major consuming
countries keep strategic reserves of NR.

Rubber is an internationally traded commodity and price of rubber is influenced interalia by

trends in economic growth, production in major producing countries and demand in major
consuming countries. Domestic NR prices generally follow the trends in the international
market and is therefore, subjected to fluctuations in price.

INDIAN SENARIO

Indian rubber industry is characterized by the co-existence of a well-established rubber

production sector and a fast-growing rubber products manufacturing and consuming sector.
The Rubber Industry value chain begins from NR plantations and ends with a huge range of
dry rubber and latex based products. Historically, NR was a regulated commodity with strong
tariff protection and domestic market regulations. The key factors which have contributed to
the growth of Indian rubber industry are positive intervention of institutional agencies aiming
at self-sufficiency and import substitution. Most of the rubber products including tyres
require blends of NR and SR. Consumption of SR is mainly determined by end product
composition, technological change and relative prices. Consumption of SR in India in rubber
products manufacturing sector increased from 411,830 tonne in 2010-11 to 633,975 tonne in
2017-18. Currently, there are four companies producing SR and production increased from
110,340 tonne in 2010-11 to 331,221 tonne in 2017-18. Styrene Butadiene Rubber and Poly
Butadiene Rubber accounted for 63% and 34% of SR production in the country. Import of SR
amounted to 338,189 tonnes in 2017-18. Consumption of SR in India is projected to reach 1.2
million tonnes by 2025.

Major Market Player s and Their Market Share

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

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

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

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

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

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

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

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

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

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

OBJECTIVES OF THE COMPANY

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

MRF Ltd achieves the objectives by taking the following actions;

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

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

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

MRF MISSION

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

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

MRF will be a significant global player delighting customers worldwide through

 Leadership in technology
 Excellence in manufacturing
 World class systems
Driven by a team of motivated by high performers to achieve profitable growth.

Major brands.

Super lug - country’ largest selling truck tyre.

Shakthi - country’ largest selling tractor tyre.

Zigma - country’ largest selling radial car tyre.

Nylogrip - country’ largest selling two-wheeler tyre.

Legend - country’ largest selling conventional car tyre.

THE PRODUCTION UNIT OF MRF LOCATED IN

1.Tiruvottiyur, Tamil Nādu. For automobile tyres.

2.Arkonam, Tamil Nādu. For bicycle, scooter, auto rickshaw tyres.

3.Goa for automobile tyres and procured tread rubber.

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

5.Medak, Andrapradesh. For automobiles.

 6.Pondicherry for radial tyres.

7. Gummidippondi, Tamil Nadu (for radial tyres)

8. Perambalur, Tamil Nadu (for future requirements)

EVOLUTION OF MRF

1946

A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing

unit in a shed at Tiruvottiyur, Madras (now Chennai).

1949

Although the factory was just a small shed without any machines, a variety of products,
ranging from balloons and latex-cast squeaking toys to industrial gloves and contraceptives,
were produced.

During this time, MRF established its first office at 334, Thambu Chetty Street, Madras (now
Chennai), Tamil Nadu, India.

1952

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

1956

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

1961
With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF
established a technical collaboration with the Mansfield Tire & Rubber Company of USA.
Around the same time, it also became a public company.

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

1963

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

1964

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

1967

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

1970

MRF inaugurates its Kottayam unit

1971

MRF opens its factory in Goa

1972

MRF's Arakkonam plant is inaugurated

1973
MRF scored a major breakthrough by being among the very first in India to manufacture and
market Nylon passenger tyres commercially.

1978

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

1979

MRF's turnover crossed INR one billion.

1980

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

1984

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

1985

MRF Nylogrip tyres for two-wheeler vehicles were launched.

1986

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

1987

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

1988
The MRF Pace Foundation was set up, with international pace bowler, Dennis Lillee as its
Director. Not long thereafter, pace bowlers trained at the Foundation were selected for the
Indian Cricket Team.

1989

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

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

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

1990

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

1993

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

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

1995

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

1996

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

1997

MRF launches its first ever F3 car

1998

MRF launches its Super Lug tyre for trucks

2000

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

2001

The MRF rally team wins the APRC rally

2002

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

2003
MRF wins the JD Power award. MRF registers its second APRC victory.

2004

MRF's turnover crossed INR 30 billion mark

2005

MRF wins its third APRC rally

2006

MRF's turnover crosses the 5000-crore mark

2007

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

2008

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

POLICIES OF MRF

QUALITY POLICY

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

SAFETY POLICY

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

ENVIRONMENT POLICY

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

This is to maintain our products in an environmentally friendly and safe manner. To achieve
this goal, all the MRF plants, together with corporate office shall

 Minimize the impact of our manufacturing activities on the environment especially

the air, water, and soil.
 Comply with all applicable regulatory requirements
 Develop environmental performance evaluation procedures for continuous monitoring
 Optimizes the consumption of resources (water, energy and raw materials) by
minimizing wastage, recovering and recycling where ever possible.
 Up gradation of the machinery and pollution control equipment when required
 Train all our employees to perform their activities in an environmentally responsible
land safe manner

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

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

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

 Competency evaluations conducted each year identify and document the training
needs of the employees.
 Design and publish the training calendar and schedule.
 Monitor and evaluate training process and out come to asses and to decide the next
training cycle requirement.
 Collaboration of the activities along with the activities of human resource department
plants.

MANAGEMENT

The success or failure of a company is determined by the performance of its management. It has to
play a major role in functions such as decision making. Management of MRF LTD. is led by Mr.
K.M. Mammen, son of Mr. Mammen Mappillai who started this company almost 60 years ago.

BOARD OF DIRECTORS

NAME DESIGNATION
Mr K M Mammen Chairman & Managing Director
Dr. Salim Joseph Thomas Director
Mr. Vijay R Kirloskar Director
Mr. Ranjit I Jesudasen Director
Mr. Ashok Jacob Director
Mr. V Sridhar Director
Mrs. Ambika Mammen Director
Mr. Jacob Kurian Director
Mrs.Vimla Abraham Director
Dr. Cibi Mammen Director
Mr. Rahul Mammen Mappillai Director
 Mr. Arun Mammen Vice Chairman & Managing Director
Mr. Varun Mammen Whole Time Director
Mr. Samir Thariyan Mappillai Whole Time Director

INDIAN COMPETITORS OF MRF LTD

1. CEAT

2. APOLLO

3. J K TYRES

4. MODI

5. GOOD YEAR

6. DUNLOP

7. BRIDGESTONE

ORGANISATIONAL GOAL

‘To maintain global standards through continuous improvement in the quality of products and
services in order to maintain market leadership’

MRF Marketing Strategy and Interesting Facts Behind Its Success.

Price:

MRF faces heavy competition in the tyres segment and thus, it follows a competitive pricing
strategy in its marketing mix. Business of MRF is done on the promise of high quality and its
perfection in the field of tyres. Prices are affordable to the end customer with high margin.
MRF sports gear has an appeal in the premium segment and thus, has higher prices to its
sports gear as it is endorsing by the sportsmen.

Place:

MRF has seven plants located in south India. It has around 2500 stores and exports to over 65
countries. MRF distributes to factories, agents, regional centres, dealers, etc. The tyres are
mostly sold to dealers and agents. Direct sales to customers are less relevant as tyres are a
part of an automobile. So, mostly the automobile company, store, service centre deals in
obtaining these tyres. MRF sports gear is available in many sports store. MRF does not have
any MRF specific stores, given the brand equity and heavy advertisements; it is easy to sell
through dealership.

Promotion:

MRF has always focused on an extreme and aggressive promotional strategy. MRF tyres
have targeted sports to promote its brand and it has been very successful in doing so. It
sponsored cricket bats for many legendary players like Sachin Tendulkar, Steve Waugh and
Brian Lara. And today, MRF campaigns are done by leading cricketers like Virat Kohli, AB
de Villers and Shikar Dhawan.

Other than celebrity involvement in its campaigns, the anchored balloons in IPL 2010 and
also in World Cup were sponsored by MRF. A training centre for pacers is launched by the
MRF Pace Foundation. Many bowlers that were trained in MRF Pace Foundation went on to
represent the country at a national level.

Some of them are Irfan Pathan, Zaheer Khan, Munaf Patel, etc. The MRF Motor Challenge is
a racing competition specially created for branding and covers all media channels like TV,
print, online, billboards etc. for its advertising and marketing. 

MRF Campaigns

MRF has a unique style to campaign its product. Few of them are:

‘Comfort Made More Comfortable’

The campaign promotes MRF ZLX, the latest range of tyres specifically designed for sedans
and hatchbacks. From lateral grooves for improved ride comfort, edge-to-edge comfy
stabilizer liner and wide tread polymer blend for an improved life, this tyre is specially
designed to offer superior grip and optimized cushioned ride.
In this campaign, the brand intends to communicate their proposition of ‘comfort made more
comfortable’. The video involves a complicated game of Jenga in action in a sedan which is
riding on top of MRF ZLX tyres moving over challenging roads through bumps and potholes.
This eventually hits home the message that a journey becomes more enjoyable when the ride
is more comfortable.

‘I Dare to Tread Anywhere.’

The video shows Virat Kohli driving the car will full courage as he has confidence in the
MRF tyres. The campaign aims to raise the adventurous spirit among people who like to
explore their limits and go beyond the challenges. The ad campaign featuring its brand
ambassador and Indian cricket captain, Virat Kohli, was to promote the attributes of SUV
brand, MRF Wanderer in India. MRF Wanderer tyres are designed for those who never settle
for the mundane and venture off the beaten path.

The communication this time took an aggressive twist and a fresh perspective on the core
brand positioning – Tread Anywhere. Lowe Lintas, Chennai has portrayed the true Wanderer
spirit by using Virat’s Samurai tattoo and his passion for adventure in an exceptional creative
manner. The campaign resonates well with those who chase adventure
PRODUCT PROFILE

AUTOMOTIVE TYRES ARE THE MAIN PRODUCTS

 Truck tyre – Tube tyre and Tubeless tyre

 Light Truck tyre

 Special tyre for defense

 Tyre for industrial application

 Agricultural tractor and tiller tyre

 Off the road tyres – Solid tyres and earth mover tyres

 Passenger tyre – Bias ply and radial

 Two/ Three-wheeler tyres

 Specialized tyre for motor rallies

Non – tyre products

 Automotive tubes
 Flaps
 Conventional tread rubber
 Pre- cured tread rubber
  Vulcanizing solution
 Tyre repair materials
 Conveyor belts
 Toys
 MRF metal coat
 MRF wood coat
 MRF glass coat
 MRF velour
 MRF auto coat

BEYOND TYRES

Paint & Specialty Coatings

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

 MRF Metal Coat

 MRF Wood Coat

 MRF Glass Coat

 MRF Vapocure

 MRF Brass Coat

 MRF auto Coat

FUNSKOOL TOYS

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

MRF MUSCLE FLEX CONVEYOR BELTING

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

MRF Kottayam Unit

MRF 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. About 10 crores of land was purchased in Vadavathoor village

during 1968 and 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 tones 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.

CHAPTER 3
 Organisation Structure

Organisation Chart of MRF Corporate Office

Chairman &
Managing
Director

Joint
Managing
Director

Director
Marketing

Director
Engineering

Whole Time Director

Director Accounts
 Director
Material &
Export Division

Manufacturing Units

Thiruvattiyur Kottayam Goa Arkona Medak Pondicherr Gummidippond Perambalur

y i

Organisation Structure of MRF Kottayam Unit

GM

Plant Plant Plant HR Plant Plant Quality Plant Plant Senior Plant
Production Accounts Manager Technical Assurance Industrial Security Engineerin
Manager Manager Manager Manager Engineering Officer g Manager
Manager

Manager Assistant General Technical Quality Assistant Security Electrical

Plant I Manager Supervisor Time Officer Assurance Manager Officer Maintenanc
Plant II Accounts office Officer Planning e Civil
Plant III Engineering
Plant IV Mechanical
Maintenanc
e

Technical Quality
Supervisor Assurance Supervisor Guards
Supervisor
Staff Operators
Foreman
Supervisor

Workers
Workers

DEPARTMENTS

MRF Ltd gives an insight about the functioning of the different departments. Each department

is headed by the general manager who possesses expertise, knowledge in the area under his

supervision. There always exists an ergonomic atmosphere which is often made possible by

the close interaction between all members in each department. The top management moulds

the strategies and policies that make sure that the middle management implements them.

Weekly interdepartmental meeting aims at bringing coordination between the different

departments. Open forums are held once in a week in all plants where the employees can raise

their concerns, suggestions etc.

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

14. Marketing 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

Structure of Production Department

Production Manager
 Asst. Manager Asst. Manager Asst. Manager Asst. Manager

Production Production Production Production

Plant - I Plant - II Plant - II
Plant - III

Supervisor Supervisor Supervisor Supervisor

Operatives Operatives Operatives Operatives

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

 Upgradation 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

Manager Quality Assurance

 Quality Quality Quality Assurance Quality Assurance
Assurance in Assurance in in Charge Plant III in Charge Plant IV
Charge Plant I Charge Plant II

Supervisor Supervisor Supervisor Supervisor

Operators Operators Operators Operators

4. 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 moulds, 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 moulds.

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 the

concerned 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 Charge Technical In charge Technical in Charge Technical n

Plant I Plant II Plant III Charge Plant IV

Supervisor
Supervisor Supervisor Supervisor
Workmen Workmen Workmen Workmen

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

Civil Engineer Manager

Manager
Mechanical
Electrical
Maintenance
Maintenance

Supervisors Supervisors
Instrumentation
Engineer

Electricians

Mechanics

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

Structure of Industrial Engineering Department

Plant Industrial Engineering Manager

 Assistant Manager Industrial Engineer
Recourse Panning in
Charge

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 guidelinesNecessary 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

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

Structure of HR Department

Plant Human Resource

Manager

Deputy Manager –

Human Resources

Canteen Welfare Time Officer Training

HR Officer
Supervisor Coordinator officer

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.

Structure of Accounts & Finance Department

Plant Account Manager

Manager Asst .Mgr Asst. Mgr. Officer Officer

Raw Plant Engineering Shipping Engineering
Materials Accounts Stores Purchase

Supervisors Supervisors Supervisors Supervisors

Wages Costing Auditing Sales tax

Officer Officer & Excise

Materials
Handling
Supervisors Supervisors Workmen

14. Marketing Department

MRF Kottayam doesn’t have a marketing department. Marketing management is the functional

of management concerned with planning, organizing, directing and controlling the activities
related to the marketing of goods and services to satisfy the customer’s needs which are ever

changing.

Objectives

 Creating demand

 Customer satisfaction

 Increasing the goodwill of company

 Increasing the market share

 Raising the standard of living of the consumer community

Marketing Strategy & Network

MRF has emerged as one among the market leaders in the tyre manufacturing sector in the

world. It was awarded J.D. Asia Pacific for customer satisfaction 8 times. This achievement is

possible only because of MRF’s marketing strategies, product quality and after sales service

to customers. MRF has a wide marketing network, which hosts 68 sales centers, 2500

distributors and exports to over 75 countries. Tyre and tyre related products are sold under the

brand name “MRF” and distributed in domestic markets through sales offices, dealers and

franchises. The Corporate Executive Director, based in Chennai, guides the marketing

activity. In Kerala, the district office is at Ernakulam.

 MRF Sales Network

NORTH SOUTH EAST WEST

New Delhi Chennai Kolkata Mumbai

Agra Anantapur Asansol Ahmedabad

Bareilly Bengaluru Cuttack Aurangabad

Bikaner Belgaum Dhanbad Baroda

Chandigarh Calicut Guwahati Bhopal

Faridabad Coimbatore Muzaffarpur Goa

Haldwani Ernakulam Patna Indore

Hissar Hubli Ranchi Jabalpur

Jaipur Hyderabad Siliguri Jodhpur

Jalandhar Madurai Nerul

Table – 3.3

Structure of Marketing Department

Corporate

Corporate Executive
Director (Marketing)
 Regional Sales
Manager

District Office

Sales
Department

Dealers &
Agents
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 moulds

the strategies and policies that make sure that the middle management implements them.

Weekly interdepartmental meeting aims at bringing coordination between the different

departments. Open forums are held once in a week in all plants where the employees can raise

their concerns, suggestions etc.

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. 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. Production 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.Sales and servicing activity is one of the

most important function in fulfilling the objectives of the organization and needs of the

customers. It has the activity of selling the product as per customer requirement and maintain

the customer satisfaction.

 CHAPTER 4

SWOT Analysis of MRF Tyres

SWOT Analysis is a technique that is used to assess the internal and external factors of a
business. SWOT stands for Strength, Weakness, Opportunities and Threats. In this, the
Strengths and Weaknesses are the internal factors of the business whereas Opportunities and
Threats are the external factors of the business. 
SWOT analysis is a useful tool for an organization as it helps to recognise the positives and
the negatives in the firm.

 
Strengths of MRF Tyres

Strengths are the factors that keep MRF at the top position in the industry. Following are
some of the strengths of MRF:
Marketing Strategy- MRF’s Marketing strategy is quite ingenious. They believe in
marketing through value and credibility. Throughout the years MRF has focused on
marketing through ambassadorship by great cricketers like Virat Kohli (current brand
ambassador), A.B. Devilliers, Shikhar Dhawan and racers such as Narain Karthikeyan and
Chetan Korada. This shows that MRF uses ambassadors who show trust and value towards
the brand and thereby reflect it onto their brand.

Brand Value – MRF tyres are well known for their quality of tread rubber and durability of
their tyres. The reputation and quality of MRF have greatly favoured the brand value as a
whole. Their launch of eco-friendly tyres, different tyre types and the use of their tyres in the
Indian fighter planes has provided great value to the brand.

Great Inventory- The inventory material and management are top-notch with 9 technically
advanced manufacturing industries and great material quality. It has high customer
satisfaction both quality and service wise.

Financial Stability- MRF tyres have a strong financial groundwork; with their investment in
different sporting events and sponsoring differently they have received a great return on
investment which has made it quite stable financially.

Competitive Advantage- By reviewing the competitor analysis it can be said that MRF has a
competitive advantage mainly in the fields of brand reputation, value, inventories and
financial stability. The industry is still competitive but MRF still has the edge. 
 

Weakness of MRF Tyres

Weaknesses are the negative factors in the intern part of MRF company. It needs to be aware
of these and try to eliminate them as soon as possible. Following are some of the weaknesses
of MRF Tyres:
Lack of Flexibility – MRF has built a good recognition in the past but in recent years MRF
has been struggling to market their products at the same wavelength as before. Their quality
of tyres is still maintaining its standards but they’re not able to keep up with the recent trends
which have led to their competitors seizing the market share.

Decrease in Net Shareholding – Due to lack of profits, MRF has decreased their
shareholding capacities for the public, this may sound like a positive point but since the
number of investors on the shares of MRF has decreased they may face a lack of funds in the
future ventures. This can also eventually cut down their operating costs as almost half of the
funds provided is used for production.
 
Opportunities of MRF Tyres

Opportunities are the factors that help MRF Tyres to grow in the market. It needs to find out
these opportunities in the market and make them their strengths. Following are some of the
Strengths of MRF Tyres:
Heterogeneity of Market – The tyre manufacturing industry is very diverse. There are
different types of tyres for different vehicles and different purposes. From two-wheelers to
commercial planes the market has a great variety of needs and MRF can take advantage of
such opportunities. 

The rise in the Automobile Industry- The automobile industry is booming in both India and
other countries around the world. India exports a lot of tyres around the world and MRF tyres
have a great reputation in the foreign market which would highly benefit them. The need for
automobile parts does not seem to end as of which tyre manufacturers can benefit from it. 

Increase in Shareholders- Investors all around the world are looking for opportunities to
invest in a great company to gain higher returns. The reputation of a company plays a major
in providing investors for the brand. MRF has a great reputation and brand value which is
very valuable in the market. Changing things up and setting on the right track can help MRF
to increase their funds for their future ventures.
 
Threats to MRF Tyres
Threats are the external factors of MRF Tyres. These create a negative impact on the
company’s growth. Following are some of the threats to MRF Tyres:

Having great competition – The tyre manufacturing industry in India has great competition
in terms of both quality and brand recognition. CEAT is one of the topmost contenders of the
brand as of now. With MRF struggling to keep up with the trends it could become a major
issue and loss of competitive advantage if they do not find the solution to this issue. 

Increase in cost of Raw materials- Raw material is the key component for any product.
Inflation or an increase in the price can seriously harm the production of the goods or worst
case scenario bring the whole production to a standstill. Rubber is the key raw material in
manufacturing tyres; if the cost of the raw material increases it could lead to great loss for the
company. Mainly the production of tyres could come to a standstill leading to lack of sales.

Cheaper product availability- Many individuals look for a cheaper option for any product
or service. Although the quality of the product is great the consumer is ready to compromise
it if a cheaper option is available. If MRF doesn’t go with value-based advertising they could
lose the market share to cheap rip-offs.

Labour Strikes- Chennai has seen a lot of labour strikes throughout the years and MRF has
had its fair share of strikes which have led to great losses. The labour community in Chennai
plays a huge role in the manufacturing industry not just for MRF but for all the different
types of industries across India. As most of India’s industry is run by manual labour the risk
of labour strike can heavily hit the production. 
 
Structure of Porter’s five force analysis

Potential entrants
(Threat of mobility)

Suppliers Industry Buyers (buyer

(supplier power) Rivalry power)

Substitutes
(Threat of
substitutes)

Chart – 4.1
 The five forces of Porter’s five forces are:

o The threat of the entry of new competitors

o The threat of substitute products or services

o The bargaining power of customers (buyers)

o The bargaining power of suppliers

o The intensity of competitive rivalry

PORTER’S FIVE FORCE ANLYSIS ON TYRE INDUSTRY

The threat of entry of new competitors

In tyre Industry the threat of entry of new competitors is very high. Potential entry for new

competitors is also the factor to intense the competition in the industry. A larger pool of new

entrants results in more changes of intense competition. Barriers to entry, however can restrict

the firms from entering the market, more number of entry barriers will make it difficult for the

new entrants to exploit the opportunity of new market. Government policy creates hurdles for

new entrants by heavy taxes and interest rates. New firms must get to know the Government

regulations and policies before making an entry decision into the country.

The intensity of competitive rivalry

In tyre Industry the intensity of competitive rivalry is high. The ongoing war between the

firms competes in the same industry for gaining customer share in order to increase their

revenues and profits. The tyre industries which engaged in the production of various types of

utensils and vessels compete each other to achieve more market share. The competition is

more intense if the firm pursues strategies that give it a competitive advantage over the

strategies pursued by its rivals. Developing new strategies is easier than retaining the

uniqueness of the strategies so as to gain a competitive edge over the rivals in the industry.

Changes in strategy by one firm may be met with retaliatory countermoves, such as lowering

the prices, enhancing quality, adding features, providing services, extending warranties and

increasing advertising.

The threat of substitute product or services

Firms mostly monitoring the trends within the industry to track the strategies but competition

not only arise within the similar industry but also in different industry. Companies in other

industry offer products with similar features and functionality or even better act as substitute

for the products. MRF tyre face heavy competition with other tyre manufacturing alternatives

such as Ceat , Apollo in respect of price, models distribution channel etc...

Bargaining power of customers

Consumers are the final users of the product; performance of the companies totally depends

upon the consumers. Bargaining power of consumers is more especially when they are huge

in number and consumers purchase in large quantity. Rival firms offer discounts, warranty
and services to switch the consumer from one brand to another in the same industry. As the

satisfaction level of consumer goes up more the intensity level of competition increases.

Bargaining power of suppliers

Supplier and producer relation always matters especially in manufacturing industries.

Suppliers play an important role in the production of goods and services, making the raw

material better and till the final product are made. Bargaining power of suppliers affect the

intensity of competition especially if there are huge number of suppliers, less availability of

raw material and the cost of switching between suppliers or raw material is high. These

attributes in the industry give power to the supplier to enforce terms and conditions on

manufacturers and charge high cost on raw materials.This chapter gives the clear picture of

strengths, weaknesses, threats and opportunities of MRF. Ltd through SWOT analysis, and

Porter’s five force analysis is the framework for the industry analysis and business strategy

development.

CHAPTER 5
 Findings

 MRF ltd. Is the no. 1 largest tyre manufacturer in the country and the 12th largest in the

world.

 MRF exports its products to more than 75 countries worldwide.

 MRF is the first Indian company to export tyre to the US.

 The company is providing good working environment.

 MRF is the first company in India that manufacture and market Nylon tyres, passenger

tyres commercially.

 Profit is comparatively low because of the rapid variations in the cost of the raw

materials.
 Suggestions

 Technology is changing so the company should update new technologies in the market

to maximize quality production.

 The company can utilize the railways to transport its materials to reduce the overall

logistics cost

 More attractive advertisements should be given through the Medias.

 Introduce new brand ambassadors.

 Monthly entertainment programs for employees must be arranged to avoid absenteeism.

 Locally available raw materials can be used for production so that the cost of production

can be substantially reduced.

 The management must take sufficient step to install a grievance settlement machinery

with sufficient participation of workers

 Improve employer-employee relation.

 Open a show room at factory itself.

 More investment has to be made in Research and Development.

Conclusions

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 non interference 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.

BIBLIOGRAPHY