Mini project report submitted in partial fulfillment of the requirement

for the Award of Degree

of
MASTER OF BUSINESS ADMINISTRATION

By

B.BHAVISHYA
(2221BM010076)

Under the Guidance

of

Dr. RUPAVENI

SCHOOL OF MANAGEMENT
Malla Reddy University
(Telangana State Private Universities Act No. 13 of 2020 &
G.O.Ms. No. 14 Higher Education (UE) Department)
Maisammaguda, Kompally, Medchal - Malkajgiri Dist
Hyderabad - 500100, Telangana

2022-2024
 School of Management & Commerce Internal
Assessment Report
II Year - I SEMESTER

Name of the student: B.BHAVISHYA

Roll No: 2221BM010076

Subject Name: Financial Analytics

Subject Code: MR22-2BM0203

Date of Submission Report: 10-01-2024

Date of Seminar Presentation:

Student Signature:

Evaluator Name & Signature with Date: HOD Signature:

 Appendix 1

BONAFIED CERTIFICATE

Certified that this project report entitled “MRF” is the BonafIde work of
“B.BHAVISHYA” who carried out the project work under my supervision as
a part of his/her semester project.

Further certified that to the best of my knowledge the work reported herein does
not form part of any other project or dissertation on the basis of which a degree
or award was conferred on an earlier occasion by this or any other candidate.

SIGNATURE

NAME OF SUPERVISOR:Dr.Rupaveni Date:10/01/2024

Designation of Supervisor: Place:Hyderabad

 Appendix 2

DECLARATION

This is to declare that I ‘B.BHAVISHYA’, of Malla Reddy University,

Hyderabad of M.B.A. II Year (Semester III) hereby declare that I have
completed my Mini project, titled ‘MRF’.

The information submitted herein is true and original to the best of my

knowledge. I further declare that if any part of the report is found to
be plagiarized, I shall take full responsibility of it.

Student Signature

Student Name Place: B.BHAVISHYA Place:

HYDERABAD Roll No: 2221BM010076 Date:10/01/2024

 Appendix 3

~Abstract~

A theoretical and practical foundation for probabilistic modeling and effective algorithms
across a wide range of areas is provided by the study of Markov Random Fields (MRFs). In order
to examine the degree of satisfaction among the 50 customers I surveyed for this article, I created
a questionnaire to gather the necessary data from them. Customer satisfaction with MRF tires in
Tuticorin city is reported to be high. Roughly 45% of consumers, or 45%, are happy that their
NEEDS have been met. Just 14% of consumers are not satisfied, with about 42% expressing
complete satisfaction.

The high level of customer satisfaction with MRF tires in Tuticorin city aligns with the
positive reputation and quality associated with the brand. It is encouraging to see that a
significant majority, 45% of the surveyed customers, feel that their needs have been met. This
indicates that MRF tires are successfully meeting the expectations and requirements of a large
portion of their consumer base. On the other hand, the relatively low dissatisfaction rate of 14%
suggests that there is still room for improvement in certain areas to further enhance customer
experience.

However, it is worth noting that a considerable 42% of customers express complete

satisfaction, indicating that MRF tires are exceeding expectations for a significant portion of their
customers. This high level of satisfaction reflects positively on the quality and performance of
MRF tires. It also suggests that the company's efforts in meeting customer needs and providing a
satisfactory experience are paying off. Nonetheless, the 14% dissatisfaction rate serves as a
reminder that there are areas where MRF can focus on to further improve their products and
services, ensuring that every customer's expectations are not just met, but exceeded.

Overall, the results of the survey indicate that MRF tires are doing a commendable job in
satisfying a majority of their customers while leaving room for growth and enhancement.
 Appendix 4
Table of Contents

BONAFIED CERTIFICATE.........................................................i
DECLARATION............................................................................ii
LIST OF TABLES….....................................................................iii
LIST OF FIGURES.......................................................................iv
LIST OF ACRONYMS….............................................................V

6
 TABLE OF CONTENTS

S.NO CONTENTS PG.NO

1 INTRODUCTION 6-7
OBJECTIVES
SCOPE AND
LIMITATIONS
2 LITERATURE REVIEW 8

3 COMPANY PROFILE 9-10

4 SCOPE AND CHALLANGES 11-14

5 FINANCIAL STATEMENTS 15

6 SWOT ANALYSIS 16-18

7 INTERPRETATION 19

8 SUGGESTIONS AND FINDINGS 20

9 CONCLUSIONS 21

10 REFERENCES 21

7
 Introduction

The main object of every organization is to earn more profit to achieve this object the

organization should increase its sales by getting more customer and the only way to get more

customer is that the organization should provide expected satisfaction to the customers.

Here the word customer satisfaction means "the utility which customer expect from the
product" and when a customer get expected utilities it is called as customer satisfaction.

MR manufactures the largest range of tyres in India and enjoys the highest brand preference
for superior quality, company manufactures the largest range of tyres in India and is the
market.

manufacturer in India apart from tyres MRF also manufacturer conveyor belts, pretreads and

advanced polyurethane paints.

Here every customer of MRF is getting satisfaction and it may analyzed by the following

Information

MRF own No. 1 award for customer satisfaction by J.D Power Asia pacific for

2001&2002

It is also created good brand name in other countries also, and it is the first Indian company

to export tyres to the US, the very birthplace of tyre technology. It is the first company in

India to manufacture and market Nylon tyres passenger tyres commercially. MRF is

providing huge number of products to the customer as per the requirement and need.

They provide more warranties to the customers and it will shows that the company has

confident on its product.

So as per the above information it found that the customer satisfaction towards MRF tyres is
good.

8
 OBJECTIVES OF THE STUDY:

A customer is not dependent on us we are dependent on customer, this statement is basis thing
for every firm or service sector.

Objectives are:

1. To know the customer satisfaction towards MRF tyres in Tuticorin city.

2. To know the attributes which creates customer satisfaction among MRF tyre users
in Tuticorin .

3. To know the satisfaction level of the customer with the MRF tyres.

4. To know valuable suggestion form the customer.

SCOPE &

LIMITATIONS SCOPE:

The study is purely based on the survey conducted in Tuticorin city and has focused on
customers. The study covers the information about the mind set which may varies from
situation & where the respondents may not be able to give required and accurate information.

LIMITATIONS:

1. Due to respondents busy schedules, the interests shown by respondents tolanswer the
questionnaire may be less. This may have resulted in collecting inaccurate
information.

2. Due to time and cost constraint the sample size selected is 100.

3. The selected sample size is small as compared to the total number of customers. Hence the
obtained result may not be accurate as it may not represent the whole population.

4. The project is open for further improvement of the work.

9
 Literature Review

Customer satisfaction

In a competitive marketplace where businesses compete for customers, customer satisfaction

is seen as a key differentiator and increasingly has become a key element of business
strategy.

Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI) has released The
International Customer Service Standard (TICSS). TICSS enables organizations to focus their
attention on delivering excellence in the management of customer service, whilst at the same
time providing recognition of success through a 3rd Party registration scheme. TICSS focuses
an organization's attention on delivering increased customer satisfaction by helping the
organization through a Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, and People, Premises,
Product/Services, as well as performance measurement.

1
 COMAPANY PROFILE

1946 - A year to remember... India was on the threshold of independence.

A young entrepreneur, K.M. Mammen Mappillai, opened a small manufacturing unit where

balloons, latex cast squeaking toys and industrial gloves were manufactured... little did he

realize then that the company he started would grow to become the no. I tyre manufacturer in

India.

MRF established its first office in 1949 at Chennai, Tamil Nadu, and India. The company
began as a mannfactirer nftoy halloone and other mihher nroducte and then later on moved to
Today MRF is into a league of its own with:

MRF manufactures the largest range of tyres in India and enjoys the highest brand preference

for superior quality, company manufactures the largest range of tyres in India and is the

market leader with the largest market share it tyre industry.

Since 1984 MRF tyres has consistently been chosen as oem fitment by almost every major
car manufacturer in India apart from tyres MRF also manufacturer conveyor belts, pretreads
and advanced polyurethane paints

The milestones achieved while being such a progressive and vibrant company, is also
recognized hv the cornorate world through a number of awards like.

Indian Tyre Industry to Register a Growth of 9-10% in the Next 5 Years

The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tones) garne 19000
crores in FY07. MRF Ltd. was the market leader (22% market share) followed c Apollo
Tyres Ltd. (21%). The other major players were JK Tyre & Industries (18%) Ltd.(13%). The
Indian tyre industry is characterized by its raw material intensity (ra costs account for
approximately 70% of operating income), capital intensity, and fierce competition among the
top players, low bargaining power and resulting low m top players are now focusing on
branding their products and strengthening their network so as to increase their market share.

The industry derives its demand from the automobile Industry. While OEN take is dependent
on the new vehicle sales, replacement market demand depend:

1
population of vehicles on road, road conditions, vehicle scrapping rules, overloadi trucks,
average life of tyres and prevalence of tyre retreading.

CARE Research projects the Indian Tyre Industry to register a growth of 9-10% in the next
five years

The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tones) garnering Rs.
19,000 crores in FY 07. MRF Ltd. was the market leader (22% market share) followed
closely

by Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries Ltd (18%)

and Ceat Ltd. (13%). The industry tonnage production registered a 5 year CAR of 9.69%

between FY 02-07-.

Truck & Bus tyre category (accounting for 57% of the tonnage production) recorded a 5 year

CAGR of 7.85% (a rate slower than that of the industry) while Light Commercial Vehicle

(LCV), Motorcycle and Car tyre categories grew at 15% 16% and 14% respectively (at rates
faster than that of the industry). Off the road (OTR) tyres (customized tyres which fetch a
higher margin compared to other tyres) category is growing at a fast pace. The OTR tyre
category registered a 5 year CAGR of over 20% in the last five years. Most of the top players
are increasing their capacity for the production of OTR tyres so as to improve their product
mix, for transition of the domestic market to radial tyres. However, going ahead,
radicalization in truck & bus tyres may increase due to government's focus on infrastructure
development.

CARE Research expects the tyre industry to register a tonnage growth of 9-10% in the net
five years (FY 07-12). The truck & bus and LCV tyre category are expected to register a
CAGR of 8% and 14% respectively (FY 07-12).

1
MARKET PLAYERS
Indian % INTERNATIONAL %
MRF 22.00% MICHELIN 20.01%
JK TYRES 20.00% BRIGHTESTONE 18.04%
CEAT 19.00% GOODYEAR 16.09%
BIRLA 16.00%
GOODYEAR 6.00%
APOLLO 20.00%

Scope and challenges

1. Industry poised for a very good growth rate

2. More J.V's with world market leaders- better technical
3. Know-how and quality
4. Growth in automobile sector - cumulative effect on
5. Tyre industry
6. Increasing trend in capacity utilization - better output
7. New and uncharted territories as export markets.
8. Increasing productivity - both labour and machinery
9. Competition from other developing markets
10. Increasing raw material costs - will effect OPM

1
MRF LTD.

"Tyres with Muscle"

MRF Ltd. is the first Indian company to export tyres to the US, the very birthplace of tyre
technology. It is the first company in India to manufacture and market Nylon tyres passenger
tyres commercially. In 2004, the company's turnover crossed INR 30 billion mark. The
company was given the title of most ethical company by 'Business World' magazine after a
survey conducted in 1999.

Quick Facts

Founder

K. M. Mammen Mappillai

Country

India

Year of

Establishment 1946

as a toy factory

Segment and Brands

Truck / Bus Tyres

Light Commercial, Jeep & Utility Vehicle

Tyres Passenger Cars Tyres

Off the road tyres

Two-Wheelers Tyres

1
MRF Ltd:

A LEADING PLAYER IN THE TYRE MANUFACTURING INDUSTRY MR Limited

is engaged in the manufacturing, distribution And sale of an extensive range of superior
quality tyres for Various kinds of vehicles.

The company's operations relate to manufacture of rubber products, such as tyres, tubes,
flaps, tread rubber

And conveyor belt, as well as specialty coatings for a variety of applications. MRF has six
production facilities in India and around 80 sales offices. From its humble origins in 1946, the
company has come long way to become the market leader in the tyre manufacturing industry.

MRF exports its products to over 75 countries

Worldwide. Today, global tyre manufacturers have to plan and adapt to changes in
customer Demand, fluctuations in raw material prices and availability, while keeping pace
with The study of Markov Random Fields (MRFs) serves several objectives:

1. Probabilistic Modeling: MRFs are used to model the joint probability distribution
of random variables, particularly in the context of spatial dependencies. This modeling is
valuable in various fields such as image processing, computer vision, and statistical physics.

2. Image Processing: MRFs are applied extensively in image processing for tasks
like image segmentation, denoising, and texture analysis. They capture spatial relationships
among pixels, making them useful for understanding the structure of images.

3.Inference and Estimation: Understanding MRFs helps in performing inference tasks,

like computing the most likely configuration of variables given observed data. Estimation of
model parameters from data is also a key objective, aiding in adapting the model to specific
datasets.

4. Energy Minimization: MRFs are associated with an energy function, and the
study involves minimizing this energy to find the most probable configuration. This is
crucial for tasks like finding optimal solutions in computer vision applications.

1
5. Graphical Models: MRFs are a type of graphical model, and studying them
contributes to a broader understanding of graphical models. This knowledge is relevant
for representing and solving complex problems involving uncertainty and dependencies.

In essence, the study of MRFs provides a theoretical and practical foundation for probabilistic
modeling and efficient algorithms in various domains.timelines for shipments; in the face of
increasing competition in the global marketplace.

financial performance details for MRF from 2020 to 2023 in January 2022. To analyze
the financial performance during this period, you would need access to MRF's financial
reports, annual statements, or reliable financial databases.

Here are general steps you can take to conduct a financial analysis:

Collect Financial Statements: Obtain MRF's income statements, balance sheets, and cash
flow statements for each year from 2020 to 2023.

Revenue and Profitability: Examine the trend in revenues and profits over the specified
period. Look for patterns, growth, or any significant changes.

Cost Analysis: Break down costs to identify major expenses and analyze their impact on
profitability.

Liquidity: Assess the company's ability to meet short-term obligations by analyzing liquidity
ratios such as the current ratio and quick ratio.

Debt Analysis: Examine the company's leverage by analyzing debt ratios and interest
coverage ratios.

Investment in Assets: Analyze the efficiency of asset utilization through metrics like rturn on
assets and return on equity.

Cash Flow Analysis: Assess the company's ability to generate cash and its operating,
investing, and financing cash flows.

Market Performance: Consider the company's stock performance, market share, and any
significant events that might have affected its standing in the industry.

1
FINANCIAL STATEMENT OF MRF

1
Close Competitors of MRF Tyres
MRF is one of the top companies in the market it has to face many competitors in the market.
Following are some of the competitors of MRF:
JK Tyre
Apollo Tyres
CEAT
Birla Tyres
Bridgestone Michelin.
S.p.A.

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.
Let’s start with its SWOT Analysis by first looking at the Strengths of MRF.

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.

1
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

1
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.

1
DATA ANALYSIS AND INTERPRETATION

Data Analysis:

I have conducted marketing survey on 50 customer to analysis their satisfaction level, for this

purpose I have prepared a questionnaire to collect the information from them. Among these

50 customers, only some of them responded as per that now we will see the analysis of the

collected data

A. 16 customers have purchased MRF Tyres by there own decision.

B. 8 customers have purchased MRF Tyres by there Friends recommendation.

C. 9 customers have purchased MRF Tyres by its Brand Image.

D. 9 customers have purchased MRF Tyres on the basis of Advertisement.

E. 8 customers have purchased MRF Tyres on there Relatives recommendation.

FINDINGS

31% of customers have purchased on there own decision. They have decision on

the basis of experience and some customers have taken after making

comparison with other tyres. Hence it reveals that customers are satisfied with

"MRF TYRES"

Majority of customers means 45% are satisfied with the fulfillment of their NEEDS

Only 30% of customers are fully satisfied with price of the tyres about 21%* are not satisfied
and 14% of customers are fully not satisfied with the price.

About 45% of customers are fully satisfied,30% of customers are only just satisfied

and 16% are not satisfied with the quality.

About 45% of customers are satisfied with durability of tyres, and 14% are not satisfied

with durability.

About 42% of customers are fully satisfied with the performance of the tyres, and

only 14% are dissatisfied.

1
SUGGESTIONS

SUGGESTIONS TO SHOWROOM:

Showroom must recruit well qualified and skilled labours that care about the customer.

It will abolish the problem of unskilled and poor quality service.

Showroom employees and workers should maintain friendly relation with every h customers.

Showroom should provide the remolding system to the existing customers.

Showroom should maintain tyres, tube, air compression machines etc,. which are needed to
the customer at any time.

Always adopt the improvement of servicing system and keep the showroom in good

conditions.

2
 CONCLUSION

In the study of the SWOT Analysis of MRF Tyres, we have seen that it is the largest tyre
manufacturer in India. It has good marketing strategies in the market and even a good brand
image which contributes to its strength. It can grow in the market due to the heterogeneity of
the market which it can use as an advantage. Even with such positive points, it has some
flaws in the market.
Its lack of flexibility in the market, growing competition, and the increase in the raw material
act as a disadvantage to the company. It can improve its market standings globally which will
eliminate some part of the competition in the market. It can use digital marketing to its
advantage as most people are using digital media and it is easy to find their target audience.

2
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