MRF Share Price

MRF Ltd

MRF Ltd is not just India's largest tyre manufacturer; it is a global leader, ranked among the Top 20 Global Manufacturers. The company stands as the largest Original Equipment Manufacturer (OEM) tyre supplier in India, offering a wide range of tyres that cater to everything from two-wheelers to fighter aircraft. The company’s manufacturing network is extensive, with facilities in various locations, including Trichy, Tiruvottiyur, and Arakonam in Tamil Nadu, Kottayam in Kerala, Ponda in Goa, Medak in Andhra Pradesh, and the Union Territory of Pondicherry. Over the years, MRF has built a reputation for innovation, quality, and reliability, becoming a household name in the Indian tyre market and beyond.

Early Beginnings: From Toy Balloons to Tyres

The story of MRF Ltd began in 1946 when K.M. Mammen Mappillai founded the company. Initially, it was a small business focused on manufacturing toy balloons. However, the company soon expanded its focus. On November 5, 1960, MRF transitioned into a public limited company, marking a significant milestone in its history. It was around this time that the company ventured into the manufacture of automotive tyres and tubes, laying the foundation for its future success. The company’s first major plant was commissioned in 1964, a development that enabled MRF to scale its operations significantly.

Tapping into the Global Market

One of the key moments in MRF’s history came in 1964 when it established an overseas office in Beirut, Lebanon, to tap into the export market. This move was a bold step for an Indian company at the time, especially in the automotive sector. It paid off handsomely when, in 1967, MRF became the first Indian company to export tyres to the United States. This achievement was a testament to the quality of MRF’s products and its commitment to competing on the global stage.

Collaborations and Technological Advancements

The 1980s were a period of significant technological advancement for MRF. The company entered into a technical collaboration with the B.F. Goodrich Tyre Company, USA, in 1980. This partnership played a crucial role in advancing MRF's product development and improving the quality of its tyres. Among the innovations that emerged from this collaboration were the Nylogrip tyres for two-wheeler vehicles, introduced in 1985, and Legend, a premium nylon car tyre, launched in 1987. These products further cemented MRF’s reputation as a leader in the tyre industry.

Expansion into New Ventures

In 1989, MRF diversified its business by collaborating with Hasbro International, USA, the world’s largest toy manufacturer. Together, they launched Funskool India, marking MRF’s entry into the toy industry. That same year, the company entered into a partnership with Vapocure of Australia to manufacture polyurethane paint formulations. Additionally, it teamed up with Pirelli to manufacture MUSCLEFLEX conveyor and elevator belting. These ventures underscored MRF’s versatility as a company and its ability to succeed in industries beyond tyre manufacturing.

The Radial Tyre Revolution

In 1996, MRF made a significant investment in radial tyre technology, setting up a dedicated factory in Pondicherry for the manufacture of radial tyres. This move was a game-changer for the company, allowing it to stay ahead in the rapidly evolving automotive industry. Radial tyres offered superior performance and durability, and MRF’s investment in this technology positioned it as a leader in the Indian market.

Achievements and Recognition

In 1999, the company was recognised by Business World magazine as the most ethical company in India. Over the years, MRF has continued to accumulate accolades. In 2004, the company entered into a partnership with Maruti Udyog to promote motorsports in India, further expanding its brand presence. During the 2004-2005 period, MRF expanded its product range to include Go-kart rally tyres as well as tyres for two- and three-wheelers. The company also received the Top Export Awards from CAPEXIL (Chemicals and Allied Products Export Promotion Council) and AIRIA (All India Rubber Industries Association).

New Product Launches and Capacity Expansion

In 2007, MRF launched the premium truck tyre Super Lug 50FS, followed by a memorandum of understanding (MoU) with the Tamil Nadu government in 2008 to set up a new plant at Perambalur. The MoU also facilitated the expansion of existing plants in Tamil Nadu. During the 2009-2010 fiscal year, MRF increased its installed capacity for manufacturing automobile tyres from 28.45 million to 31.7 million units. The company also expanded its automobile tubes capacity from 29.7 million to 31.6 million units.

Further Innovation and Recognition

The period from 2010 to 2011 saw MRF launch several new products, including the MRF Z.L.O, MRF Meteor M, and MRF Steel Muscle 53C8. The company also spun off its Speciality Coatings division into MRF Corp Ltd, a wholly owned subsidiary, effective from April 1, 2011. MRF continued to receive recognition for its contributions to the industry, including the Highest Export Award from AIRIA and the Top Export Award from CAPEXIL during this period.

Expansion in Tamil Nadu and Gujarat

In 2012, MRF commissioned its ninth manufacturing plant in Trichy, Tamil Nadu, dedicated to the production of radial tyres. Three years later, in 2015, the company signed an MoU with the Tamil Nadu government to invest Rs 4,500 crore in its plants at Perambalur and Arakonam over a seven-year period. This investment was aimed at further expanding MRF’s production capacity and maintaining its competitive edge in the market.

Credit Rating and Further Expansion

In July 2016, MRF’s Non-Convertible Debenture (NCD) Programme received an upgraded credit rating from ICRA Limited, moving from ICRA AA+ to ICRA AAA. This upgrade reflected the company’s strong financial health and its ability to meet its debt obligations. In January 2017, MRF signed another MoU, this time with the Gujarat government, to set up a new manufacturing facility in the state. The company plans to invest Rs 4,500 crore over ten years in this project, which will be funded through internal accruals and/or debt.

Expanding Product Range for Premium Vehicles

MRF introduced new tyre sizes under its Perfinza series, catering to premium cars like Audi, BMW, Jaguar, Mercedes-Benz, and Volvo. The MRF Markus brand also expanded its range to include tyres for luxury SUVs from brands like Audi, BMW, Mercedes-Benz, Volvo, Jeep, Hyundai, and Volkswagen. Additionally, the company launched new tyres for two-wheelers, including patterns for Royal Enfield Classic 350 and Yamaha Fascino 125 BS6 scooters, as well as tubeless tyres for electric scooters.

Outlook Overview

MRF Ltd has come a long way from its humble beginnings as a toy balloon manufacturer. Over the decades, the company has grown into a global tyre manufacturing giant, known for its innovation, quality, and ethical business practices. With a strong commitment to technological advancement, capacity expansion, and market diversification, MRF is well-positioned to continue its leadership in the tyre industry, both in India and across the globe.