INDEX

SR NO. P A RT I C U L A R S PAGE NO.

1)

INTRODUCTION

03 04 05 07 08 11 12 26 28 32 35

2)

I N D U S T RY P R O F I L E
COMPANY PROFILE VISSION AND MISSION BACKGROUND OF THE COMPANY

3) 4) 5)

6) 7) 8)

MAJOR COMPANY COMPETITORS IN INDIA PRODUCT PROFILE

9) 10) 11)

AREA OF OPERATIONS AWARDS AND ACHIEVEMENT FUTURE GROWTH PROSPECT

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INTRODUCTION
MRF Tyres was established in the year 1946 by a young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Thiruvottiyur, Madras (now Chennai). On its start, the company had no machines in the unit but it just had an employee bubbling with great enthusiasm, innovative ideas and great vision, the owner himself. Any product that could be produced out of rubber without any machinery was produced. From toy balloons to latex cast squeaky toys, industrial gloves, contraceptives, the list is very long. The company name is an acronym for MADRAS RUBBER FACTORY. Since 1946 MRF has emerged as the largest tyre manufacturer in India and 13th largest in the world with a turnover of Rs.5000 crores. It has a built capacity of six million tyres from six production facilities in India. MRF Ltd. was incorporated towards the end of 1960 and was converted into a public limited company in 1961. The company caters to all the vehicular segments from commercial vehicles and passenger cars to two-three wheelers and tractors and tractors. It has its strong presence in both the radial and cross ply segments. MRF TYRES, India's No. 1 tyre manufacturing company manufactures an extensive range of superior quality tyres in six production facilities in India. It boasts of 68 sales centers and 2500 distributors and exports its products to over 75 countries worldwide - a standing testimony to MRF's outstanding leadership. The main quality objective of the company is to attain global standards through the continuous improvement in the quality of products and services and also to maintain market leadership. The main strategy of this company in today`s competitive world is to: Cut Cost and Win the Battle

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STUDY DETAILS OBJECTIVES OF THE STUDY

To identify the organizational culture and structure of MRF Ltd., Kottayam. To study the various departments and their functions. To study about the various products and services offered by the company. To study the day to day activities of MRF Ltd. To make a SWOT analysis of this organization to understand and suggest measures to overcome the weaknesses and threats within the scope of this study.

SCOPE OF THE STUDY

Useful for academic purpose and further reference. Provides information about the functioning of the tyre industry in India.

LIMITATIONS Time was a limiting factor during the study. Limited number of employees who were selected for the survey of this study. Some core data could not be collected due to confidentiality policies of the company.

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INDUSTRY PROFILE
TYRE INDUSTRY Robert W Thompson a Scottish Engineer invented the pneumatic tyre in 1845. In 1970 the first solid rubber tyre appeared in England. Hon Dunlop, a Scottish veterinary surgeon improved on Thompson`s invention in 1988. Till 1960`s foreign companies dominated the tyre industry. During late 60`s and early 70`s Indian Industrial Entrepreneurs entered the market with foreign collaborations. As automobile sector began to take its roots in the country, the tyre industry witnessed the entry of many players and with the waves of liberalization sweeping the land in 1922; the industry saw the same as a part of joint ventures.

GLOBAL MARKET MAJORS Bridgestone Michelin Good Year Continental Sumitomo Pirelli Yokohama

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Kumho Cooper Toyo Oust Hankook MRF Shangai Chinghi Gajab Tungsad

The tyre industry in India came into existence with an established trading outfit by US based Fire Stone Tyre and Rubber Co. in 1922 followed by Dunlop Rubber Co. of UK in 1926. Initially they were trading companies but subsequently diversified into manufacturing sector with plants in West Bengal by Dunlop and in Mumbai by Fire Stone in the year 1932. This Rs.19000 crore industry fully depends on agricultural and industrial performance of the economy, the transportation needs and the production of vehicles in the country. Indian tyre industry is one of the largest in the world with more than 100 million motor vehicles on the Indian roads. SALIENT FEATURES OF INDIAN TYRE INDUSTRY Adaptability and absorption

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Innovativeness Exports Technology progression Wide product range for diverse usage

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AN ORGANIZATION STUDY : MRF INDIAN MARKET MAJORS MRF Ceat Apollo Good Year J K Tyres Modi Bridgestone
The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes) garnering Rs. 19,000 crores in FY 07-08. 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

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CeatLtd.(13%).

Mark S et hare O IND F IAN TYREIND TRY-F 07 US Y

26% 22% MRF Apollo Tires 13% 18% 21% J K Tires Ceat Others

Market of Tyre can be classified into 3 categories

Original Equipment Manufacturer (OEM) Replacement Market Export Market

Globally, the OEM segment constitutes only 30 per cent of the tyre market, exports 10 per cent and the balance from the replacement market. In India the major demand comes from the
replacement market accounting for around 48.70 per cent. It is followed by 42.80 S.V DEGREE COLLEGE,BIDAR Page 8

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per cent from the Original Equipment manufacturers (OEM) and 8.50 per cent from the exports. Retreading is looming over the tyre industry as a colossal threat. Simply put,

rethreading is replacing the worn-out tread of the old tyre with a new one. The popularity of rethreading stems from the fact that it costs only 20 per cent of a new tyre but increases its life by 70 per cent to 80 per cent. Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet owners even retread thrice. Though retreading has penetrated 25 per cent of the tyre market, it has not made much of a dent in the rapidly growing two-wheeler and passenger car segments. The Tyres produced in India are Cross Ply Radial

Cross ply tyres have been used in India for several years. The cross ply trestle pooly cords run across each other or diagonally to the outer surface of the tyre. Rayon and Nylon cords are used as the reinforcing medium. These tyres can rethread twice during their lifetime and hence preferred by the Indian transporters who normally overload their trucks. In India 90-95% tyre is sold of this type. Radial tyre have their cord running radially from bead at 90* angles to their rim or along the outer surface of the tyre. The reinforcing mediums used in these tyres are polyester, nylon, fiberglass and steel. Hence it provides for a longer life time and lower fuel consumption, with better consumption, better control over vehicle and road holding. Radial tyre usage has shown has shown significant increase in usage every year. In India almost all automobile segments have shifted to radial tyres and the usage of cross ply is restricted to trucks and buses only. The Indian tyre industry is mainly dominated by the organized sector and consists of four major players who together account for almost 85% of the industry`s turn over- MRF Ltd., Apollo Tyres Ltd., JK Tyre &Industries Ltd. and Ceat Ltd.

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Unlike the international tyre industry where passenger car radials dominate the market, in the Indian tyre industry commercial vehicle tyres take the lead and account for approximately 70% of the industry`s turnover. As a result, the growth of the entyre industry depends upon primary factors like agricultural growth, industrial production, growth in vehicle demand and secondary factors like infrastructure development, prevailing interest rates and financing options. The tyre industry is highly raw material intensive and a major consumer of rubber. With raw material costs accounting for 70% of the cost of production, any change in the price of rubber or the crude basket has a direct impact on the cost of production. The comparatively stable raw material prices in the first half of FY 2007-08, coupled with price rises undertaken by the industry in FY 2006-07, resulted in all major players reporting improved operating profit margins. This was after a four consecutive years of raw material cost push, both for natural rubber and crude oil linked raw material basket. The second half of FY 2007-08, saw an upward trend for all major raw material prices and the same is anticipated in the year ahead. As a result margins are once again under pressure, even while the demand-supply situation continues to be in favor of the industry. The industry, already bogged by over capacity, is facing a severe threat of dumping of cheap tyres by South Korea. Under the Bangkok agreement, signed between India and South Korea in 1976, import of tyres from the latter into India would attract a concessional duty of 33 per cent as against the normal tariff of 40 per cent. Two years ago, the industry estimated the growth in the passenger car radial demand at 20 per cent per annum. However, the auto recession has hit them badly. But South Korea made a killing by dumping cheap car radial tyres and walked away with 11 per cent of the tyre market. Another threat to the industry is the price of its raw materials, most of which are petroleum byproducts. Carbon, synthetic rubber and nylon tyre cord are offshoots of petrochemicals. Thus, the future of the industry will swing with the supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be from global majors like Bridgestone and Michelin, which control 36 per cent of the global tyre market. These players have set up their bases in Southeast Asia and the slump of the markets in this region, coupled with the vast growth potential of the Indian market, is beckoning them towards India.
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Bridgestone has tied up with ACC for a 100 per cent radial tyre unit and Michelin is also marketing its products through retail outlets. The industry is driven more by volumes than by margins and each of the big five in the global tyre industry Continental, Michelin, Goodyear, Pirelli and Bridgestone generate an annual tyre production equivalent to the total demand of the Indian market. These MNCs have deep pockets and can easily withstand losses for 2-3 years. Their financial muscles also permit them to invest in R&D, which is beyond the reach of the average Indian tyre manufacturer.

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COMPANY PROFILE
Just one year before the attainment of independence by our country in the year 1946, a young entrepreneur Mr.K.M.Mammen Mappillai opened a small toy balloon manufacturing unit shed at Thiruvottiyur, Madras (now Chennai). Over the year it started manufacturing a variety of products. MRF Ltd. was incorporated towards the end of 1960 and was converted into a public limited company in 1961. Additional shares were offered to the public, in order to raise fund for manufacturing automotive tyres and tubes in collaboration with US based Mansfield Tyre and Rubber Co. Since then it has emerged as the largest tyre manufacturer in India and 13 th largest in the world with a turnover of Rs.5000 crores and also built capacity of six million tyres from six production facilities in India. With a profit margin of approximately 1.3% in the tyre manufacturing sector, MRF holds more than 20% of the market share. The company caters to all vehicular segments from commercial vehicles and passenger cars to 2-3 wheelers and tractors and has a strong presence in both radial and cross ply segments. It hosts 68 sales centers, 2500 distributors and exports to over 75 countries: A standing testimony of MRF`s outstanding leadership. MRF enjoys of manufacturing the largest range of tyres in India and it has the highest brand preference for superior quality, appearance and wears ability. It manufactures the largest range of tyres in the country and is the market leader with the largest market share in almost every segment of the tyre industry. MRF Ltd. is the 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. The company was given the title of most ethical company by 'Business World' magazine after a survey conducted in 1999.

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VISION
MRF TYRES Ltd. has a vision- a vision to be a significant player in the global tyre industry and a brand of choice providing customer delight and enhanced stakeholder value. And in order to make empower vision, they have strived to meet the needs of the customers through: To be most admired Tyre Brand Globally by 2010. Error- free service delivery Innovative products and services Cost efficiency Loved by more customers Targeted by top talent Benchmarked by more business

MISSION
MRF `s mission statement is as follows: We will meet global standards of the tyre industry that delights customers through customer service focus, empowered employees, innovative services & Cost efficiency. VALUES

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

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BACK GROUND OF COMPANY

The success or the failure of a company is by the performance of its management. Management plays a major role in decision making. The management of MRF id led by Mr.K.M.Mammen, son of Mr. Mammen Mappillai who started the company 62 years ago. BOARD OF DIRECTORS K.M. Mammen Arun Mammen K.M.Pillai Dr. K. C. Mammen C.G. Rangabashyam K.D. Prakh Ashok Jacob S. Nandhagopal V. Shridhar Vijay .R. Kiriloskar N. Kumar Ranjith. I. Jesudasen D.M. Choksi Chairman Managing Director Whole Time Director Director Director Director Director Director Director Director Director Director Secretary

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MAJOR BRANDS

Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre. Legend- Country`s largest selling Conventional Car Tyre.

SISTER CONCERNS
Malayala Manorama Manorama Vision MM Foam Philips Coffee Devon Machines Plantation COLT Computers

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INDIAN COMPETITORS TO MRF

Ceat Apollo Good Year

J K Tyres

Modi Bridgestone

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PRODUCT PROFILE
COMPANY`S PRODUCTS

Automotive Tyres

Truck tyres tube type and Tube less type Light Truck Tyres Special Tyres for Defense Tyres for industrial application Agricultural Tractor and Tilling tyres Off the road tyres- solid tyres and earth mover tyres Passenger tyres- bias ply and radial Two/Three wheeler tyres Specialized tyres for motor rallies

Major Tyre Brands of MRF

Superlug - Country`s largest selling Truck Tyre. Shakthi- Country`s largest selling Tractor Tyre. Zigma- Country`s largest selling Radial Car Tyre. Nylogrip- Country`s largest selling Two Wheeler Tyre.

Legend- Country`s largest selling Conventional Car Tyre

Paint and Specialty Coating

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MRF manufactured speciality coating for a wide range of application. The revolutionary 100% polyurethane finishes are available in formulation for application to metal, wood, plastic, paper, vinyl, textile, ceramics and glass. These coatings have been developed for color and gloss retention, strong adhesion and durability.

Major MRF Paints and Speciality Coatings

MRF Metal Coat MRF Wood Coat MRF Glass Coat MRF Vapocure MRF Brass Coat MRF Auto Coat

Funskool Toys Funskool India Limited is a joint venture between MRF and Hasbro Inc., USA, the world`s largest toy company. Since late 1991-1992 Funskool` s Goa plant has been making its own moulds for a number of its products, the most popular of which are Pipsqueaks, a range of low priced baby toys. These soft colorful animal toys have their sound built into their internal construction, doing away with the traditional whistle that breaks easily.

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Funskool` s range of board games has catalyzed the phenomenal growth of this segment in the Indian toy market. Games like Scotland Yard, Battleship, The Game of Life, The Memory Game, and the recently launched Go to the Head of the Class have made Funskool the undisputed market leader in the board games segment. The G. I. Joe series of army action figures and vehicles, which has taken the children`s world by storm has gone up to a collection of 30 figures and 20 vehicles. Two new toys, the racing jeep and the Street Hawk motorcycle are based on MRF ads. The latest to the Funskool range of toys are the WWF characters.

MRF Muscleflex Conveyor Belt

MRF`s collaboration with PIRELLI came at a time when Indian Conveyor belting industry was seeking technological momentum.MRF Muscleflex offers several advantages to buyers of belting in India.

The MRF Conveyor Belt plant is in Arakonam, Tamil Nadu, with an annual capacity of 3000 tonnes, is the most modern belting plant in India and is dedicated to the development or manufacture of the finest Conveyor and Elevator Belting products. The plant integrates a high degree of polymer /textile technology with definitive standards in process control/product testing, employing the latest in conveyor belt manufacture. MRF Muscleflex conveyor belting brings international expertise and reliability.

MRF Pretreads

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MRF Pretreads is the most advanced Pre cured Retreading system in India. MRF made a foray in retreading as far back as 1970. Today, MRF has perfected the art of pre cured retreading with their extensive knowledge in tyres and rubber. In the MRF Pretreads system, the tread rubber is pre cured from MRF's factory under carefully controlled conditions, thereby ensuring you get world class quality. Today, MRF Pretreads has emerged as the Mileage leader in Pre cured Retreading and also has the specialized expertise required for retreading Radial Tyres.

OTHER ACTIVITIES MRF Pace Foundation The MRF Pace Foundation was established in August 1987, with the legendary Dennis Lillie of Australia as Director, with the singular mission of developing and breeding strike bowlers of tomorrow.

A brain child of late Mr. Ravi Mammen, the birth of this foundation coincided with one of the greatest events in Indian cricket-the hosting of MRF World Series for the first time in the sub-continent. This marked a significant forward step in Indian Cricket. The MRF Pace Foundation is unique in its nature and objective. It selects nurtures and scientifically develops the cricketing skills of youngsters. When it was started it possessed very little facilities other than an unused ground on the Madras Christian College campus. Since then, under the stewardship of Dennis Lillie and the able guidance of Chief Coach T.A. Sekar, former Indian Pace Bowler, the MRF Pace foundation has come a long way.

Racing and Rallying

MRF is pioneer is a pioneer of motor racing in India. Every MRF tyre designed is a result of a special acid test on the race and rally tracks: Sharp turns, abrupt braking, straight stretches of streaming asphalt, excruciating conditions. MRF tyres are made to run at speeds exceeding 150kmph, at which they are exposed to extreme conditions of heat and
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land traction. The molecular stability of the rubber compounds is tested against severe gravitational stress. Experts 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 develop safer, better quality tyres not only for formula racing cars that rough it but out on the tough Indian roads every day.

MRF Powerhouse The MRF Powerhouse speaks of commitment to raising Indian motor sports to international standards. It provides MRF`s dedicated team of skilled motor racers, an environment that brings out the best in them. It creates winning opportunities by providing state of art racing equipment that maximizes the output of both man and machine.

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AN ORGANIZATION STUDY : MRF AREA OF OPERATION

PRODUCT PROFILE OF KOTTAYAM PLANT
Automotive Inner Tube This component is kept inside the tyre and which when inflated renders strength and impacts profile to the tyre.

Automobile Tyre This is the basement on which the whole superstructure of automobile rests. Here only conventional or bias tyre of passengers, jeep, truck and farm tyres are manufactured.

Rethreading Material Both conventional and procured tread rubber are manufactured here. While the conventional tyre requires a longer curing time, in case of PCTR , molded tread profile is kept on the top of the worn out tyre and pressurized, with the intermediary of steam.

Flap This is kept in between the tubes and the tyre. This serves as a protective sheath for the tube from external damages of the tyre and also as isolation medium, which filters the passage of the heat from the tyre to the tube. This is generally used for the bigger tyre. Different tyres of flap with valve block reinforcement are also being tried out.

Bladder
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This is an element used for curing of tyre, which carries the internal media and is mainly used for captive consumption. Envelopes These are made of chlorobuty and are used at the time of retreading tyres. This acts as an envelope and retains the thermal input supplied to the tyre.

Vulcanizing Solution
This is an aid for vulcanization and is used for the retreading of tyre

PRODUCTION UNITS

Thiruvottiyur, Tamil Nadu Arakonam, Tamil Nadu Kottayam, Kerala Medak, Andhra Pradesh Pondicherry Ponda, Goa

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MAJOR OEM (Original Equipment Manufacturers) CUSTOMERS OF MRF (Tyres & Tubes):

Ford India Ltd. General Motors India Ltd Maruti, Hindustan Motors Hyundai, TATA Motors Asok Leyland Honda Siel Hero Honda Bajaj LML Ltd. Honda Motors & Scooters India Ltd. Mahindra & Mahindra

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EVOLUTION OF MRF 1949 MRF established its first office at 334, Thambu Chetty Street, Chennai. 1952 The first machine (a rubber mill) was installed at the factory and MRF ventured into manufacture of tread rubber. 1955 MRF started competing with foreign companies operating in India by becoming the only Indian company to manufacture superior, extruded, non blooming and cushion backed tread rubber. 1956 MRF became the market leader in tread rubber with 50% share in the Indian market. MRF`s hold on the market was so strong that the foreign companies started withdrawing from the tread rubber business in India. 1961

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MRF became a public limited company.MRF entered into technical collaboration with Mansfield Tyre Company of USA and a pilot plant for tyre manufacture was established at Thiruvottiyur.

1963 Full fledged tyre plant and rubber research center was inaugurated by India`s first Prime Minister Pandit Jawaharlal Nehru.

With the manufacture of tyres, MRF started marching ahead, capitalizing on its strengths, overcoming its weaknesses, exploring all opportunities and converting every threat into an opportunity for growth. 1964 MRF started an overseas office in Beirut (Lebanon)to develop export market. 1967 MRF becomes the first Indian company to export tyres to USA which is the birth place of tyre technology. 1970 Kottayam plant became operational. 1971 Goa plant was built in a record time of 18 months. 1972 With the setting up of Arakonam plant, MRF became the only tyre company in India with four manufacturing facilities. 1973 MRF launched India`s first NYLON car tyre.
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1978 MRF launched Super Lug 78 which later became the largest selling truck tyre in India. 1979 MRF`s turnover crossed Rs.100 crores 1980 MRF entered into technical collaboration with BF Goodrich Tyre Company of USA. With this began a significant exercise in quality improvement and new product development. 1984 MRF becomes the first tyre to be selected for fitment on Maruti-800 1985 MRF Nylongrip tyres for two wheelers were launched. 1986 MRF won 6 awards for quality improvement from BF Goodrich, pitted against 20 tyre companies worldwide. It also won the National Institution for Quality Assurance Award in the same year. 1987 MRF became the No.1 tyre company in India by crossing the Rs.300 crores turnover. 1988 MRF Pace Foundation was setup with Dennis Lillie as its director to nurture and develop the talents of budding cricketers. It concentrated on developing pace bowlers and within a few years it contributed pace bowlers to the Indian Cricket Team.
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1989 MRF collaborated with the world`s largest toy maker, Hasbro international and launched Funskool India, the most modern toy project in Asia. MRF collaborated with Vapocure of Australia to produce poly-urethane paint formulations. MRF Zigma radials were launched along with MRF World Series cricket which was one of the country`s most spectacular cricketing and marketing events. 1990 The fifth unit of MRF for manufacturing tyres and tubes was opened at Medak in Andhra Pradesh. MRF Tyre Drome became India`s first tyre company owned Wheel Care Complex. MRF collaborated with Pirelli to manufacture conveyor belts called Muscle Flex. The same year MRF brought the World Cup Boxing Championship to India. In this year the company bagged the Vishveshvariah Award for the best business house in South India. It also bagged the Howard Business school Award for best corporate performance. 1991 MRF moved to its own corporate office which soon became a landmark in Chennai. 1993 MRF became the first Indian tyre company to cross a turnover of Rs.1000 crores. With this the company found a place among the ten most respected corporate groups in India. It was a proud moment for the company when its Founder and Chairman Mr.K.M.Mammen Mappillai was honored with the PADMASHREE award for his contribution to the industry, the only industrialist from South India to be accorded this honor. 1996

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In the Golden Jubilee year, the company crossed a turnover of Rs.2000 crores and also setup a new plant at Pondicherry for manufacture of radial tyres. 1999 MRF was declared the most ethical company by the Business World in its survey. 2000 MRF launched the smile campaign on Indian roads. 2002 MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific. 2003 For the second year in succession, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific. 2004 For the third year in succession, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific. The company crossed a turnover of Rs.3000 crores. 2006 For the fourth time, MRF won the No.1 award for customer satisfaction by J.D.Power, Asia Pacific.

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AWARDS AND ACHEIVEMENT

TNSMRF voted the "Most Trusted" Tyre company in India by TNS 2006 global CSR study.

J D POWER ASIA PACIFICMRF won the award for Customer satifaction not once but 6 times in the last 7 years.

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CAPEXILMRF won the award for exports.

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POLICIES OF MRF
QUALITY POLICY OF MRF This policy is to maintain market leadership through continuous quality improvement. To achieve this goal, all the MRF plants and the corporate office particular attention to the following: Product/process improvements by field/plant performance monitoring and prompt service to the customer. Up gradation of machinery to meet the increasing needs of the customer. Continuous training of all employees in order to acquire necessary skills and knowledge. At the Plant level the respective General Managers are assigned the responsibility of carrying out quality systems by collaborating with corporate functions. SAFETY POLICY OF MRF MRF has a well defined safety and health policy which is as follows: It is the policy of our company that the SAFETY and HEALTH of our employees shall be our FIRST priority. It is the responsibility of everyone in the organization, regardless of the position he occupies to ensure that everyone in the factory returns home to their 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.

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ENVIRONMENTAL POLICY OF MRF This policy of MRF is to ensure that products are manufactured in an environment friendly and safe manner. To achieve this goal, all the MRF plants and the corporate office particular attention to the following:

Minimize the impact of manufacturing activities on the environment-air, water, soil. Comply with all applicable regulatory requirements. Develop environmental performance evaluation procedures for continuous monitoring. Optimize the consumption of resources (water, energy and raw materials) by minimizing wastage, recovering and recycling where ever possible.

Up gradation of machinery and pollution control equipment when required. Train all employees to perform their activities in an environmentally responsible and safe manner.

TRAINING POLICY OF MRF This policy is to provide and develop knowledge, skills and behavior of the employees to continuously improve performance. To achieve this goal the following are paid proper attention: Identify and document the training needs of each employee through competence evaluation each year. Design and publish training calendar and schedule. Providing training periodically based on identified needs and as per the documented schedule. Monitor and evaluate the training process and outcomes to asses and to decide the next training cycle requirements.

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CURRENT POSITION Highlights of First Quarter (Dec 2007): FY 07-08 Turnover (Rs. in crores) Net Profit (Rs. in crores) EPS (in Rs.) Operating Profit (Rs. in crores) : 1155.57 : 51.75 : 122.03 : 127.92

Highlights of Second Quarter (Mar 2008): FY 07-08

Turnover (Rs. in crores) Net Profit (Rs. in crores) EPS (in Rs.) Operating Profit (Rs. in crores)

: 1214.83 : 65.62 : 154.72 : 154.39

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FUTURE GROWTH PROSPECTS

ORGANIZATION PROFILE: KOTTAYAM PLANT Kottayam plant was started as a small masticating unit towards the end of 1969; the first machine was a 3A banbury (a small internal mixer) with a mixing capacity of about 66kgs per batch. Later automotive tube production started in1971. The mixing capacity of the unit was increased with the introduction of 11A and 11D banburys. Later, tread rubber and a host of tyre repair materials were also produced. Kottayam became a supplier of mixed compound to other units of MRF. Pre cured tread rubber was also added to the product range of Kottayam unit. The commissioning of the tyre plant in 1994 was the beginning of a new era in the history of the Kottayam unit. This marked the starting point of a massive expansion drive at Kottayam. 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. With the commissioning tyre plant, PCTR production was also increased with more PCTR curing presses being commissioned. Flap production was started in tyre plant initially with two presses and later increased to six. (PCTR and Flap presses were later shifted to PCTR plant when the new plant was commissioned) Kottayam plant supplies mixed rubber to other plants of MRF and hence with the increase in demand, it became essential to augment the mixing capacity of the plant. A new plant exclusively for mixing was built with huge internal mixers (banburys) which have automatic carbon and oil charging facilities. It houses two banburys of P270 type and one banbury of F620 type. With a mixing capacity of 600 tons per day, this is one of the largest mixing units in Asia. A BD (broken down rubber) mixing unit was also built to ensure self sufficiency in BD production since BD mixing was earlier being done in outside mixing units. The outside mixing units operated with open mills and hence batch to batch consistency was low. With the mixing of BD in the banburys at the BD plant better consistency could be achieved in properties of broken
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down rubber. BD mixing unit has two 11D banburys and two extruders to sheet out the mixed rubber. A new plant, mainly for PCTR production was commissioned in the year 2000. This plant now houses a 6 cold feed extruder for extruding, rethreading materials and PCTR slugs, PCTR curing presses, 48calendar for production of tyre repair materials, 68fabric calendar, German tuber for flap slug extrusion, 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 (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 tube plant.As a new product, solid tyre production was introduced at Kottayam in 2004. The solid tyre presses are located in the tube plant.

KOTTAYAM PLANT FACTS AND FIGURES (Sept 2007)

Built up area Management Staff Regular Workmen Casual Workmen Total finished goods production Total turnover of finished goods Mixed stock sent to other units Tyre Production

: 6 lakh sq.feet : 252 : 1,115 : 399 : 3,400 MT/month : Rs.37 crores/month : 7,000 MT/month : 52,000 tyres /month

Tubes, envelopes and curing bags total : 2,63,000 /month production Flap Production Tread rubber production (conventional) PCTR production Repair Material Vulcanizing solution : 82,000 /month : 160 MT/month : 330 tonnes/month : 83 tonnes/month : 32,500 litres/month

INTERNATIONAL CERTIFICATIONS FOR KOTTAYAM PLANT

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ISO 9001 in the year 2000 ISO 14001 in the year 1996 CQC

MANAGERS AT THE KOTTAYAM PLANT Mr. Michael Ribeiro Mr. Saji Varghese Mr. Francis Mathew Mr. C.S Joy Mr. Cherian Zachriah Mr. Anil Petre Mr. Simon C.P Mr. Raghuram Major. Sivadasan Mr. K.M Anil Kumar General Manager Plant Production Manager Plant Engineering Manager Plant Technical Manager Plant Quality Assurance Manager Plant Accounts Manager Plant Human Resources Manager Plant Industrial Engineering Manager Security Officer Safety officer

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Production is the primary function of MRF and hence all other functions are supporting functions. Production is carried out in four plants in Kottayam unit. They are:

Tube Plant called Plant1 Tyre Plant called Plant2 Mixing Plant called Plant3 PCTR Plant called Plant 4

The following are the main functions of the production department: Planning for Production Process Every month a plan is given to the plant by the central planning department, the plant panning department will prepare a simulation plan by dividing the month into 3segments of 10 days each. This simulation plan is taken as the guideline for each plant to plan their production process. The available inventory and the priority of dispatch are taken into consideration while preparing the daily schedule. Slight changes are made in the simulation plan to obtain the objective and improve production efficiency.

Material Request and Receipt The daily requirement of raw material is calculated at each plant after considering the available inventory and the scheduled production of the next day. The raw material request is made to the raw material store. Raw material store makes arrangements to deliver the requested material to the plants. The receipt of material is acknowledged by the production department to the raw material store by the production signing on all the copies of the

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transfer or issue certificates. In case of in process material, request is given 1-3 days in advance to the concerned plant which produces the material.

Processing Processing is carried out as per the technical specifications of the BSP (Basic Standard Practice) and the work instructions of the respective department. Set up verification is done for each product and each run. Once the process is stabilized, the process parameters are checked and recorded. If the parameters are as per specification process is continued, else the necessary correction is made and the process is resumed.

Production department ensures that all necessary instruments and equipments are calibrated by checking the calibration sticker on the instrument. Cases where the instruments are overdue are for calibration is overdue are reported to the instrumentation department through AVO (Avoid Verbal Order). The supervisor stops usage of such equipments depending on the criticality of system violation. Whenever machines stop or behave abnormally the engineering department is informed and a maintenance request is made.

Product Identification and Traceability The objective of product identification and traceability is to prevent mix up of products and to ensure traceability of products at various stages. This applies to raw materials, in process materials and finished goods.

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Specific ways of identifying each material at each stage is defined. For example, in case of extruded tubes, details like size, month code, year code, plant code, date of extrusion, extruder operator code are printed. In the case of traceability, for example, while extruding treads, the details of stock (stock code, date and shift of mixing, batch numbers) used for extruding those treads are entered in the traceability register.

Inspection Inspection is done to ensure that the materials, equipment, storage area are free from any contamination. MRF Kottayam unit produces:

9202 Tubes per day 1750 Tyres per day 50 Solid tyres per day 8MT Tread rubber 2300 Flaps per day

MRF Sales Network

NORTH New Delhi Agra Bareilly Bikaner Chandigarh SOUTH Chennai Ananthpur Bangalore Belgaum Calicut Kolkata Asansol Cuttack Dhanbad Guwahati EAST WEST Mumbai Ahmadabad Aurangabad Baroda Bhopal
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AN ORGANIZATION STUDY : MRF

Faridabad Haldwani Hissar Jaipur Jalandhar Coimbatore Ernakulum Hubli Hyderabad Madurai Muzaferpur Patna Ranchi Siliguri Goa Indore Jabalpur Jodhpur Nerul

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