An Organization Study At

“Madras Rubber Factory (MRF) Company”

A report submitted in partial fulfilment for the award of the degree
MASTER OF BUSINESS ADMINISTRATION

Submitted By
VIKAS.V
1NX17MBA53

UNDER THE GUIDANCE OF

Arpitha M.P
Asst. Professor
Department of Management Studies
Nitte Meenakshi Institute of Technology, Bengaluru

NITTE MEENAKSHI INSTITUTE OF TECHNOLOGY

(An Autonomous Institute under Vishveshvaraya Technology University, Belgaum)

1
 Department Of Management Studies
2017-2019

BONAFIDE CERTIFICATE

This to certify that VIKAS.V bearing USN 1NX17MBA53, is a bonafide student

of Master of Business Administration course of the Nitte Meenakshi Institute of
Technology (2016- 2018), affiliated to Vishveshvaraya Technology University,
Belgaum.
An Organizational Study at “MRF Company” is prepared by him under the
guidance of , in partial fulfilment of the requirement for the award of the Degree of
Master of Business Administration of Vishveshvaraya Technology University,
Belgaum.

INTERNAL GUIDE HOD of Department PRINCIPAL

Ms. Arpitha M P Dr. HARISH BABU Dr.H.C.NAGARAJ

2
 CERTIFICATE BY GUIDE
Nitte Meenakshi Institute of Technology

Yelahanka, Bengaluru

This is to certify that Mr. VIKAS.V final year MBA student of Nitte Meenakshi
Institute of Technology, bearing USN:1NX17MBA53 has completed his
Organizational study report on “Madras Rubber Factory” as prescribed by the
VTU under my supervision and guidance.

The matter embodied in this Organizational Study report has not been submitted to
any other university or college for the award of degree or diploma.

PLACE:

DATE:

SIGNATURE OF THE GUIDE:

3
 DECLARATION

I, VIKAS.V do hereby declare that the Report title “AN ORGANIZATIONAL

STUDY AT MRF Company” has been submitted to NITTE MEENAKSHI
INSTITUTE OF TECHNOLOGY, DEPARTMENT OF MANAGEMENT
STUDIES in the partial requirement for the award of MASTER OF BUSINESS
ADMINISTRATION degree is a record of my original hand work

I also declare that this project is the result of my own effort and has not been
submitted earlier to any other University or Institution for the award of any degree
or published any time before.

PLACE: BENGALURU

DATE:

VIKAS.V

NITTE MEENAKSHI INSTITUTE OF TECHNOLOGY

YELAHANKA, BENGALURU- 560064

4
1 INDUSTRY PROFILE:
1.1 History of Tyres 7-8
1.2 Tyre Industry Overview 8-10
1.3 Tyre Manufacturing process 11

2 COMPANY PROFILE:
2.1 Background of the company 12
2.2 Promoters Information 13-14
2.3 Vision, Mission and Quality policy 14
2.4 Awards and Achievements 15
2.5 Product & Services 16-23
2.6 Area of Operations 24-25
2.7 Future growth and prospects 26

PART B
3 McKINSEY’s 7S FRAMEWORK 27-40

PART C
4 SWOT ANALYSIS 41-44

PART D
5 FINANCIAL STATEMENT WITH RATIO 45-49
ANALYSIS

PART E
6 LEARNING EXPERIENCE 50

BIBLIOGRAPHY 51

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 EXECUTIVE SUMMARY

The report is all about the organization study of MRF Company which encompasses the overview
of the tyre industry explaining about the growth, economical contribution and future goals of the
industry. The report also gives a brief overview of the company profile starting from its inception,
vision, mission the quality policy and competitor’s analysis of the company.
The study also deals with the Mc Kinsey’s 7s framework pertaining to the MRF Company which
analyses the company’s organization structure, strategy, skills, leadership style and shared values
of the organization. It explains how an organization internal processes work together in order to
survive in the competitive market. It also encompasses SWOT ANALYSIS of the organization
briefly explaining about the internal and external environmental factors affecting the organization
in whole and decisions to be taken to be ahead of the competitors. The report includes the Financial
Statement with Ratio analysis to give a clear picture about how financially sound is the company
and beneficial to the prospective investors and the general public.
The study helps the individual to learn how to put into use the theoretical concepts into real life
situations. It gives a brief framework of the MRF Company regarding its working procedure,
relationship with its employees and how it caters to the needs of the customers.

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 PART – A
CHAPTER 1
INDUSTRY PROFILE

Rubber is an organic substance from natural resources or produced artificially which has
the prescribed properties of extensibility, strechability and stiffness. The scientific name of
Rubber is “Heaven Brasiliensis”. Its ability to erase it has acquired this name.
In the hand of small farmers 85% plantations are there. Highest wages is paid by the industry to
its workers more than those who can earn from other plantations. A rubber tree can help tap
regularly through the tree remains productive for 30 to 40 years. Indians per hector
return of rubber is the highest in the world (about 1500 kg)
The natural rubber from just 25% of the world necessities the rest is made up with synthetic
rubber items from petroleum. For certain products Natural rubber is still necessary -nearly50%
to 60% of auto and track tyres is natural rubber for production of tubes where synthetic rubber is
used

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1
The Indian Tyre Industry

Indian tyre industry was dominated by foreign companies 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 entry
of new and 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 tyre industry.
Dunlop Rubber Company First Indian company it was incorporated in the year 1926 this type of
industry has grown rapidly and today it is an Rs.9000 crore industry. The complete range of tyres
required by the Indian automotive industry produced by Indian tyre industry, except for some
specialized tyres like aero tyres. Production from the domestic manufacturer 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 defense vehicle

Tyre Industry Overview:

Introduction
The rubber production in world was considered to be very unstable during the last few years.
Moderately, Production of rubber in India is consistent at the rate of 6% per annum. With its
roots deeper Indian rubber industry is developing. 3rd largest consumer in the world, while the
largest producer of natural rubber in the world. In the global economy the progression of rubber
industry in India plays a significant role to the world economy. These elements along with high
advance of automobile production with many large and medium industries has made India one of
the fastest growing economy globally.

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Rubber Production in India
 India holds the position of Third largest producer of rubber in the world.
 India holds the position of Fourth largest consumer of natural rubber.
 It is the fifth largest user of natural rubber and synthetic rubber together in the world.
 India has become the largest manufacturer of reclaim rubber in the world
 In the world which have the capacity to consume the entire indigenous production of
natural rubber is India and China are the only two countries

Rubber Consumption in India

Automotive sector tyres All kinds of rubbers 50%

Bicycles tyres and tubes 15%
Footwear 12%
Belts and hoses 6%
Camelback and latex products 7%
Other products 10%

Indian Rubber Market

Between 6 and 7 lakh tons annually which aggregates to Rs. 3000 crores the production varies.
Total rubber production in India is in the form of Ribbed Smoked Sheets (RSS) nearly 70%.
India accounts for 45% of the total import of rubber in the world. Rs 12000 crores of turnover by
the industry. 52% of rubber production is consumed by the tyre industry which of the total
production of India. Kerala is the leading consumer of rubber, followed by Punjab and
Maharashtra among the states. The exports of Indian natural rubber have amplified tremendously
over the years and have reached 76000 tons in 2003-04.
Though leading producers of rubber is India but it still imports rubber from other countries,
50000 tons of rubber imported annually by India currently.
6000 units comprising 30 large scale, 300 medium scale and around 5670 small scale and tiny
sector units. These manufacturing units are more than 35000 rubber products, employing 400
hundred thousand people, which also comprises 22000 technically qualified support personnel,
funding National Exchequer through taxes of Rs 40billion, duties and other levies. In the Indian
national economy, the Indian Rubber Industry plays a vital role. In India the rubber plantation
sector produces over 630 hundred thousand tons of natural rubber and there is a estimated
production of more than one million tons in near future. For the Indian rubber industry this has
aided in the radical and rapid growth. Boom in the vehicle industry the prospect of growth is
further enhanced, improved living standards of the people and rapid over-all industrialization.
Compared to 12 to 14 kilos in Japan the per capita consumption of rubber in India is only 800
grams. Rubber products consumption is concerned India is far from attaining any saturation
level. This is an extra factor leading to tremendous progress and prospects of the industry in the
years to come

9
The domestic industry essentially caters to 2 segments –
 Original Equipment manufacturers (OEM)
 Replacement market (Aftermarket)
Replacement demand dominates the tyre market contributing 56% of total size
Indian tyre market is driven largely by two & three wheeler tyres (53%), followed by passenger
cars (28%) and commercial vehicle segments (16%). Tractor segment accounted for only 3% of
the tyre sales in 2016-17

Tyre manufacturing process:

The assembly of tyres contains numerous constituents that are built up on a drum and then cured
in a press under heat and pressure. To create long elastic facilities given as heat facilitates a
polymerization reaction that crosslinks rubber monomers. To perform special operations tyre
plants are divided into 5 departments. The Plant act as a independent factories inside a factory.
The tyre producers will set up independent factories in a single site, or cluster the factories
locally across a region.

10
Natural Bale Cutter Intensive Mixer Mixing Mill Batch – Off Rubber
Rubber Machine Compound

Horizontal Bias Cutter with cord Nylon Cord Topping Calendar Train Nylon cord
winder

Bead Wire Grommet Machine Bead Wire

Tread Conveyor Tread Extruder Mixing Mill Tread

with skiver

Tire Building Green Tire Tread Joint B.O.M Tire Curing P.C.I Machine
Machine Venting Machine Pressing Machine Press

Finished Products Tire Wrapping Tire Drum Testing Tire Wobble Trimming
Machine Machine Testing Machine Machine

11
 Chapter 2
Company Profile

2.1 Background of M R F Company

Madras Rubber Factory (MRF), located in Chennai, Tamil Nadu and India is a major tyre
manufacturing company, the core business is in manufacturing vehicle tyres, It is the largest tyre
manufacturing company in India. In the year 1946 company was established. MRF Ltd was
started by a young innovator called K.M. MAMMEN MAPILLAI as small toy balloon
manufacturing unit in a small shed at Tiruvottiyur in Chennai. Since then it has emerged as the
largest tyre manufacturer in India from past 60 years.
It is also the world’s 15th largest tyre manufacturing company in the global level. It is one of
the largest rubber companies both global and in Indian private sector.
Having over 24% market share MRF is one of India's largest tyre manufacturer. 95% of the
company revenues is from the tyres, the rest comes from presence in toys and paints. With giant
manufacturing facilities at Chennai, Arkonam, Kottayam, Goa, Medak, and Pondicherry it is the
only tyre company to straddle in the continent. 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 arrange of other activities via
subsidiaries. A joint venture between Hasbro and MRF LTD was named as FUN SKOOL
INDIA. It is the major toy manufacturing company in the country. Procured tyre treading
service, and MRF Muscle flex is involved in making conveyor belts which makes MRF Pre
treads offers world class tyres, it is presently under the leadership of K M Mammen, It has a
distribution network of more than 9000 outlets or dealers in the country, it has overseas offices
and export tyres over around 75 countries. With the highest brand preference for superior quality,
appearance and wear ability MRF enjoys of manufacturing the largest range of tyres in India.
MRF manufacturers different range of tyres for different segments of auto industry and it is the
market leader with the largest market share in almost every segment of the tyre industry.
It is the first Indian company to export tyres to the U.S., the very birth place of the tyre
technology. MRF was the first company in India to manufacture and market Nylon tyres and
passenger tyres commercially it was the first company. The company’s turnover crossed INR 50
billion mark in 2007. MRF LTD. is the pioneer in motor racing tyres in India. The tyres are made
to run at speeds exceeding 150kmph, at which they are exposed to extreme conditions of speed
and traction. Against severe gravitational stress the molecular stability of the rubber will be
tested. 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 MRF’s tyre experts and rubber technologists are

12
present. For better quality tyres and safer it will be reviewed, not to be meant for the formula cars
and racing bikes, it out on the tough Indian roads every day for normal car and bikes

2.2 Promoters information

Name Designation
K M Vinoo Mammen Chairman, & Managing Director
Arun Mammen Vice Chairman & Mng.Director
Madhu P Nainan Vice President – Finance
Rahul Mammen Mappillai MD &Whole Time Director
Ravi Mannath Co. Secretary
Jacob Kurian Audit Committee Chairperson
Vijay R Kirloskar Director
Ranjit I Jesudasen Director
Cibi Mammen Director
K C Mammen Director
V Sridhar Director
N Kumar Director
Salim Joseph Thomas Director
Meyyappan Director

MRF Ltd Share Holding as of Aug 2018

Category No. of shares Percentage

Promoters 1,142,415 26.94

Others 1,388,887 32.75

General Public 767,580 18.1

NBFC and Mutual Funds 434,490 10.24

Foreign Institutions 322,464 7.6

Financial Institutions 158,926 3.75

Foreign Promoters 26,381 0.62

13
13
 2.3 Vision, Mission and Quality –Policy
VISION
MRF is to arise as pre-eminent global players in the field of polymers and make INDIA a global
super power in terms of technology and life.

MISSION
The mission of MRF is that Nil/Zero defect, zero break down, zero accidents, zero pollution, and
there by zero losses with their new performance standards

Quality –Policy
 QUALITY POLICY
The key 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 significance of the company. It is the
responsibility of each and every individual in the organization, regardless of the position he
occupies, to ensure that everyone in the factory returns home without any injury. The company
offers ‘ACCIDENTFREE SAFE PRODUCTION’ not only in letter but also in spirit, for the
benefit of one and all through this policy.

14
 2.4 Achievements & Awards

1964 Overseas office at Beirut in 1964 MRF setup, one of India’s first efforts at exporting
tyres and to build an identity. The MRF Muscleman was born

1967 To the very birthplace of tyre technology, the United States MRF became the first
Indian company to export tyres to US
1973 India’s first companies to manufacture and market Nylon passenger car tyres
commercially by MRF
1989  MRF & Hasbro International USA, jointly produces the world's largest toy
makers, and launched Funskool India.
 MRF work in partnership with Hasbro International USA, the world's largest
toy makers, and launched Funskool India.
1990 6th World Cup Boxing Championship to Mumbai By MRF - the foremost of its kind
with 39 countries participating.
2001 JD power award for the 1st time by MRF
2008 JD Power award again for the 6th time
2013  JD power award for the 10th time won by MRF
 Aero Muscle becomes the only Indian tyre to be preferred for the legendary
fighter jet - Sukhoi 30 MKI
 Team MRF’s Gaurav Gill wins his first Asia-Pacific Rally Championship
2014 APRC Championship for the 6th time by MRF
2015 MRF opportunities into Forbes India's Super 50 list of the best companies in India.
2017  To garner a spot in the coveted list of Super 30 Companies in India MRF has
jumped to Five rankings
 MRF featured in the esteemed Brands list of Top 50 Valuable Indian brands in
the global rankings, to make it to the list of Top 15 Tire Companies
 Fastest Growing Companies in Business World’s list MRF claims a position in
it
2018 The JD Power Award comes home for the 13th time.
MRF Wins product of the year for PERFINZA

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 2.5 Products & Service

Tyres
 Perfinza CLX1 FEATURES
 Futuristic Asymmetric Design
 Reinforcing Ribs with Sinusoidal grooves
 Finest polymers and Silica blend
 Stability ply cover
BENEFITS
 Excellent on-road performance in all weather
conditions
 Luxurious and comfortable drive
 Superior braking and better grip
 Protection from UV damage
AVAILABLE SIZES
 225/45R17 91W PERFINZA CLX1 TL
 195/60R15 88V PERFINZA CL
 X1 TL
 205/55R16 91V PERFINZA CLX1 TL
16 195/65R15 91V PERFINZA CLX1 TL
 FEATURES
Perfinza CLY1
 Asymmetric Design Futuristic
 Rim Protector design
 Finest polymers and Silica blend
 Ply cover stability
BENEFITS
 Excellent on-road performance in all weather conditions
 Luxurious and comfortable drive
 Better grip and superior braking
 UV damage protection
 Enhanced Control & stability
 Safety of wheel package is through Rim protector profile
AVAILABLE SIZES
 245/45ZR17 95Y PERFINZA CLY1 TL
 245/45ZR18 100Y PERFINZA CLY1 TL

FEATURES
 ZLX  Lateral grooves are distinctively designed for improved
ride comfort.
 Strong shoulder ribs For improved handling.
 For efficient water channeling efficiently designed
 Attractive bow-shaped sidewall design.
BENEFITS
 Wide tread which helps improve tyre life.
 Polymer-based blend optimized for cushioned ride.
 Edge-to-edge stabilizer liner for improved ride quality.
 Luxurious look enhanced by specialized bow-shaped
design.

17
 Wanderer Sport FEATURES
 With N-66 ply enhances steel belt package
performance in all terrains with multi-layer enforced.

 A bold sidewall graphics will be given for all cars to give a

unique look

 For superior driving experience on all terrains multi layered,

high-modulus carcass and sidewall will be included in it
BENEFITS
 Structure profile and the tread block sequence for tyres are
computer generated

 Tread compounds ensure superior performance on rough/off-

road conditions & cut resistance

 Specially- designed for Sports Utility Vehicles.

Paints and Coats
Treat wood Duro Dec
MRF Treat Wood is a high performance MRF Duro Dec ideal for interiors and exteriors
economy polyurethane finish, specially is a high performance, cost-effective, 2 pack
formulated for interior use. The hard transparent 100% polyurethane finish with an undercoat of
finish enriches the intrinsic beauty of wood and epoxy primer cum surface. It aids as the
offers excellent resistance to wear and tear. The ultimate protection for walls and its
protective properties, the durability and the affordability makes it the desired choice for
elegance coated surface are unmatched by any large buildings that are soon to become
other conventional coating system. landmarks.
MRF Treat Wood is available in both Glossy Features
and Matt finishes.
 It is very economical
Features
 UV Resistant
 Best adhesion.
 It is also Moisture Resistant
 Good sealing effect against moisture.
 Fungus Resistant
 Flexibility of achieving various gloss
levels and finishes by intermixing glossy
and matt finishes. Available Pack Sizes :
1, 4 & 20 liter pack.
Preeminent resistance against domestic
spills, alcoholic beverages and cigarette burns.
Available Pack Sizes : 18
1, 4 & 20 liter pack.
it gives to the
Aqua Fresh Exterior
To withstand the adverse weather conditions of sunlight (UV) and rain the Water based Exterior Wall
Finish based on PU and incorporating silicone is what will be required for a new generation, it has excellent
water and dirt repellent properties and keeps your building looking new with minimal maintenance.
Features
Wall coatings are tough and long lasting leading due to its cross-linked nature with a Eco friendly water
based cross linked polyurethane dispersion (PUD) is a new range of Aqua fresh leading to
 Exceptional water resistance reducing Chalking, Flaking & Stain marks
 Resistance to Dirt pickup
 No cracking or peeling off of film
 Excellent Durability
 Smooth Finish
 Better Coverage
 Easy to apply & maintain
It also has:
To keep the walls clean Anti-fungal & Anti-algal agents are used
 Low Volatile organic compounds – therefore environment friendly. It meets the norms of the Green
Building Council
 No ammonia added - hence odour free.
 Free of Lead
 Long Lasting colorants – higher light fastness & reduced color fading
 Film can withstand temperatures of - 50o C to 80o C
It is available in a range of over 800 shades which can be tinted at any of our ‘Colordrome’ dealerships
across the country at prices competitive to Premium Exterior Emulsions but with superior qualities.
Available Pack Sizes :
1, 4 & 20 liter pack

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PRETREADS
The most cutting-edge procured retreading system in India is MRF PRETREADS. MRF forayed
into retreading from the 1970.The art of recurred retreading with its extensive knowledge in tyres
and rubber MRF has been perfected.
From the MRF's factory the procurement of thread rubber in a carefully controlled
environment, thereby ensuring world-class quality will be performed by the MRF PRETREADS
system. Currently, MRF PRETREADS has emerged as the Mileage leader in procured retreading
and also has the specialized expertise required for retreading Radial Tyres of Truck, Bus, LCV
and Passenger vehicle.
The MRF PRETREADS Advantage.
 Superior Rubber Quality
 Well researched Tread patterns for various application
 Higher Mileage

MRF SRILANKA
MRF LIMITED owns a subsidiary company called MRF Srilanka Ltd was started in the year
2006 at No.1, Dankotuwa Industrial Estate, Dankotuwa, Sri Lanka.
It manufactures Procured Tread Rubber for retreading tyres of commercial vehicles. The
emergent demand for Procured Tread Rubber from the markets of Africa, Middle East,
Bangladesh, Far East & South East Asian countries will be catered by MRF Lanka
MRF Pretreats is a trusted and preferred brand among consumers for its quality and superlative
performance.

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Service
 Tyre & Services ( T & S)
A unique tyre shopping experience MRF T&S is a one stop shop for tyres. An experience that's
fun and enjoyable for the whole family. The computerized nitrogen inflation, tubeless repair,
wheel alignment, wheel balancing and tyre changing T&S stocks the entire range of MRF tyres
in it, with increasing number of world-class cars which are cruising on Indian roads it is an
answer to this.
Each T&S facility has an exclusive corner where customers can even go for customization based
on their preference. The technicians at MRF T&S are trained at the MRF Tyredome. Presently,
there are over 800 T&S franchises across the country and many more launching up each day.

 MRF TIRETOK & MRF TYREDROME

It was first time introduced in Ahmadabad, Coimbatore and Faridabad. From the MRF Ltd,
India’s largest tyre manufacturer MRF TireTok is a unique retail concept. An remarkable range
of services from robotic wheel alignment to A/C recovery and recharging, services that are
tailored to make every drive a delight customer friendly retail environment and it offers the
complete range of MRF TireTok and also caters to two-wheeler customers by providing wheel
balancing and tyre changing.
Services Offered:
1. Robotic Wheel Aligner
The Robotic Wheel Aligner, which is available for the first time in Asia, ensures precision wheel
alignment, aligning incorrect of tyres can result in excessive or uneven tyre wear, compromising
the handling of the vehicle.
2. Vehicle Safety Test Lane
To test the front and rear axle geometry, efficiency of shock absorbers, tread depth and critical
braking parameters for safety, comfort and reduced wear and tear this design has been introduced
3. Diagnostic Wheel Balancer
The combined tyre and wheel assembly is designed to equalize the weight of the tyre, the
Diagnostic Wheel Balancer guarantees a smooth and vibration-free drive.
4. Semi-Automatic Tyre Changer (With Helper Arm)
The Tyre Changer with Helper Arm ensures smooth and easy fitment and removal of tyre from
the rim and designed for Run Flat Tyres (RFT) on high-end cars
5. A/C Recovery and Recharging Unit
The optimum cooling and lower fuel consumption and the process which involves coolant
recovery, recycling, condenser cleaning lines, sealing test and oil injection.

21
 6. Electronic Headlight Aligner
Ideal head lamp has been positioned which is the digital device that identifies the positions and
ensures maximum visibility while driving.
7. Nitrogen Generator (Membrane Type)
The unique membrane technology ensures the Nitrogen used is well above the minimum limit of
95.5% purity, nitrogen inflation improves the tyre performance through mileage and fuel
efficiency.
8. Two-Wheeler Special Tyre Changer (With Rim Adaptors)
For a smooth and balanced ride this state-of-the-art machine ensures wheels are perfectly fitted
and vibration free ride for the latest generation bikes.
9. Automatic Car Wash
The complete coverage of the vehicle for the car wash tight-pressure new generation, thereby
giving your car a fresh, immaculate look.
10. Leverless Tyre Changer
The Leverless Tyre Changer ensures that the tyre and rim remain scratch-free Run Flat Tyres
(RFT) on high-end cars it is designed.

 MRF FASST
An exclusive air-conditioned customer care center for MRF PASSENGER CAR AND TWO
WHEELER TYRE CUSTOMERS MRF has come up with concept called MRF FASST
With the company trained personnel concerning tyre related queries customers can discuss
and get an immediate resolution of the problem. It’s a customer service just like MRF tyres
Smooth, Easy, Sure. Customers can also visit the MRF T&S outlets, MRF Exclusive
showrooms and MRF Authorised dealerships for warranty claims.
SERVICES OFFERED
A window for customers & prospective customers to reach out to MRF on all your tyre related
queries. On the spot settlement of warranty claims
Additional services provided for claim tyres:
a. Removal and refitment of wheels
b. From the rims mounting and de mounting
c. Nitrogen inflation
d. Credit card facility available

22
  MRF MuscleZone
IT is a unique, state of the art facility with high-end machines to serve commercial vehicles.
Product-O-Drome and a product lounge has an exclusive offering where customers can access
the entire range of commercial and passenger tyres and customers can learn about the tyres they
buy and at the same time.

 MRF INSTITUTE OF DRIVER DEVELOPMENT

In an economy that is booming with a GDP growth rate of around 8% per annum, the need of
the hour is organized and efficient transport systems. India is a developing economy it depends
heavily on road transport. Such heavy reliance has led to a dearth of skillful and competent
drivers who drive safely.
MRF Institute of Driver Development (MIDD)
It is a non-profit organization in order to address the problem which imparts training to
unemployed young men in light and heavy commercial vehicle (LCV and HCV) driving. The
aim of the institute is to produce skillful HCV drivers in the larger interest of the road transport
industry. Since its humble beginnings in 1988 the institute has turned out over 2000 LCV and
700 HCV drivers over the two decades

23
 2.6 Area of Operation

Manufacturing Units

Places Address
Goa Postbox. #1, Ponda , Goa - 403 401 Tel: 0832 - 2347400 Fax: 2348260
Ankenpally Postbox. No. 2, Sadasivapet - 502 291, Medak District., Andhra Pradesh Tel
: 08455 - 247400 Fax: 08455 – 252614
Medak Post.Box.No:2, Sadasivapet-502 291 Medak District, Andhra Pradesh Tel:
08455 - 252601 To 252609 (9 Lines) Purchase: 08455-252630 Fax: 252614
Arkonam Tiruttani Road, Ichiputhur - Arkonam - 631 003 Vellore District, Tamilnadu
Telephone : 044 - 27885491 Fax: 27885490
Tiruvottiyur Tiruvottiyur High Road, Chennai - 600 019 Telephone: 044 - 25733411
Fax: 25734554 Purchase: 25734442 Pctr /Central Engg:Godown: 25730318
Kottayam Post.Box.No.2, Vadavathoor P.O., Kottayam, Kerala - 686 010 Tel: 0481-
2570461 (12 Lines) DID: 2575196/97/98, Fax: 2570670
Puducherry Eripakkam, Nettapakkam Commune - 605 106 Tel: 0413 - 2699208 /
2699507 & 08 2699810 - 2699812 / 2699815 Fax: 2699207
Trichy Naramangalam Village & Post, Kunnam Taluk, District Perambalur. - 621
109 Tamil Nadu Telephone : 04328 – 291210

24
SALES & Distribution

MRF Market sharing pattern between MRF & the competitors as of

2017

24 %

25
2.6 Future growth and prospectus.

With the Gujarat manufacturing facility scheduled to be operational by 2020, tyre maker MRF
expects its turnover to grow to over Rs 20,000 crore by then.
The company is investing Rs 4,500 crore in Gujarat over a ten-year period in a phased manner
with the intention of broad basing its manufacturing across India as the existing facilities are
largely spread across south India. The first phase of the new plant in Sanand is expected to
complete by 2020.
“The Gujarat facility will be larger than the nine tyre plants the company has. In the first phase
the company will be investing around Rs 2,500 crore.
Currently, MRF manufacture eight to nine lakh passenger tyres a month. With the addition of
capacity, expect to touch a turnover of Rs 20,000 to Rs 22,000 crore by 2020,” said Arun
Mammen, managing director, MRF. In 2016-17, the company had clocked a revenue of Rs
14,743 crore.
MRF will be producing a broad range of tyres in its Gujarat plant, including those for two-
wheelers, trucks, farm vehicles and passenger vehicles.
Meanwhile, the company also has entered the luxury and premium range of car tyres with the
launch of ‘Perfinza’. The new product is looking at the replacement market for over 60 models
of premium and luxury sedans, has been globally approved by Mercedes Benz for its E-class
sedan.
Currently, replacement tyres comprise 75 per cent of the company’s sales. The new tyre will be
available in 122 cities for replacement customers.
According to Koshy Varghese, executive vice president, marketing, being the market leader,
MRF wanted a presence in all the segments and hence has entered the premium and luxury car
tyre segment. The segment is however just 1.5 to 2 per cent of the total tyre market. But
considering the growing demand for luxury and premium cars in India, the company eyes a good
growth in the segment.

26
 PART - B
Mc KINSEYs 7S MODEL

INTRODUCTION
McKinsey’s 7S Framework was developed in late 1970s at the McKinsey and Company which is
a reputed Management Consultancy firm in US.
The model serves as a basis for aligning the decisions of the firm to perform well.
The seven elements in this model: STRATEGY, STRUCTURE, STYLE, SYSTEMS, SKILLS,
STAFF AND SHARED VALUES, help in analyzing how the organizational elements are related
to each other and any changes will affect the performance of overall organization
The seven inter-reliant factors which are categorized is involved in 7 s model as either “Hard” or
“Soft” elements.
Hard elements in the management can straightly influence them by defining easily. These are
strategy reports, graphs of the organization and reporting lines of the formal processes.
Soft elements to describe can be more difficult and it is less tangible more influenced by culture.
If the organization is going to be successful. The soft elements are as significant as the hard
elements
The interdependency of the elements and specifies how a change in one affects all the others the
model depicted below represents

27
 HARD Ss

SOFT Ss

7-S model is used in where an alignment perspective is useful, for example, to help:
 Improve the performance of a company.

 The likely effects and the future changes of a company is being examined

 Align departments and processes during a merger or acquisition.

 To implement a proposed strategy, it determines how best it is.

Let’s know each of the elements specifically:

 STRATEGY: To build competitive advantage over the rivals the plan is devised

 SYSTEMS: The daily activities where the staff members are engaged to get the job
done.

 STRUCTURE: The way the organization is structured and the communication flow in
the organization.

 SHARED VALUES: Shared valued also called as “super-ordinate goals” s it was first
developed, the core-values of the company that are evidenced in the corporate culture and
the general work ethic.

28
  STYLE: The leadership style adopted.

 STAFF: The general capabilities of the employees

 SKILLS: The competencies and the actual sills of the employees working for the
company.

The organization was originally created, and what it stands for the company’s structure, strategy,
systems, style, staff and skills all stem from why. As the values changes, so do the other entire
element. From the values of the creators the original vision of the company was formed

McKINSEY’s 7S Framework with reference to the MRF COMPANY

3.1 Structure

MRF Company Corporate Structure

29
MRF ORGANIZATIONAL STRUCTURE

30
DEPARTMENTS
Each and every department is headed by the general manager who holds the expertise,
knowledge in the area under his/her supervision, MRF company gives an vision about the
functioning of the different departments. By the close interaction between all members in each
department exists an ergonomic atmosphere which is often made possible to attain goals
The strategies and policies of the top management moulds to make sure that the middle
management implements them properly
Interdepartmental meeting objectives is to bring the coordination between the different
departments weekly
Open opportunities are held once in a week in all plants where the employees can raise their,
grievances, concerns, suggestions etc.

31
Production Department
The Production department main functions are
Central planning will give the monthly plan to the plants . Based on the monthly plan-
department will prepare a replica plan by dividing the months into 3 sections of 10 days each.
Material indent and receipt
After considering the available inventory, the daily requirement of raw material is calculated at
each plant and the schedule production for the next day raw material indented is made to raw
material store.
Processing: As per technical specification processing will be carried out
Product identification and traceability & Inspection
At the corporate level the technical department will carry out innovation or research and
development the results of those activities are transferred to the plants. Activities carried on at
corporate team on technicality are selection and evaluation of new and alternative sources,
selection and evaluation of alternative materials, finished product testing etc.
Practical applications are the results of research and developments are translated into the plant
level. At the similar time other routine functions like testing of arriving materials, process
observing and product testing at each stage is also carried out.
Activities carried out in Technical Department
1. Development of New Product
2.New compound development.
3. Designing and examination of new moulds.
4. New alternative source finding
5. Selection and evaluation of alternative.
6. Product listing and analyzing.
7.Plants Arresting in problem solving.

QUALITY ASSURANCE DEPARTMENT

To improve productivity & design is evident in the specifications, to accomplish cost
effectiveness, to progress profitability and market share and to persist competitive in the global
market. Business environment of present situation quality influences not only the products and
services but also many other relevant entities such as process, systems, people and organization.

32
 Weakness either in the design of the product, or in its manufacture can create a low level
quality. Quality of design and quality of manufacture are equally distinguished. The same
products which have been used for the products but which are designed in different ways will be
of diverse quality of design.
To which the product will be manufactured quality design will be apparent in the specifications.
a product can be in varying degrees to the specification. Varying degree of quality of
manufacture is from varying degree confirmation of the specification
Functions of Quality Assurance Department
 Quality assurance department’s primary aim is customer satisfaction. The key duty is to
ensure that all customer complaint should be engaged seriously and is to be
communicated to all concerned. Error proofing methods are adopted to ensure that such
problems don’t occur again and Problem solving tools are engaged to ensure that the
problem is solved.
 Improve the profitability of the company by reducing defects and waste generation.
Through starting projects for waste reduction and forming task forces for 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., identification and
traceability of materials required is also the function of Quality Assurance.
 Educating workmen on Quality Standards and the consequences of not following quality
norms is also done
Quality Policy of MRF
In order to maintain market leadership through continuous quality improvement MRF has
introduced quality policy
MRF plants and the corporate office to achieve this goal, both 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.

33
HUMAN RESOURCE DEPARTMENT
The Human Resource Department is known as the heart of an organisation. It performs a number
of activities concerned with the employees of their organisation. To ensure effectiveness of the
company, the HR department keeps in touch with each and every department
HR Departments activities are as follows in MRF
1.Recruitment and Selection of employees
2.Performance Appraisal
3. Activities on welfare
4. Training
5. Industrial relation and labour management
6. Canteen service
7. File management.
HR Department other activities are
 Medical insurance scheme
 Family welfare canteen
 Co-operative Society
 Recreation club

3.2 Skill
A skill is the ability, knowledge, undertaking and judgement to accomplish a task. The
employees at MRF are well qualified and possess sound knowledge in technical know – how.
At MRF annual training plan is prepared and conducted throughout the plant. The different types
of trainings conducted are:
a) Orientation training
b) On the job training
c) Off the job training
Training is conducted for employees at all levels in the organization. After training the
effectiveness of training analysis is also conducted to know if any changes required in the
training imparted to the employees.

34
Induction training:
A 12 or it may vary for each job, orientation programme is conducted for the newly joined
employees. The training is conducted by the HR and team executives who will explain about the
policies, rules and regulations, plant overview and job overview of the organization to the
employees. In 12 days’ program 6 days will be class room training and other 6 days will be on
the job training. The induction training will help the employees to know about the operations
carried out in the organization and its working procedure
ON THE JOB TRAINING METHODS
 Job Rotation:
In this method, MRF employees are put on different jobs turn by turn where they
learn all sorts of jobs of various departments which gives basics knowledge of
each jobs to the employees

 Job Coaching:
A proficient employee can give a verbal presentation to juniors regarding job how to
perform the task and duties

 Apprenticeships:
As the new employee are put under the experienced Employee to learn the functions of
job so that to gain more insights on job and perform the job effectively

Off the Job Training Methods

1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a employees where
there roles and responsibility will be discussed. It is One-way communication.
2. Audio-Visual: It will be done by using Films, Televisions, Video, and Presentations etc.
3.ROLE PLAY
4.BRAIN STORMING

35
3.3 STYLE
MRF has a very open culture with respect to its management style. At MRF they follow
Democratic leadership style. It is also known as Participative leadership where the employees
are allowed to take part in decision making process.
In MRF they work on building inter- personal communication among employees and employers
through group lunches, team building exercises to create a mutual understanding with the
organization they are part of.
The roles of each employee are clearly specified during the induction program so that there is no
chaos in decisions related to reporting to the higher authority. The responsibilities to individuals
are distributed and ask for equal participation from the employees. The MRF aims at
empowering the employees by providing necessary training and education to accomplish the
tasks delegated to them in an efficient manner.
It encourages group decision making process where the manager acts as a mediator and
facilitator between the group members and ensures that a healthy and respectful environment is
maintained in the process of making decision.
MRF beliefs that, higher the employee participation in decision making it leads to greater
innovation and creative solutions to problems that will serve the organization in a better way.
The flow of communication is a two-way process which reduces the grapevine in the
organization to a great extent and employees are free to suggest their opinions and beliefs
pertaining to any issues faced by them while working in the organization

3.4 Strategy
Brand Awareness:

In the mind of the customer MRF has mastered in creating an Art of Lasting
impressions. The practice of heavy advertising and promotion in the tyre industry it has
been pioneered . Top-of-mind recall and top brand recognition amongst all tyre
manufacturers in India at present MRF has a commanding position in it. Any tyre
customer who hasn’t heard of the MRF brand is a barely customer or prospective
customer

Endorsements by sports MRF used celebrities like Sachin Tendulkar, Brian Lara and
Steve Waugh, promoting popular sports like cricket and car rally races by implementing a
multi-pronged marketing strategy, and even introducing its own mascot MRF achieved
this remarkable feat the MRF muscleman, that reflected the tough image it projected for
its tyres. Dealers look forward to stock MRF tyres currently because customers demand
it

36
 Clearly stating the category membership MRF subscribes to The MRF mascot and MRF
muscleman. With superior endurance and strength through its advertisements MRF
communicates to its customers. In terms of sports such as cricket and rally racing, to
position its tyres as high endurance and sporty the company sponsors for those kind of
things

Through their slogans like “Tyres we race are the tyres you buy” stands testimony to
their category membership. MRF endorse its tyres as tough, reliable and high endurance.
This is because its main share of customers comes from the Light and Heavy Commercial
Vehicles segment. In this segment considering the strength and endurance as theNo.1
factor desirable in a tyre the truck and bus owners will buy it.

3.5 Systems
Inventory Control Systems
Raw Material Testing
All raw materials are tested and released if they confirm to the specifications. as per sampling
plan raw material stores personnel arrange for collection of samples from the received material.
The sample will be given to raw material testing lab along with sample transfer note/ visual
inspection report. Through BSP (Basic Standard Practices) raw material will be tested, standard
test procedure and are compared with the specification issued by corporate technical. If the
material are not up to the mark more samples will be tested and released. 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. Raw material rejection note will be prepared and the material
is reverted to the supplier by raw material stores if the material is rejected.

In-Process Material Testing

In process materials are either in the material used or in the process

Finished Product Testing

In the plant and at corporate technical departments (FPT)will be done. This is done to
ensure that the product produced confirms to the required standards, Ply adhesion in case
of tyres mounted tyre dimension, and cut tyre analysis are done through cured dimensions
and weight are checked in plant for PCTR and flap,

37
Process Control
Process control is effected by checks or tests conducted regularly. To control the process
the data will be used that was generated during tests and audits. If required in the
specifications to achieve process ability targets the changes will be made, the changes are
documented through plant changes letters. If problem arises in the process / product will
be analyzed for variations in raw materials, or process conditions. IN the raw material any
deviation found will be corrected or alternative source will be implemented. Process will
be repeated to check whether it is satisfactory

MRF Barcode Inventory Systems

 Print and scan barcodes
 Ship, receive, and count inventory
 Handle order management
 Track parts across multiple locations
 Integrate with your accounting system
 MRF Inventory management systems using barcode technology are more accurate and
efficient than those using manual processes the workers scan materials with a barcode
scanner it is used as part of an overall inventory control system, barcode systems update
inventory levels automatically when it is reducing

 It Facilitate the movement of inventory within MRF warehouses and between multiple
plant locations and from receiving for the production purpose
 Barcode updates the on hand inventory automatically
 MRF inventory department /warehouse will be having information on when to order for
raw materials as it can easily determine minimum order and reorder quantities
The items can be characterized as follows which is purchased by the plant head
 Items which come under the head capital expenditure.
 Items which come under engineering spares (non capital expenditure)
 Stationery and miscellaneous items (items which don’t come under the preview of raw
materials)
 Services (Repairing of machinery)
Any employee who needs a material can make a purchase requisition to the Inventory
department but it has to be authorized by the department head. This has to be routed through
engineering store. Capital authorization number must be there for the items involving capital
expenditure.

38
Based on the indent, necessary release orders will be given. The copy of release order is sent to
the department head accounts department, stores, corporate office and a one copy for inventory
released will be kept in Inventory management department

3.6 Staff
The man force at MRF crosses 16,194 plus people working across India, where 85% are on role
of permanent employees and few are contract workers. There are 3 shifts in operation. The
employees are mainly recruited from all over India.
Recruitment at MRF company is carried out on the basis of departmental requirements. For
executive position recruitment is done through references or consultants. Probationary period is
of 6 months or it may vary according to circumstances
The staff – supervisors and line employees are also recruited through interview
/consultancy/reference considering jobs description and specification experience may vary for
each job at time of recruitment. Plant / Machine operators are selected from the local
environment where for first they work as trainees and based on their performance they are
promoted as permanent employees. The employees are strictly recruited based on technical
know-how, work experience, educational qualification and age.
MRF Responsibility of Technical Staffs /Supervisory
Responsibilities
 Designing Technical strategies, procedures and methods
 Scheduling maintenance work and responding to equipment faults
 Diagnosing breakdown problems
 By fitting new parts making guaranteed that equipment is operating correctly
 Carrying out quality inspections on jobs
 Client department liaising, customers and other engineering and production colleagues
 Controlling maintenance tools, stores and equipment
 Monitoring and controlling maintenance costs
 Dealing with emergencies, unexpected problems and repairs
 Improving health and safety policies and procedures
 Uninterrupted cover of the machinery and equipment in case of breakdowns

39
3.7 Shared Values
Shared values are the organizational values that are developed by the organization and then
shared by the members of the organization. They also referred to as core values of the
organization.
The core values of the company
 Customer driven,
 Result oriented with professional work culture.
 Growth balanced with environmental protection and enrichment

MRF has the greatest respect for its shareholders, customers, suppliers and the employees of the
organization.
MRF is accountable for the delivery of products and services to its customers; it aims at
delivering continuous and sustainable financial performance to its shareholders and the company.
For its employee’s various welfare activities are undertaken by MRF such as aiding financial
help to meet their social needs.
MRF gives importance for feeling valued and involved to its employees by providing job
satisfaction and promotion creating greater commitment towards work thereby reducing the
employee turnover and establishing a sense of belonging among the employees.
MRF ensures that employee balances both his/her professional and personal life without any
disturbances which will affect his/her work and peace of mind. It takes necessary steps in
converting organizational goals to individual’s goals by the help of employee welfare
programmes.

40
 PART - C

SWOT ANALYSIS ON MRF

STRENGTHS
WEAKNESS
Strong brand recognition
Vertically integrated operations
Industrial Relation volatility
Possessing a powerful exporting market
High Competition in price and
Having a strong portfolio marketing
Reaching out with strong advertisements

SWOT
OPPORTUNITIES
THREATS
Emerging markets and growth of
automobile industry
Increasing Demand for Radial tyres Price wars
Maintaining good relations Introduction of other transport facilities
More Target segmenting Continous increase in Price of natural
rubber
Stiff competition from national and
international brands

Benefits of SWOT analysis:

 The SWOT analysis is not restricted only for the profit – seeking companies but
can be used by anyone to analyse their strategies.

41
  It can be used to create recommendations during the survey.

 It helps in taking corrective action which may mean to amend the strategies or
objectives of an organization.

 It helps to establish Critical Success Factor i.e. to achieve the objectives and
Strategy implemented.

 It helps to decide on the direction that will be most effective for an organization.

Strengths
 Strong brand recognition
In India MRF maintains strong brand recognition in the tyre industry for instance, it has received
many awards in the recent past. Industry experts according to their study, MRF ranked highest
among the new-vehicle owners who are highly satisfied with their original equipment tyre
brands. It ranked highest among original equipment tyre brands with an overall score of 810 and
performed particularly well in all four factors that drive satisfaction for a second consecutive
year.
To enter new markets with ease and also enables it to launch new products it as a strong brand
recognition. It also provides competitive gain to the company over its peers and helps in
attracting new customers.
 Vertically integrated operations
The company is vertically integrated its operations in terms of its core business. The company is
predominantly engaged in the manufacture and sale of rubber products. The Major revenue of
the company is from its tyres,the rest comes from its presence in agates (toys). It manufactures
tyres for all kinds of vehicle including two-wheelers to industrial vehicles. Recently, the
company also started manufacturing tyres for aerospace and defense markets.

 Reaching milestone of Rs 5,000 crores

Rs. 5,000 crores MRF was the first Indian company to reach the turnover, who managed to
reach this level thus being named as the Number One company when it comes to the industry of
tyres.
 Building a strong network
MRF possess a very strong and developed network of distribution
For example, the number of dealers in east, west, south and north zones is fourteen, twenty three
thirty three and twenty seven respectively.

42
  A large number of manufacturing units
MRF has a total number of 6 units of manufacturing, which has spreaded across southern India.
 Possessing a powerful exporting market
When it comes to exporting products MRF holds a powerful and a very good market, which is
done across 65 countries approximately.
 Having a strong portfolio
When it comes to the manufacturing of different tyres made for different vehicles and their use
there is a complete portfolio which is available with MRF
 Brand value
MRF not only holds a very strong value for the brand, but it also has the trust and the faith of the
customers.
 Making varieties of tyres
To match themselves with tyres MRF has always taken different measure which can take on
different terrain conditions
 Financial condition
The financial condition of the company is in very good position
 The diversity of the company
Funskool, MRF Racing and MRF Pace Foundation are the three diversification of the company
 Reaching out with strong advertisements
MRF is eco-friendly in nature a company which advertises itself to be a tyre making company in
India

Weakness

 Volatility in industrial relations. Ex: the labour unrest

 Intense competition due to presence of other global brands

 Lack of volatility
As when it comes to the consideration of relations based on industries, example the
turbulence of the labors of MRF still lacks a lot of volatility,
 Being in a very strong competition

43
The presence of some of the worldly renowned global brands of the industry of tyres MRF
partakes a lot of competition in market, which is very intense and does somewhere effects the
good going of MRF

Opportunity

 Going through a fast growth: Markets emerging at a fast rate with the growth in
the automobile industry.
 Maintaining good relations: Maintaining a good Business2Business market and Having a
relatively good amount of tie-ups with certain companies
 Emerging markets and growth of automobile industry
 More tie-ups with Automobile companies as it’s mainly into B2B market.
 Horizontal and concentric Diversification.
 Steady increase in Radial Tyres for MHCV and LCV

Threats
 Price wars
 Continuous increase in Price of natural rubbers
Stiff competition from national and international brands
Cheaper technologies
 Volatility in prices and availability of raw material as India’s rubber production is less
than its demand.
 Policies which is levied like export duties, import duties, tax levied on automobile
industries and the sale of automobiles is determined by the economic condition of the
nation
 Metro, monorails and local trains transport facilities have been introduced like keeping
pollution hazards caused by combustion of automobile fuels.

44
 PART – D
Financial Statement
Balance Sheet of MRF Rs.in Rs in Cr.
Cr.
18-Mar 17-Mar

EQUITIES AND
LIABILITIES

SHAREHOLDER'S FUNDS
4.24 4.24
Equity Share Capital
Total Share Capital 4.24 4.24

Reserves and Surplus 9,599.96 8,540.18

Total Reserves and Surplus 9,599.96 8,540.18

Total Shareholders’ Funds 9,604.20 8,544.42
NON-CURRENT
LIABILITIES
Long Term Borrowings 1,319.33 1,238.32
Deferred Tax Liabilities [Net] 619.01 501.17
Other Long Term Liabilities 58.08 27.74

Long Term Provisions 152.74 137.26

Total Non-Current Liabilities 2,149.16 1,904.49
CURRENT LIABILITIES
Short Term Borrowings 228.37 573.34
Trade Payables 1,998.96 1,677.08
Other Current Liabilities 2,178.28 2,104.91
Short Term Provisions 142.83 120.88
Total Current Liabilities 4,548.44 4,476.21
Total Capital And Liabilities 16,301.80 14,925.12
ASSETS
NON-CURRENT ASSETS
Tangible Assets 6,057.84 5,474.35
Intangible Assets 17.47 13.23
Capital Work-In-Progress 1,078.84 846.96

Fixed Assets 7,154.15 6,334.54

45
Non-Current Investments 1,092.42 1,080.57
Long Term Loans And 14.09 3.68
Advances
Other Non-Current Assets 356.29 318.85
Total Non-Current Assets 8,616.95 7,737.64
CURRENT ASSETS
Current Investments 3,054.02 2,313.78
Inventories 2,172.07 2,392.92
Trade Receivables 2,135.92 1,959.95
Cash And Cash Equivalents 139.41 274.42
Short Term Loans And 1.9 3.98
Advances
Other Current Assets 181.53 242.43
Total Current Assets 7,684.85 7,187.48
Total Assets 16,301.80 14,925.12

OTHER ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent Liabilities 410.57 394.55
CIF VALUE OF IMPORTS

Raw Materials 2,838.54 2,710.64

Stores, Spares And Loose Tools 58.29 63.6

Capital Goods 514.81 246.16

EXPENDITURE IN
FOREIGN EXCHANGE
Expenditure In Foreign 86.09 84.87
Currency
REMITTANCES IN
FOREIGN CURRENCIES
FOR DIVIDENDS
Dividend Remittance In Foreign - -
Currency
EARNINGS IN FOREIGN
EXCHANGE
FOB Value Of Goods 1,145.82 1,151.31

Other Earnings 13.89 15.84

46
 BONUS DETAILS

Bonus Equity Share Capital 1.78 1.78

NON-CURRENT
INVESTMENTS
Non-Current Investments - -
Quoted Market Value
Non-Current Investments 1,092.42 1,080.57
Unquoted Book Value
CURRENT INVESTMENTS

Current Investments Quoted - -

Market Value
Current Investments Unquoted 3,054.02 2,313.78
Book Value

Ratio Analysis
1. Current Ratio
CurrentAssets
Current Ratio =
Current Liabilities
Year Current Assets Current Liabilities Ratio
2016-2017 7,187.48 4,476.21 1.61
2017-2018 7,684.85 4,548.44 1.69
A comparatively higher Current Ratio is an indication that the firm liquidity and has the ability to
pay its current obligations in time as and when they become due. It is also an indication of safety
of investment made by creditors. The Current Ratio of a firm measures its ability to meet short
run obligations. The ideal Current Ratio is 2:1.
In the Above case for 16 – 17 & 17-18 the current ratio is 1.61 &1.69 the firm liquidity position
is not upto the mark compared to standard ratio of 2:1 means it can meet its current obligation
but not upto the mark

2.Quick Ratio
Cash + Cash Equivalents + Short term investments +
Quick Ratio = Current Receivables
Current Liabilities
Year Liquid Assets Current Liabilities Ratio
2016-2017 4794.56 4,476.21 1.07
2017-2018 5512.78 4,548.44 1.21

47
Interpretation:
Above table indicates that the quick ratios of the company are in the year 2016-20175was 1.07,
in 2017-2018 was 1.21.
The standard quick ratio is 1:1. But all the quick ratios of the company are more than one; it
indicates that the company have the capability to meet up its short-term obligations by means of
its liquid assets.
3. Proprietary Ratio:
Proprietary ratio is the ratio of share, shareholders fund to total assets. It serves as a measure of
long term solvency.
A greater proprietary ratio or a more involvement of shareholders to the investment indicates an
organization’s better long-term solvency situation.
Formula:
Proprietary Ratio= Shareholders fund / Total Assets
Year Share Holders Funds Total Assets Ratios
2016-2017 8,544.42 14,925.12 0.5724%
2017-2018 9,604.20 16,301.80 0.5891%

Interpretation:
The proprietary ratios of the company in the year 2016-2017, 2017-2018 are 0.572%, 0.589%
In the year 2016-2017 the ratio was 0.5724 % & then it increases to 0.589% in 2017-2018. It
indicates company’s proprietary ratios increased by 0.017 % in 1 years.
It shows company some interest in investing from their own capital rather than outsiders fund.

4. Return on Assets
It is a financial ratio that indicates the rate of profit that an organization gains in connection to its
total assets. It is an exceptional marker of an organization’s overall performance.
Formula:
Return on Assets= Net Profit / Total Assets*100
Year Net Profit Total Assets Ratios
2016-2017 1451.08 14,925.12 9.72
2017-2018 1092.28 16,301.80 6.70

48
Interpretation:
The return on assets of the organization in the year, 2016-2017 & 2017-2018 are 9.72 & 6.70. It
shows Decrease in the return on assets as of 2018 march is 3.02

5. Net Profit Margin

Net Profit Margin also known as Profit Margin” or “Net Profit Margin Ratio” is a ratio used to
calculate the percentage of profit a company produces from its total revenue

Net Profit
Net Profit Margin Ratio =
𝑅𝑒𝑣𝑒𝑛𝑢𝑒
Year Net Profit Revenue Ratio
2016-2017 1,451.08 13,245.81 10.95
2017-2018 1,092.28 14,821.92 7.36

In 2016-17 the profit is higher compared to 17-18 3.59 ratio has been decreased due to sales and
liabilities.

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 PART E

LEARNING EXPERIENCE
I had a lot of learning experiences from this organization study with respect to management
functions and career inhibits.

Some of my learning experiences as a student are:

 The organization keeps up the time in its daily whereabouts and customer service. Seeing
that, I learnt Punctuality is important as an employee.
 The organization is Pro-active in understanding customer needs, which in turn gave a
thought to my mind that being pro-active is a necessary element for being a prospective
employee.
 Coordination and team work was observed in the environment of the organization. This
helped me to understand that team coordination is an important element to succeed.

LEARNT FROM MANAGERIAL FUNCTIONS

Under staffing, Duties are assigned to the groups and sub groups of the departments. The
employees are highly skilled and as they are provided with training and development activities as
to perform their duties in order to achieve the mission and vision of the organization.

Top level management makes the key decisions in a firm. These managers shape the
goals, strategies, objectives and projects in a company. They improvise the skills, efficiency and
productivity of the company and the employees as it is helpful in meeting the competition.

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Bibliography
WEBSITES
www.mrftyres.com
www.google.com
www.moneycontrol.com
www.moneycontrol.com/financials/mrf/balance-sheetVI/MR
www.info.com
www.wikipedia.com

NEWSPAPERS
 Business Standards
 Economic Times

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