MRF has announced that it has crossed the Rs.10,000-crore turnover mark, becoming the first in the Indian tyre industry to do so in any financial year.
According to a release from the company, MRF has registered a growth of over 30 per cent over the previous year.
Addressing a press conference here on Monday, K.M Mammen, Chairman and Managing Director, said though MRF had breached the Rs.10,000-crore sales number, it had been through a challenging time.
A combination of factors ranging from ‘inverted import duty structure' on natural rubber to low import duty on finished tyres had all resulted in a none-too-encouraging bottom line for MRF. Mr. Mammen, however, hastened to add that MRF was better placed vis-à-vis others in the industry in terms of bottom line.
To a question, he said that MRF would have to always look at efficient sourcing of inputs and bettering internal cost management systems to improve its bottom line. In this context, he said that MRF would look at overseas acquisition of plantation business. Acquisition route was better than greenfield ventures for MRF as it looked around the world for opportunities, he said. He, however, cautioned that a host of issues such as the size and product mix had to be looked into before arriving at any decision on overseas acquisition.
Company officials said that MRF had been taking proactive initiatives and expanded capacities. Its Tiruchi plant would go commercial in the first quarter of next year, they added.
To a question, they said the company had a good mix of revenue from original equipment manufacturers (20 per cent), exports (10 per cent) and replacement market (70 per cent).