Documente Academic
Documente Profesional
Documente Cultură
MRF Ltd,KOTTAYAM
PRINCE JOSE
REG NO: B4GMBA2609
Mr.PRINCE T.C
Submitted in Partial Fulfillment of the Requirement for the award of degree
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
2014 - 2016
DECLARATION
I Prince Jose, 3rd semester MBA student of P.K Rajan Memorial Campus,
Palathadam, hereby declare that this report on ORGANISATIONAL STUDY AT
MRF Ltd. Kottayam, under the guidance of Mr,Prince T.C, P.K Rajan Memorial
Campus, Palathadam, in partial fulfilment of the requirement for the award of the
degree of Master of Business Administration is a bonafide work done by me. I also
declare that this report has not been previously formed the basis of award of any
Degree, Diploma, Associate ship, Fellowship or any other similar title of this or
any other University or Institution.
Place:
PRINCE JOSE
Date:
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ORGANISATION CERTIFICATE
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Date: ..
Place: .
CERTIFICATE
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Faculty guide
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Date: ..
Place: .
ACKNOWLEDGEMENT
On completion of my Organizational Study Report , I feel deeply indebted to
many. Let me
gratitude.
Let me put on my head my deep appreciation for Mr.Balakrishnan,Head of the
department,for permitting me to undertake this organization study as a part of the
Curriculum
With profound gratitude,I wish to convey my sincere thanks to Mr.Prince T.C
Faculty Mentor, P.K Rajan Memorial Campus, Palathadam , for his kind
guidance and encouragement given to me during the preparation of this report.
Thankfully I express my gratitude to Mrs. Prameela Skariah, Asst. Manager,
Welfare, MRF Ltd, Vadavathoor, Kottayam, Kerala for her help in collecting the
data and valuable suggestions required for the study.
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TABLE OF CONTENTS
Chapter
Title
Page No:
Executive summary
Chapter 1
Introduction
11
Chapter 2
17
Chapter 3
29
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Chapter 4
94
Data Analysis and Interpretaion
Chapter 5
103
Findings,Recommendations and conclusions
108
Bibliography
LIST OF TABLES
Table
Table 3.1
Title
Page No:
49
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3.2
Product Volume
54
3.3
85
3.4
Financial Performance
3.5
89
92
Title
Chart-3.1
Page No:
Site Map
46
3.2
50
3.3
51
55
60
65
72
74
3.4
3.5
3.6
3.7
3.8
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3.9
3.10
3.11
3.12
3.13
3
.14
78
Structure of HR Department
80
82
85
Financial Performance:
Profit
89
Reserves
90
Sales
90
Net Worth
91
3.
15
3.
99
16
Chart4.1
EXECUTIVE SUMMARY
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information. Each activity of the company was studied carefully with the available
data and material.
Nowadays the competition in tyre industry has increased. Foreign and domestic
players have come into picture. The management of MRF is concerned with
keeping in touch with the customers and non-customers expectations and provides
better quality of services.
Four main attributes like Quality, Cost effectiveness, responsiveness and being
customer centric/sensitiveness
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CHAPTER-1
INTRODUCTION
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INTRODUCTION
About The Tyre Industry:
The tyre industries in India come into existence with establishment of trading
outlets by U S based Fire Stone Tyre and Company in1922 and followed by Dunlop
Rubber Company in 1926.The Indian Tyre industry has witnessed a Cumulative
Annual Growth Rate (CAGR) 7.7% over the last decade. Economic expansion,
investments and road developments have all contributed to this
Increase in demand for vehicles. This has helped the growth in the tyre industry.
The tyre industry is the major consumer of the domestic rubber production. The
tyre industry is mainly dominated by organized sector; the unorganized sector holds
in bicycle tyres. The major players in the organized sector consist of MRF, Apollo
tyres, Ceat, and J K Industries, which account of the 63% of the organized tyre
market.
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MRF Ltd was established in the year 1946. The company name is an acronym for
Madras Rubber Factory. It was started by KM MammenMappilai at
Thiruvattiyur Chennai. In the year 1951, the company took up the manufacture of
trade rubber. MRF Ltd was incorporated towards the end of 1960 and was
converted into Public Limited Company in 1961. Since then it has emerged as the
largest tyre manufacturer in India and 12th largest in the world with turnover of Rs
10637 Cr. with capacity of six million tyres from six production units in India.
With a profit margin of 1.3% in tyre manufacturing sector, MRF hold 24% of
market share. MRF tyres are rolled out of six interdependent facilities, which are
built over 450 acres and with over 15,000 dedicated people. MRF has over 3000
strong dealer network with 180 offices. What this means is that the company boasts
of the largest range of tyres in India - from heavy duty truck tyres to 2-wheeler
tyres, The MRF Pace Foundation is synonymous with training and teaching the
world's best fast bowlers.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
product profile, rules and regulations in the company etc. Organizational study
covered all functional aspects of the organization.
METHODOLOGY
Research cannot be contacted abruptly; the researcher has to plan the research
process systematically. The research process includes a number of steps. If all the
steps are taken in systematic manner the research conducted become quite
effective.
Types of Data
There are two types of data;
Primary data
Secondary data
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Primary data
Primary data is those data collected by the researcher for the first time, it is fresh in
nature. This data do not exist in records or publications. Here primary data is
collected through departmental study through interactions with different
department heads and staffs.
Secondary data
Secondary data comprises of the data which have already been
collected by another researcher for some other purpose and currently available.
The secondary data was collected from the internal records of the company, library
reference and internet.
LIMITATIONS
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CHAPTERISATION
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The first chapter deals with the introduction of the study which includes;
introduction about the industry and company, importance of the study,
objectives of the study, methodology, limitations and chapterisation.
The third chapter deals with company profile. It consists of the study of the
company,
organisation
chart,
different
operations,
products
and
The fifth chapter gives the findings, suggestions and conclusions of the
study.
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CHAPTER- 2
INDUSTRY PROFILE
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INDUSTRY PROFILE
RUBBER INDUSTRY
Nearly 85% of the plantations are in the hand of small farmers. The industry pays
highest wages to its workers more than those who can earn from other plantations.
A rubber tree can help tap regularly throughout the tree remains productive for 30
to 40 years. Indians per hector yield of rubber is the highest in the world (about
1500 kg)
The natural rubber from just 25%of the world requirements the rest is made up
with synthetic rubber items from petroleum. But natural rubber is still essential for
certain products-nearly 50%to60% of auto and track tyres is natural rubber where
synthetic rubber is used for production of tubes.
The Indian Tyre Industry
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The foreign companies dominated the Indian tyre industry till 1960; however in
the latter part of 60s and early 70s the Indian industrial, Entrepreneurs made a
stylish entry into the market alongside collaboration with the automobile sector
foundation with in the country. The tyre industry saw the entry of 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 industry.
Ever since the first Indian tyre company, Dunlop Rubber Company (Indian)
was incorporated in 1926, the type industry has grown rapidly and today it is an
Rs.9000 crore industry. The Indian tyre industry produce the complete range of
tyres required by the Indian automotive industry, except for aero tyres and some
specialized tyres. Domestic manufactures produce 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.
Indian has 2.61 lakh vill ages, connected by 6.23 lakh kms to metal led
roads and 9.81 lakhs kms of unmetalled roads. These villages are linked to small
town and cities. There exists a vast potential for the tyre industry in India. The
fortune of the tyre industry depends on the agricultural and industrial performance
of the economy, the transportation needs and the production of vehicles. Hence,
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this is a very sensitive industry, which has to adapt itself to a highly volatile
environment.
While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds away in bicycle tyres. The major players in the organized
tyre segment consist of MRF Tyres, Apollo Tyres, Ceat, and Jk Industries, which
account for 63 percent of the organized tyre market. The other key players include
Modi Rubber, Kesoram industries, and Goodyear India, with 11 percent, 7 percent
and 6 percent respectively. Dunlop, Falcon, lyre Corporation of India Limited
(TCIL), TVS Srichakra, Metro tyres and Bal Krishna Tyres are some of the other
players in the industry.
The Indian tyre industry evolves itself around some silent features like:
Adaptability
Innovation
Export
Technology progression
Wide product range for divers usage.
The Original Indian tyre market can be categorized into three. They are;
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equipment market
Replacement market
Export market
MRF, the largest tyre manufacture in the country, has strong brand equity.
While it rules supreme in the industry, other players have created richest markets
of their own. The tyre industry is a major consumer of the domestic rubber
production. Natural rubber constitutes 80% of the material content in Indian tyres.
Synthetic rubber constitutes only 20% of the rubber content of the tyre in India.
Worldwide, the ratio of natural rubber to synthetic rubber is 30:70. Apart from
natural and synthetic rubber, rubber chemical are also widely used in tyres. Most
of the RSS- 4 grade natural rubber required by the Indian tyre industry is
domestically sourced, with only a marginal amount being imported. This is an
advantage for the industry, since natural rubber constitutes 25% of the total raw
material cost of the tyres.
The two types of synthetic rubber used in tyres are Poly Butadiene Rubber
(PBR) and styrene Butadiene Rubber (SBR). The former is used in most of the
tyres, while the latter is mainly used in the radials for passenger cars. Synthetic
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rubber accounts for 14% of the raw material cost. Unlike in the case of natural
rubber, India imports 60% of its synthetic rubber requirements.
On the export front, the Indian tyre companies need to explore newer
markets as the existing market for bias truck tyre which accounts for about 45% of
the total export volume is nearing saturation. This apart, with rationalization
caching up in the foreign markets, the Indian tyre companies need to graduate to
radial tyres so as to protect their share in the export market.
Raw materials
The main raw materials for tyre are;
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Rubber
Carbon black
Nylon cord
Chemicals.
GLOBAL SCENARIO
ORGANISATION STUDY
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10%
8.60%
nil duty
ORGANISATION STUDY
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SAPTA
5%
nil duty
Cooperation Agreement
Excise Duty: Tyres
When imported from Bangladesh, Bhutan, Maldives, Nepal is 10%
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that retreading reduces the quality of the tyre. It is highly popular in the south
unlike in the north where the transporters overload their trucks and have to ply
their vehicles in a rough terrain, an environment in which buying a new tyre is the
best option.
THREATS
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 percent as against the normal tariff of 40 percent.
Two years ago, the industry estimated the growth in the passenger car radial
demand at 20 percent 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 percent of the tyre market.
Another threat to the industry is the price of its raw materials, most of which are
petroleum by-products. 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 percent of the global tyre
market. These players have set up their bases in South-east Asia and the slump of
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the markets in this region coupled with the vast growth potential of the Indian
market, is beckoning them towards India.
Bridgestone has tied up with ACC for a 100 percent 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 India, Pirelli and Bridgestone generate an annual
tyre production equivalent to the total demand of the Indian market.
Last Price
Market Cap.
Sales
(Rs. cr.)
Turnover
72.50
3,654.18
5,490.74
198.25
2,859.55
6,956.00
2,950.14
7,463.74
353.98
2,643.17
155.50
1,503.04
1,394.30
208.73
1,125.10
100.75
413.67
4,831.22
61.32
1,553.60
102.05
349.46
3,516.33
22.28
1,058.11
306.00
234.31
706.39
29.82
260.29
Apollo
Tyres
MRF
Balkrishn
a Ind
JK Tyre &
Ind
Ceat
TVS
Srichakra
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Some of the major players in the Indian tyre industry are MRF, Ceat, JK
industries, Apollo tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS
Srichakra.
Market Share
24%
21%
18%
Ceat Ltd.
13%
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Others
24%
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CHAPTER 3
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COMPANY PROFILE
Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing
company located in India. MRF is mainly involved in making vehicle tyres. It is
India's largest tyremanufacturing company.
The company was established in the year 1946. The company name is an acronym
for Madras Rubber Factory. MRF Ltd was started by a young pioneer called
K.M.MAMMEN MAPILLAI as small toy balloon manufacturing unit in a small
shed at Thiruvattiyur in Chennai. Since then over this long 67 years it has emerged
as the largest tyre manufacturer in India. It is also the worlds 12 th largest tyre
manufacturing company. It is one of the largest rubber companies both worldwide
and in Indian private sector. MRF holds more than 20% of the market share. It is
the only tyre company to straddle the continent with giant manufacturing facilities
at Chennai, Arkonam, Kottayam, Goa, Medak, Pondicherry, and Tiruchirappalli.
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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 a range of other activities via
subsidiaries. Funskool India, a joint venture between Hasbro and MRF LTD. is a
major toy manufacturing company in the country. MRF Pre-treads offers world
class procured is presently under the leadership of VinuMammen, son of the Late
K.M.MammenMappilai.
It has a distribution network of more than 2500 outlets in the country, overseas
offices in United Arab Emirates, Bangladesh and Vietnam and export tyres in over
75 countries globally. MRF LTD. enjoys of manufacturing the largest range of tyres
in India and it has the highest brand preference for superior quality, appearance and
wearability. 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 1st Indian company to export tyres to the U.S., the very birth place
of the tyre technology. It is also the 1st company in India to manufacture and market
Nylon tyres and passenger tyres commercially. In 2011, the companys turnover
crossed INR 100 billion mark.
MRF Ltd. is the pioneer in motor racing tyres in India. MRF tyres are made to run
at speeds exceeding 150 km/h, at which they are exposed to extreme conditions of
speed and traction. The molecular stability of the rubber compounds is tested
against severe gravitational stress. MRFs tyre experts and rubber technologists are
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present 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. This is then reviewed and
used to safer and better quality tyres, not only for the formula cars and racing bikes,
but also for cars that rough it out on the tough Indian roads every day.
MRF brands are the market leaders in almost every segment. MRF brands are:
Super Lug (truck tyre)
Shakthi (tractor tyre)
Zigma (radial car tyre)
Nylogrip (2 wheeler tyre)
Legend (conventional car tyre)
Evolution of MRF
A race from the birth to success . . .
It was in late 1946, a period that was characterized by the indomitable spirit
of freedom and the will to win among Indians. A young pioneer called
K.M.MammenMappilai started a small toy balloon manufacturing unit in a
small shed at Thiruvattiyur in Chennai. There were no machines in the unit
but it had an employee with bubbling enthusiasm, innovative ideas and a
great vision he was owner himself.
Any product that could be made from rubber, without machine was produced.
From balloons to latest cast squeaking toys, industrial gloves and
contraceptive, the list is very long.
1949-Established 1st office at 334, ThambuChetty Street, Chennai.
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1952-1st machine (a rubber mill) was established at the factory and ventured
into manufacture of tread rubber.
1955-Started competing with foreign companies operating in India by
becoming the only Indian company to manufacture superior, extruded, nonblooming and cushion backed tread rubber.
1956-Becomes the market leader in tread rubber with 50% share of Indian
market.
1961-Becomes a public limited company. Entered into a technical
collaboration with MansfieldTyre Company of USA and a pilot plant for
tyre manufacturing was established at Thiruvattiyur.
1963-Full fledgedtyre plant and rubber research centre were inaugurated by
Indias 1st Prime Minister Pandit Jawaharlal Nehru.
1964-Started an overseas office in Beirut (Lebanon) to develop export
market.
1967-Becomes the 1st Indian company to export tyres to USA, the birth place
of tyre technology.
1970-Kottayamplant becomes operational.
1971-Goa plant was built in record time of 18 months.
1972-With the setting up or Arkonam plant, MRF becomes the only tyre
company in India with four manufacturing facilities.
1973-Launched Indias 1st Nylon car tyre.
1978-Launched Super Lug 78 which later became the largest selling truck
tyre in India.
1979-Turnover crossed Rs.100 crores.
1980-Entered into a technical collaboration with BF Goodrich Tyre
Company of USA.
1984-Becomes the 1sttyre to be selected for fitment on Maruthi-800.
1986-Won 6 awards for quality improvement from BF Goodrich; pitted
against 20 tyre companies worldwide. Also won the National Institution for
Quality Assurance award.
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for
the
company
when
its
founder
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Team MRFs Guarav Gill wins his first Asia-Pacific Rally Championship
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Organizational Goal
The organizational goal of MRF Ltd. is to maintain global standardsthrough
continuous improvement in the quality of product and services in order to
maintain market leadership.
The main strategy of the company in todays competitive world is cut cost and
win the battle. As the number of accidents in similar factories is comparatively
more, the emphasis of the company is accidentfree safe production.
MRF Ltd achieves the objectives by taking the following actions;
Product/process improvement by performance monitoring and prompt service to the
customers.
Upgradation of all the machinery to meet the increasing needs of customer.
Continuous training is given to all employees in order to acquire necessary skills
and knowledge and improve the quality of work life
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Values
Customer: We will be responsive to the needs of our customers.
Learning: We will continuously improve our service innovatively &
expeditiously.
People: We will trust and respect our employees.
Community & Partners: We will be transparent and sensitive in our
dealings with all stake holders.
Policies of MRF
1. Quality Policy
The main quality objective of the company is tomaintain market leadership
through continuous quality performance
2. Safety Policy
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Safety and health of the employees shall be the first priority 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 accident free safe production not only in letter
but also in spirit, for the benefit of one and all through this policy.
3. Environmental Policy
The environment Policy of MRF Ltd. is to manufacture the companys
products in an environmentally friendly and safe manner.
This is to maintain products in an environmentally friendly and safe manner. To
achieve this goal, all the MRF plants, together with corporate office shall:
Minimize the impact of our manufacturing activities on the environment
especially the air, water, and soil.
Comply with all applicable regulatory requirements
Develop environmental performance evaluation procedures for continuous
monitoring
Optimizes the consumption of resources (water, energy and raw materials) by
minimizing wastage, recovering and recycling where ever possible.
Up gradation of the machinery and pollution control equipment when
required
Train all our employees to perform their activities in an environmentally
responsible land safe manner
At the plant level, the respective Senior General Managers/ General
Managers are assigned the responsibility of carrying out the environmental
system by collaborating with corporate functions..
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4. Training Policy
The training policy of MRF LTD. is to provide and develop knowledge, skills
and behavior of the companys employees to continuously improve their
performance.
MRF plants along the corporate office join hands to accomplish the following:
Competency evaluations conducted each year identify and document the
training needs of the employees.
Design and publish the training calendar and schedule.
Monitor and evaluate training process and out come to asses and to decide the
next training cycle requirement.
Collaboration of the activities along with the activities of human resource
department plants.
Management
The success or failure of a company is determined by the performance of its
management. It has to play a major role in many crucial functions. Management of
MRF is lead by Mr.K.M.Mammen, son of Mr.MammenMappilai who started this
company about 66 years ago.
Board of Directors
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K.M.Mammen
Director
ArunMammen
K.M.Philip
Rahul MammenMappilai
Dr.K.C.Mammen
K.D.Parakh
Ashok Jacob
V.Shridhar
Vijar.R,Kirloskar
N.Kumar
Ranjith.I.Jesudasen
S.S.Vaidya
Dr.Salim Joseph Thomas
Ravi Mannath
Managing Director
Whole Time Director
Whole Time Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Secretary
Production Units
1)Thiruvattiyur, Tamil Nadu (for automobile tyres)
2)Arkonam, Tamil Nadu (for bicycle, scooter and auto rickshaw tyres)
3)Goa (for automobile tyres and procured tread rubber)
4)Kottayam, Kerala (for automobile tyres, tubes, procured tread rubber)
5)Medak, Andhra Pradesh (for automobiles)
6)Pondicherry (for radial tyres)
7)Gummidippondi, Tamil Nadu (for radial tyres)
8)Perambalur, Tamil Nadu (for future requirements)
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Brand Ambassadors
Former brand ambassadors
Indian batting maestro Sachin Tendulkar, cricketing legends Bryan Lara & Steve
Waugh.
Current brand ambassadors
The young Indian batting stars GautamGambhir, Rohit Sharma &Ashrafull
(Bangladesh)
Subsidiaries
Sister Concerns
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MalayalaManorama
Manorama Vision
MM Foam
Philips Coffee
Devon Machines
Plantation
COLT Computers
MazhavilManorama TV channel
Product Range
Automotive tyres are the main products of the company.
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Kottayam unit started producing bladders for its use and also for supplying to other
units. The bladder press is located in the tube plant.
As a new product, solid tyre production was introduced at Kottayam unit in 2004.
This solid tyre curing presses are located in tube plant.
Site Map
MIXING PLANT
TYRE PLANT
RM
GODO
WN
PCTR PLANT
BD
MIXIN
G
TUBE PLANT
ENGG.
STOR
E
CANTEE
N
ADMINISTRATION
OFFICE
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Chart-3.1
Employee Details
Office Managers
Management Staffs
Clerical Staffs
Sub-staffs
Watchman & Fireman
Workers
Trainees
Casuals
Temporary Workmen
Canteen Contractors Workmen
Total
29
159
8
1079
78
17
40
1738
58
52
155
7 am to 3 pm
3 pm to 11 pm
11 pm to 7 am
8 am to 4:30 pm
Trade Unions
MRFEU
MRFEA
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MRFES
ISO 9001:2000
ISO 14001:1996
ISO TS:6949
CQC
Built-up area
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Management staff
252
Regular workmen
1115
Casual workmen
399
Tyre production
82000/ month
Rubber
(conventional)
PCTR production
Organisation Structure
Organisation Chart of MRF Corporate Office
Chairman &
Managing
Director
52 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Joint
Managing
Director
Director
Marketing
Director
Engineering
Whole Time
Director
Director
Accounts
Director R &
D
Director
Material &
Export
Division
Director
Manufacturi
Manufacturing Units
53 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Thiruvattiy Kottaya
Goa Arkon
Meda
Pondich
Gummidippon Perambal
Chart3.2
GM
Chart3.3
Plant ProductionPlant
Manager
Accounts Manager
Plant HR Manager
Plant Technical
Plant
Manager
Quality Assurance
Plant Industrial
Manager
Engineering
Plant Senior
Manager
Security
Plant Engineering
Officer
Manager
Manager
Plant I
Plant II
Plant III
Plant IV
Assistant
Manager
Accounts
General
Technical Officer
Quality Assurance Officer
Assistant
Electrical Maintenance
Security Officer
Civil Engineering Mechanical Maintena
Manager
Supervisor Time office
Planning
Technical Supervisor
Quality Assurance
Supervisor
Supervisor
Guards
Staff Supervisor
Workers
Operators
Operators
Workers
Supervisor
Workers
Workers
54 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
FUNCTIONAL AREAS
DEPARTMENTS
MRF Ltd gives an insight about the functioning of the different departments. Each
department is headed by the general manager who possesses expertise, knowledge
in the area under his supervision. There always exists an ergonomic atmosphere
which is often made possible by the close interaction between all members in each
department. The top management moulds the strategies and policies that make sure
that the middle management implements them. Weekly interdepartmental meeting
aims at bringing coordination between the different departments. Open forums are
held once in a week in all plants where the employees can raise their concerns,
suggestions etc.
The various departments headed at MRF Ltd Kottayam can be enlisted below:
1.
Production department
2.
3.
4.
5.
6.
7.
8.
Engineering Department
55 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
9.
10.
Safety Department
11.
Security Department
12.
13.
Accounts Department
14.
Marketing Department
1. Production Department
Production is the primary function of the company and hence all other functions are
support functions. Production is carried out in four plants at Kottayam unit. They
are:
Tube plant
Tyre plant
Plant2
Mixing plant
Plant3
PCTR plant
Plant4
Plant1
56 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
the plant by central planning. Based on the monthly plan- planning department will
prepare a simulation plan by dividing the month into 3 segments of 10 day each.
Material indent and receipt
The daily requirement of raw material is calculated at each plant after considering
the available inventory and the schedule production for the next day raw material
indented is made to raw material store.
Processing
Inspection
Product Volume
Product
Tyres
Tubes
Flops
PCTR
Volume
2437 no./day
8433 no./day
2677 no./day
16 mts./day
57 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Table 3.2
Production Manager
Asst.
Manager
Asst.
Manager
Asst.
Manager
Asst.
Manager
Production
Plant - I
Production
Plant - II
Production
Production
Plant - II
58 -
Plant - III
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Supervisor
Supervisor
Supervisor
Supervisor
Operatives
Operatives
Chart-3.4
59 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
stores. The simulation plan for 3 segments of 10 days each is prepared and micro
planning is done based on that.
Since the plant sends work-in-process materials to other plants, a simulation plan is
also prepared for work-in-process material production and is send to concerned
departments of MRF units to which these in process materials are sent. In case of
any revision in monthly plan, the revised requirements and plan will be sent to the
concerned parties.
Production details report is sent to central planning on a daily basis for the previous
days production. Plan Vs Production report is published every 10 days and also on
a monthly basis.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
A low level quality can be caused by the weakness either in the design of the
product, or in its manufacture. It is therefore appropriate to distinguish between
quality of design and quality of manufacture. Two products which have the same
use but which are designed in different ways can be of different quality of design.
Quality of design is evident in the specifications to which the product will be
manufactured. A product may confirm in varying degrees to the specification. This
varying degree of confirmation to the specification will lead to varying degree of
quality of manufacture.
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ORGANISATION STUDY
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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.
Ensuring identification and traceability of all materials is also the function of QA.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
63 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Manager Quality
Assurance
Quality
Assurance in
Charge Plant
I
Supervisor
Operators
Quality
Assurance in
Charge Plant
II
Supervisor
Operators
Quality
Assurance in
Charge Plant III
Quality
Assurance in
Charge Plant
IV
Supervisor
Supervisor
Operators
Operators
Chart-3.5
64 -
ORGANISATION STUDY
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4. Technical Department
Technical department at the corporate level carries out R&D activities and the
results of those activities are transferred to the plants. Some of the activities carried
out at corporate technical are new moulds, selection and evaluation of new and
alternative sources, selection and evaluation of alternative materials, finished
product testing and analysis, heat engineering and assisting plants in problem
solving.
The results of research and developments are translated into practical applications
at the plant level. At the same time, other routine functions like testing of incoming
materials, process monitoring and product testing at each stage is also carried out.
Activities
1)New product development.
2)New compound development.
3)Designing and inspection of new moulds.
4)Selection & Evaluation of new alternative source.
5)Selection and evaluation of alternative.
6)Finishes product listing and analyzing.
7)Arresting plants in problem solving.
65 -
ORGANISATION STUDY
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of samples from the received material as per sampling plan. The sample is given to
raw material testing lab along with sample transfer note/ visual inspection report.
Raw materials are tested as per BSP (Basic Standard Practices), standard test
procedure and are compared with the specification issued by corporate technical. If
the material does not confirm to specification, more samples are tested and released
if it is OK. 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. If
the material is rejected, then raw material rejection note is prepared and the
material is returned to the supplier by raw material stores.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Process Control
Process control is effected by checks or tests conducted regularly. The data
generated during tests and audits are used to control the process. Changes are made
if required in the specifications to achieve process ability targets, the changes are
documented through plant changes letters. If there is any problem, the process /
product will be analyzed for variations in raw materials, or process conditions. Any
deviation found will be corrected or alternative source of raw material will be tried.
Process will be repeated to check whether it is OK.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Tool Change
Whenever there is a tool change the concerned specification is given by plant
technical department. In case of a new size tool, it has to be Okayed by technical
before being put in production.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Finished products which dont confirm to first quality norms are kept separately are
jointly inspected by production, technical and quality assurance. Based on joint
decision, the material is either sent as seconds, repaired or scrapped.
Manager Plant
Technical
Technical in
Charge Plant I
Supervisor
Workmen
Technical In
charge Plant II
Supervisor
Workmen
69 -
Technical in
Charge Plant III
Supervisor
Technical n
Charge Plant
IV
Supervisor
Workmen
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Workmen
Chart- 3.6
70 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
pass. The item is dismantled and the exact nature of work to be done is finalized
and quotation is raised by the outside party. This is communicated to the intender.
Further clarifications and follow up is done by the intender. After getting the
approved repair quotation from the indent/department, necessary work order is
released by purchase department. Copies are distributed as in case of spares,
indenter has to follow up the repair machinery and again when it comes back after
repair; it is routed through engineering store.
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ORGANISATION STUDY
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Weighing of the load is done. GAE (Goods Arrival Entry) is made and the load is
re-directed to the unloading point through the security department. The unloading
point is usually the raw material warehouse, but sometimes the materials are
unloaded at the plants where it is consumed. In case of fuel, oil etc. it is unloaded at
the storage area.
At the unloading point, visual inspection is carried out and then the materials are
stored with the proper identification tags showing the primary status of the material
(Hold/Pending fir Test). Each material has a specified storage and it is placed in
that storage area.
Sample transfer/visual inspection report is prepared and samples are collected for
testing as per the documented sampling plan. The sampled bag is identified and the
sample is sent to technical department for testing. GRN (Goods Received Note) is
prepared at this point.
After testing the samples, technical department informs the test result through the
material releases/rejection/hold note printed at the bottom portion of the sample
transfer/visual inspection report. Based on the test result green color sticker
captioned OK is affixed if the material is OK, RED color sticker captioned
REJECTED is affixed if the material is not fit for use and ORANGE color sticker
captioned HOLD is affixed if it needs further test to arrive at a concrete decision.
Materials are issued to the production as per the indent raised by the production in
each plant. Stock inventory and stock status reports are prepared every month.
72 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Rejected materials are sent back to the supplier and the cost is recovered.
Transferring of materials to other plants is also monitored.
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
published monthly and distributed to central planning ,plant planning ,QA ,plant
head, marketing etc.
Shipping coordinates with central planning to get allocation for none moving and
slow moving items. Tread rubber/cushion which exceeds the shelf life of 3 months
and damaged products/tyres packed with wrong tubes will be given to production.
Statutory registers and returns as required are properly maintained and submitted.
New defective tyres are brought for tyres for repairs from outside godowns and
inspections by central exercise authorities are arranged .Statutory registers and
returns as required are properly maintained and submitted
8. Engineering Department
Engineering department functions are divided into Mechanical, Electrical,
Instrumentation, Civil & Environmental engineering. The main functions are new
machinery lay out preparation ,erection and commissioning of new machinery
,preventive maintenance, breakdown maintenance, condition monitoring and over
hauling of machinery and other related equipments.
Erection ,commissioning ,operation and maintenance of utility items like
generator ,boilers, compressors, pumps, freezer lines and cooling towers and
maintenance of material handling systems like lift, hoist and gantry are done by
engineering. The maintenance of equipments at pump house and training centers
are also done.
Mechanical Maintenance
74 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Preventive maintenance schedule for the particular week is taken and the necessary
materials ,tools, manpower and spares are arranged .The scheduled maintenance
activities are carried out based on work instructions and experience.
Based on the number and nature of breakdowns in each machine during the year,
the preventive maintenance schedule is reviewed and a new schedule is prepared
for the next year.
Breakdown Maintenance
The defective machinery is identified either by production or by engineering and a
maintenance request is generated and arranges for the tools, maintenance personnel
and spare parts. The machine is then released for maintenance. The required
maintenance jobs are carried out and the machine is thoroughly checked. If the
machine is OK, then it is handed over to production. Otherwise necessary
corrections are again done.
Every month, down time analysis is done and permanent corrective actions are
initiated in case of recurring failures. Mean time between failure and mean time to
repair are the measures adopted to track the improvement.
Electrical Engineering
75 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
MRF Kottayam unit falls under the EHT (Extra High Tension) consumer category.
The incoming power supply for this unit is 110 KV. The total connected load of the
unit is roughly 30000 HP. The maximum demand is 10000 KVA. For backup power
supply, the unit has 3 generators of 1000 KVA each and 1 generator of 5000 KVA
capacity.
Civil Engineering
Civil Engineering department does the work of project proposals, drawings and
estimates as per requirements for construction and extension of factory buildings,
equipment foundation, plant offices and construction of cable and pipeline
trenches, storm water drains and site development work.
Environmental Engineering
This branch is mainly concerned with monitoring of factors which affect the
environment and finding ways by which they are minimized or eliminated. Water,
air & sound pollution are the main factors which come under preview of
environmental engineering.
76 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Manager
Electrical
Maintenanc
e
Superviso
rs
Civil Engineer
Instrumentat
ion Engineer
Manager
Mechanical
Maintenanc
e
Supervisor
s
Electrician
s
Mechanic
s
77 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Chart 3.7
9. Industrial Engineering
Major Activities:
Conducting studies for fixing Standards and Crew Strength in all areas.
Negotiating of disputes by participating.
Participating in discussions for setting labor disputes
Manpower requirement assessment
Planning o Factory Layout
Expansion Project Coordination
Preparation and publication of MIS Reports
Works related to long term agreement.
computation of production bonus
Resource planning manpower, machinery and equipments
Long term agreement related works
Calculation of chairmans award
Calculation of production bonus
Connectivity between factories, head office and others plants, maintenance of
network connectivity in all areas of the plant, administration of local e-mail service,
maintenance of computers, printers other accessories.
ERP Activities Maintenance of leased line connectivity between factory and head
office and other plants, maintenance of network connectivity in all areas of the
plants, maintenance of network connectivity in all areas of the plant, administration
of local e mail service ,maintenance of computers printers and other accessories.
78 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Assistant
Manager
Industrial
Engineer
Recourse Panning
in Charge
Chart 3.8
79 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Procedures and guidelinesNecessary procedures, rules and guide lines for the
effective implementation of this policy, without prejudice to the statutory
requirements, are formulated by Chief Safety officer and Plant Safety officer. They
will also render necessary advice and assistance to all management staff in the
80 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
81 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Checking in/out raw materials, empty vehicles, carrying finished goods, vehicles
carrying scrap items etc.
Control and checks on the company hired taxes and security of bills.
Co-ordination of security duties with private security agencies and preparation of
bills.
Control and check over the entry of contract works.
In case of an accident in the factory, it is the responsibility of the security
department to provide the victim with first aid. The security department should also
take them to the appropriate place by using the ambulance if necessary. The inflow
and outflow of inventory, personnel are regulated and monitored by the security
department.
Search Operation
All workmen is liable on entering, leaving or while remaining inside the factory
premises and searches by the security personnel. The search clause is made
applicable to the workmen only. The following are subjected to search at the gate:
Workmen
Contract Casual Labor
Suppliers
Drivers, Cleaners and Private Vehicles
Commercial Vehicles
Company Vehicles
Important documents to be maintained:
82 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
SENIOR SECURITY
OFFICER
Officer Security
Watchmen
Firemen
Chart 3.9
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Functions
Any employee newly recruited will be exposed to the following areas.
Safety
Factory discipline
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Co-operative Society
Recreation club
Time Keeping
The office time is also come under the HR Department. The office time carries out
the following function.
Attendance detail
Leave details
Wage calculation
Daily reports.
Working hours (24 hours)
1st shift
7am-3pm
2nd shift
3pm-11pm
3rd shift
11pm-7am
General shift
8am-4.30pm
Structure of HR Department
Plant Human
Resource Manager
85 -
HR Officer
ORGANISATION
STUDY
Deputy Manager
AT MRF LTD,KOTTAYAM
Human Resources
Time
Canteen
Welfare
Officer
Supervisor
Coordinator
Training
officer
Chart -3.10
13. AccountsDepartment
This department keeps account of all the financial transactions of the company. The
accounting period of MRF is from October 1st of one year to September 31st of the
next year. MRF has a fully computerized accounting system that facilitates fast
operations of its various functions. All the transactions of production unit starting
from the issue of goods received to the final documentation is computerized. The
strategy that the company has adopted is to go for credit transaction and payment
will be made in one month of time.
The Functions of accounts department at the plant level has been divided into:
1. Financial account
2. Cost account
3. Wages and Salaries
4. Sales tax
86 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Financial Accounts
This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw materials purchase, petty cash payments,
operation and reconciliation of bank accounts ,payment to the government in the
form of taxes and levies ,payment of PF ,deduction from salary and payment of
loan outstanding and insurance premium of employees ,fright payments, payment
in lieu of travel allowance ,medical re imbursement etc. Cash receipts in the case of
scrap sales and any other cash receipt will also come under this branch of accounts.
Cost Accounts
This branch deals with forecasting ,budgeting, analyzing and reporting the income
and expenditure of the company .The budget for expenditure is prepared using
standard costing principles and it is compared with the actual expenditure .Any
variation from the budget is analyzed to find the exact reason and it is reported to
the top management.
Wages & Salary
Computation of wages and salary is done by this section of accounts department.
Wages of workmen are fixed in the long term agreement and are calculated on a
daily basis depending on various factors like grade, working hours, output achieved
etc.
87 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Sales Tax
All matters related to sales tax are handled by this section. Monthly returns for
sales tax are filed on behalf of sales depots. VAT (Value Added Tax) system has
been introduced and all matters related to this are also looked after by this branch
of accounts. C forms for purchases from outside the stare and F forms are
issued for receipt of goods from depots.
Structure of Accounts & Finance Department
Plant Account
Manager
Manager
Raw
Materials
Asst .Mgr
Plant
Accounts
Supervisors
Wages
Officer
Supervisors
Asst. Mgr.
Engineeri
ng Stores
Supervisors
Costin
g
Officer
Auditin
g
Supervisors
88 -
Officer
Shipping
Officer
Engineerin
g Purchase
Supervisors
Supervisors
Sales
tax &
Excise
Materials
Handling
Workmen
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Chart 3.11
Creating demand
Customer satisfaction
Increasing the goodwill of company
Increasing the market share
Raising the standard of living of the consumer community
89 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
SOUTH
Chennai
Ananthpur
Bangaluru
Belgaum
Calicut
Combatore
Ernakulam
Hubli
Hyderabad
madurai
Table 3.3
EAST
Kolata
Asansol
Cuttack
Dhanbad
Guwahati
Muzaferpur
Patna
Ranchi
Siliguri
WEST
Mumbai
Ahmedabad
Aurangabad
Baroda
Bhopal
Goa
Indore
Jabalpur
Jodhpur
Nerul
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Regional Sales
Manager
District Office
Sales
Department
Chart 3.12
Dealers &
Agents
INTERDEPENDENCE OF DEPARTMENT
MRF Ltd gives an insight about the functioning of the different departments. Each
department is headed by the general manager who possesses expertise, knowledge
in the area under his supervision. There always exists an ergonomic atmosphere
which is often made possible by the close interaction between all members in each
department. The top management moulds the strategies and policies that make sure
that the middle management implements them. Weekly interdepartmental meeting
aims at bringing coordination between the different departments. Open forums are
91 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
held once in a week in all plants where the employees can raise their concerns,
suggestions etc.
All the different activities that go on in a business are interdependent and work
together to create value for the customer and wealth for the business. The different
departments of the business are interdependent; that is, they rely on each other and
work together to achieve the objectives of the business. Within a business, it is the
role of management to coordinate all the organizational departments and ensure
that they work together for the overall success of the business. These departments
support the main goals of the business. They are very dependent on each other, and
it is very important to understand the interrelationships between them. The way
that one functions might decide to achieve its goals could affect the whole business,
so considerable cross-functional coordination is required.
In MRF Ltd there is a functional interdependence between different departments as
different functions communicate with each other in order to meet the business aims
and objectives.
In MRF Ltd., the purchase function is carried out by the purchase
department
of
the
respective
unit
or
plants
and
is
responsible
for
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
1Production is the functional area where the raw materials are converted into
finished products through a series of production process. It is done by keeping
quality conscious in mind. The quality assurance department ensures the quality
right from the procurement of raw materials, at each stage of production and just
before packaging. Production department also functions by collecting information
both from materials as well as marketing department. Production department
checks the quality of the raw materials and if it does not meet the standards report it
to the purchase department. The material department deals with the purchase of
raw materials and supplies the raw materials to the production department.
The interdependence of quality control department with the production, finance,
quality assurance and HR department is necessary as it deals with products, its
quality, payments and man power. They check the quality of product packed before
dispatch.
The interrelation of finance department is between materials, production,
marketing, advertising, export, quality assurance and HR departments. In addition
to the major functions of budgeting, raising funds internally and from financial
institutions and utilization of funds for growth of performance , it deals with all the
internal and external cash and payment transactions.
Public relation has to be thought of as a long term strategy and to implement this
long term strategy in a phased manner. Appropriate short term strategy are to be
evolved and implemented to build up and maintain the tempo.
Sales and servicing activity is one of the most important function in fulfilling the
objectives of the organization and needs of the customers. It has the activity of
selling the product as per customer requirement and maintain the customer
satisfaction.
93 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
(In
crores)
94 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Heads/Years
Total Income
Profit before Tax
Provision for Taxation
Net Profit
2013
13482.15
1226.80
424.59
802
Table 3.4
2012
13093.76
833.12
260.76
572
Source:
2011
10670.17
893.65
274.23
619.42
Secondary Data.
profit (Crores)
profit
1226.8
893.65 833.12
42.9
55.34
99.81
260.96 211.39
398.48
534.66
Chart 3.13
95 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Reserves (Crores)
Reserves
3640.9
2853.56
2293.53
981.91
1686.44
1357.18
1116.55
Chart 3.14
96 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Sales (` Crores)
Sales (` Crores)
13054.0313444.75
10637.03
8080.45
2989.43 3437.13
4233.66
5036.75
5715.52 6141.94
Chart 3.15
2297.77
1690.68
1361.42
986.15 1120.79
Chart -3.16
97 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
Company has crossed a sales turnover of Rs.13000 crores in the year 2012 which is
a landmark achievement. This reflects a sales growth of 32%. The growth was
primarily driven by a remarkable turnaround in the automobile market, lower
interest rates and the general recovery of business. During the year, there was an
unprecedented increase in the price of natural rubber and other key raw materials,
which has impacted the performance of the company. Despite the above, the
company could achieve improved results due to better operating efficiencies, value
systems and cost cutting measures which the company has undertaken over a
period of time.
98 -
ORGANISATION STUDY
AT MRF LTD,KOTTAYAM
(Rs. in
Crores)
Sales
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
6141.94
5715.52
5036.75
4233.66
3437.13
2989.43
37.40
34.40
40.83
24.17
27.07
44.96
58.54
6176.34
5756.35
5060.92
4260.73
3482.09
3047.97
1226.80
Other
Income
39.73
33.14
29.13
Total
Income
Profit
Before
Taxation
833.12
893.65
534.66
398.48
211.39
260.96
99.81
55.34
42.90
260.76
274.23
180.68
145.45
66.83
89.18
19.90
15.03
14.10
802.21
572.36
619.42
353.98
253.03
144.56
171.78
79.91
40.31
28.80
Capital
4.24
4.24
4.24
4.24
4.24
4.24
4.24
4.24
4.24
4.24
Reserves
3640.90
2853.56
2293.53
1686.44
1357.18
1116.55
981.91
820.05
749.81
719.17
Net Worth
3645.14
2857.80
2297.77
1690.68
1361.42
1120.79
986.15
824.29
754.05
723.41
5834.14
5477.16
4967.07
3865.62
3020.57
2866.24
2289.77
1955.99
1787.85
1534.47
Provision
for Taxation 424.59
Profit after
Taxation
Share
Fixed
AssetsGro.
Table 3.5
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CHAPTER 4
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SWOT Analysis
The SWOT Analysis has revealed the strength, weakness, opportunities, and threats
of the company. It has been detailed below:
Strengths
Market leader in the industry.
Unique and high brand image.
Major raw material (natural rubber) locally available.
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Strong channels of distribution (wide range of sales office for each zone)
Optimum capacity utilization of plants.
Strict quality measures.
Use of modern technologies and concepts.
Harmonious and cordial employer-employee relationship.
Great reserves and surpluses.
Good infrastructure.
Computerized system.
Environment certification (ISO 14001)
Quality product (ISO 9000 certification)
Highly evolved Research and Development wing
Training to all the employees.
Aggressive marketing Policies.
Experienced work force.
Wide spread recognition.
Quality control.
Strong financial support.
Weaknesses
High operational cost due to the use of modern and costly machinery for production.
Company is highly capital intensive.
High rate of absenteeism.
Strong trade union activities sometimes create problems among employees and also
disturb the smooth functioning of plant.
Lack of marketing department at the plants. It is at the corporate office.
Lack of speedy communication.
Lack of individual initiative.
Less interaction between manufacturing and marketing department.
Lack of commitment.
Opportunities
Growth in the economy, especially automobile industry.
Fast growing automobile sector provides good opportunities for MRF, as it is the
leading tyre manufacturer in the sub-continent.
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Increased access to global source for raw material at competitive price as a result of
various trade agreements by the country.
The modernization of tubeless tyres.
World class products.
Joint ventures or tie-up with foreign automobile companies.
More opportunities for diversification.
Global standards and competition.
Improvement in market share both in India and outside.
Availability of latest technology
Threats
Continuous rise in price of natural rubber and other raw materials.
Steady competition from other leading tyre manufacturers.
Changing technology.
Threat of cheap import of tyres, especially from China.
Market Risks.
Rupee depreciation resulting in lower export realization
Entrance of new players.
Increasing transportation cost.
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Porters five forces is the frame work for the industry analysis and business
strategy development developed by Michael. E. Porter of Harvard Business School
in 1979. It draws upon Industrial Organization economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. An
"unattractive" industry is one in which the combination of these five forces acts to
drive down overall profitability. Three of Porter's five forces refer to competition
from external sources. The remainders are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the
more general term macro environment. They consist of those forces close to a
company that affect its ability to serve its customers and make a profit. A change in
any of the forces normally, requires a business unit to re-assess the marketplace
given the overall change in industry information. The overall industry
attractiveness does not imply that every firm in the industry will return the same
profitability. Firms are able to apply their core competencies, business model or
network to achieve a profit above the industry average. Porter's five forces include
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- three forces from 'horizontal' competition: threat of substitute products, the threat
of established rivals, and the threat of new entrants; and two forces from 'vertical'
competition: the bargaining power of suppliers and the bargaining power of
customers. The following figure gives the structure of Porters five force analysis.
Potential entrants
(Threat of
mobility)
Suppliers
(supplier power)
Industry
Rivalry
Buyers (buyer
power)
Substitutes
(Threat of
substitutes)
Chart 4.1
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CHAPTER
Findings
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MRF ltd. Is the no. 1 largest tyre manufacturer in the country and the 12th largest
in the world.
MRF exports its products to more than 75 countries worldwide.
MRF is the first Indian company to export tyre to the US.
The company is providing good working environment.
MRF is the first company in India that manufacture and market Nylon tyres,
Suggestions
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Conclusions
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Madras Rubber Factory mobilized itself as the market leader. The strong
performance of MRF is because of combined efforts of management and
employees. MRF provides high quality and technologically superior products to its
customers. The company has the provision to find out which tyre is manufactured
by which worker. The effective management along with successful workers is very
dedicated and is aware of new developments taking place in the industry. There is
no compromise on the quality policy makes them King of Kings in tyre industry.
If they implement the suggestion put forward, will help them to improve profit and
helpful for the workers. So the company can attain global standard through
continuous improvement in the quality products and service in order to maintain
market leadership and can be the king in tyre industry for many years.
MRF Kottayam unit is one of the 6 production units of MRF India.
Its location is ideal as the major raw material -natural rubber- is locally available.
The factory has different specialized plants for the production of various products.
Work is done 24 hours a day.
Work runs smoothly with non interference from outsiders.
Each department in the company plays a crucial role in the smooth running of the
factory and they all work together to achieve the common goal of maintaining
market leadership and making products that meet global standards.
The unit offers vast employment opportunities to skilled workers of the area.
The HR department takes excellent care of its workers through various welfare
schemes.
The company meets all the statutory requirements and runs non-statutory works also.
Rights are fulfilled and demands are met.
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Bibliography
Books
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Websites
http://www.mrftyres.com
http://www.moneycontrol.com
http://www.fadaweb.com/indiantyresindustry.htm
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9 th