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A SWOT examination for the Indian Rubber industry

A SWOT Research is a situational analysis in which the organisations Power, Weakness, Opportunities and Hazards are critically analysed to look at the current position of the company. SWOT Examination' are conducted by the companies within the proper planning process for the intended purpose of determining the organisations' strengths, weaknesses, opportunities and dangers before proceeding to the formulation of a corporate strategy.

The Power and are the negative and positive aspects of the inner factors. And Opportunities and Threats are the exterior factors.

The MRF is the largest and leading company in the Indian Silicone industry which employed in the production, distribution and the as the sales of tyres and other related products for different kinds of vehicle with a wide product selection of tyres, pipes, flaps, trade rubbers and conveyor belts. Its SWOT Evaluation is as follows.

Strength :-

Industrial Prominence and Brand Goodwill :- More than 55 years, MRF is the first choice in the tyre makes with an average market show of 50% talk about in the full total market in India.

Strong Authority :- The MRF is founded by a successful business promoter ever before within India Mr. K. M Mammen Mappilai who's also the creator of famous Manorama group in India. The present whole time Administrator of MRF Mr. K. M. PHILIP who's also known as the "PATRIARCH of the Indian Silicone" for the efforts he created by his pioneering contributions, effective visions authority to provide strength, stature and permanence to the industry in its decisive years Today's director panel of MRF is as follows

Director Name


K M Mammen

Chairman & Managing Director

Arun Mammen

Managing Director

K M Philip

Whole-time Director

Ranjit Issac Jesudasen


S S Vaidya


S S Vaidya


V Sridhar


Salim Joseph Thomas


Ashok Jacob


K C Mammen


N Kumar


Ravi Mannath

Company Secretary

Experience :- The MRF proven in 1946 that means even 1 year before the freedom of India. So the MRF grown with the indie Indian industry by knowing all the heart beats of Indian Silicone industry. MRF have seen the all rate and retardness of the industry

Financial :- The Annual Financial statement of last a decade is below

The last year total sale was Rs 8080. 45 Crores. In every the years it shows rises in sales, Profit before Taxation, Revenue After Taxation, Reserves, Networth and Total Sales. All it shows the ability of MRF to earn the revenue.

Manufacturing items and Distribution Channels :- MRF offers 6 Manufacturing items in South India in Goa, Medak in Andhra Pradesh, Tiruvattiyur and Arakkonam in Tamil Nadu, Puduchery, Kottayam in Kerala. For the intended purpose of distributing the merchandise a well supply system has been established which includes both immediate and indirect methods (selling through brokers or mediators) of syndication. The sales includes exports too.

MRF total creation vs the full total Industrial Development :- The MRF Tyres has the more ratio of increase in production rather than than compared to the whole industry. By segment wise examination we can see that in heavy commercial MRF is having 17 percentage when compared with 13 ratio of Total industry. In light commercial vehicle portion MRF is having 30percentage where total industry is having only 10 ratio growth. In Passenger/jeep category MRF's development is 40 ratio where total professional production progress is 39 percentage

Customers :- The Automotive firms which uses the MRF tyres are dominant in the global Automotive industry and they're Audi, Daewoo, Daimler Chrysler, Fiat, Ford, GM, Honda, Hyundai, Maruthi- Suzuki, Renault, Reva, Skoda, Tata, Toyota, Royal Enfield, HHML, Bajaj, HMSI, Yamaha, TVS and Suzuki

Quality: - Every Product has been analyzed immediately after the creation also MRF can be an ISO 9001 authorized Company which ensures the quality for the merchandise. In 1955 itself MRF collaborated with Mansfield Car tire & Silicone Company of USA for the merchandise quality goal. Also MRF is the sole company in India which has got technical cooperation with Vapocure Australia for his or her curing technology. All of the six plant life of MRF is 16949/ISO 9001 certified which is a proof for the quality of their products. All the products are analyzed inside and outdoor for checking out the grade of the product to attain the limited quality of MRF and also to attain the benchmarks of OEM or by any of the national benchmarks like BIS/JIS/ETRTO/T&RA.

Technology Research and Development:- In MRF a team of 300 technicians and researchers who are in the study of designing tyres as based on the customer needs. MRF uses move forward cutting edge technology for the making.

Tie-ups and Business Diversification :- MRF has been tangled up with several other commercial international giants to form new firms for the intended purpose of diversifying the business enterprise. MRF tyres and Hasbro Inc. , USA collaborated to create a new company in India called Funskool which is the current largest toy developing company in India. MRF tyres and Bayer Germany collaborated and shaped MRF Speciality Finish which holds the 80% of market share in this sector. MRF opened up institutes called Speed Academy for the purpose of training Fast Bowlers in a number of elements of India. Also the tie up up with Vapocare as stated above.


The weakness refers to the internal factors of the organization which ceases the firm to achieve its real performance. The weakness of MRF Tyres is as below

The role of Cost :- Even as we can easily see in the financial survey the total cost are can also increase in the same percentage as the total sales increases. So this shows the utmost degree of cost control can attain by the MRF Tyres. The rubber industry has got direct marriage with the expense of raw materials like the natural rubber, crude oil etc which includes the 70 percentage of overall creation cost.

Huge capital required: - The production steps done by the MRF Tyres requires high capital. Also the research procedures, other charities and other sponsorships required huge amount of money.

Huge Expectation :- As the MRF Tyres is the leader in the Indian Plastic Industry eye in this industry will be viewing them all the time, so they need to work hard to keep its standard. The costs decision of MRF is extremely important because in India the price of the rubber is dependent upon the MRF plastic procuring price.

Product Range: - Although MRF exports their products to foreign countries its product range is mainly focused on the Indian conditions.

III Opportunities:-

Opportunities are the favourable situations in the organisation's environment which is often described as a standard tendency or change of some sort or an overlooked need that rises demand for a product or service and leverage the organization to improve its position by providing the same. The Opportunities of MRF is as stated below

Survived the great melancholy: - Although there is slight change on the market show of MRF Tyres during great unhappiness which came right down to 40 percentage it acquired survived the unhappiness. In enough time of great recession also their total sales and profits increased. It shows a broad acceptance because of its products and the continuing future of the company is extremely glowing

Tie-ups :- As the MRF is having tie up ups with other companies and formed the main organisations in that particular industries it offers a wide opportunity for more tie ups in the foreseeable future and also we can expect more further cooperation with others for the diversification of its product range as well for the betterment of quality because of their current products

Foreign Trade :- As the MRF is having great experience in overseas trade by exporting and foreign companies' collaboration it has got a wide scope in overseas market. MRF will receive a red carpet welcome in all the international countries because of their business diversification purposes.

Reserves :- The MRF is having a great reserve amounted INR 1686. 44 crores that can be utilised for his or her future strategies. So for all their plans which they are going to establish finance can be accumulated from the organization itself

Tariff restrictions :- The excise tasks reduced from 14% to 10% in Dec 2008, and later to 8% in Feb 2009. This provided the tyre manufacturers a great scope for procuring the resources of recycleables from outside and help reduce the creation cost somewhat.

Growing economy and its own needs:- The Indian overall economy has projected 8. 5 percent expansion in the current year and comes with an average annual expansion for the past 5 years which is a great growth and its automobile sector has got expansion of 27. 6 ratio in the last year all it shows the upsurge in need of local way to obtain tyres and the export is additional. So that it is a great opportunity for MRF.

Indian infrastructure:- The infrastructure of the united states is growing combined with the economy. Both Central and express governments are really cautious about developing infrastructure particularly roads and agro and faming areas. So it also provides another great possibility to MRF.

Development of Foreign Economies:- As the global circumstance is changing and new big economies are growing like Brazil it also create huge range for MRF.

IIII. Hazards :-

The threat refers to the responsibilities or the problems in the surroundings that are forward. The dangers of MRF can be categorised as under

The ongoing strike:- There is one ongoing labour reach in MRF internally as well as the whole motor vehicle in industry in Chennai to create as the 'Detroit of Asia' because of the presence of large numbers of automotive and automobile aspect companies there. It had shaken the almost industry. And in MRF two production crops in Tamil Nadu are already dead because of the strike. This ia great menace to the MRF

Increasing price for raw materials:- The price tag on natural rubber is certainly going on increasing as well as the price for crude oil is also increasing domestically and internationally. Based on the quotes of global leading rubber bodies like Connection of Natural Plastic Producing Countries (ANRPC) and International Silicone Research Group (IRSG) says that the supply of natural plastic will be restricted for another two years that will boost the price. The uncooked material like both of these features the 70 percentage of the total production cost. This is a risk to the MRF as well as the plastic industry

Cheaper goods from China :- The cheaper tyres are via china. Although the product quality will be very bad but the price is really cheap as compared to the quality products of MRF. Only because of good deal it attained 5 ratio of market talk about in Indian industry. Which means this is each other threat for MRF.

Cyclic nature of Vehicle industry:- The cyclic aspect refers to the utilization of second hand vehicles in Motor vehicle industry. This will reduce the sales of automotive industry somewhat which will directly benefit the sales of the suppliers too. Which means this is also a risk.

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