MRF is exploring opportunities for acquiring companies outside the country. For over 15 years, the industry has been suffering an inverted duty structure, despite appeals. It costs more in India to import rubber (20 per cent duty) than import a brand new tyre. There are opportunities particularly in Europe, China and South-East Asia. Sourcing and leasing land overseas are also options but it is important to ensure quality.
MRF has crossed a turnover of Rs 10,000 crore during the financial year ended September 30, 2011 – a growth of 30 per cent over last year. While topline has not posed a problem for the company – which has grown from a turnover of Rs 5,000 in 2007 – the bottomline has taken a dip due to high raw material costs.
The company has been investing Rs 900-1,000 crore annually for the last few years. It hopes investments in new plants will give full volumes next year – the factory at Ankanpally (A.P.), which was commissioned last year, and a new plant in Trichy which will start operations in the first quarter of the 2012 calendar year.
| Company Name | CMP |
|---|---|
| MRF | 129360.00 |
| Apollo Tyres | 407.35 |
| CEAT | 3280.30 |
| Balkrishna Inds. | 2180.00 |
| JK Tyres & Inds. | 398.70 |
| View more.. | |
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