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MRF Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Madras Rubber Factory, commonly known as MRF or MRF Tyres, is an Indian multinational tyre manufacturing company and the largest manufacturer of tyres in India. It is headquartered in Chennai, Tamil Nadu, India.

  • MRF has achieved an all-time high consolidated total income of Rs. 23,261 crores in the current year, marking a significant increase of Rs. 3,627 crores from the previous year.

  • The success of their Scooter tyre model, Zapper C1, has contributed to increased sales in the 2-wheeler tyre segment, demonstrating the strength of the company and its products.

  • The semiconductor shortage in the automobile industry has eased, resulting in improved production levels. Electric vehicles are now emerging in different categories, but the long-term impact on the market is yet to be seen.

  • Pent up demand in passenger vehicles will cool in financial year 2024 but secular economic growth should provide steady growth to the auto industry.

  • Higher capital expenditure by the auto industry points to high levels of capacity utilization and is a pointer to higher levels of production in the future.

  • With new BS VI phase-2 transition effective 1st April, 2023, vehicle costs will go up. However, the reduction in input costs will be a positive for the auto industry. Impact on the tyre industry would also be similar as outlined above.

  • The Tractor tyre sales, which was rather muted last year, has shown encouraging results in the current year. With MRF leading in product preference in Farm tyres, this has also helped increase our sale.

  • New Tyre sizes in MRF Tyre series like MRF PERFINZA, MRF MARKUS, MRF CITIBUS and many more were introduced in the various luxury brand Cars premium SUV tyre brand MRF Markus for the premium SUVs of Audi, BMW, Mercedes-Benz and Commercial Vehicles.

  • In FY 2022-23, the company achieved robust revenue growth across all product groups. The initial impact of high raw material prices due to the COVID pandemic and the war in Ukraine affected profitability in the first three quarters. However, with raw material prices easing later in the year, the company saw improved profitability in the fourth quarter.

  • Long term wage settlements have been concluded in our factories at Thiruvottiyur in Tamil Nadu, Goa and Ankenpally in Telangana.

  • Unforeseen headwinds in countries like Bangladesh and Indonesia impacted total revenue. Bangladesh faced a forex crisis that affected exports, while Indonesia's suspension of quotas hindered business.

  • However, there was substantial growth in markets like the Philippines and the Middle East, which helped maintain the momentum for MRF's brand. The company sees opportunities in existing strong markets and emerging markets in Europe, South America, and the USA.



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