A REPORT ON ORGANIZATION STUDY AT MRF. LTD, KOTTAYAM (2014)

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A REPORT ON ORGANIZATION STUDY AT
MRF. LTD, KOTTAYAM
SUBIN SURENDRAN
REG NO: 51618
Under the Guidance of
Ms. SANTHI ZACHARIA
Submitted in Partial Fulfillment of the Requirement for the award of degree
Master of Business Administration
to the M.G. University, Kottayam
MARIAN ACADEMY OF MANAGEMENT STUDIES
PUTHUPPADY PO KOTHAMANGALAM
2013 - 14

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CERTIFICATE
This is to certify that the Organization Study Report entitled “AN
ORGANISATION STUDY AT MRF Ltd. Kottayam” submitted to M.G.
University in partial fulfilment of the requirements for the award of the degree
Master of Business Administration is a bonafide work done by Mr.Subin
Surendran, (Reg. No.51618), 2nd Semester MBA Student, Marian Academy Of
Management Studies, from 1st May 2014 to 31st May 2014 under my supervision
and guidance.
Faculty Guide Guide Principal
Date: ……………………………….
Place: ……………………………….

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DECLARATION
I Subin Surendran, 3rd semester MBA student of Marian Academy Of
Management Studies, Kothamangalam, hereby declare that this report on
ORGANISATIONAL STUDY AT MRF Ltd. Kottayam, under the guidance of
Ms,Santhi Zacharia, Marian Academy of Management Studies, Kothamangalam,
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: SUBIN SURENDRAN
Date:

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ACKNOWLEDGEMENT
On completion of my Organizational Study Report , I feel deeply indebted to many. Let me
avail this opportunity to express my deep sense of gratitude to Ms. Santhy Sakaria Faculty
Mentor, Marian Academy of Management Studies, Kothamangalam, for his kind
guidance and encouragement given to me during the preparation of this report.
Thankfully I express my gratitude to Mrs. PremalaSkariah, Asst. Manager, Welfare, MRF
Ltd, Vadavathoor, Kottayam, Kerala for her help in collecting the data and valuable
suggestions required for the study.
My special thanks to Ms. Anju V Pavithran, MRF Ltd, Vadavathoor, Kottayam, Kerala for
her support and help.
I am thankful to all the officials of MRF Ltd, Vadavathoor, Kottayam, Keralafor providing a
good environment that helped me to complete this study within the specified time.
I take this opportunity to extend my gratitude to my parents and other family members for
their encouragement on completing this work.
My sincere thanks to the God Almighty for having showered all the blessing to complete this
work.
Subin Surendran

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TABLE OF CONTENTS
Chapter Title Page No:
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Introduction
Company Profile
Organization Structure & Functional Areas
Conclusions
1
4
21
58
Chart Title Page No:
Chart-2.1
Chart 3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
Site Map
Organisation Chart of MRF Corporate Office
Organisation Structure of MRF Kottayam Unit
Structure of Production Department
Structure of Quality Assurance Department
Structure of Technical department
Structure of Engineering Department
Structure of Industrial Engineering Department
Structure of Security Department
Structure of HR Department
Structure of Accounts & Finance Department
Structure of Marketing Department
Financial Performance:
Profit
Reserves
18
22
23
26
30
34
40
42
45
47
49
51
54
55

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3.14
3.15
Chart – 4.1
Sales
Net Worth
Structure of Porter’s five force analysis
55
56
62
Table Title Page No:
Table – 2.4
Table -3.1
3.2
3.3
3.4
Kottayam Unit-Facts & Figures
Product Volume
MRF Sales Network
Financial Performance
10 years Financial Summary
20
26
51
54
57

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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.
About The Company:
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 -

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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.
Objective of the Study
The study was conducted at Madras Rubber Factory Limited (MRF Ltd), Vadavathoor,
Kottayam, Kerala. MRF Ltd. is one of the well known, most advanced and leading
manufacturers and exporters in tyres. The organization study was conducted in order to
understand the functioning of the various departments and activities undertaken by them;
organizational structure; roles and functions of different departments; the vision, mission, and
objectives of the company, its product profile, rules and regulations in the company etc.
Organizational study covered all functional aspects of the organization.
Scope of the study
By doing this we can get a basic idea how Organizational activities are going out in the real
world and we can see how they are managing every activity, procedures and policy. As an
MBA student I also get a chance to know how organizational activities are going on and have
a real experience.

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CHAPTER- 2
COMPANY PROFILE

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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 tyre
manufacturing 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 world’s 12th 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.
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 Vinu Mammen, son
of the Late K.M.Mammen Mappilai.
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.

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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 company’s 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.
MRF’s tyre experts and rubber technologists are 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.

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 1949-Established 1st office at 334, ThambuChetty Street, Chennai.
 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, non-blooming 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 India’s 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 India’s 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.
 1987-Becomes the No: 1 tyre company in India by crossing the Rs.300 crores
turnover. Since then MRF has maintained its No: 1 position.
 1988-MRF Pace Foundation was set up with Dennis Lillie as its Director.
 1989-Collaborated with the world’s largest toy maker, Hasbro International and
launched Funskool India, the most modern toy project in Asia.

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 MRF collaborated with Vapocure of Australia to produce poly-urethane paint
formulations.
 MRF Zigma Radials were launched along with MRF World Series Cricket which was
one of the country’s most spectacular cricketing and marketing events.
 The 5th unit for manufacturing tyres and tubes was opened at Medak in Andhra
Pradesh.
 MRF TyreDrome became India’s 1sttyre company owned wheel care complex.
 MRF collaborated with Pirelli to manufacture conveyor belts called Muscle Flex. The
same year MRF brought the World Boxing Championship to India.
 MRF bagged Visweswarayya Award for the Best Business House in South India. It also
bagged the Harvard Business School Award for the Best Corporate Performance.
 1991-Moved into its own corporate office which soon became a land mark in Chennai.
 1993-Beacame the 1st Indian tyre company to cross a turnover of Rs.1000 crores. With
this the company found a place among the 10 most respected corporate groups in India.
 It was a proud moment for the company when its founder K.M.MammenMappilai was
honoured with the “Padmashree” for his contribution to industry, the only industrialist
from South India to be accorded with this honour.
 1996-In the Golden Jubilee year the company crossed a turnover of Rs.2000crores and
also setup a new plant at Pondicherry for manufacturing radial tyres.
 1999-Was declared as the Most Ethical Company by the Business World in its
survey.
 2004-Crossed a turnover of Rs.3000 crores.
 2006-Turnover crosses Rs.5000 crores.
 2007-Launched Super Lug F5 and Super Lug 505, a premium mileage rear fitment
truck tyre.
 MRF launches ZSLK tyres.
 2008-Won JD Power Award for the 6th time.
 2010-Ranked highest in the JDPower Asia-Pacific 2010 India Original Equipment
TyreCustomer Satisfaction Index (TCSI) Study. This is for the 7th time that MRF has
been awarded this honour.
 Won the Top Export Award from Chemicals & Allied Products Export Promotion
Council(CAPEXIL) for 2009-10.
 2011-MRF launches Revz, India’s 1st radial for 2 wheelers.

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 MRF inaugurated its 7th manufacturing facility at Ankenpally at Medak District in
Hyderabad, Andhra Pradesh exclusively for radial tyres.
 Turnover crosses Rs.10000 crores mark.
 Rankedhighest in theJDPower Asia-Pacific 2010 India Original Equipment
TyreCustomer Satisfaction Index (TCSI) Study for the 8th time.
 2012-New plant at Perambalur, near Tiruchirappalli in Tamil Nadu will be
operational. This will be MRF’s 8th independent plant in India.
 2013-Won the JD power award for the 10th time.
 MRF's Aero Muscle becomes the only Indian tyre to be chosen for the legendary
fighter jet - Sukhoi 30 MKI
 Team MRF’s Guarav Gill wins his first Asia-Pacific Rally Championship
The Muscle Man
The corporate ethos is perfectly represented by the brand symbol The MRF Muscleman-
embodying strength, reliability and durability; the very qualities of the tyres it represents.
The mere mention of the world “MRF” is bound to bring the muscleman to the mind of
Indians. The muscleman has evolved in 1964 soon after MRF began exporting tyres. Over the
past 33 years it has evolved from a mere corporate mascot to a symbol of strength, reliability
and durability. Now the muscleman grew to become India’s most trusted and well recognized
symbol for tyres.
In the 1960’s the Indian tyre market was completely controlled by the large multinational
companies. Around this time MRF opened tyre factory at Thiruvattiyur in Tamil Nadu. With
that came a task of recognizing an appropriate corporate brand symbol. In this process of
developing suggestions for the symbol, some enterprising employees conducted an informal
market survey by interviewing people from all over the country about their expectations from
a god tyre. One day a truck driver at a road side dhabha (tea stall) somewhere in Western
India hit upon the rigid idea when he said “a good tyre should have all the qualities of a
pehelwan(strongman). And by this simple statement, the muscle man was born.

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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 today’s 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
Mission& Vision
MRF is a leader in the Indian tyre industry and a significant global player providing customer
delight and enhancing shareholder value. MRF has well defined quality environmental safety
and health training and human resource policies. The vision of MRF is “to realize their
policies and implement the contents letter and spirit.”
It is the vision of MRF to emerge as prominent global player in the field of polymers (plastic
and rubber) and make India a global super power in terms of technology and quality of life.
It is the mission of MRF to realize zero defects, zero break-downs, zero accidents, zero
pollution and thereby to have zero losses.

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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 ofMRF
1. Quality Policy
The main quality objective of the company is “tomaintain market leadership through
continuous quality performance”
2. Safety Policy
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 company’s 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

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 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..
4. Training Policy
The training policy of MRF LTD. is “to provide and develop knowledge, skills and
behavior of the company’s 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.

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Board of Directors
 K.M.Mammen - Chairman & Managing Director
 ArunMammen - Managing Director
 K.M.Philip - Whole Time Director
 Rahul MammenMappilai - Whole Time Director
 Dr.K.C.Mammen - Director
 K.D.Parakh - Director
 Ashok Jacob - Director
 V.Shridhar - Director
 Vijar.R,Kirloskar - Director
 N.Kumar - Director
 Ranjith.I.Jesudasen - Director
 S.S.Vaidya - Director
 Dr.Salim Joseph Thomas - Director
 Ravi Mannath - 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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Awards & Achievements
 FORD WORLD EXCELLENCE AWARDS
MRF won the silver award and is the only Indian company to win this excellence award.
 TNS
MRF voted the "Most Trusted" Tyre Company in India by TNS 2006 global CSR study.
 J D POWER ASIA PACIFIC
MRF won the award for customer satisfaction not once but 10 times till date.
 CAPEXIL
MRF won the award for exports.
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
 Funskool India Ltd.
 Product-o-Drome
 Paint & Specialty coatings.
 MRF Pre-treads
 MRF Pace Foundation
 MRF Power House
 MRF TyreDrome
 MRF Muscle flux Conveyor Belting

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SisterConcerns
 MalayalaManorama
 Manorama Vision
 MM Foam
 Philip’s Coffee
 Devon Machines
 Plantation
 COLT Computers
 MazhavilManorama TV channel
Product Range
Automotive tyres are the main products of the company.
 Truck tyres-tube type and tubeless type
 Light truck tyres
 Special tyres for defence
 Tyre for industrial applications
 Agricultural tractor and tiller tyres
 Off the road tyres-solid tyres and earth mover tyres
 Passenger tyre-bias ply and radial
 2/3 wheeler tyres
 Specialized tyre for motor rallies
Non Tyre Products:
 Automotive tubes
 Toys
 Flaps
 Conventional tread rubbers
 Pre-cured tread rubber
 Vulcanizing solution
 Tyre repair materials

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 Conveyor belts
 MRF Wood coat
 MRF metal coat
 MRF glass coat
 MRF velour
 MRF auto coat
MRF Kottayam Unit
MRF limited, Kottayam are one of the most modern plants that was setup in 1969 at
Vadavathoor about 7km from Kottayam town in the state of Kerala, a hamlet lying on the
outskirts of Kottayam district. About 10 crores of land was purchased in Vadavathoor village
during 1968 and the foundation stone for the factory building was made by late Sri.
K.M.Cherian. Availability of intelligent and motivated labor, natural rubber in large quantity
(Kottayam is the land of 3 L’s-Latex, Letters & Lakes), cheap power etc. Tariffs, tax
concession and transportation facilities were the main reason behind the choice of Kottayam
as the 2nd manufacturing facility of MRF.
A factory building with in the area of 34200 sq. ft was constructed during the period of 1968-
69 and Ban-Bury (internal mixer) of 3A size with a capacity to mix of 10 meter per day was
erected and commissioned on 21st July 1969, with strength of 7 workmen. Presently it is the
most advanced technology mixing unit and a fully fledged manufacturing unit providing truck
and tractor tyres.
In the view of high productivity and very good performance in general, the mixing capacity
was enhanced by installing a second Ban-Bury of 11A size with a capacity to mix 48 meter
per day during march 1970, with the permission of Goa government. A license to manufacture
400000 automotive tubes per annum was transferred and started production of tubes with 7
quarrying presses. To enhance the mixing capacity, Ban-Bury of 11 D size were installed in
1978 to meet the increasing demand for mixing. At present 6000 tones of various compounds
are dispatched to different units.

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Another new product introduced in MRF Kottayam unit during 1993 was flap production. The
management also decided to start tyre production Kottayam unit taking amount of various
incentives on tax and power announced through a new industrial policy by the Kerala
Government. The tyre plant with an initial plan to produce 200 numbers of tractor rears and
600 numbers of tractor front tyres per day was inaugurated by Chairman Sir
K.M.MammenMappilai on 30th May 1994. Commissioning of tyre plant was the beginning of
a new era in the history of Kottayam unit. Initially tractor front tyres were produced and then
it diversified into passenger tyres, tractor rear and truck tyres of various sizes. Cement house
was also built to prepare various cements and paints required at tyre plant and also for the
production of vulcanizing solution.
A new plant, mainly for PCTR (Pre-Cured Tread Rubber) production was commissioned in
the year 2000. This new plant now houses a 6” cold feed extruder for extruding re-threading
materials and PCTR slugs, PCTR curing presses, 48” calendar for production of tyre repair
materials, 68” fabric calendar, German tuber for flap slug extraction, flap curing presses, tyre
finishing and repair, tyre clinic, textile lab, finished goods storage and shipping.
With the growth in the number of tyre presses and subsequent increase in the requirement of
bladders (which were being supplied by other units of MRF) 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.

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Site Map
Chart-2.1
MIXING PLANT
RM
GODOW
N
BD
MIXING
PCTR PLANTTYRE PLANT
TUBE PLANT
ENGG.
STORE
CANTEEN
ADMINISTRATION
OFFICE

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Employee Details
 Office Managers - 29
 Management Staffs - 159
 Clerical Staffs - 58
 Sub-staffs - 8
 Watchman & Fireman - 52
 Workers - 1079
 Trainees - 78
 Casuals - 17
 Temporary Workmen - 155
 Canteen Contractor’s Workmen - 40
 Total - 1738
Working hours at Kottayam Plant (24 hours)
There are 3 shifts of 8 hours each.
 1st shift - 7 am to 3 pm
 2nd shift - 3 pm to 11 pm
 3rd shift - 11 pm to 7 am
 General shift - 8 am to 4:30 pm
Trade Unions
 MRFEU - MRF Employers Union
 MRFEA - MRF Employees Association
 MRFES - MRF Employees Sangh
Plants in MRFKottayam Unit
1) Tube Plant
2) Tyre Plant
3) Mixing Plant
4) PCTR Plant
Products at Kottayam Plant
1) Automotive Inner Tube
2) Automotive Tyre
3) Retreading and repair material
4) Flap
5) Bladder

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6) Pre-cured tread rubber
7) Vulcanizing solution
8) Curing Bags/Envelope
9) Mastication
International Certifications for Kottayam Plant
 ISO 9001:2000 Quality Management System
 ISO 14001:1996 Environment Management System
 ISO TS:6949 Technical Standards
 CQC
Kottayam Unit-Facts & Figures
Built-up area Six lakh square feet
Management staff 252
Regular workmen 1115
Casual workmen 399
Total finished goods production 3400 MT/ month
Total turnover of finished goods Rs.42 crores/ month
Mixed stock sent to other units 7000 MT/ month
Tyre production 52000 tyres/ month
Total production of tubes, envelopes
and curing bags
263000/ month
Flap production 82000/ month
Tread Rubber Production
(conventional)
160 MT/ month
PCTR production 330 tonnes/ month
Table – 2.1

27. 27 -
CHAPTER-3
GENERAL MANAGEMENT PRACTICES

28. 28 -
Organisation Structure
Organisation Chart of MRF Corporate Office
Chart 3.1
Chairman &
Managing
Director
Joint
Managing
Director
Thiruvattiyur Kottayam Goa Arkona
m
Medak Pondicher
ry
Gummidippondi Perambalur
Manufacturing Units
Director
Manufacturing
Director R & D
Director
Accounts
Director
Engineering
Director
Marketing
Whole Time
Director
Director
Material &
Export Division

29. 29 -
OrganisationStructure of MRF Kottayam Unit
Chart-3.2
Electrical
Maintenanc
e Civil
Engineering
Mechanical
Maintenanc
e
General
Supervisor Time
office
Security
Officer
Quality
Assurance
Officer
Technical
Officer
Assistant
Manager
Planning
Assistant
Manager
Accounts
Manager
Plant I
Plant II
Plant III
Plant IV
Guards
Technical
Supervisor
Supervisor
Quality
Assurance
Supervisor
OperatorsStaff
Foreman
SupervisorWorkersOperatorsOperatorsWorkersStaff
Supervisor
Workers
Workers
Plant
Engineerin
g Manager
Plant
Accounts
Manager
Plant HR
Manager
Plant Senior
Security
Officer
Plant
Production
Manager
Plant
Industrial
Engineering
Manager
Plant Quality
Assurance
Manager
Plant
Technical
Manager
GM

30. 30 -
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. Production Planning Department
3. Quality Assurance Department
4. Technical Engineering Department
5. Plant Purchase Department
6. Raw materials Stores Department
7. Shipping (dispatch) Department
8. Engineering Department
9. Industrial Engineering Department
10. Safety Department
11. Security Department
12. Human Resource Department
13. Accounts Department
14. Marketing Department

31. 31 -
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 Plant1
 Tyre plant Plant2
 Mixing plant Plant3
 PCTR plant Plant4
The following are the main functions of production department.
 Planning for production processEvery month, a monthly plan is given to 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
Processing is carried out per the technical specification.
 Product identification and traceability
 Inspection

32. 32 -
Product Volume
Table – 3.1
Structure of Production Department
Chart-3.3
Product Volume
Tyres 2437 no./day
Tubes 8433 no./day
Flops 2677 no./day
PCTR 16 mts./day
Production Manager
Asst.Manager
Production
Plant- II
Asst.Manager
Production
Plant- III
Asst.Manager
Production
Plant- II
Asst.Manager
Production
Plant- I
OperativesOperativesOperatives
Supervisor SupervisorSupervisor
Operatives
Supervisor

33. 33 -
2. Production Planning Department
Production plan for the coming month will be issued form the Central Planning at Corporate
office. Based on this, plant planning in-charge will issue the monthly simulation plan to
central planning, plant production and to shipping. Based on the monthly plan and the
inventory norms the monthly requirements of raw materials and consumables will be prepared
by plant planning and is sent to central planning, Corporate purchase and to Raw material
stores. Monthly requirement of raw materials is calculated from software and it is validated
every six months.
Based on the monthly simulation plan for the whole of Kottayam unit, each plant make its
own simulation plan and indents required materials from raw materials 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 day’s
production. Plan Vs Production report is published every 10 days and also on a monthly basis.

34. 34 -
3. Quality Assurance Department
Quality is considered as the most effective tool to improve productivity, to achieve cost
effectiveness, to improve profitability and market share and to remain competitive in the
global market. In the business environment of today, quality impacts not only the products
and services but also many other relevant entities such as process, systems, people and
organization.
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.
Functions of Quality Assurance Department
 Quality assurance department’s primary aim is customer satisfaction. Hence its prime
duty is to ensure that all customer complaint should be taken seriously and is to be
communicated to all concerned. Problem solving tools are employed to ensure that the
problem is solved and error proofing methods are adopted to ensure that such problems don’t
occur again.
 Improve the profitability of the company by reducing defects and waste generation.
This is done by initiating projects for waste reduction and forming task forces for close follow
up. Specific targets are fixed in each area for waste reduction and forming task forces for
close follow up. Specific targets are fixed in each area for waste reduction and quality
improvement and it is done in co-ordination with all other connected departments.
 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.

35. 35 -
 Educating workmen on Quality Standards and the consequences of not following
quality norms is also done.
Audits on suppliers and outside godowns are conducted periodically to ensure the materials
are of the required quality and also to ensure that they are stored in the proper manner.
Whenever a finished product is returned to the factory due to any defect those products are
inspected, the reasons found out and communicated to everybody concerned. It is then
disposed in a suitable manner and recorded.
Slow moving and non-moving items are tracked at regular intervals to avoid material getting
deteriorated due to prolonged storage and to avoid producing material which is not needed by
the market.
Quality Policy of MRF
The quality policy of MRF is to maintain market leadership through continuous quality
improvement. To achieve this goal, all the MRF plants and the corporate office shall pay
particular attention to the following:
 Product process improvement by field or plant performance monitoring and prompt
service to the customer
 Upgradation of machinery to meet the increasing needs of the customer.
 Continuous training of all employees in order to acquire necessary skills and
knowledge.

36. 36 -
Structure of Quality Assurance Department
Chart-3.4
Quality
Assurance in
Charge Plant I
SupervisorSupervisor
Quality Assurance
in Charge Plant IV
Quality
Assurance in
Charge Plant II
Operators
Supervisor
Quality Assurance
in Charge Plant III
Supervisor
Operators Operators Operators
Manager Quality Assurance

37. 37 -
4. TechnicalDepartment
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.
Raw Material Testing
All raw materials are tested and released if they confirms to the specifications. When the
material is received, raw material stores personnel arrange for collection 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

38. 38 -
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.
In-Process Material Testing
In process materials are tested by technical as per the plan to check whether any deviation
from the specification has happened either in the material used or in the process.
Finished Product Testing
Finished product testing is done both in the plant and at corporate technical departments. This
is done to ensure that the product produced confirms to the required standards. In case of
tyres, ply adhesion, mounted tyre dimension, and cut tyre analysis are done in the plant. For
PCTR and flap, cured dimensions and weight are checked.
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.
New Product Introduction
Whenever a new product is introduced, a TPOR (Technical Program Opening Report) is
received from corporate technical along with corporate specification, project schedule and
new size production plan. Based on the TPOR, a micro plan will be prepared by Head- plant
technical and it will be approved by the originator of TPOR. This is then given to the

39. 39 -
concerned technical in-charge who prepares the activity plan. Plant specification is generated
based on the corporate specification.
Analysis of the finished products is done and necessary corrections if any are incorporated
into the specification. The product is released for re-evaluation or for completion of the
project schedule. The product is sent for in-plant testing, corporate testing and performance
report is published. The performance during bulk evaluation is published. Then if it is
satisfactory, the product is released for regular production in consultation with corporate
technical, and is documented through a TA (Technical Authorization) or PLC (Plant Change
Letter).
Control of Non-Conforming Product
It is the responsibility of technical department to dispose of the non-conforming materials in
suitable manner. Non conforming materials are tied with a red tag (non conforming material
tag) which contains all the relevant details like the MRF code of the held material, quantity,
reason for holding, date and shift of production, date and shift of holding etc.
Technical in-charge reviews the non-conformance and takes a decision on the method of
disposal and this is recorded on the non conforming material tag. The disposal is then
followed up by production.
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.
Finished Product Re-Classification

40. 40 -
Finished products which don’t 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.
Structure of Technical department
Chart- 3.5
Manager Plant Technical
Technical in Charge
Plant I
SupervisorSupervisor
Technical n
Charge Plant IV
Technical Incharge
Plant II
Workmen
Supervisor
Technical inCharge
Plant III
Supervisor
Workmen Workmen Workmen

41. 41 -
5. Plant Purchase Department
The items purchased by the plant can be categorized as follows:
 Items which come under the head capital expenditure.
 Items which come under engineering spares (non-capital expenditure)
 Stationary and miscellaneous items (items which don’t come under the preview of raw
materials)
 Services (repairing for machinery)
Procedure followed for purchasing
Any person who needs a material can make a purchase on request but it has to be authorized
by the department head. This has to be routed through engineering store.
In case of items involving capital expenditure, it should be capital authorization number. In
case of engineering spares of non-capital nature, this is not required.
Based on the indent, necessary quotations are invited and purchase order is released. The copy
of purchase order is sent to the supplier, intender, accounts, stores, corporate office PEM and
a file copy for plant purchase.
Procedure followed for repairing
For repair and maintenance of equipment or machinery, indent is raised and it is authorized by
PEM and item is sent to the party from engineering stores via gate 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,

42. 42 -
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.
6. Raw MaterialStores
Raw material stores will receive a copy of the raw material requirement for the month which
is prepared and sent by the plant planning. This is also sent to the central planning and central
purchase by plant planning. Based on the requirement, central purchase arranges for
procurement of materials and issues a delivery schedule to the plant. Delivery schedule is the
schedule by which the supplier will release the specified quantity of raw materials at the
specified dates to the plant.
Raw materials, consumables, fuel etc are received at the factory gate in line with the delivery
schedule and plant purchase orders. The documents are verified to ensure that the materials
are from approved sources and the correct quality as ordered is delivered.
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.

43. 43 -
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. Rejected materials are sent
back to the supplier and the cost is recovered. Transferring of materials to other plants is also
monitored.
7. Shipping (Dispatch) Department
 Finished goods will be received from inspection/ packing area size wise, batch wise or
lot wise on the basis of production Transfer Note. Physical verification of goods is done at the
time of receipt and receipt tags are put. Proper storage and identification of finished goods is
the responsibility of shipping department.
 Finished goods will be stored size wise on pallets with transfer slips showing the size,
quantity, date of receipt etc. Tractor rear tyres .truck tyres and such others will be stacked on
floor. Stacking norms for finished goods, where ever specified will be followed.
 Shipping will publish Daily Dispatch Simulation Plan and copies of it will be sent to
plant planning, central planning and QAD. Daily Dispatch plan is prepared based on
simulation plan, allocation plan and urgency as intimated by central planning /marketing,
transportation time required, availability of truck, shelf life of the product etc. Trucks are
checked before loading to ensure that damages will not occur to goods.
 Daily production Receipts and transfer are fed into computer and reports are generated.
Daily details are transmitted to central planning /EDP/Marketing and data are consolidated
for report generation and monitoring .Dispatch report is published for every 10 day period
.Non moving /slow moving items report is 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

44. 44 -
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
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

45. 45 -
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
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.

46. 46 -
Structure of Engineering Department
Plant Engineering Manager
Civil Engineer
Electricians
Supervisors
Manager
Electrical
Maintenance
Mechanics
Supervisors
Manager
Mechanical
Maintenance
Instrumentation
Engineer

47. 47 -
Chart – 3.6
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 chairman’s 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.

48. 48 -
ERP SYSTEMS in MRF Ltd was replaced by SAP systems in 2009
Structure of Industrial Engineering Department
Chart – 3.7
Plant IndustrialEngineering Manager
Recourse Panning in
Charge
Assistant Manager Industrial Engineer

49. 49 -
10. Safety Department
Responsibility of this department is to ensure the working ambience to all the personnel
within the factory and the premises. The safety officer through the mechanism of audits and
subsequent reporting – Feedback, builds in the safety consciousness and the safety culture
within the personnel.
Safety policy of MRF
 “It is the policy of the company that the safety & health of the employees shall be our
1st priority”
 “It is the responsibility of everyone in this organization, regardless of the position he
occupies, to ensure that everyone in the factory returns home to his beloved ones without any
injury today and every day”
 “We shall observe this policy not only in letter but also in spirit and offer “ACCIDENT
FREE SAFE PRODUCTION” for the benefit of one and all.
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 effective implementation of these policy respective
sections, plants departments and the unit as a whole.

50. 50 -
Methodology for Prevention of Accidents
1. Training
2. Enforcement of safety rules and guidelines.
3. Safety audit
4. Corrective and preventive action
5. Safety awareness promotional activities
11. Security Department
Industrial safety in the public and private sector can be defined as protection of men,
materials, machines, buildings, classified information, and the company operations and to
provide protective services against fire, theft, damage to the company assets and the
installation. Protect the valuables of the company as well of the employees.
The main functions of security department are:
 Control over accessibility
 Check against theft, pile rages
 Control over the movement of personnel and materials at the gate
 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.

51. 51 -
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:
 Standing Orders/Security Manual
 Duty Register (Staff & Watchmen)
 General Diary
 Key Register
 Visitors Register
 Material Movement Register
 Vehicle Register
 Telephone Message Book
Structure of Security Department
SENIOR SECURITY OFFICER
Officer Security

52. 52 -
Chart – 3.8
12. Human Resource Department
The Human Resource Department is known as the heart of an organization. It performs a
number of activities concerned with the employees of their organization. It interacts with
other departments to ensure effectiveness of the company.
Functions
Any employee newly recruited will be exposed to the following areas.
 Introduction about the company
 Evolution of the concept of quality and its relevance to the contemporary industrial
production.
 Safety
 External competitive environment and organizational culture
 Factory discipline
 Basic process flow in the plant in which they are place.
Activities
1) Recruitment and Selection of employees
2) Performance Appraisal
3) Welfare activates
4) Training
5) Industrial relation and labor management
6) Canteen service
7) File management.
Watchmen Firemen

53. 53 -
Other activities controlled by HR Department are:
 Medical insurance scheme
 Family welfare canteen
 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
Deputy Manager –
Human Resources

54. 54 -
Chart -3.9
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
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

55. 55 -
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.
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
PlantAccountManager
Manager
Raw
Materials
Asst .Mgr
Plant
Accounts
Asst. Mgr.
Engineering
Stores
Officer
Shipping
Officer
Engineering
Purchase
Supervisors Supervisors SupervisorsSupervisors

56. 56 -
Chart – 3.10
14. Marketing Department
MRF Kottayam doesn’t have a marketing department. Marketing management is the
functional of management concerned with planning, organizing, directing and controlling the
activities related to the marketing of goods and services to satisfy the customer’s needs which
are ever changing.
Objectives
 Creating demand
 Customer satisfaction
 Increasing the goodwill of company
 Increasing the market share
 Raising the standard of living of the consumer community
Marketing Strategy & Network
MRF has emerged as one among the market leaders in the tyre manufacturing sector in the
world. It was awarded J.D. Asia Pacific for customer satisfaction 8 times. This achievement is
possible only because of MRF’s marketing strategies, product quality and after sales service
to customers. MRF has a wide marketing network, which hosts 68 sales centers, 2500
distributors and exports to over 75 countries. Tyre and tyre related products are sold under the
brand name “MRF” and distributed in domestic markets through sales offices, dealers and
Supervisors
Wages
Officer
Costing
Officer
Auditing Salestax
& Excise
Materials
Handling
Workmen
Supervisors

57. 57 -
franchises. The Corporate Executive Director, based in Chennai, guides the marketing
activity. In Kerala, the district office is at Ernakulam.
MRF Sales Network
NORTH SOUTH EAST WEST
New Delhi Chennai Kolata Mumbai
Agra Ananthpur Asansol Ahmedabad
Bareilly Bangaluru Cuttack Aurangabad
Bikaner Belgaum Dhanbad Baroda
Chandigarh Calicut Guwahati Bhopal
Faridabad Combatore Muzaferpur Goa
Haldwani Ernakulam Patna Indore
Hissar Hubli Ranchi Jabalpur
Jaipur Hyderabad Siliguri Jodhpur
Jalandhar madurai Nerul
Table – 3.2
Structure of Marketing Department
Corporate
Corporate Executive
Director (Marketing)
Regional Sales
Manager

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Chart – 3.11
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 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.
District Office
Sales
Department
Dealers &
Agents

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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 procurement of the unit requirement.
The heads of the material department and purchase department are accountable for
effective discharge of purchase functions within the framework of purchase policy of
the company.
The production planning department is the most vital link between product design and the
production department. The production planning department provides the necessary facilities
and technical know- how for the manufacture of the product.
Human Resource department is directly related to all the other departments as it controls all
the manpower requirements in the organization.
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.

60. 60 -
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.
Financial Performance Trends
During the years under review, the company achieved the following financial results:
(In crores)
Heads/Years 2013 2012 2011
Total Income 13482.15 13093.76 10670.17
Profit before Tax 1226.80 833.12 893.65
Provision for Taxation 424.59 260.76 274.23
Net Profit 802 572 619.42
Table – 3.3 Source: Secondary Data.

61. 61 -
Chart – 3.12
Chart – 3.13
42.9 55.34 99.81
260.96 211.39
398.48
534.66
893.65 833.12
1226.8
profit (Crores)
profit
719.17 749.81 820.05
981.91
1116.55
1357.18
1686.44
2293.53
2853.56
3640.9
Reserves (Crores)
Reserves

62. 62 -
Chart – 3.14
Chart -3.15
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
2989.43 3437.13
4233.66
5036.75
5715.52 6141.94
8080.45
10637.03
13054.0313444.75
Sales (` Crores)
Sales (` Crores)
723.41 754.05 824.29 986.15 1120.79
1361.42
1690.68
2297.77
2857.8
3645.14
Net Worth(` Crores)
Net Worth(` Crores)

63. 63 -
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.
10 years Financial Summary
(Rs. in
Crores) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Sales 13444.75 13054.03 10637.03 8080.45 6141.94 5715.52 5036.75 4233.66 3437.13 2989.43
Other Income 37.40 39.73 33.14 29.13 34.40 40.83 24.17 27.07 44.96 58.54
Total Income 13482.15 13093.76 10670.17 8109.58 6176.34 5756.35 5060.92 4260.73 3482.09 3047.97
Profit Before
Taxation 1226.80 833.12 893.65 534.66 398.48 211.39 260.96 99.81 55.34 42.90

64. 64 -
Provisionfor
Taxation 424.59 260.76 274.23 180.68 145.45 66.83 89.18 19.90 15.03 14.10
Profit after
Taxation 802.21 572.36 619.42 353.98 253.03 144.56 171.78 79.91 40.31 28.80
Share 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
Fixed
AssetsGro. 5834.14 5477.16 4967.07 3865.62 3020.57 2866.24 2289.77 1955.99 1787.85 1534.47
Table – 3.4
CHAPTER-4

65. 65 -
CONCLUSION
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.
 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.

66. 66 -
 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.
 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.

67. 67 -
 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.
PORTER’S FIVE FORCE ANALYSIS
Porter’s 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

68. 68 -
model or network to achieve a profit above the industry average. Porter's five forces include -
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 Porter’s five force analysis.
Structure of Porter’s five force analysis
Chart – 4.1
The five forces of Porter’s five forces are:
Potential entrants
(Threat of mobility)
Suppliers
(supplier power)
Buyers (buyer
power)
Industry
Rivalry
Substitutes
(Threat of
substitutes)

69. 69 -
o The threat of the entry of new competitors
o The threat of substitute products or services
o The bargaining power of customers (buyers)
o The bargaining power of suppliers
o The intensity of competitive rivalry
PORTER’S FIVE FORCE ANLYSIS ON TYRE INDUSTRY
The threat of entry of new competitors
In tyre Industry the threat of entry of new competitors is very high. Potential entry for new
competitors is also the factor to intense the competition in the industry. A larger pool of new
entrants results in more changes of intense competition. Barriers to entry, however can restrict
the firms from entering the market, more number of entry barriers will make it difficult for the
new entrants to exploit the opportunity of new market. Government policy creates hurdles for
new entrants by heavy taxes and interest rates. New firms must get to know the Government
regulations and policies before making an entry decision into the country.
The intensity of competitive rivalry
In tyre Industry the intensity of competitive rivalry is high. The ongoing war between the
firms competes in the same industry for gaining customer share in order to increase their
revenues and profits. The tyre industries which engaged in the production of various types of
utensils and vessels compete each other to achieve more market share. The competition is
more intense if the firm pursues strategies that give it a competitive advantage over the
strategies pursued by its rivals. Developing new strategies is easier than retaining the
uniqueness of the strategies so as to gain a competitive edge over the rivals in the industry.
Changes in strategy by one firm may be met with retaliatory countermoves, such as lowering
the prices, enhancing quality, adding features, providing services, extending warranties and
increasing advertising.
The threat of substitute product or services
Firms mostly monitoring the trends within the industry to track the strategies but competition
not only arise within the similar industry but also in different industry. Companies in other
industry offer products with similar features and functionality or even better act as substitute
for the products. MRF tyre face heavy competition with other tyre manufacturing alternatives
such as Ceat, Appolo inrespect of price, models distribution channel etc...

70. 70 -
Bargaining power of customers
Consumers are the final users of the product; performance of the companies totally depends
upon the consumers. Bargaining power of consumers is more especially when they are huge
in number and consumers purchase in large quantity. Rival firms offer discounts, warranty
and services to switch the consumer from one brand to another in the same industry. As the
satisfaction level of consumer goes up more the intensity level of competition increases.
Bargaining power of suppliers
Supplier and producer relation always matters especially in manufacturing industries.
Suppliers play an important role in the production of goods and services, making the raw
material better and till the final product are made. Bargaining power of suppliers affect the
intensity of competition especially if there are huge number of suppliers, less availability of
raw material and the cost of switching between suppliers or raw material is high. These
attributes in the industry give power to the supplier to enforce terms and conditions on
manufacturers and charge high cost on raw materials.
This chapter gives the clear picture of strengths, weaknesses, threats and opportunities of
MRF. Ltd through SWOT analysis, and Porter’s five force analysis is the framework for the
industry analysis and business strategy development.
Findings
 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, passenger
tyres commercially.
 Profit is comparatively low because of the rapid variations in the cost of the raw
materials.
Suggestions
 Technology is changing so the company should update new technologies in the market
to maximize quality production.
 The company can utilize the railways to transport its materials to reduce the overall
logistics cost

71. 71 -
 More attractive advertisements should be given through the Medias.
 Introduce new brand ambassadors.
 Monthly entertainment programs for employees must be arranged to avoid absenteeism.
 Locally available raw materials can be used for production so that the cost of production
can be substantially reduced.
 The management must take sufficient step to install a grievance settlement machinery
with sufficient participation of workers
 Improve employer-employee relation.
 Open a show room at factory itself.
 More investment has to be made in Research and Development.
Conclusions
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.

72. 72 -
 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.
Bibliography
Books
 Human Resource Management – by Gary Dessler & Biju Varkey, Publisher – Dorling
Kindersley (India) Pvt. Ltd, licensees of Pearson Education in South Asia. 12th Edition, year
of publishing 2012
 Organizational Behavior - by Stephen P. Robbins & Thimothi A. Judge, Publisher -
Dorling Kindersley (India) Pvt. Ltd, licensees of Pearson Education in South Asia. 14th
Edition, year of publishing 2012
 Principles of Management – by T.N Chhabra, Publisher – Dhanpat Rai & co. 9th
Edition, year of publishing 2012
 Marketing Management – PHILIP KOTLER, 12th edition, year of publication
 MRF Records - MRF Ltd.,
 MRF Magazines - MRF Ltd.,

73. 73 -
 MRFJournals - MRF Ltd.,
 MRF Manuals - MRF Ltd.,
 MRF Annual Reports - MRF Ltd., MRF accounts department.
Websites
 http://www.mrftyres.com
 http://www.moneycontrol.com
 http://www.fadaweb.com/indiantyresindustry.htm