Competition among tyre manufacturers is becoming stronger forcing companies to increase and improve their manufacturing capacities. The source of competition is both local and international players so that tyre major MRF increased its investment on research and development by a little over 250% or Rs 200 crore for 2016-17.
Tyre major MRF also initiated several projects including the development of low rolling resistance (RR) tyres. If you will compare spending for research and development, it was only Rs 54.9 crore in the 18 months between October 2014 and March 2016. According to MRF’s chairman and managing director K M Mammem, the total income of the company for 2016-17 was Rs 15,078 crore. MRF has been a consistent market leader for the last 30 years and it is continuously improving it products and widening its distribution network.
MRF is currently on the process of experimenting with raw materials that have been derived from environmentally sustainable sources like biomass and waste aside from nano materials. According to Mammem, the tyre industry of India has gone through a challenging year. Volatility has been compounded by some of the government’s decisions that include demonetization and the change from BS-111 to BS-IV vehicle emission standards.
The near-normal monsoon in 2016-17 particularly in the north and east resulted into a healthy upswing for the agrarian economy and it is expected to positively affect the tyre industry. In addition, several taxation and commercial reforms are expected for the current year. MRF on the other hand is always prepared for the future.
Since ecommerce is booming, MRF has decided to join the digital world through its own online service. Mammem predicts that the domestic tyre industry will be stable for short and long term basis because of the favourable demand from domestic and international markets. However, the tyre industry is also facing the challenge of raw material cost escalation in natural rubber.
Meanwhile, Gold Coast tyres offer every imaginable brand of tyres for the lowest prices. Thousands of new and used tyres are available with consistent quality and price. All the vehicle tyres have been tested for precision to ensure its high performance and safety.