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India’s leading tyre company was started in 1946 as a toy and balloon manufacturer. It later forayed into manufacturing tyres, tubes and conveyor belts. Now its core business is manufacturing, distribution and sale of tyres. In addition, it is also present in segments like pre-treads, paints and coats, and toys. MRF manufactures the complete range of tyres meant for heavy duty trucks to two-wheelers. These are rolled out of six manufacturing facilities (all TS 16949/ISO 9001 certified). A cyclical industry The Indian tyre industry has an annual turnover of Rs 28,000 crore. The top 10 companies account for 90 per cent of the market. MRF’s market share ranges from 20 to 60 per cent in various segments. Earlier, bias tyres accounted for a larger share of sales. But now, in sync with global trends, the market is shifting towards radial tyres. In the passenger car segment, radials account for 99 per cent market share; in light commercial vehicles, 18 per cent; and in heavy commercial vehicles, 12 per cent. Altogether 39 tyre companies operate in India of which 14 are listed. Strengths Market leader. MRF recently became the first Indian tyre company to have exceeded the turnover mark of Rs 10,000 crore. It accounts for around 25 per cent market share in the overall tyre business. About 70 per cent of MRF’s revenue comes from the replacement market, original equipment manufacturers (OEMs) account for 20 per cent, and exports for 10 per cent. Margins in the replacement segment are higher than in the OEM segment. Since a significant portion of MRF’s revenue comes from the replacement