MRF Plans to Protect Profits

(India/Rubber Asia) The profits of MRF, one of India’s largest tyre makers, are continuing to come under pressure. With raw material costs showing no signs of easing, the company is resisting attempts to pass cost pressures onto consumers. Chairman and MD, K M Mammen summed up the situation when he admitted that the company was searching for areas where is could rein costs in to “protect our profits.”

Addressing the 44th AGM of the Chennai-based company on 16 March, he claimed MRF’s exports would not suffer and “we will continue expanding the current export markets, besides adding new ones.” MRF exports 35 per cent of its production, to as many as 65 countries.

Shareholders’ who demanded bonus shares in view of the company’s reserves of 7190 million rupees, had there appeals rejected by the chairman, who argued that MRF needed funds for its current capacity expansion. Meanwhile, the chairman’s son, Rahul Mammen, was elected general manager (planning & development) at the AGM.