I

MRF LTD KOTTAYAM.

ONLINE INTERNSHIP REPORT

Project submitted to the

SAINTGITS INSTITUTE OF MANAGEMENT

In the Partial Fulfilment of the Requirement for the Degree of

MASTERS OF BUSINESS ADMINISTRATION

By
LIA SUSAN JOSEPH
REG.NO: MGP19MBA64

Under the guidance and supervision of

Ms.SHINO ABRAHAM

SAINTGITS INSTITUTE OF MANAGEMENT

KOTTAYAM

JULY 2020
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DECLARATION

I LIA SUSAN JOSEPH, student of Saintgits institute of management,

hereby declare that the internship report entitles "Online Internship at
MRF, Kottayam Ltd” is a genius record of work done by me to the best of my
knowledge and belief. The study was conducted in the partial fulfillment of
the requirements for the award of degree of Master of Business
Administration by Mahatma Gandhi University.

I also declare that the report has not been submitted to any other
University/Institution for the award of any Degree or Diploma.

LIA SUSAN JOSEPH

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ACKNOWLEDGEMENT

I would like to thank everyone who has aided, supported and given proper guidance in making this report
that include parents, teachers, and friends.

Firstly, I would like to thank Ms. Shino Abraham, Assistant professor- Saintgits Institute of Management
for offering the rightful advice, encouraging me and supporting me throughout this research.

I would especially like to thank Dr. Roji George, Dean of Saintgits Institute of Management for giving us
the opportunity to conduct a research on the company which allowed me to gain experience and knowledge
about company.

LIA SUSAN JOSEPH

 IV

CHAPTERS PARTICULARS PAGE NO.

1. INTRODUCTION
1.1 Introduction to The Study 7
1.2 Objective of Organisational Study 8

2. ORGANISATIONAL ANALYSIS
2.1 Industry Analysis 10
2.2 Introduction 11
2.3 Company History 12
2.4 Mission, Vision and Values of the company 13
2.5 Governing Body and Top Management 14
2.6 Organisational Structure 15
2.7 Products/ Services of the company 17
2.8 Competitor analysis 19
2.9 Financial Analysis 21
2.10 Description of supporting functions 24
2.11 SWOT analysis of the company 29

3. LEARNINGS 32

4. CONCLUSION 34

5. REFERENCES 35
 V

LIST OF FIGURES

TABLE NO. DESCRIPTION PAGE NO.

1. Board Of Directors 14

2. Financial Ratios 21

FIGURE NO. DESCRIPTION PAGE NO.

1. Organisational Structue Of Corporate Office 15

2. Organisational Structure Of Kottayam Unit 16

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CHAPTER 1

INTRODUCTION
 7
Organization has gained momentum over the past decades as it is the inevitable source to sustain
business activity .An organization is the powerhouse of resource through which manufacturing
and production operations are effectively carried out. It comes to the existence when several
minds are bound to effective and efficient communication along with harmonious interpersonal
relationship contributing towards a common endeavor. Organization can be defined as one with
relatively identifiable boundary normative order authority ranks communication system that
collectively exists on a relatively continuous basis in a environment and engages in activities
that are usually related to goal or set of goals.

Organizational study primarily focus was to get corporate exposure in understanding more about
the organization its performance its functioning about the various departments and the structure
as a whole .It is also upholds the close scrutiny of the market condition prevalent as well as the
ongoing competition that reveals the pinnacle at which the organization has strived over this time
of span. The study is based purely on the information and other relevant data materials obtained
through online. Contacting management staff has been done to get more accurate and up to date
information.

As a part of the curriculum, I underwent an organization study at MRF for 14 days, which covers
the organizational structure, departments, functions, and company approaches towards
technology, CSR and work environment .this help to make a analysis on the company.

MRF was established in 1946.It is the one among the largest tyre manufacturing company in the
world .MRF stands for Madras Rubber factory. To add a feather to its cap it s the only it is the
only tyre company to straddle the subcontinent with giant manufacturing plants. In 2004, the
company turn over crossed INR 30 billion mark . The company has given the title most ethical
company by the ‘Business World Magazine’ after a study conducted in 1999.

ABOUT THE ORGANIZATION

MRF Ltd was established in the year 1946 . MRF Ltd was started by young pioneer called K
M MAMMEN MAPILLAI as a small toy balloon manufacturing unit in a small shed at
Tiruvottiyur Chennai. MRF Ltd was incorporated towards the end of the 1960 and was
converted into a public limited company in 1961.Since 1946 over this long golden 70 years it has
emerged as the largest tyre manufacture in India . It is also the 12 th largest tyre manufacturing
firm in the world. It is one of the largest rubber companies both in worldwide and in Indian
private sector..The company caters to all vehicle segments from commercial vehicles and
passenger cars to 2-3 wheelers and tractors and has a strong presence in both radial any cross
ply segments .It boasts of 68 sales centers ,2500 distributors and exporters to 75 countries .MRF
is the only company that manufactures Pre cured re trading rubbers.
 8

1.2 OBJECTIVE OF ONLINE INTERNSHIP

 To know about MRF Ltd as an organization

 To understand organization structure
 To know the functioning of various departments
 To know their quality standards
 To observe the routine activities
 To study about the organization climate
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CHAPTER 2

ORGANIZATION ANALYSIS
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2.1 INDUSTRY ANALYSIS

India represents the fourth largest market for tyres in the world after China, Europe and the
United States. In India, the market is currently being driven by increasing radialization of tyres
especially in buses and trucks. Moreover, the tyre industry consists of a vast consumer base, they
are used in all type of vehicles which include passenger cars, buses, military vehicles,
motorcycles, trucks, etc.

The demand of tyres is primarily catalyzed from two end-user segments - OEMs and the
replacement segment. The Replacement market currently dominates the tire market accounting
for most of the total sales. Demand by the OEM segment is driven by new automobile sales
trend, whereas, the replacement market is linked to the usage patterns and replacement cycles.
The market for tyres is quite concentrated in India with the top 10 manufacturers accounting for
around 80 per cent of the total market.

Tires industry is a mature industry after evolving and going through many cycles and stages in
the last century that the industry has adapted and maintained the demand and supply chain
optimization and function to the effective efficiency. Being one of the biggest contributors to the
global economy, the industry has had its ups and downs and many changes in its overall
organizational level structures that today the industry is performing excellently

Being the structured industry it is, the tyre industry is expected to contract against the economy
until the end of 2019. Due to several global economic factors, including consumer spending,
budget allocation in the government, manufacturer cut downs on spending and various other
factors, the revenue is estimated to drop in the next five years due to increasing input prices,
which negatively affect margins for the manufacturers. But, despite the industry's under-
performance compared to the economy as a whole, the manufacturers are becoming more
professional with their operations, which is expected to stabilize profit margins by a good
percentage for the maker and seller and eventually the industry's revenue is expected to grow by
2.2% annually until 2014 to reach the value of $5 billion

In the overall tire market, the profit margins and benefits are expected to rise in the automotive
manufacturing, which are linked to the factors such as economic recovery even though it is slow
and uneven, and especially in emerging markets such as Korea, India and China, which are still
having developing economies and developing markets, but the opportunities for establishment of
industries and scope of growth for new entrants in those markets are tremendous. According to
Freedonia, the global tyre industry is estimated and calculated to record an approximate of 5%
yearly growth in volume demand until 2015 to reach the number of almost 3.5 billion units sold
and the industry is expected to record 7% year on year growth to reach the revenue of $220
billion by the end of 2015.
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Raw material cost forms the largest cost head in the tyre industry accounting for about 65-70 per
cent of the total. The main raw materials used to manufacture tyres are natural rubber, poly
butadiene rubber (PBR), styrene butadiene rubber (SBR)
Rubber is a major component in manufacturing of a tyre. There are three categories of rubber
used in the manufacturing process viz natural rubber (NR), styrene butadiene rubber (SBR) and
poly butadiene rubber (PBR).

Rubber including (natural and synthetic), nylon tyre cord fabric (NTC) and carbon black
constitute a significant portion i.e. 60-65 per cent of the overall raw material cost of the industry,
Care Ratings said, adding hence any change in the prices of these materials impact the overall
industry's profitability. Indian tyre markets: Market for tyres can he broadly classified or
segmented into three categories

• Original Equipment Market (OE)

• Replacement Market
• Export Market

Market demand is generated by the replacement market where business volume is

high. While the OE demand is a linear function of Automobile Production Whose
growth in turn is determined by overall economic situation and the government
are into radial tyres and tubeless tyres.Though the tyre majors have been twinkling of
getting into truck radial segment but no official moves have been made by the major
tyre companies. This point out that radial tyres are not actually suited for Indian
environment.

2.2 DETAILS OF COMPANY

The MRF story is a truly remarkable one. What started as a rubber balloon factory with a funding
of Rs.14, 000 way back in the 40’s is now a multibillion legacy that produces quality tyres used
all around India & internationally along with a presence in paints & coats, toys, motorsports and
cricket training .

By the early 60’s, MRF was exporting its quality tyres to offices overseas in multiple countries
and soon its presence was known globally in 65 different countries - with tyres rolling out of 8
facilities built across 450 acres, 4000 plus strong dealer networks and 180 different offices. MRF
Limited is an Indian multinational and the largest manufacturer of tires in India and the
fourteenth largest manufacturer in the world. It is headquartered in Chennai, India. The company
manufactures rubber products including tyres, treads, tubes and conveyor belts, paints and toys.
 12
MUSCLE MAN

The mere mention of the word 'MRF' is bound to bring the muscle man to the
mind of the Indians. It was evolved in 1964 soon after MRF began
manufacturing tyres. It was evolved from a mere corporate mascot to the symbol of
strength, reliability and durability embodying the various qualities of tyres the
muscle man represents. For 16 years, he grew to become India’s most trusted and
well-recognized symbol for tyres.

The muscle man evolved into a hi-tech symbol in mid eighties a sign of changing
times.His new appearance was silent testimony to the indomitable spirit that
carried MRF across the INR 20 billion man.The muscle man appearance changed once
again in 1996, MRF's Golden jubilee year. He started appearing in full form and is
now known affectionately as MRF's tyre man by motorists across-India and 65
countries worldwide that have come to rely on him for a comfortable rule

.THE BIRTH OF MUSCLE MAN

In 1960, Indian tyre market was completely under the control of large
multinational companies. Around this time MRF opened, a tyre factory at
Thiruvattiyoor in Tamilnadu An the process of developing suggestions for the
symbol some enterprises employees conducted an informal market survey,
interviewing people from all over the country about this expectation from a good
tyre. one day a truck driver of a road side Dhaba somewhere in western India hit
upon the right idea when he said "A good tyre should have all the qualities of a
philewan" and from the simple statement the muscleman was born.

2.3 HISTORY

Madras Rubber Factory was started by K. M. Mammen Mappillai as a toy balloon manufacturing
unit in 1946 at Tiruvottiyur, Madras (now Chennai). In 1952, the company ventured into the
manufacture of tread rubber. Madras Rubber Factory limited was incorporated as a private
company in November 1960 and ventured into manufacture of tyres in partnership with
Mansfield Tire & Rubber company based in Ohio, United States
. The company went public on 1 April 1961 and an office was established in Beirut, Lebanon to
develop the export market in 1964 and its current logo of the muscleman was born. In 1967, it
became the first Indian company to export tyres to USA.
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In 1973, MRF started manufacturing Nylon tyres for the first time. The Company entered into
with a technical know-how collaboration with B. F. Goodrich in 1978. The Mansfield Tire &
Rubber Co sold out its share in 1979 and the name of the company was changed to MRF Ltd in
the year. The company finalized a technical collaboration agreement with Marangoni TRS SPA,
Italy for the manufacture of pre-cured tread rubber for retreading industry.
MRF tyres supplied tyres to Maruti 800, India's first modern small car. In 1989, the company
collaborated with Hasbro International United States, the world's largest toy maker and launched
Funskool India. Also, they entered into a pact with Vapocure of Australia to manufacture
polyurethane paint formulations and with Italian tyre manufacturer Pirelli for conveyor and
elevator belt manufacture. During the year 2004-05, the product range of the company expanded
with Go-kart & rally tyres and tyres for two/three wheelers.

2.4 MISSION ,VISSION AND VALUES

MISSION

The mission of MRF is that zero defect, zero break down, zero accidents, zero pollution, and
there by zero losses with their new performance standards.

VISSION

The vision of the MRF to emerge as pre-eminent global players in the field of
polymers, and make India a global super power in terms of technology and
quality of life

.MRF has well defined and clearly quality resource environmental safety and
health training and human policies. The Vision of MRF is to realize their policies
and implement the contents letter and spirit. Though MRF is exulting to nearly 100
countries the manufacturing centers located in India only.MRF encourages
being a multinational and for this purposes it is starting manufacturing in other
Asian countries like Srilanka .

MRF's philosophy on corporate governance is to achieve high standards of

corporate governance in all its activities and processes. MRF is committed to
transparent governance and disclosure practices, Business, Ethics and fair and
equitable treatment of all its stakeholders. This philosophy has been further
strengthened with the implementation of the requirements stipulated in clause49 of
the listing agreement. The company has adopted the code of internal procedures
and conduct for prevention of Insider trading in pursuance of SEBI regulation. MRF
 14
believes that good corporate governance practices can stem only for management's
mind set and not through legislation alone.

2.5 GOVERNING BODIES AND TOP MANAGEMENT

1. Company’s Philosophy on Code of Governance

Company has always adhered to good corporate governance practices and maintained the highest
levels of fairness, transparency, accountability, ethics and values in all facets of its operations.
Your Company’s Corporate Governance framework ensures timely and accurate disclosure on
all material matters including the financial situation, performance and regulatory requirements,
leadership and governance of the company. Your Company believes that good corporate
governance is essential for achieving long-term corporate goals of the Company and for meeting
the needs and aspirations of its stakeholders, including shareholders.

2. Board of Directors

(a) Composition of the Board: The Board comprises of 16 Directors which includes a
Chairman & Managing Director, a Vice Chairman and Managing Director, a Managing Director,
2 Whole-time Directors, 3 Non-Executive Directors and 8 Independent Directors. None of the
Directors on the Board is a member of more than 10 committees or act as Chairman of more than
5 committees across all Listed Companies and Unlisted Public Limited Companies in which
he/she is a Director.

Name Designation

K M Mammen Chairman & Managing Director

Rahul Mammen Mappillai Managing Director

Varun Mammen Whole Time Director

Ambika Mammen Director

V Sridhar Director

Ranjit I Jesudasen Director

Jacob Kurian Director

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2.6 ORGANISATIONAL STRUCTURE

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Fig 1
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Fig 2
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2.7PRODUCT/SERVICES OF MRF Ltd

MRF the largest producers of pre-producers retread. It is an active to as 65

countries. With in India MRF straddles the sub continent with a countries. With a
distribution network of over 2500 outlets MRF brands are the market leaders in almost
every segment. MRF brand are

• Super lug (truck tyre)

• Shakti (tractor tyre)
• Sigma (radial tyre)
• Nylogrip (two wheeler tyre)
• Legend (conventional car tyre)

TYRE PRODUCTS

Automotive tyres are the main product of the company

• Truck tyres-Tube type and Tubeless type

• Light truck tyres
• Special tyre for defense
• Tyre for industrial applications
• Agricultural tractor and tiller tyres
• Off the road tyre solid tyres and earth mover tyres
• Passenger tyre bias ply radial
• Two Three wheeler tyres
• Specialized tyre for motor rallies

NON TYRE PRODUCTS

• Automotive tubes
• Flaps
• Conventional tread rubber
• Pre-cured tread rubber
• Vulcanizing solution
• Tyre repair materials
• Conveyer belts
• Toys
• MRF mental coat
• MRF wood coat
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• MRF glass coat
• MRF velour
• MRF auto coat

NON TYRE ACTIVITIES OF MRF/SUBSIDIARY INSTITIUTION

 FUNSKOOL INDIA LTD

 MRF MUSCLE FLEX CONVEYOR BELTING
 PRODUCT-O-DROME
 PAINT & SPECIALITY COATINGS
 MRF PRETREADS
 MRF PACE FOUNDATION
 MRF POWERHOUSE
 MRF TYRE DROME
 DEVON MACHINES

MRF - SISTER CONCERNS

• MalayalaManorama Publication
• MM forms
• Arjun Associates
• Philip Coffee
• Autocot
• DEVON Machines
• Plantation
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2.8 COMPETITORS ANALYSIS

The competitive rivalry is the force helps to define the competition between the existing players
in the same industry and show its effects.Indian tyre industry like MRF has the higher rivalry
today due to the increase in tyre companies like APOLLO, CEAT, JK TYRES, etc. And as well
as the same time the participation of foreign players has expanding their standards in Indian tyre
industry. MRF has the greater rivalry by accounting more than 80% of market share by
competing with the top 8 companies. And nowadays every company is intending to keep the
automated technologies by implementing the new technology like electronic resource planning
(ERP) and supply chain management (SCM).

Apart from the reason given above the firms has the higher rivalry by the rise of input cost, is
due to the competitive pressure at present. And taking in to the consideration of OEM (i.e.)
Original Equipment Management, due to the low OEM the manufacture of vehicle are not ready
to take the troubles of tyre firms and the replacement process is taking away continuously by the
retreading sector which is slow by slow rising his head. Apart from the branded competitors the
unrecognized sector has been the head ache to the MRF Company. The point to be considered is
MRF and the existing players in same industry have the similar strategies, and obviously
manufacture the same products so MRF duty to show the same product in different way with
some innovative ideas, So MRF has to keep his way towards the innovating side like radials,
tubeless tyres.

The company MRF has the standardized product. The bargaining power of MRF is very high
because they are the huge suppliers and manufacturers of tyres, tubes and conveyor belts. MRF
has also introduced the material recovery facility. MRF enforced to manufactured more amounts
of tyres, tubes, and conveyor belts and place their brand name and logo in the product. MRF and
its competitor like CEAT, APOLLO, Bridgestone etc are implementing their terms and
conditions to the buyers.

For MRF in market lots of substitutes in that how the MRF is differentiated from other product
like improving his standards by introducing the new products. Like other substitutes MRF
doesn’t have any threat because has his own brand name and keeping his loyalty to the
customer. MRF has the good customer relationship and MRF has the low switching to the
customer. The other threat of substitutes is alternative product with low price and with better
performance means MRF has to face some problem with the buyer. And at the same time lots of
radials are been importing from china and it is one of the major threat to the MRF. MRF has also
facing the threats like the retreading sector and other non-branded product. And as of this major
threat concern MRF has to keep his low production cost. Because of the substitutes product MRF
can ready to follow the current trends.
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The other threat of substitutes is quality in that MRF is manufacturing the better quality product
comparing to other substitutes. By comparing of other substitute product buyers is willing to
purchase the MRF product.

The threat of new entering company can create the competition to MRF. Customer switching
cost is important to the new entrants. The main term of demand, the company like MRF is
depended on the types of product and market. The types of the products are the types of tyres
what they produce comparatively with other companies and the market. On the basis of these two
types mainly the competitors of MRF tyres are JK tyres, Apollo tyres and CEAT tyres.

Major Market Players and their Market Share

Some of the major players in the Indian tyre industry are MRF, CEAT,JK
Industries, Apollo tyres, Bridgestone India, Falcon Tyres and TVS Srichakra .

Name of the company Market share

MRF 24%
Appollo tyres 21%
JK industries 18%
Ceat ltd 13%
Others 24%
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2.9 FINANCIAL ANALYSIS

Last three years Ratio Analysis of MRF Ltd can be analysed in order to determine the financial
performance of MRF Ltd.

(Rupees in Cr) 2020 2019 2018

Investment Valuation Ratios    

Face Value 10 10 10
Dividend Per Share 100 60 60
Operating Profit Per Share (Rs)
5,480.42 5,294.52 5,352.19
Net Operating Profit Per Share (Rs)
37,714.95 37,341.35 34,947.94
Free Reserves Per Share (Rs)
-- -- --
Bonus in Equity Capital
-- 41.98 41.98

Profitability Ratios
   

Operating Profit Margin(%) 14.53 14.17 15.31

Profit Before Interest And Tax Margin(%)

8.22 8.85 10.35
Gross Profit Margin(%)
8.39 9.08 10.55
Cash Profit Margin(%)
14.55 11.7 11.9
Adjusted Cash Margin(%)
14.55 11.7 11.9
Net Profit Margin(%)
8.72 6.92 7.36
Adjusted Net Profit Margin(%)
8.54 6.74 7.23
Return On Capital Employed(%)
12.84 15.32 16.56
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Return On Net Worth(%)
11.62 10.29 11.37
Adjusted Return on Net Worth(%)
11.62 10.29 11.37
Return on Assets Excluding Revaluations
28,312.15 25,118.94 22,645.31
Return on Assets Including Revaluations
28,312.15 25,118.94 22,645.31
Return on Long Term Funds(%)
13.09 15.85 16.9
Liquidity And Solvency Ratios
   

Current Ratio
1.06 0.9 0.89
Quick Ratio
0.68 0.53 0.55
Debt Equity Ratio
0.09 0.14 0.16
Long Term Debt Equity Ratio
0.06 0.1 0.14
Debt Coverage Ratios
   
Interest Cover
6.1 7.49 7.53
Total Debt to Owners Fund
0.09 0.14 0.16
Financial Charges Coverage Ratio
9.68 10.75 10.41
Financial Charges Coverage Ratio Post Tax
9.66 8.68 8.33
Management Efficiency Ratios
   
Inventory Turnover Ratio
5.61 5.37 7.01
Debtors Turnover Ratio
6.92 7.04 7.24
Investments Turnover Ratio
1.23 5.37 7.01
Fixed Assets Turnover Ratio
1.51 1.7 1.87
Total Assets Turnover Ratio
1.23 1.31 1.33
Asset Turnover Ratio
1.27 1.36 1.38
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Number of Days In Working Capital

12.08 2.34 -1.64

Profit & Loss Account Ratios
   
Material Cost Composition
59.3 66.97 62.77
Imported Composition of Raw Materials
Consumed -- 37.05 34.62
Selling Distribution Cost Composition
-- 1.91 1.75
Expenses as Composition of Total Sales
-- 8.49 7.82
Cash Flow Indicator Ratios
   
Dividend Payout Ratio Net Profit
-- 2.32 2.32
Dividend Payout Ratio Cash Profit
-- 1.33 1.41
Earning Retention Ratio
100 97.68 97.68
Cash Earning Retention Ratio
100 98.67 98.59
AdjustedCash Flow Times
0.43 0.77 0.86

INFERENCE : By analysing the recent three year financial data of MRF Ltd , we got the
understanding that the company is showing a positive trend from 2017 to 2019 in regard of
Valuation Ratios, Profitability Ratios, Liquidity & Solvency ratios and Debt Coverage Ratios
This maintenance of a positive trends in the above mentioned ratios shows the healthy working
of the company even in a pandemic situation like this we are going through right now.
 25

2.10 DESCRIPTION OF SUPPORTING FUNCTIONS

MRF LTD gives an insight about the functioning of the departments. Each
department is headed by the general manager who possess 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. There is no participation of
workers in the decision making process. Weekly interdepartmental meeting
aims at bringing co ordination 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 at MRF Ltd Kottayam are:

 Production Department
 Production Planning Department
 Quality Assurance-Department
 Technical Engineering DepartmenT
 Raw materials Store Department
 Shipping (dispatch) Department
 Industrial Engineering Department
 Safety and Security Department
 Finance Department
 Human Resource Department
 Marketing Department

PRODUCTION DEPARTMENT

Production is the primary function of the company and hence and all others are
support functions. Production is carried out in four plants at kottayam unit
.

They are:
 Tube plant called plant I
 Tyre plant called plant 2
 Mixing plant called plant 3
 PCTR plant called plant 4
 26

The following are the main functions of production department.

 Planning for production purposes

 Material indent and receipt
 Processing
 Product identification and traceability
 inspection

PRODUCTIION PLANNING DEPARTMENT

Production plan for the coming month will be issued form the Central planning is 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 (inventory norms for raw materials and
consumables issued by central planning) the monthly requirements of raw
materials and consumables will be prepared by planning and is sent to central
planning, Corporate purchase and to raw material stores. Monthly requirement
of raw materials is calculated form software and it is validated every six
months.Based on the monthly simulation plan for the whole of kottayam unit,each
plant makes its own simulation plan and indents required materials from raw
material 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 sent 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 .

QULAITY 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. Inthe business environment of today, quality
impacts not only products and services but also many other relevant entities such as
process, systems, people and organization.A low level of quality can be caused by
 27
weaknesses 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 specifications. This varying degree of confinl 1 ation to the
specification will lead to varying degrees of quality of manufacture.

TECHNICAL DEPARTMENT

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 product development, new compound development,
designing and inspection of 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.

RAW MATERAIL STORES DEPARTMENT

Raw material stores will receive a copy of the raw material requirement for the 71orith
prepared and sent by plant planning. This is also sent to 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
material at the specified dates to the plantRaw materials, consumables, fuel etc are
received at the factory gate in line with the delivery schedule and purchase orders. The
documents are verified to ensure that the materials are from approved sources and
the correct quantity as is delivered.

SHIPPING 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
 28
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 Despatch Simulation Plan. And copies of it will be sent
to Plant Planning, Central Planning and QAD.

INDUSTRIAL ENGINEERING DEPARTMENT

Major Activities
Conducting studies for fixing Standards and Crew Strength In all areas.
• Negotiating with Unions for setting Standards
• Participating in discussions for settling labour disputes.
• Manpower requirement assessment.
• Factory Layout planning
• Expansion Project Co-ordination.
• Resource Planning - Manpower, Machinery and Equipments
• Design of Wages system and incentive monitoring
• Long Term Agreement related works.
• Calculation of Chairman's A ward.
• Calculation of Production Bonus.
• Preparation and publication of MIS Reports.
• Special Studies like benefits and feasibility of outsourcing, relative
meritsand demerits of different methods of manufacture etc.

SAFETY AND SECURITY DEPARTMENT

Industrial security in the public and private sector can be defined as protection of men,
materials, machines, buildings, classified information, and company operations and to
provide protective service against fire, theft, damage to the company assets and the
installation. Protect the valuables of the company as well of the employee

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
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inventory, personnel are regulated and monitored by the security department.All the safety
norms should be known by security staffs any voliation should be stopped, if observed
to ensure security norms ia an important security functions.

FINANCE DEPARTMENT

This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw material 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, freight payments,
payment in lieu of travel bills of employees, canteen expenses, payment to
contractors, payment of leave travel allowance, medical re-imbursement etc.
Cash receipts in the case of scrap sales and any other cash receipt will also come
under this branch of accounts

HUMAN RESOURCE DEPARTMENT

In older days manpower was considered as a liability, but that concept is now
slowly changing. Man power is now considered as an asset and hence it is
called Human Resource. There has been a shift in the approach towards
managing people and as a result personnel management has been given a wider scope
in the form of human resource development.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 effective running of the company

Activities of HR Department

• Recruitment and Selection of employees & General Administration

• Performance Appraisals
• Industrial relations and Labor Management
• Disciplinary actions and proceedings
• Statutory and non statutory welfare measures
• Training
• Contract Service
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MARKETING DEPARTMENT

Marketing Management is the functional area of management concerned with

planning, organizing, directing and controlling the activities related to the
marketing of goods and services to satisfy the ever changing customer needs.

The objectives laid down in Marketing Management are as below:

• Customer Satisfaction
• Creating Demand
• Increasing the goodwill of the company
• Increasing the market share
• Raising the standard of living of the consumer

2.11 SWOT ANALYSIS

It is a strategic planning technique used to help a person or organization identify strengths,

weaknesses, opportunities, and threats related to business competition or project planning.This
technique, which operates by 'peeling back layers of the company is designed for use in the
preliminary stages of decision-making processes and can be used as a tool for evaluation of the
strategic position of a city or organization. It is intended to specify the objectives of the business
venture or project and identify the internal and external factors that are favorable and
unfavorable to achieving those objectives. Users of a SWOT analysis often ask and answer
questions to generate meaningful information for each category to make the tool useful and
identify their competitive advantage. SWOT has been described as the tried-and-true tool of
strategic analysis,but has also been criticized for its limitations

STRENGTH
 Organization has a good brand image
 MRF is the market leader in almost every
segment of the tyre industry
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 Strong and efficient channel of distribution,
having a wide range of sales
 Office for each zone
 Advanced technology
 Good infrastructure
 Imparting training to the employees
 Environmental certification

WEAKNESS
 Lack of speedy communication
 Marketing department is only at corporate office
 Lack of enough motivation
 High rate of absenteeism
 Union problem
 Less interaction between marketing and manufacturing department

OPPURTUNITY

 Growing automotive market

 Fund are available for technology up gradation
 Making tie ups with new automobiles companies coming to India
 Technology can be updated to maximize quality productions

THREATS
 Cut throat completion
 Use of second hand tyres
 Changing technology
 Increasing input coast
 Entrance of new players from abroad
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CHAPTER 3

LEARNING FROM ONLINE INTERNSHIP

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LEARNINGS:

1) It helped me gain an overall knowledge about the company, its history, products and
services, and its functional departments.
2) Helped me to understand the major roles and responsibilities performed by different
departments.
3) It helped me understand the nature of employees, HR policies and the process of
recruitment in the company.
4) Improved my knowledge and understanding of the theoretical aspects learned in
regard with the information collected.
5) Improved my knowledge of inventory management, warehousing and the software
used in inventory management and distribution of products.
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CONCLUSION
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During the financial year ended 31st March, 2019, Company’s total income was Rs. 16254
crores as against Rs. 15510 crores in the previous year. The net profit for the financial year was
Rs. 1097 crores as against Rs. 1092 crores in the previous year. Across the board, there was an
overall increase in all product categories adding up to a 8% increase in total tyre
production.Their profit grew on a better product mix. The company has increased prices by 2%
during Q4. They will look at raising prices to combact higher cost But the lower price of Chinese
products prevent them from significant hikes .They concentrated probably more on the
aftermarket because of the cost pressure. They made a marginal increase of 1-2% I various
product groups.
Now MRF is the largest tyre manufacturer in the country, which has strong brand equity while
its rule supreme in the industry , other players have created niche market.
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REFERENCES:

• https://www.mrftyres.com
• https://www.mrftyres.com/financial-results
• https://www.owler.com/company/mrftyres
• https://www.moneycontrol.com/competition/mrf/comparison/mrf
• https://www.moneycontrol.com/annual-report/mrf/directors-report/mrf
• https://en.wikipedia.org/wiki/SWOT_analysis