KOSHY K. VARGHESE, EXECUTIVE VICE PRESIDENT – MARKETING, MRF LTD.
B&E: MRF has become the first Indian tyre company to cross the turnover of Rs.100 billion in one year. In fact, the company has registered growth in excess of 30% during the financial year ending September 30, 2011. So, how do you plan to keep pace with the rising demand in the near future, both in the aftermarket and from OEMs (original equipment manufacturers)?
Koshy K. Varghese (KKV): We have been growing at a CAGR of over 30% for the last two years, and Rs.100 billion turnover is something we are really proud of, because we are the first Indian tyre company to achieve this. However, this fiscal might not be as good as the last one, primarily because the raw material prices have gone up sharply over the last one year. As far as rising demand is concerned, the company has been investing Rs.9-10 billion annually in new plants for the last few years. In fact, we are in the process of setting up a new plant with an investment of Rs.8 billion in Trichy which will start operations by early 2012. Post the commercial operation, this new plant in Tamil Nadu will add 15% to the overall turnover of the company.
B&E: MRF is reportedly considering several overseas acquisition options. Is the decision triggered by the rising prices of raw materials in the country?
KKV: We may look at acquiring plants outside India. We have not come across anything as yet. If we do get we will definitely acquire. But it will not be just to offset the rising costs of raw materials. We are looking at it as a tool to increase our turnover. Further, as a company which has a global footprint – today exports are about 10% of our total sales – it is good to a look at options of having manufacturing bases outside the country. Therefore, we will definitely go for an acquisition if a good opportunity comes up. But it has to make business sense and fit into our overall strategy.
B&E: MRF has become the first Indian tyre company to cross the turnover of Rs.100 billion in one year. In fact, the company has registered growth in excess of 30% during the financial year ending September 30, 2011. So, how do you plan to keep pace with the rising demand in the near future, both in the aftermarket and from OEMs (original equipment manufacturers)?
Koshy K. Varghese (KKV): We have been growing at a CAGR of over 30% for the last two years, and Rs.100 billion turnover is something we are really proud of, because we are the first Indian tyre company to achieve this. However, this fiscal might not be as good as the last one, primarily because the raw material prices have gone up sharply over the last one year. As far as rising demand is concerned, the company has been investing Rs.9-10 billion annually in new plants for the last few years. In fact, we are in the process of setting up a new plant with an investment of Rs.8 billion in Trichy which will start operations by early 2012. Post the commercial operation, this new plant in Tamil Nadu will add 15% to the overall turnover of the company.
B&E: MRF is reportedly considering several overseas acquisition options. Is the decision triggered by the rising prices of raw materials in the country?
KKV: We may look at acquiring plants outside India. We have not come across anything as yet. If we do get we will definitely acquire. But it will not be just to offset the rising costs of raw materials. We are looking at it as a tool to increase our turnover. Further, as a company which has a global footprint – today exports are about 10% of our total sales – it is good to a look at options of having manufacturing bases outside the country. Therefore, we will definitely go for an acquisition if a good opportunity comes up. But it has to make business sense and fit into our overall strategy.
For More IIPM Info, Visit below mentioned IIPM articles
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
