The Hindu Business Line : MRF to establish tyre re-tread franchisees abroad

"The impact of this on the export turnover will be seen in 2003-04," says the company's annual report for 2002-03. (The company follows an October-September financial year).

"MRF has helped in establishment of tyre re-treading plants for its customers in overseas locations, where the company's products will be used exclusively," the report says.

It also says the company intends to "increase visibility of our products by advertisements in print media and participation in trade fairs and exhibitions abroad."

Last year, MRF spent Rs 42.38 crore on advertisements, compared to Rs 42.79 crore in the previous year.

The report further notes that although prices of the key raw material, natural rubber, have soared high, tyre companies were unable to pass on the cost increase to customers, because of the tight competition Rubber prices have increased to around Rs 54 a kg, from about Rs 27 a kg only two years ago.

The report promises there would be an export thrust in the current year. "Our overseas offices are gearing up for widening the existing markets and also to identify potential markets in their respective regions," it says.

Last year, MRF's exports increased to Rs 316.72 crore from Rs 226.72 crore in the previous year - an increase of about 40 per cent.

"There is a growing demand in the export market and priority is given to develop tyres for the export market," the annual report says under the head `Technology Absorption'.

Installation of versatile, high precision manufacturing equipment are planned to attain standards of quality and consistency, the report says.

However, MRF's expenditure on R&D came down in 2002-03 from the previous year's level.

The company spent Rs 21.26 crore on R&D compared to Rs 26.20 crore in the previous year.