Tyre major MRF is eyeing an entry in the global markets via organic and inorganic routes. Speaking to the FE on the sidelines of MRF Pace Foundation tie up with BCCI on Tuesday, company CMD KM Mammen, said, ?Though the Modi government encourages ‘Make-in-India’ concept for exports in a big way, the company does not rule out entering global markets. We see setting up of a greenfield plant abroad rather than acquiring a company as a viable option given the current global trend.”
He said there are many small and big-capacity tyre plants available for acquisition across the globe. “If we find a plant with right size at the right price without any debt and labour problems, MRF will certainly will look at the option of inorganic growth,” he added.
In the domestic market, with strong revival expected in the Indian automotive industry along with its ambitious plans to more than double its exports, MRF will set up plants in Telangana, Trichy (Tamil Nadu) and Gujarat. The company currently has 10 plants in India. “We need substantial funds to set up all these plants. A plant for our desired capacity size will cost a minimum of Rs 1,500 crore,” he said.
“We see good days ahead. Though in the last two months, we could see revival only in passenger car and two-wheelers segments, the commercial vehicle will take time to revive in a bigger way,” Mammen said.
On the export front, he said the company has been able to increase the revenue over the years to Rs 1,500 crore which constitutes little less than 10% of its topline. The company plans to increase the export revenue contribution to 50% of its turnover and this expected through the setting up of new plants.