MRF: Balancing Profitability and Sustainability in the Tyre Industry

Responsible Us Bureau Feb 1, 2025 Add to Reading List

MRF Balancing Profitability and Sustainability in the Tyre Industry
MRF Ltd: February 1, 2025, Chennai- One of India's Leading Tyre Manufactures Improving Position in Shifting Needs of Automobile Industry Chennai: As global carbon emission regulation is increasing, the automobile industry is slowly transitioning into electric and fuel-efficient automobiles, the company is repositioning its manufacturing process, supply chain management, and raw material sourcing with sustainability in mind.
Tyre Production with Sustainability Ends
The Tyre manufacturing requires natural rubber, synthetic rubber, carbon black and chemicals, the majority of which have environmental issues. MRF has been trying to;
Reduce carbon foot print through efficient energy usage at the manufacturing front.
Improve the recycling of used tyres
Exploit the bio-based rubbers and compounds of silica.
The company has installed renewable energy into manufacturing units as well as researched with designing a green tyre so that it delivers improved fuel efficiency and lower emissions

The Problems in acquisition of Raw material
Tyre industry depends much on natural rubber. India imports considerable quantities of rubber consumed in its domestic tyre industries. MRF is vulnerable to the fluctuations in price of rubber triggered by disruptions in supply chains as well as environmental issues associated with growing rubber. The company addresses these issues by :
Promoting sustainable sourcing through engaging with plantations.
Developing alternatives in synthetic products to reduce dependence on imports.
Collaboration with suppliers for responsible sourcing practices

EV Market and Tyre Innovation
With the rising electric vehicle (EV) market in India, MRF manufactures low rolling resistance tires. It is pertinent that such low rolling resistance tires have to ensure maximization of the battery in the

EV. Such tires:-
Improve energy efficiency and better range for the vehicle
Reduces wear and tear thereby ensuring a long period
Improves grip, and safety performance are preserved
Economic Growth and Profitability
Despite higher input costs and regulatory pressures, MRF is able to sustain a healthy market position. The Company has grown its export business by focusing on premium and high-performance tyre segments for profitability.

Strategies used are:
Development of next-generation tyre technologies through R&D
Existing as well as new domestic and international distribution networks to be strengthened
Product portfolio to be expanded for different automotive segments

MRF reflects the shift of the tyre industry towards profitability and sustainability. Investment in the company in green technology, optimum raw material procurement, and new trends in automobiles put the company at a good position for long-term growth.