India’s largest tyremaker MRF reported a net profit of Rs 253.03 crore for the year ended September 30, 2009, up by 75% from Rs 144.56 crore the previous year. Softening raw material prices contributed to "the satisfactory results" with the company’s turnover standing at Rs 5663.80 crore (Rs 5042.34 crore).
The Chennai-headquartered tyre group, which follows September as its accounting year, attributed closure of factory for a brief period and steep hike in prices of its primary raw material — rubber — as the main reason for reporting a marginal increase in turnover.
The tyre major has chalked out expansion plans that is expected to boost its existing capacities by 20-25%. "Capex spend would be substantial. We should be adding capacities in virtually all product categories," Mr Varghese said, hinting that the extra capacities would need an investment of Rs 800 to Rs 900 crore next year.
"We have identified a site in Trichy where we have acquired land and we will commence work there soon. Doesn’t matter where it is, the question is to bring in additional capacity," was his response, when asked about the location for its greenfield project.
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