A ‘Tyreless’ Empire: How MRF Embraced 14,544% Returns

Published by Trinkerr Academy on

Had you invested ₹1 lakh in MRF in November 2001, you could have had ₹1.46 crores today! This multibagger has given its investors returns of 14,544% in 21 years. Let’s take a quick look at the company.

🚗 Stock Name: MRF Ltd.

🌱 The Roots
In 1946, K. M. Mammen Mappillai started MRF’s journey as a toy balloon manufacturing unit in a shed in Tiruvottiyur, Madras. By 1949, the company was making latex-cast toys, gloves and contraceptives. It wasn’t until 1952 that it shifted its focus and began trading in tyres. Now, it is among the world’s top 20 tyre manufacturers.

Headquartered in Chennai, Tamil Nadu, MRF has a presence nationwide, with 9 manufacturing units across the country using state-of-the-art technology. The company’s sales network is well-connected, with more than 161 sales offices spread across prominent cities. In 1967, MRF became the first Indian company to export tyres to the US. At present, the company has established its presence in 65 countries.

⚙️ Ventures
With a revenue of more than ₹16,000 crores, MRF manufactures tyres and equipment for passenger and commercial vehicles. MRF was a supplier of India’s first modern small car, the Maruti 800. Funskool India was another well-known venture of the company, where it collaborated with the world’s largest toy maker, Hasbro International.

💰 Marketing Strategies
What made MRF stand out was its aggressive marketing strategy, which included sponsoring cricket bats for legendary players, such as Sachin Tendulkar. The company also had endorsements from leading athletes like AB de Villers.

🔮 What Lies Ahead
The future is green for the tyre manufacturer, as it aims to reduce industrial CO2 emissions by attaining locally sourced raw materials and developing low-rolling resistance tyres. The company believes global demand will remain consistent, especially in the Far East and Western Asia.

💸 Stock Value
On November 12, 2001, the company’s shares were trading at ₹588.30, while they were priced at ₹86156.40 as of November 11, 2022.


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