How to start a Franchise of MRF Tyres in India?

You think of tyres and the first name that strikes is MRF Tyres. This is one name we all have grown up with and is synonymous to tyres that run our cars. For years, this one brand has dominated the Indian market in this segment and is still racing far ahead of all its contemporaries.

Over the past few years there has been a surge in the automobile industry with more and more families owning a car. ‘Roti, Kapda, Makaan aur apni Car’ has become the new slogan of every middle class family in India. With a growth in the number of car owners, the demand for automobile accessories and parts has also increased manifold.

Today, the tyre industry alone is booming in India with some really good Indian brands like Apollo Tyres, JK Tyres and our very own giant the MRF tyres. These brands are not alone and face tough competition with the entry of some international brands in the market like Goodyear, Michelin, etc. However, one brand that rules the hearts of Indian customers and Indian roads is undoubtedly…MRF.

So, how about the idea of being associated with a brand that has a legacy of its own and is widely acknowledged and honoured over the years…. Yes apart from being its user why not own a franchise of the very renowned MRF tyres?

Racing Ahead with Time….The Journey So Far

The story dates back to 1946…Madras Rubber Factory or more popularly MRF was set up by K.M.Mammen Mapillai as a small toy balloon factory in Madras (now Chennai). In 1949, the company expanded its business and started making latex cast toys, gloves and contraceptives.

In 1952, it made its first serious venture in the manufacture of tread rubber. Within 4 years, by 1956 MRF captured 50% share of the Indian market and had marked its name in the Indian tyre industry.

1961 was a milestone year for MRF, it became a public company and entered into a collaboration with the Mansfield Tire & Rubber Company based in USA. In 1963 the foundation stone of the Tiruvottiyur factory was laid. In 1964, the company crossed Indian borders and stepped out in the international market by setting up its first international office in Beirut. By 1967, MRF emerged as the first Indian company to export tyres abroad.

The second manufacturing plant of the company was established in 1970 in Kottayam further expanding its operation. Soon the company escalated its operations and was working globally from 65 different countries, rolling out tyres from 8 different manufacturing units.

What Makes MRF Tyres Better than the Rest?

For years the Muscle Man holding the tyre on his head has been the logo of MRF. Truly so, for MRF tyres provide the much needed muscle to our vehicles and keeps them running year after year. Despite facing tough competition in the domestic and international market, MRF tyres have etched their names in history and are known for their superiority, durability, strength and promise to deliver even on tough roads.

MRF Tyres cater to different consumer groups and vehicles like heavy duty trucks, buses, SUVs, luxury cars, small cars, conveyor belts and for different manufacturing facilities. Their innovative and versatile products have evolved with time and advanced as per market demands.

MRF Tyres has a strong brand value and market presence. Today it has become one of the largest producers and exporters of tyres around the world. It has a variety of custom designed products ranging from MRF Nylogrip tyres for bikes, MRF ZVTs and MRF Wanderers for cars and SUVs, MRF meteor-all terrain tyres and MRF Steel Muscle for trucks and buses.

With cutting edge technology and through technical collaborations with international partners, the company has designed products and facilities that suit all Indian road types, whether it be the muddy and rough village links or the superfast express highways thus claiming and retaining its stalwart position as ever.

What are the Benefits of Owning a Franchise of MRF Tyres?

mrf tyres franchise

They say ‘Old is Gold’…and what if the gold is still glittering? Yes indeed…MRF Tyres is one brand that has grown and progressed over the years and has become better and better like old wine that tastes better with age.

So what really makes the brand so superior and a class apart from its contemporaries? Take a look…

  • MRF tyres has not only sustained in the tyre industry for more than 50 years but has also set a benchmark which is far beyond the reach of any of its contemporaries
  • It became the first Indian company to reach a turnover of 5000 crores and secure the number one position in the tyre industry for more than a decade
  • Today MRF has 9 manufacturing units all located in South India, but a dealership network that spins across the length and breadth of the country
  • The company has a strong hold in the international market and is one of the largest exporters of tyres in India
  • MRF has earned various awards and recognitions during its lifetime and continues to do so even today. It won the iconic JD Power Award 12 years in a row and has also won the TNS and CAPEXIL awards for being voted as the most trusted tyre company in India
  • The company has diversified and promoted sports on a large scale by setting up the MRF Pace Foundation, where young cricketers are coached by eminent fast bowlers and cricketers
  • MRF believes in offering its customers with the best quality goods. All raw materials used in its products are closely screened in NABL certified labs before being processed
  • MRF promotes eco-friendly business and is one of the forerunners in initiating and promoting the concept of recycled tyres
  • MRF has always been open to new ideas, innovations and adopting latest technologies to produce tailor made products for its customers
  • Lastly, MRF tyres believes in expansion of business through a franchise model, thereby promoting entrepreneurship and encouraging both young and seasoned business professionals to collaborate with the company and wider the business horizons of the company

These are reasons enough to back and cement your faint idea of taking up a franchise of MRF Tyres and grab the opportunity of growing with a brand that has left an indelible mark on Indian roads.

Regions of Operation & Wings of Expansion

The company is firmly rooted in the South of India with manufacturing units in Kottayam in Kerala, Puducherry, Arakonam, Goa and Trichy. Two plants are located in Perambalur in Tamil Nadu and Medak. Ankenpally in Tamil Nadu has two units as well. The toy manufacturing unit is located in Goa while the paints and coats are manufactured at two units in Chennai.

Besides the manufacturing and operational set up, the company works through a wide network of distributors, dealers and retailers all throughout India. It has strong web of about 4000+dealers across the globe and functions through 180 different offices.

The international footprints of the company are commendable too. It has been a long time exporter of tyres for India, reaching out in about 65 different countries globally.

In future, the company is working on its manufacturing project in Gujarat and aims to invest about 1000 crores annually to pump up the existing set up and reap better profits while delivering quality products to its customers.

What are the Requirements of Owning a Franchise of MRF Tyres?

MRF Tyres has always been a big promoter of the dealership and franchise model of business. In fact the secret behind the long lasting success of the company has been its strong network of dealers and franchisees that have helped the company to reach out in different parts of the country. So, if you are planning to own a franchise of MRF Tyres, take a look at the pre-requisites that you need to fulfill.

Area Requirements

Starting a franchise of MRF Tyres requires a super built up area of 4000 sq.ft. The area is needed for the display of a variety of tyres suiting different vehicles and to build a stock of the bulky product. The stocking of the heavy tyres is preferred in a space on the ground floor which makes loading and unloading easier.

Investment Requirements

Setting up a franchise of MRF Tyres requires a total investment of about 23 lakh rupees which includes the cost of machinery and equipment. Besides this it needs an additional investment of 10 lakh rupees. All in all the investment you put in is sure to reap benefits in the long run considering the brand value and demand for automobile accessories in the Indian market.

Skills & Training

MRF is one brand that supports its dealers and franchisees seamlessly and provides all possible support and training. The company offers help and support in setting up the franchise and all guidelines and instructions regarding distribution and better sales. Complete product knowledge and orientation programs are conducted by the franchisor from time to time so that the staff of the franchisee is up to date with all the features of the latest products and attuned to the newest technologies used in MRF tyres.

Agreement and Legal Aspects

MRF tyres shares a strong bond with all its dealers, distributors and franchisees in terms of meaningful business relations and cordial client dealings. However, every partnership is governed by certain legal facets. The franchisee needs to sign a legal agreement with MRF tyres which is usually valid for certain years and is subject to renewal on its successful completion.

Step into the Shoes…Profitability Check

MRF Tyres has been a huge profit spinning company for years, but does owning its franchise really promise good outturn? Let us check through a hypothetical example….

Rent paid monthly for a 4000 sq.ft of area=Rs. 100000
Salary paid to 8 employees on a monthly basis
           (2 Managers @ 15000 +6 staff members@8000)
         Miscellaneous Expenses=Rs. 20000
Total Expenses incurred in a month= 100000+78000+ 20000= Rs.1,98,000    

• Average number of tyres sold in a day=15
• Average amount per order billed in a day =Rs.2200
• Total Income earned in a day= (15*2200)=Rs. 33000

Total Income earned in a month= (Rs.33000*30) = Rs.9,90,000

Gross Profit for the month (50% of Rs.9,90,000) = Rs.4,95,000
So, Total Profit for the month= Gross Profit for the month-Monthly Expenses
= Rs.495000-Rs.198000
= Rs. 2,97,000
Considering the above profit figures, a franchisee can earn back his investment within a period of 1-2 years provided the business is carried out with due diligence and apt entrepreneurial skills.


Over the years, MRF Tyres has carved a niche for itself not only in the automobile industry but in the Indian business forum as well. It is a brand name with which most of us have grown up and have strong memories of its logo and products being endorsed by cricketing legends like Sachin Tendulkar.

Following business dynamics and rule of trade, the company has diversified its portfolio over time and has always come up with better products year after year. Very recently the company also launched the Perfinza range of luxury and premium tyres.

Being a market leader, MRF Tyres roll out around 8-9 lakh tyres from their manufacturing units each year, which is quite an achievement considering other competitors in the market. And the story doesn’t end here, the company further aims to increase its revenue to around Rs.20000-22000 crore by 2020-21, in lieu of which it plans to invest Rs.1000 crore every year on products and dedicated research and development.

With so much happening in a company that is futuristic and plans to grow higher and higher, it is completely prudent for any entrepreneur to bank his investments in its franchise, especially when the brand is none other than MRF.

So, what leaves you still thinking? This idea needs no second thought, head today to grab a franchise of MRF Tyres and secure your chance of minting profits that keep rolling and rolling like our very own…MRF Tyres!

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