MRF Ltd has become a global partner of the International Cricket Council (ICC) by signing four deals with the council that includes this year’s ICC World Twenty20 in India, next year’s ICC Champions Trophy and ICC Cricket World Cup in 2019. As a global partner, MRF will have multiple branding opportunities at all match venues during the ICC World Twenty20 and future ICC events.

David Richardson, chief executive, ICC, told newspersons that this partnership strengthens the existing relationship between the ICC and MRF, which has been supporting cricket not only in India but also abroad.

Expansion MRF is looking at various options, both within India and outside the country, to set up a plant, even as all its nine plants are running at full capacity, said its executive vice-president (marketing), Koshy K Varghese. “We are looking at options outside Southern India wherever opportunities throw up. Gujarat could be one of them. We have not zeroed down any location,” he told newspersons. “All the factories are running full. That does not mean that there won’t be hiccups going forward; it could be in terms of demand slowing. But at the same time, we have been market leaders in the last 27 years. That position, we don’t want to lose. To keep this position, we need to expand,” Varghese he said.

On the possible location abroad, he said it could be Asean, where the market is growing and it is easy to sell within the region.

An amount of ₹4,500 crore is being invested for expansion, most of whichis taking place in the company’s Tiruchirapalli plant. “Our average yearly spend is ₹800 crore to ₹1,000 crore. This continues even now and most of it is in the existing plants. Though the market is fairly lukewarm in the entire automobile industry, MRF is looking at a little long term and we are still investing,” he said.

Demand has been fairly slow. “We were all hoping the new government will take measures, but that has not come through. We are still in the Make in India mode at this point.

“The GST has not been passed, and it may not even happen in the coming Budget. Whether it will take place by the end of the year is a big question mark. The economy does not look very bright, but we need to navigate our ways through,” he said.

Revenue growth MRF have dropped its prices by 9 to 10 per cent in the last one year due to decline in prices of natural rubber and crude. The company passed on the benefits to consumers. The price drop will affect the company’s top line by nearly 10 per cent. However, volume will grow across all categories. If the price of raw material goes up, “we will revisit our prices. But, at this point of time, the movement is downwards,” he said.

IPL When asked what stops MRF from owning an Indian Premier League (IPL) franchise, Varghese said nothing restricts the company from owning an IPL team.

“However, we need to see whether in the long term it makes business sense to do that and the associated issues that follow. There are more issues in the IPL. We don’t want any negative fall-out of our brand, which has always remained clean and pure.”

KM Mammen, chairman and managing director, MRF, said the association with the ICC is a testimony to “our commitment to cricket. Our association with the ICC and the game of cricket presents a great opportunity for brand MRF to reach markets across the world.”

MRF’s brand ambassador Sachin Tendulkar said that in 1986, the company came up with the idea of producing fast bowlers by starting the MRF Pace Foundation in Chennai.

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