MRF Tyre Dealership Apply in 2023: Cost and Profit Margin

MRF Tyre Dealership Apply in 2023: Cost and Profit Margin

Are you Passionate about the automotive industry and dream of running your own successful business? Then you can consider starting MRF Tyre Franchise. MRF is an established and trusted brand in tyre manufacturing and it provides an opportunity to aspiring entrepreneurs to take MRF Tyre Franchise to join its franchise.

India is the largest populated country in the world. As the pace of urbanization is increasing in India, there is a large number of vehicles on Indian roads. Due to which India is one of the top countries in terms of tyre usage. According to Export Market ResearchThe India Tyre market attained a volume of 179.16 million units in 2022. The market is further assessed to grow at a CAGR of 6.68% during 2023-2028 to reach a volume of 263.26 million units by 2028“.

In this blog, we will know how you can also take MRF Tyre dealership, along with this, we will also know how much total investment will be required for its franchise, what will be the profit margin and what will be the risk in it, so let’s start from the beginning.

Overview about MRF Tyre Franchise

Madras Rubber Factory commonly known as MRF or MRF Tyre is an Indian multinational company. It is the largest tyre manufacturing company in India.

MRF Tyre started as a toy balloon manufacturing unit in 1946 by K. M. Mammen Mappillai . Its headquarters is in Chennai. It has more than 2550 distributors. MRF Tyre is the world’s second strongest tire manufacturer with AAA- brand grade.

MRF was the first company in India to export tyres to America in 1967, since then it has expanded to 75 countries. Apart from Tyres, this company also produces toys, sports equipment, conveyor belts, paints and coats. It is the first company in India who’s each share price has crossed 1 lac.

MRF Tyre: Essential Facts

1 Trade Name MRF
2 Type Public
3 Industry Tyres Rubber Production
4 Founded 1946
5 Founder K. M. Mammen Mappillai
6 Headquarters  Chennai, Tamil Nadu
7 Area Served Worldwide
8 Product Tyres, Toys, Sports Equipment, Conveyor Belts, Paints and Coats
9 Revenue Rs. 23,216.20 crores
10 Website  mrftyres.com 

 

Reasons to Consider MRF Tyre Franchise

MRF Tyre Dealership Apply in 2023: Cost and Profit Margin

Taking a franchise of MRF Tire is a wise business decision for an entrepreneur seeking a franchise in the automotive industry. the reason for which is

  1. Brand Recognition and Trust: – MRF is India’s household brand and it is the world’s second strongest tire maker. Joining this franchisee means associating your business with a well-known and trusted name that helps attract customers and start It creates trust between them.
  2. Wide Range Product: –MRF offers a wide range of tyres for Cars, Motorcycles, Trucks Buses, Cycles etc. Your business potential and growth prospects increase as you have a wide variety of products.
  3. Strong Market Support: – It has 2500 plus distributors across India. The brand has reached every nook and corner of the country so being a franchisee means taking advantage of its wide distribution and wide brand reach.
  4. Training and Support: – MRF Tyre equips its franchisees with the necessary knowledge and skills to be a successful franchise. From explaining its products to formulating marketing strategies, MRF stands by its franchisees every step of the way.
  5. Growing Automobile Industry: – Automobile industries in India are progressing very fast. With more vehicles coming on the roads, there has been an increase in the demand for tyres, and there is always a desire in the minds of people to use original tyres. If you start a franchise of MRF Tyre in your area, then you can expand your business along with building your trust among the people of your area.

MRF Tyre Franchise Cost

To start this franchise, you have to invest first to set up the outlet, then you also have to invest to run the business and if you talk about total investment, then you may have to spend between 30-50 lacs.

Types of Cost Cost and Other Details
Security Money Approx. ₹ 5 lacs
Interior Setup Cost Approx. ₹ 5 lacs
Equipment Cost Approx. ₹ 5 lacs
Product Stock Approx. ₹ 15 lacs
Total Initial Investment ₹ 30-50 lacs

MRF Tyre Franchise Profit Margin

By joining this company, you can make an average net profit of 3,00,000 -4,00,000 per month. The company gives a profit margin of 8 -12 % to its franchisee. According to the company, your investment cost will be completed within 3 years. With this, the company Pays some commission out of its profits.

You can see how much the Average Monthly Earning we can get from MRF Tyres with an example.

If you sell 50 four-wheeler Tyres daily (Supply + Sale), and 1 four-wheeler price(approx.@5000)

Daily Total Revenue 50*5000≈2,50,000
Daily Profit approx. 20,000 (consider 8% profit margin)
Monthly Profit 30*20,000 =6,00,000
Less: Rentals -1,00,000(Godown +Shop)
Less: Manpower (4Nos) -80,000
Less: Electricity -20,000
Less: Other Expenses -10,000
Net Profit Per Month Rs. 3,90,000

Requirement for MRF Tyre Franchise

  1. You need a total investment of 30 -50 lacs for this franchise.
  2. You need 3200 sq. ft. (300 sq. Mts) space with a proper frontage of 35 – 50 ft. for this franchise
  3. You have to design the interior of your store according to the company’s standards.
  4. You will have to undergo and complete the training conducted by the company.

Document Requirement for MRF Tyre Franchise

  • Aadhar card of applicant
  • Pan Card of applicant
  • Passbook of applicant
  • GST Number
  • TIN Number
  • Business Insurance
  • Address Proof of Outlet
  • Electricity Connection document
  • Passport size photo of applicant

How to Apply for MRF Tyre Franchise

You have to fill-up the franchise form by visiting its official website, after that its customer care will call you on its own.

MRF Tyre Dealership Apply in 2023: Cost and Profit Margin

Contact Details:

Address –The Franchise Promotion Manager,
MRF Limited 124, Greams Road,
Chennai – 600 006
Phone: 044-28292777
Fax: 044-28294154 / 28290562
Email: mrfmktg@vsnl.com
 

MRF Tyre Franchise Support

  1. It helps with site selection. This makes you know in which area you should open your outlet so that more and more customers can come to your outlet.
  2. It will help to set up the interior of your store.
  3. Also supports you in marketing and promotion so that our outlet can be quickly recognized in our area.
  4. They also provide training programs for your workmen and salesmen.

Risk in MRF Tyre Franchise

While starting an MRF Tyre franchise in India can be a promising business opportunity, like any venture, it comes with its share of risks. It’s essential to be aware of these risks and take necessary precautions to mitigate them. Here are some potential risks associated with an MRF Tyre franchise:

  • Market Competition: -The automotive industry, including the tyre market, can be highly competitive. There may be other tyre dealers or franchises in your area, including competitors selling different tyre brands. You’ll need to implement effective marketing strategies and provide excellent customer service to stand out in the market.
  • Dependency on MRF: As a franchisee, you will rely on MRF for the supply of tyres and other support services. Any issues with the company’s supply chain, product availability, or changes in terms and conditions can impact your franchise’s operations.
  • Business Management: Running a successful franchise requires effective business management skills. Inadequate management or lack of experience can hinder your franchise’s growth and profitability.

Conclusion

MRF Tyre is an Indian multinational company. It is the largest Tyre manufacturing company in India. It has more than 2550 distributors. MRF offers a wide range of Tyres for Cars, Motorcycles, Trucks Buses, Cycles etc. You need a total investment of 30 -50 lacs for this franchise. The company gives a profit margin of 8 -12 % to its franchisee. You can make an average net profit of 3 -4 Lacs per month.

Every business has some merits as well as some risks to them, so according to me, consider each and every aspect before starting this franchise. If there are any questions related to this franchise, then you can ask us your question in the comment box below.

FAQs

How much is MRF franchise?

You need a total investment of 30 -50 lacs and 3200 sq. ft. (300 sq. Mts) space with a proper frontage of 35 – 50 ft for this franchise.

Is MRF Tyre Dealership Profitable?

Certainly! Yes.By joining this company, you can make an average net profit of 3,00,000 -4,00,000 per month.The company gives a profit margin of 8 -12 % to its franchisee.

When was MRF started?

MRF Tyre started as a toy balloon manufacturing unit in 1946 by K. M. Mammen Mappillai . Its headquarters is in Chennai.

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