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HomeDealership/DistributorshipHow to Get MRF Tyre Dealership? - Cost & Profit

How to Get MRF Tyre Dealership? – Cost & Profit

Have you been wondering about starting a Tyre dealership in your area? Are you currently involved in an automotive franchise/ self owned business and wanted to expand it by partnering with a popular Tyre brand? Or, Are you a fresh entrepreneur, who believes Tyre business as a stable and profitable venture?

Look no further! Welcome to FranchiseGoal India, In this comprehensive blog, we’ll explore about the MRF Tyre Franchise and along with its cost, fee, and profit margin – we’ll also answer some of the most asked questions on this chain.

The Tyre business in India has indeed shown significant growth potential in recent years. This enormous success in the industry is majorly influenced by several factors, including the booming automotive industry, increasing vehicles sales, and more.

It also significantly ignited the entrepreneurship of several aspirants to consider opening a Tyre dealership of renowned businesses in India and many of them succeeded in the process by receiving immense support, training and more.

MRF Tyre Franchise Opportunity
  • Brand: MRF Tyre
  • Founded: 1946
  • HQ: Chennai, TN, India
  • Founder: K. M. Mammen Mappillai
  • Area Required: Min. 3200 sq. ft.
  • Revenue: ₹23,261.20 crore
  • Deposit Fee: ₹5 lacs – 10 lacs
  • Profit Margin: Varies
  • Showroom Frontage: min. 30 ft
  • Est. Initial cost ₹30 Lakh – ₹50 Lakh

Overview of MRF Tyre Dealership

MRF Tyre Dealership
MRF Tyre Dealership

Madras Rubber Factory, Popularly known as MRF, was founded in 1946 by K. M. Mammen Mappillai, a visionary entrepreneur in Chennai, India. Started as a small-scale rubber balloon manufacturing unit to quickly migrating its operations into a Tyre productions, MRF has certainly walked a long mile.

MRF holds the distinction of being India’s pioneering rubber tyre manufacturer, earning it a prominent position as a household name in the country. The brand is highly regarded for its exceptional durability, performance, and reliability.

With a legacy built on innovation and quality, MRF has established itself as a trusted and preferred choice among consumers in India and beyond. Their extensive product range of tyres caters to various vehicles, including cars, motorcycles, trucks, and agricultural vehicles.

MRF’s reputation extends beyond the borders of India, as its tyres are trusted by millions of customers worldwide. The chain has a robust network of over 2500 distributors in India and also exports its tyres in over 75 countries, leading to its stable and growing presence in the international market as well.

With its continuous improvement in latest rubber technology, leveraging advanced technique to develop tyres, and strong emphasis on sustainability and environment responsibility, MRF has significantly created a positive impact on the environment that has taken all the major steps to reduce the carbon footprints.

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The Journey of MRF Tyres

K. M. Mammen Mappillai, the visionary founder of MRF, began his entrepreneurial journey in the small-scale rubber balloon manufacturing industry. However, his foresight and recognition of the immense potential in the tyre industry led him to venture into tyre manufacturing.

With this strategic move, MRF started producing a wide range of high-quality tyres, marking the beginning of its remarkable journey in the automotive industry. MRF as a business has clear focus on understanding the unique needs of Indian road conditions, and subsequently develop the tyres.

Currently, The chain produces a diverse range of tyres that caters to the demand of almost every vehicle present across the globe.

Key Facts on MRF

Sr No.TypePublic
1Trade NameMRF
4Founders Or Parent CompanyK. M. Mammen Mappillai
5Corporate HeadquartersChennai, TN, India
6Number of locationsOver 2500 Distributors in India
& exports to 75+ countries
7Area servedWorldwide
8ModelFranchise/ Dealership
9Product offeringTyres
10Revenue₹23,261.20 crore

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Why consider Owning a MRF Dealership?

owning a MRF Tyre Dealership
owning a MRF Tyre Dealership

MRF brings in enormous benefits for its dealers, ranging from a diverse product range to an immense training and support systems. To explore more, we have highlighted a few key reasons for it;

  1. Pioneer in the Industry:
    • With more than 7 decade of experience, MRF has positioned itself as a pioneer in the industry that caters to demand of almost every vehicle present in India.
      • Currently, the chain has over 2500 distributors across in India and exports its goods to more than 75 Countries.
  2. Consistent growth in its finances:
    • Over the period, MRF has exhibited a consistent growth in its revenue Year-on-Year. According to its Financial report 2023, MRF has recorded an all-time high consolidated total income of ₹23,261 Crores.
  3. Delightful customer experience with World-class Tyre care services:
    • The chain offers a unique tyre buying and service experience through its MRF T&S (Tyres & Service), a world-class sales and service outlet.
      • In addition to that, these outlets are equipped to provide services like computerized wheel balancing and alignment, automated tyre changing, nitrogen filling and tubeless tyre repairs by MRF trained service personnel in a comfortable air-conditioned ambience.
  4. Awards and recognitions:
    • MRF has been awarded and recognized by several renowned platforms, adding an extra advantages over its customers. Some of their valuable brands includes;
      • Rewarded as the 2nd strongest tyre brand in the world and the most valuable Indian tyre brand by the Brand Finance.
      • In sustainability perceptions value, the chain is ranked among the Top 10 brands globally in the Tyre sector.
        • And, overall, it was recognized for overall performance for the year 2022-23.
  5. Growing exceptional figures in the export as well:
    • For the financial year ended 31st March, 2023, The brand has shown a significant growth in the exports, which stood at ₹1866 Crores in 2023 as against ₹1779 Crore for the previous year, exhibiting a CAGR growth of 4%.

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How much does MRF Tyre Dealership Cost?

MRF Tyre Dealership Cost
MRF Tyre Dealership Cost

The cost of becoming an approved MRF dealer may depend on several factors including, Outlet’s geographical location, initial stocking capacity, and extent of renovation required for a store.

Nevertheless, according to its official website, MRF demands a minimum investment of ₹30 lakhs and a 3200 Sq. Ft. ( 300Sq. Mts) of industrial space. However, it is also worthy to mention that the investment may go up to ₹50 lakhs, depending on the market conditions.

This initial investment comprises of cost like franchise/ deposit fee, interior decor, marketing & promotional, equipment, and more, which excludes the cost of land and construction to build up a retail store.

Type of CostCost and Other details
Brand Deposit FeeApprox. ₹ 5 lakh
Showroom FrontageMin. 30-45 ft
Showroom AreaMin. 3200 sq feet
Interior setup cost₹10 lakh – ₹15 lakh
Initial Working Capital~ Approx. 5 lakh
Total Initial Investment₹ 30 Lakh – ₹ 50 Lakh

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How Much is the MRF Tyre Dealership Profit Margin?

MRF Tyre Dealership Profit
MRF Tyre Dealership Profit

It is indeed challenging to provide a specific percentage for the profit margin of MRF authorized dealers as it can vary based on several factors.

The profit margin of a MRF Tyre outlet is influenced by elements such as the location of the dealership, the average customer footfall in that area, the market potential, and the dealer’s capabilities in effectively managing and operating the business.

To get more details on its profitability, let’s delve further;

Standalone Financial Result:

(Fig. in Crores)FY- 2022-23FY- 2021-22
Total Income2282619304
Profit Before Tax1119839
Provision for Taxation303232
Profit for the year816647
  1. Over the years, MRF has demonstrated remarkable growth in its revenue from operations. According to its latest Annual Report, the company has achieved a revenue of ₹22,578 Crores in 2023, a significant increase from ₹12,131 Crores in 2013.
  2. The chain had been provided consistent dividend return to its investors, which ultimately provides a clear sign for a profitable businesses.

To summarize in a single statement, considering the humongous and profitable growth strategy, consistent and stable return to its customers, competitive pricing for its products, and worldwide aids an extra advantage to its authorized dealers.

Based on market analysis and industry standards, a prospective MRF Dealership can expect a profit margin ranging from 10% to 15%. Additionally, MRF franchisees may also benefit from cash discounts, trade-off discounts, and various promotional schemes offered by the franchise from time to time.

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How to Get MRF Tyre Dealership?

Starting a MRF Tyre Dealership Showroom will require a relatively moderate investment that may offer an impressive gross relatively better margin. Additionally, the MRF Tyre chain may provide several benefits, and interested candidates can take up its outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

  1. Visit MRF’ official website and fill in the necessary form;
    • Please fill in the details like Name, Email ID, Phone Number, State, City, and other required details.
MRF Dealership FormFranchise/Dealership form


Final Takeaway – Conclusion

MRF is one of India’s leading Tyre manufacturers, offering a wide range of tyres that caters to almost every vehicle present in India. Currently, the chain boast over 2500 distributors in India and also exports its products to over 75 countries.

The brand has been experiencing exceptional growth, providing consistent returns to its dealers and investors. With a healthy growth rate in revenue from operations over the years, MRF has established itself as a reliable and profitable business opportunity.

To become an authorized MRF Tyre dealer, one should buckle up to make an investment of at least ₹30 Lakhs to ₹50 Lakhs with a floor area of min 3200 sq ft and store frontage of 30-45 ft.

The Final Thought – Overall, MRF Tyre may prove to be an enticing opportunity for its aspiring prospects. With more room for outlet’s expansion, expansion in brand’s portfolio, and new launches, MRF Tyre is well-positioned to continue its extraordinary growth and expansion journey in the coming years.

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  1. How much does it cost to become a MRF Tyre Dealer?

    Ans: The average cost required to become a MRF Tyre channel partner may range between ₹30 Lakhs to ₹ 50 Lakhs with a floor area of min 3200 sq feet. The outlet frontage should be at least 30ft.

  2. Is MRF Tyre Dealership Profitable?

    Ans: Certainly! Yes. Moreover, considering its significant market share, immense potential in the Tyre industry, trusted and reliable brand image, and competitive pricing may help new franchisee owner to anticipate a healthy profit margin.

  3. When was MRF started?

    Ans: MRF was founded by K. M. Mammen Mappillai in 1946 in Chennai, India.

FranchiseGoal India
FranchiseGoal India
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