MRF Tyres plans to increase its revenue to around Rs 20,000-22,000 crore by 2020-21. To back this target, the company plans to invest around Rs 800-1,000 crore every year on products and brown field expansion. And, it also expects Rs 4,000 crore facility in Gujarat to go live by 2020.
MRF's total income for the financial year-ended March 31, 2017, was Rs 15,078.01 crore.
After unveiling Perfinza range of luxury and premium range of tyres on Tuesday, MRF Vice-Chairman and Managing Director (MD) Arun Mammen said that the company has been investing around Rs 800-1,000 crore every year and this will continue.
Koshy K Varghese, executive vice president of marketing, added that the investment will be towards expanding existing facilities, on automation, research & development (R&D) and others.
He added, apart from regular capital expenditure, the company is planning to invest around Rs 2,000 crore to commence Phase-I of the Gujarat facility. MRF's total commitment in this facility is around Rs 4,000 crore. The new facility will produce the full range of tyres.
"The facility will be one of our biggest facilities," said K M Mammen, chairman and MD, MRF.
The market leader currently manufactures around 8-9 lakh tyres per month across its nine manufacturing facilities, of which seven are in South India and one in Goa.
All these expansions will support the company's revenue target of around Rs 20,000-Rs 22,000 crore by 2020-21, said Mammen.
Mammen said that the company has been the market leader for nearly three decades. However, the competition has become stronger with tyre companies increasing their manufacturing capacities.
MRF will continue to strive to be the customers' preferred brand in the market by constantly improving product superiority, widening distribution network and ensuring brand dominance across all segments.
On Chinese competition, which tyre industry said it is worrying them, Mammen said MRF with its brand position and quality products can take on competitions in any part of the World.
During Tuesday's launch, Varghese said that the new range of Perfinza tyres will be available in India and later it will be exported.
The Perfinza range of hi-speed rated tyres currently available for over 60 luxury and premium cars in India.