The onset of a normal monsoon has boosted the expectation of crop output and it augurs well for the rural economy as it would lead to a spurt in demand for two-wheelers and tractors, MRF Ltd chairman K M Mammen has said.
“The crop output will strengthen rural income and demand. A recovery in the rural economy will be a relief to the tyre industry,” he said. With the automobile industry seeing an unprecedented low in demand for four and two-wheelers, the segment moved to adopt BSVI norms and vehicles were slowly getting absorbed into the market, he said.
“We are expecting a fair growth in demand for vehicles and I am sure the automobile industry will come out of the slump with reasonable growth in the near future,” he said while addressing the shareholders. On the group financials, he said, MRF Ltd registered a total income of Rs 16,322 crore for year ending March 31, 2020.
“MRF is focused on strengthening its position through this period of uncertainty with uncompromising emphasis on quality, as it has been one of the major factors helping us take a leadership position,” he said. On the impact of COVID-19, he said no country was free from the pandemic, and economic crisis has aggravated the world community”s hardship.
“I have no doubt that India and the world economy will emerge stronger and bounce back quickly,” he said. With the Centre lifting the lockdown, he said the company had to deal with COVID-19 cases at its manufacturing facilities as the pandemic affected production momentum.
“Fortunately, the demand for tyres from the farm and commercial sector has not been affected much and we are able to cater to these market segments,” he said. The government”s move to prohibit import of tyres is a welcome relief and that would alleviate the problem to a great extent, he said.