Sales Effort Pays

Sales Effort Pays Hansavivek MADRAS RUBBER FACTORY has achieved a complete turnaround in 1977-78, with sales shooting up from Rs 45.44 crores to Rs 53.36 crores and yielding a gross profit of Rs 314 lakhs compared to a trading deficit of Rs 93 lakhs of the previous year. After depreciation, there is a net profit of Rs 119 lakhs against a net loss of Rs 183 lakhs. This pleasing outcome has enabled the company to return to the dividend list. The 10 per cent payment is covered 3.22 times by earnings. Contributing to the company's success in pulling itself out of the low ebb it hit in the preceding two years has the all-out effort to improve product quality and widen distribution network. Today MRF has 2,750 dealers and 29 depots covering 1,800 cities and towns. In addition, it entered into an exclusive arrangement with Hindustan Petroleum whereby all HP filling stations stock only MRF tyres. This has given the company 3,000 ready made retail outlets all over the country. After analysing regional preferences patterns, the company launched its new truck tyre which is fast becoming popular with traders and customers. The company exported Rs 220 lakhs worth of tyres during 1977-78. It achieved a major breakthrough with Piggyback tyres for trailers in the US market as original equipment. The future looks even more promising, since the transport industry has greatly improved and the market potential for the tyre industry has increased. The company has now set before itself an ambitious sales target of Rs 100 crores for the current year. The first quarter sales of Rs 23.32 crores provide confidence to the management that the target will be achieved. The company is working hard on the radial tyre project. Car radials are already on its production lines and these will be followed by radial tyres for trucks.