In a pioneering move, MRF Tyres, the $3-billion giant in the tire manufacturing industry, has established a dedicated mini factory in Trichy, Tamil Nadu, solely for research and development (R&D). Rahul Mammen Mapillai, the Managing Director of MRF Tyres, unveiled this strategic initiative during his address at the Global Investors Meet 2024 in Chennai on Sunday.
The move comes in response to the panel discussion titled ‘Young Leaders Driving Transformation in Business,’ which highlighted that less than 1% of India’s GDP is allocated to R&D. Mapillai, a fourth-generation businessman leading the Chennai-headquartered company, emphasized the need to distinguish between product development and R&D, asserting that they are distinct processes.
“Product development is meeting customer requirements for the next six months. True R&D involves working outside comfort zones, where timelines are uncertain,” Mapillai explained. He emphasized the importance of allowing engineers to experiment, gain quick validation, and learn from both failures and successes. To foster such an environment, MRF Tyres established a mini factory in Trichy where engineers can innovate without production pressures.
The mini factory allows engineers to build, test, and learn, with a test drive scheduled near the production unit in six months. MRF Tyres, with almost 75 years of industry expertise, recently achieved a significant milestone by becoming the first Indian company to breach the Rs 1 lakh-mark in its share price. The company manufactures a wide range of tires, including those for passenger cars, two-wheelers, trucks, buses, tractors, light commercial vehicles, off-the-road vehicles, and even airplane tires. Notably, they recently launched Steel Brace radials for high-performance motorcycles.
Mapillai urged other businesses to invest in R&D, envisioning an evolving ecosystem that attracts more investments. He suggested focusing on infrastructure that empowers engineers to excel, ensuring the best talent remains in the industry. MRF Tyres, known for exporting tires to over 90 markets globally, not only manufactures rubber products but also engages in philanthropy through initiatives like the MRF Pace Foundation and the MRF Challenge Series in Motorsport.
