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The company also said that it has set up a subsidiary in Singapore last year, for procurement of raw materials.
Answering shareholders at the annual general meeting of the company held today in Chennai, K M Mammen, chairman and managing director of MRF Ltd said, "We wish to clarify the item was as reported in the media is based on speculation and we would not like to comment anything further. But today's newspaper has the news, if you have read it."
The comment comes in the backdrop of speculation that MRF, which has interests in cricket with MRF Pace Foundation and a recent deal to be one of the lead sponsors of the ICC Cricket World Cup 2015, would look at acquiring CSK if India Cements sells it to comply with the Supreme Court's order.
The apex court recently ruled against the conflict of interest inherent in N Srinivasan, promoter of India Cements, being the head of the BCCI as well as holding the Indian Premier League (IPL) franchise CSK.
While it is not confirmed whether India Cements will sell CSK, the company has started working on hiving off the franchise into a wholly-owned subsidiary.
The company on Wednesday said that India Cements shareholders would get ownership of the new subsidiary Chennai Super Kings Cricket Ltd.
Mammen, answering to another question on MRF setting up a Singapore subsidiary, said, "We have set up a subsidiary in Singapore in the year ended September 2014, for procurement of raw materials, taking advantage of the facilities in Singapore, which is a commodity trading hub."
According to the annual report of the company for the year 2013-14, MRF has incorporated a wholly-owned subsidiary in Singapore under the name MRF SG Pte Ltd and has subscribed to 10,000 ordinary shares of Singapore Dollar 1 each for Rs 0.05 crore.
An amount of Rs 6.06 crore was paid as share application money for subscribing to 12,63,200 ordinary shares of Singapore Dollar One each which has been issued on the October 1, 2014. The company has given guarantees to the bank for facilities given to MRF SG, of Rs 300 crore.
Mammen also said that the company is considering selling its shares in its subsidiary M M Research Company Pvt Ltd.
The company will also decide on changing its accounting year to end on March 31, as against the present accounting year ending September 30, in order to comply with the new Companies Act. The company has also started a long term investment into agriculture, by taking up agricultural land of Rs 12 lakh near Madurai, he said.
The cmpany said that by seeking newer market niches and applications, it is also nurturing and extending its traditional dominance in the bias ply tyres segment. The overseas business contributes 10% of the business and it is expecting growth to be complemented with new machinery being installed for Sri Lankan market, he added.
MRF net profit up 80%
The company posted a growth of 80% in net profit at Rs 323.51 crore for the quarter ended December 31, 2014, as compared to net profit of Rs 179.89 crore for the same quarter of previous year. The total income from operations of the company saw a growth of 4.8% at Rs 3,353.01 crore for the quarter ended December, 2014, as against Rs 3,200.57 crore for the corresponding quarter of previous year.
