RUBBER INDUSTRY

By,ANCY JOSE MBASMS,CUSAT

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CONTENTS • INTRODUCTION• ORIGIN AND HISTORY• RUBBER PRODUCING & CONSUMING

COUNTRIES • STATISTICAL SUMMARY• INDIAN SCENARIO• FUTURE • MAJOR CHALLENGES• SUMMARY • REFERENCE

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INTRODUCTION• Types of rubber

oNatural rubber From Hevea brasiliensis tree

oSynthetic rubber From petroleum feedstock

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ORIGIN AND GROWTH• In 1490s Christopher Columbus,

observed natives in Haiti playing with a ball that bounced. (i.e latex)

• Later explorers observed American Indians using the substance to make foot wears

• For a long period of time, people used the milky substance to waterproof their clothing. It worked in the rain but melted in the sun.

• In 1770,the first use of rubber was discovered - Erase lead pencil marks

• During the period 1819 to 1825 -Thomas Hancock (Father of the Industry in Britain) invented a lot of products based on rubber .

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CONTD…• James Lyn Hancock Ltd -the First

British rubber manufacturer (1820).• By the year 1825 there was a

flourishing and varied rubber (unvulcanised) manufacture in Britain, France and the United States

• In 1839,Charles Goodyear discovered -Vulcanization. (Rubber mixed with sulfur on a hot stove)

• In 1890s rubber manufacturing moved to the Midwest.

• During 1930s – Export trade expanded.

• Later tariff barriers and import quotas imposed by foreign countries, led to the development of American-owned rubber factories and plantations in foreign countries.

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TOP 10 RUBBER PRODUCING COUNTRIES

30.62

28.24

9.11

8.15

7.22

6.035.01

3.76

1.720.13

PRODUCTION (in %) THAILAND

INDONESIA

MALAYSIA

INDIA

VIETNAM

CHINA

PHILIPPINES

COTE D'LVOIRE

NIGERIA

SRILANKA

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TOP 8 RUBBER CONSUMING COUNTRIES

50

11

10

7.1

6.9

65 4

CONSUPTION (in %)CHINAINDIAUSJAPANTHAILANDINDONESIAMALAYSIASOUTH KOREA

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STATISTICAL SUMMARY

WORLD RUBBER SITUATIONYear 2014

(‘000 tonnes)2015

(‘000 tonnes)2016

(‘000 tonnes)

Natural Rubber Production

Asia- Pacific 11236 11345 2599EMEA 564 599 160

Americas 335 334 89TOTAL 12136 12278 2848

Natural Rubber Consumption Asia-Pacific 8916 8840 2213

EMEA 1553 1597 415Americas 1712 1709 413

TOTAL 12181 12146 3042

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Year 2014 (‘000 tonnes)

2015(‘000 tonnes)

2016 (‘000 tonnes)

Synthetic Rubber ProductionAsia- Pacific 7321 7395 1836

EMEA 3887 3985 1050Americas 2970 3079 742

TOTAL 14179 14460 3628Synthetic Rubber Consumption

Asia-Pacific 7800 7845 1916EMEA 3537 3648 906

Americas 2930 3068 756

TOTAL 14267 14561 3579

Source: Data taken from Rubber Statistical Bulletin, July - September 2016 edition

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INDIAN SCENARIO• Annually produces -7 lakh

tonnes of rubber worth Rs.3000 crore.

• 70% of the rubber produced in India is Ribbed Smoked Sheets (RSS) - (45% of the total rubber imports)

• The Indian rubber industry has a turnover of Rs.12000 crores .

• India's production is not enough to meet the internal demands of the country .

• India's annual import of rubber is around 50,000 tonnes

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CONTD…• Largest producer- Kerala (92%)

•Kottayam, Kollam, Ernakulam, Kozhikode

• 2nd largest producer –Tamil Nadu (3.39%) •Nilgiri, Madurai, Kanniyakumari, Coimbatore and Salem

• 3rd largest produced - karnataka (1.85 %)•Chikmagalur and Kodagu

• Tripura and Andaman & Nicobar Islands- by small quantities

• Kerala is the leading consumer of rubber followed by Punjab and Maharashtra

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RUBBER INDUSTRY IN INDIA• 30 Number of Large Scale Units• 300 Number of Medium Scale

Units• 5600 Number of Small Scale

Units• Top industries in India – Apar Industries ,Hyderabad–  Indag Rubber, New Delhi– Apcotex Industries , Mumbai– S R K Industries , Mumbai–  Rubfila International,  Kerala– Gujarat Reclaim & Rubber Product,

Gujarat –  Pix Transmissions , Maharashtra

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Year (April to March)

Rubber area (ha)

Tappable Rubber area

(ha)

Production (tonne)

Average yield (kg/ha)

Consumption (tonne)

2009-2010 686,515 468,480 831,400 1,775 930,565

2010-2011 711,560 477,230 861,950 1,806 947,715

2011-2012 734,780 490,970 903,700 1,841 964,415

2012-2013 757,520 504,040 913,700 1,813 972,705

2013-2014 778,400 518,100 774,000 1,629 981,520

2014-2015 795,135 533,675 645,000 1,443 1,020,910

2015-2016 811,000 559,000 562,000 1,437 994,415

Production & Consumption in India

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Production & Consumption in India

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Consumption Production

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THE INDIAN RUBBER CONSUMPTION

• Automotive tyres sector : 50 % (all kind of rubber)• Bicycles tyres and tubes :15 %• Footwear : 12 %• Belts and hoses : 6 %• Camelback and latex

production :7%• Other product :10%

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Import, Export and Average Prices of Natural Rubber in

India Year (April to March)

Import (tonne)

Export (tonne)

Average price of RSS-4 at Kottayam (Rs/100kg)

2009-2010 177,130 25,090 11,498

2010-2011 190,692 29,851 19,003

2011-2012 214,433 27,145 20,805

2012-2013 262,753 30,594 17,682

2013-2014 360,263 5,398 16,602

2014-2015 442,130 1,002 13,257

2015-2016 458,374 865 11,306

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IMPORT & EXPORT

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Import Export

IN KERALA…… • The total area for rubber

cultivation is 5.45 lakh hectares.• Production of natural rubber

declined by more than 15 %• Reasons for the decline in

production - unusual and excessive rains, incidence of leaf diseases and low prices.

• The poor return and high labour cost has forced 75 % small and marginal farmers, to keep away from tapping and farmers shifting to other crops

• Unrestricted massive imports by Tyre companies have also pushed down domestic demand.

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FACTORS AFFECTING THE RUBBER PRICES IN

INDIA• Rubber prices in India are volatile and are affected by international factors along with local factors

• International demand and supply• International market transactions• Production of synthetic rubber• Automobile industry• Government policies• Oil prices• Seasonal changes and Climate changes• Global economic condition

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MAJOR CHALLENGES • Low Domestic Production• High Import Duty• Volatile Prices • Lacking Support Structures • Global Competition• Drop in demand of Natural Rubber

along with slowdown in Rubber Industry

• Inadequate Government Support

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FUTURE • According to Singapore based research

body -International Rubber Study Group ……–  by 2020, the world will consume 36.7 million

tonnes of rubber – 16.4 million tonnes of it will be natural rubber. – By then, 91% of natural rubber will be supplied

by Asia-Pacific countries.• Growth of Automobile Industries and other

related industries will boost the rubber industry

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SUMMARY • Domestic rubber production declined by

13% in 2016• Higher demand for Natural rubber forced

Imports• Import rose by 3 % in 2016• Hiking import duty on rubber and bringing

port restrictions would push up the domestic demand for the commodity.• Indian Synthethic Rubber Output said by

2017 India become self sufficient in synthetic rubber.

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REFERENCE• Rubber Statistical Bulletin,

July - September 2016 edition• http://www.allindiarubber.net/• http://www.indianmirror.com/• http://economictimes.indiatimes.

com/

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Thank you………