INDIAN RUBBER INDUSTRY 

 Brief introduction 

Indian rubber industry has been growing in along with the strength and importance, as a part of India’s burgeoning role in the global economy. India is the world’s largest producer and the third largest consumer of natural rubber and is also one of the fastest growing economies globally. With a stable annual growth rate of 8-9%, rising foreign exchange reserves, rapid expansion in the capital markets and FDI inflow, India proudly stakes its claim as the second fastest growing major economy in the world. Such factors combined with high concentration of automobile production and the presence of large and medium industries in South India, Chennai has become the perfect place for the event India Rubber Expo-2011.

Production of rubber in the world was considered to be very unstable during the last few years. Comparatively, with the world India’s production of rubber is consistent at the rate of 6% per annum. The Indian rubber industry has been growing tremendously over the years.

Indian Rubber Producing Areas divided into two zones – traditional and non traditional

90% of India’s total production of natural rubber is contributed by Kerala.Kerala and Tamil Nadu together occupy 86% of the growing area of natural rubber.

The Indian Rubber Consumption is as follows

• Automotive tyre sector:50% consumption of all kinds of rubbers

• Bicycles tyres and tubes: 15%

• Footwear:12%

• Belts and hoses:6%

• Camelback and latex products: 7%

• Other products: 10%

 Market capitalization 

India’s Rubber production varies between 6 and 7 lakh tons annually which amounts to Rs. 3000 crores. 70% of the total rubber production in India is in the form of Ribbed Smoked Sheets (RSS) and is also imported by India accounting for 45% of the total import of rubber. Today Indian Rubber Industry consists the turnover of Rs 12000 crores. Most of the rubber is consumed by the tyre industry which is almost 52% of the total production of India. Kerala is the leading consumer of rubber, followed by Punjab and Maharashtra. Though, India is one of the leading producers of rubberit still imports rubber from other countries. At present, India is importing around 50000 tons of rubber annually.

 Size of the industry 

The size of the Indian Rubber Industry is,there are about 6000 unit comprising 30 large scale, 300 medium scale and around 5600 small scale and tiny sector units. Such units are manufacturing more than 35000 rubber products, employing 400 hundred thousand people, which involves22000 technically qualified support personnel, contributing Rs. 40 billions to the National Exchequer through taxes, duties and other levies. The Indian Rubber Industry plays a vital role in the Indian national economy as the rubber plantation sector in India produces over 630 hundred thousand tonnes of natural rubber and there is a projected production of more than one million tonnes in near future.

 Domestic and Export Share 

The export share of Indian natural rubber has increased tremendously over the years and have reached 76000 tons in 2003-04. India’s exports of rubber products, which include tyres, exceeded Rs.2000 cores according to a recent estimate. Products exported are as follows:

• Automotive tyres and tubes
• Rubber and canvas footwear
• Cycle tyres
• Pharmaceutical goods
• Rubber hoses, cots and aprons
• Belts and beltings
• Sheeting

 Top leading Companies 

The All India Rubber Industries Association (AIRIA) is a non-profit making body serving the rubber industry and trade with the objectives of safeguarding and promoting interests of the industry.In the year 1945 the All India Rubber Industries Association was formed which is an apex body of the Rubber Industries-both tyre and non-tyre sectors and also of the traders dealing in raw rubber, chemicals and other raw materials etc. The Association is to protect and promote the interests.

It has around 1200 members affiliated to it spread all over the country. The Association has its central office at Mumbai with 4 regional offices at New Delhi, Kolkata, Chennai and Mumbai and a Chapter office at Pune.

 Employment Opportunities 

A person with minimum graduation can have a good career in this industry but specialization in the subject would give an added advantage. Sectors covered by Indian Rubber Industry for the employment of the individuals are :

• Civil
• Aviation
• Aeronautics
• Railways and agriculture transport
• Textile engineering industries
• Pharmaceuticals, mines, steel plants, etc.

 Latest developments 

• Indian Rubber Industry is expected to grow at over 8% per annum in this decade and the industry is envisaged to grow at the rate of 8% per annum and the per capita consumption of rubber is at 0.8 kg against 14 kg. There exists a huge scope for expansion and development and exports in coming years. Infact, exports of rubber goods was worth Rs. 30 billion in the year 2005.
• The prospect of growth is further enhanced by a boom in the vehicle industry, improved living standards of the people and rapid over-all industrialization. The per capita consumption of rubber in India is only 800 grams compared to 12 to 14 kilos in Japan, USA and Europe. So far as consumption of rubber products is concerned, India is far from attaining any saturation level. It is a factor leading to tremendous growth prospects of the industry in the years to come.
• India is the third largest producer of rubber in the world and is the fourth largest consumer of natural rubber.
• India is fifth largest consumer of natural rubber and synthetic rubber together in the world.
• India and China are the only two countries in the world which have the capacity to consume the entire indigenous production of natural rubber.

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