Rubber Industry

Am overview on rubber production and consumption mainly from Indian perspective.
History,Growth,Development,Statistical summery on world rubber situation.Production -Consumption rates,Import-Export,Factors affecting the rubber price,Major Challenges,and Future of Rubber Industry are the topics discussed in this presentation.

1. RUBBER INDUSTRY By, ANCY JOSE MBA SMS,CUSAT

2. CONTENTS INTRODUCTION ORIGIN AND HISTORY RUBBER PRODUCING & CONSUMING COUNTRIES STATISTICAL SUMMARY INDIAN SCENARIO FUTURE MAJOR CHALLENGES SUMMARY REFERENCE 2

3. INTRODUCTION Types of rubber Natural rubber From Hevea brasiliensis tree Synthetic rubber From petroleum feedstock 3

4. 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 . 4

5. 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. 5

6. TOP 10 RUBBER PRODUCING COUNTRIES 6

7. TOP 8 RUBBER CONSUMING COUNTRIES 7

8. STATISTICAL SUMMARY WORLD RUBBER SITUATION Year 2014 (‘000 tonnes ) 2015 (‘000 tonnes ) 2016 (‘000 tonnes ) Natural Rubber Production Asia- Pacific 11236 11345 2599 EMEA 564 599 160 Americas 335 334 89 TOTAL 12136 12278 2848 Natural Rubber Consumption Asia-Pacific 8916 8840 2213 EMEA 1553 1597 415 Americas 1712 1709 413 TOTAL 12181 12146 3042 8

9. Year 2014 (‘000 tonnes ) 2015 (‘000 tonnes ) 2016 (‘000 tonnes ) Synthetic Rubber Production Asia- Pacific 7321 7395 1836 EMEA 3887 3985 1050 Americas 2970 3079 742 TOTAL 14179 14460 3628 Synthetic Rubber Consumption Asia-Pacific 7800 7845 1916 EMEA 3537 3648 906 Americas 2930 3068 756 TOTAL 14267 14561 3579 Source: Data taken from Rubber Statistical Bulletin, July - September 2016 edition 9

10. 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 10

11. CONTD… Largest producer- Kerala (92%) Kottayam , Kollam , Ernakulam , Kozhikode 2 nd largest producer –Tamil Nadu (3.39%) Nilgiri , Madurai, Kanniyakumari , Coimbatore and Salem 3 rd 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 11

12. 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 12

13. 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 13

14. Production & Consumption in India 14

15. 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% 15

16. 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 16

17. IMPORT & EXPORT 17

18. 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. 18

19. 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 19

20. 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 20

21. 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 21

22. 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. 22

23. REFERENCE Rubber Statistical Bulletin, July - September 2016 edition http:// www.allindiarubber.net / http://www.indianmirror.com/ http://economictimes.indiatimes.com/ 23

24. Thank you……… 24