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
oNatural rubber
 From Hevea brasiliensis tree
oSynthetic 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
30.62
28.24
9.11
8.15
7.22
6.03
5.01
3.76
1.72
0.13
PRODUCTION (in %)
THAILAND
INDONESIA
MALAYSIA
INDIA
VIETNAM
CHINA
PHILIPPINES
COTE D'LVOIRE
NIGERIA
SRILANKA
6

7. TOP 8 RUBBER CONSUMING COUNTRIES
50
11
10
7.1
6.9
6
5 4
CONSUPTION (in %)
CHINA
INDIA
US
JAPAN
THAILAND
INDONESIA
MALAYSIA
SOUTH KOREA
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
• 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
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)
Consumptio
n (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
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Consumption Production
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
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
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