India Rubber Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on India Rubber Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to Rubber Industry 

Rubber in India was introduced by the British Government in 1873, in the form of Para seedlings which were smuggled from Brazil to England and then distributed to India and various other countries under European dominion. After many failed attempts and experimentations, the British introduced the first commercial rubber plantation in Thattekadu, Kerala in 1902, in the form of Hevea plantations, as they were the best suited for commercial purposes. Today, Rubber in India is of three broad categories: Natural Rubber (NR), attained from the sap of the rubber tree Hevea brasiliensis; Synthetic Rubber (SR) which is created by various chemical processes with different raw materials, common to both SR and petroleum industry; and Reclaimed Rubber (RR), which is obtained by treating rubber waste by the application of thermal energy and various chemical reagents and then applying intense mechanical work on the product. Rubber is a highly sought after commodity, being essential in various different products and rubber production in India is a major industry, with India among the top rubber producing countries in the world.

Market Dynamics of Rubber

The production and price of Rubber in India is dependent on many factors. The cultivation of Hevea plants is a complex and time taking process, with the plants not ready for tapping till the 6th year of their lives. In some cases, the tapping stage might be reached after a long period of 12 years. The plants are hardy and can withstand drought situations, but they thrive in a hot and humid climate. Apart from climatic and geographic concerns, a number of chemical agents go into the processing of rubber, whose supply directly affects the production and price of rubber. For instance, a recent carbon black shortage in India around the month of February in 2018 led to a reduction in the amount of usable rubber being produced in India, thereby affecting the domestic price of rubber, with up to 60% increase in the price of rubber in the previous six months. The market dynamics of rubber are a complex cross weave of different factors as rubber is used in a lot of products. For example, the above mentioned situation arose because of an increase in anti-dumping duty on tire imports from China (China being the largest exporter of carbon black in the world). These tires are used in automobiles, whose demand has been increasing year on year. This resulted in an increase in the demand of domestic tires, putting pressure on domestic carbon black, which is a major component of tires.

As of October, 2018, the per capita consumption of rubber in India is 1.2 kg whereas the global average is 3.69 kg. The economic growth of India, along with the increase in the purchasing power of its citizens will push the rubber industry towards growth. This fact alone indicates the high opportunity that India offers for the growth of its rubber industry.


Market Segmentation of Rubber

In the Indian Market, rubber is produced in broadly three categories: Natural Rubber (NR), Synthetic Rubber (SR) and Reclaimed Rubber (RR). As stated by the Rubber Board, Ministry of Commerce & Industry, GOI, Indian natural rubber has the USP of not using petroleum in its production, which is beneficial and sustainable, due to the diminishing resources of the same globally.

Natural Rubber in India is divided up in the following categories, depending on their form and function:

  • RSS (Ribbed Smoked Sheets): RSS 1, 1X, 2, 3, 4, 5
  • PLC (Preserved Latex Concentrates): PLC 1, 1X, 2, 3
  • ADS (Air Dried Sheets)
  • EBC (Estate Brown Crepe)
  • Other variants depending on the percentage composition of Latex in the end product (Latex 60% rubber)

Synthetic Rubber is produced majorly in the form of Styrene Butadiene Rubber and Poly Butadiene Rubber.

Reclaimed Rubber is the rubber produced from waste products through various chemical processes giving it the “reclaimed” in its name.

Regional/Geographic Market Analysis of Rubber

In India, rubber plantations are present in Tamil Nadu, Kerala, Karnataka (coastal regions), Goa, Andhra Pradesh, Orissa, Punjab, some areas of Maharashtra, Tripura and Andaman and Nicobar Islands. Rubber is majorly produced in its traditional home of Kerala, which contributes around 90% of the rubber production of entire India, followed by Punjab and Maharashtra.

Key Market Players of Rubber

Major companies in the rubber industry are Deluxe Rubber Industries, Madras Rubber Factory and Rubco. Apart from that, the market has other players in the form of Apcotex Industries, Pix Transmis, Indag Rubber, Rubfila International, Cosco, Bombay Chemical and Rubber Products, Mahalaxmi rubbers, Rishiroop, Eastern Treads, Somi Conveyor and Vamshi Rubber.

Major Trade Partners

Indian Rubber is not an item of Indian export and current supply/demand trends leave little rubber to be exported from India. In the FY 2017-2018, only 5072 tons of natural rubber was exported from India, whereas India imported around 469760 tons of natural rubber from various countries.

Due to the deficit in the Indian rubber production compared to consumption, India is left with little other option than to import its deficit. Major Countries for import of rubber in India are Indonesia, Vietnam, Thailand, Cote d’Ivoire, Malaysia, Cambodia, China and Sri Lanka.

Report Highlights

  • India Rubber Industry Segments
  • India Rubber Industry Drivers, Restraints and Opportunities
  • India Rubber Industry Size and Forecast 2016 to 2023
  • Supply and Demand Value Chain
  • India Rubber Industry Current Trends
  • Competition and Major Companies
  • Technology and R&D Status
  • Porters Five Forces Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

Regional analysis of India Rubber Industry includes

  • Tamil Nadu
  • Kerala
  • Karnataka (coastal regions)
  • Goa
  • Andhra Pradesh
  • Orissa
  • Punjab
  • some areas of Maharashtra
  • Tripura
  • Andaman and Nicobar Islands

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macro-economic factors and other qualitative and quantitative insights. The impact of all such factors are delivered across multiple market segments and geographies.

Report Highlights for Rubber include:

  • Detailed Historical Overview (Market Origins, Product Launch Timelines etc.)
  • Consumer and Pricing Analysis
  • Market Dynamics of the Industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of Volume and Value
  • Recent Market Trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage


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