Indian TPR Industry

Thermoplastic Rubber Compounds SBS & SEBS BASE COMPOUNDS

INDUSTRYFOOTWEAR AUTOMOTIVE GRIPS WRITING

INSTRUMENTSLUGGAGE

SHOE SOLES COMPOUNDS

Ashutosh gupta [email protected]

Thermoplastic Rubber Compound : Scope of Study

Regional Coverage: Indian Market is the primary focus of this study with regard to technology, economics, markets, and industry structure. The Indian TPR industry is analyzed with respect to SBS resin and compound technology and supplier industry structure.

TPE Compound Coverage: The target TPRs analyzed in this study are compounds based on SEBS (and SEPS), SBS, The TPR and PVC interfaces have received particular attention.

Forward Vision: The primary emphasis of the study is on the analysis and forecast of likely evolution during the next five years. Previous evolution and snapshots of the current situation are used as baselines.

Fabrication Process Technology: Emphasis is on processes that will broaden TPE material substitution potential and reduce system cost.

Compounding Technology/Property Envelope: Relationships between compound technology/properties/costs are defined in a series of graphs that show property envelopes and their relationship to markets and value in the marketplace. The cost and property implications of using recyclate (rubber and TPE) and metallocene-catalyzed styrenic and polyolefin resins are analyzed.



Pricing: The current/future dynamics of TPR pricing are identified and analyzed with respect to such factors as:

- New metallocene/non-metallocene plastomer and elastomer alternatives

- Broadening of the TPR resin supplier structure

- Increased presence of independent compounders

- Globalization of TPR markets

- Increased raw material availability

- Expiration of key TPR compound and resin patents

- The cascade effect toward lower cost TPRs

- A shift in how TPRs reach the market.

Market Sector Structure: All end use market sectors and applications in the TPR target zone in India have been analyzed and quantified with respect to current TPR use, intra-TPR and intermaterials competition, as well as supplier structure. The footwear sector received particular attention due to its size and technological importance.



Structural Change: Consolidation, partnering, and market globalization have shifted paths to market and purchasing patterns. The implications of the major structural changes that occurred in this industry in the India are analyzed. These include:

- Increased numbers of TPR Compounders in the last five years

- Product line broadening by SEBS, SBS, TPO, and TPV compounders

- Increase of TPR consumption for Exports

- The shift toward a multi-region business structure.



Supplier Strategies: The implications of the greatly expanded SBS & SEBS resin supply in the U.S., Europe, and Japan are analyzed with respect to demand for SBS & SEBS compounds and the intermaterials environment in which they must compete.

PVC Substitution Trends: The current and possible future recycling pressures and PVC-related trends and their likely impact on TPE demand are reviewed. Particular emphasis has been placed on developing an analysis and forecast of these influences on European medical, and automotive sectors and the potential impact in other regions and TPE markets.

Rubber Replacement: The key target rubber markets have begun to be penetrated. The replacement potential, timing, and requirements for TPE/rubber competition in roofing, belting and automotive, and building/construction body and glazing seals are analyzed.

Time Horizon: Demand and market share analysis by TPE base resins and compounds are developed through 2005.


TPR & TPE COMPOUNDS

THERMOPLASTIC RUBBER COMPOUNDS

These compounds based on the SBS (Styrene-

Butadiene-Styrene) block thermoplastic

elastomer.

SBS thermoplastic rubbers present high elastic

properties

THERMOPLASTIC ELASTOMERS

These compounds are based on Styrene

Ethylene Butadiene Styrene (Block Co-Polymer)

formulations and easy to process, can be

Injection Molded at normal conditions.


Thermoplastic Rubber Compounds

CHARACTERISTICS

TPR compounds are having a wide range of hardnesses from 40 to 85 Sh

A units. The elastic behavior is excellent at room temperature and still

very good up to - 40 °C. Maximum working temperature is + 50 °C. TPR

Compounds is a fully recyclable material blended both with different

polymers. Provided it is properly stored, it does not require pre-drying

phases before processing.



PROCESSABILITY

The technologies which are commonly used for TPR & TPE processing are injection molding and extrusion - the later only for the production of rands. The injection process can be carried out with the extruder type, controrotating screw extruder type or transfert type machines. Using the proper machine it is possible to inject soles composed of 2 or 3 colours

and/or inject directly onto upper.

The processing temperatures ranging from 140 -175 °C in the first zone to 160-190 °C in the last zone. The runners should be round-shaped, the shortest possible and with gradually narrowing sectional areas of flow. A

round-shaped injection point is suggested


TPR Applications• Shoe Soles• Automotive Components• Luggage

TPE Applications:• Power tool grips • Hand tools • Garden tools and equipment • Kitchen utensils • Industrial paint brushes and scrapers • Trowels • Razors • Toothbrushes • Hairbrush handles • Writing pens/pencils • Bumpers



Applications:Footwear

In-soles, out-soles, uppers, motifs, heel counters, top pieces

Electrical

Moulded plugs, welding cables, wire harnesses, flexible cords

Appliances

Handle grips, knobs, seals, stoppers, body parts, rollers

Toys

Wheels, belts, semi-rigid toy components

Automotive

Interior gaskets, grommets, seals, shift boots, pedal covers

Plastic Modification

Compatibiliser, impact modifier, ugrade regrinds - olefinic & styrenic



Market Potential

Total consumption of TPR & TPE compound in footwear industry is estimated at 16,000 MT per annum.

TPR & TPE Compounds consumption depends on Export orders

Total Demand for TPR compounds is estimated at 18500 MT / Annum.

Approximately 13,400 MT / annum is manufactured by the Indian Compounders and balance 5100 MT/annum is being imported.

TPR & TPR Compounds are also used in Automotive applications, but cost wise costlier to PVC compounds.

Black Colour TPR compound for major demand. The other colours mostly used are Red, Blue, Green, Yellow, White,Grey and Honey.

Now New Grades like Translucent, Transparent and Crape finish TPR compounds are in demand.



OTHER TPE APPLICATIONS



Following are the major compounders producing TPR & TPE compounds.

Some of the prominent Players are :

Sales (MT/Annum)

M/s SPERRY PLAST 14800

M/s KLJ PLASTALLOYES 4400

M/s SBJ VON 1800

M/s PLASTIC EXTUSION 2800

M/s GAJENDRA PLASTICS 1000

M/s NIKHIL INDUSTRIES 1200

M/s TECHNO VINYL 800

Total 26,800

INDIAN TPR MANUFACTURERS



Following are the major Overseas Suppliers producing TPR & TPE compounds.

Some of the prominent Players are :

Exports to INDIA (MT/Annum)

M/s CENTERPLAST srl 180

M/s TCT 200

M/s GOITER 180

M/s ADVANCE ELASTOMER 480

M/s TECHNOFILM 1000

M/s SO.F.TER 800

Total 2,840

IMPORTED TPR COMPOUND



M/s SPERRY PLAST LTD. have major share in the market. They have outplaced M/s. SBJ VON, Ahmedabad from the first place.

KLJ PLASTALLOYES LTD. Recently entered in to TPR compounds and doing very well, producing approx. 4400 MTS/annum.

SBJ VON COMPOUNDERS now diversified themselves into Automotive sector, In Footwear sector they supply only to BATA, India.

NIKHIL PLAST is also coming out with new plant and added one MARIS Twin-screw machine recently.



Price of some of the Indian manufacturers

are given below:

Colour Basic PricesBlack Compounds 60,000 to 88000Color Compounds 70,000 to 105000Honey Compounds 90,000 to 110,000Transparent Compunds 90,000 to 102,000Crape Compounds 90,000 to 102,000

Credit offered varies from 45-90 days.

Duties/ Taxes are Extra.



Black Compounds Euro 1.15Color Compounds Euro 1.18Honey Compounds Euro 1.20Transparent Compunds Euro 1.25Crape Compounds Euro 1.25Expanded Grade Euro 1.28

Approx CIF Price of some of the Overseas TPR

manufacturers are given below:



FOOTWEARS (TPR)

Mirza tanners Ltd. 150 MTS/month

Enkay HWS India ltd. 120 MTS./month

Farida Leatherware pvt. Ltd. 140 MTS/month

Dyechem India Ltd. 50 MTS/month

Bata India Ltd 50 MTS/month

AUTOMOTIVES (TPE)

Sun Steering Wheels 2000 kgs/month

HP Bajaj Pelzer 2000 kgs/month

Anand Motors Ltd. 3000 kgs/month

Other OEM’s 5000 kgs/month

MAJOR INDIAN CUSTOMERS





WRITING INSTRUMENTS (TPE)

Rotomac Pens Ltd. 4000 kgs/month

Luxor Exports Ltd. 2500 kgs/month

Rashmi Writing 2500 kgs/month

Jineshwer writing 2200 kgs/month

LUGGAGE (TPE)

VIP Industries 5000 kgs/month

Aristocrat 1800 kgs/month

MAJOR INDIAN CUSTOMERS



TPR & TPE Compounds should follow SATRA (U.K.) standards and physical Properties also dully tested and passed by FDDI, NOIDA.

In TPR & TPE Compounds Colors specifically matched as per the customers specimen. Color matching in TPR & TPE compounds is difficult process.

Sampling and Batch wise supplies should match in terms of Quality and Color.

Black TPE compounds are having larger share in the market in comparison to Color compounds.

Color Compounds bring loyalty among customers as once color is approved by their buyer. Customer will buy from the approved source.



Existing market of Shoe Sole Compounds & automotive Compounds.

Increasing demand in Shoe Sole Compounds

New applications found in Automotive Components & Writing Instruments and Luggage Industry.

Volume is increasing as the new applications found in Automotive, Wire & Cable & Additive industries.

New age TPE compounds are developed in form of Engineering Plastic Alloys and other specialized compounds.



MARKETING PROPOSAL

If we go for marketing of TPR compounds and purchase certain grades as per our specifications and packing we can make atleast Rs. 3000 on regular grades and upto Rs. 7500 on grades like Color, Honey and even more on grades like Transparent and special application grades.

We have got a proposal from one of the exiesting TPR manufacturer having units at Badli, Delhi and Bhiwadi, Rajsthan with capacity of producing 250 MTS/month but at the moment utilising only 40% of the capacity.

We can utilize their technical expertise and initially there is no need of investments on infrastrusture, plant & machinery.

The said party is ready to offer their TPR products as per our specifications and in our desired packing. We can go for certain Economical Black, Color and Honey grades for seed marketing.



The TPR manufacture given following grades which are already sold in the market and can be marketed by us with our brand and packing.

Economy Black TPR Compound : N-441

Medium Black TPR Compound : N-2001

Color TPR Compound : N-6001

Transparent color TPR Compound : SFX

Honey TPR Compound : HNY

MARKETING PROPOSAL



GRADES MKT. PRICE(PMT) PURCHASE MFG. COST(Approx.)

(Landed Delhi)

• Eco. Blk : N-441 Rs. 76550 Rs. 71500 Rs. 65000• Med Blk :N-2001 Rs. 78700 Rs. 73500 Rs. 68000• Tpt. Color :N-6001 Rs. 86200 Rs. 81500 Rs. 72000• Color :SFX Rs. 84700 Rs. 81000 Rs. 75000• Honey :HNY Rs. 98600 Rs. 93000 Rs. 82000

Above prices are inclusive of Excise Duty I.e. 8.24%

We can negotiate further on the basis of quantity & Cash Purchases.

MARKETING PROPOSAL : PRICING


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Supply Chain Value CreatingSupply Chain Value Creating

TPR Modular Supply Chain MnagementTPR Modular Supply Chain Mnagement


The six founding layers - Raw Material Sourcing- Finished Goods

- Process Organization - Grades Performance & Measurement- Communication

- Manage orders - Produce goods- Distribute goods

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Technical & Customer Support

- Customer Support - Technical Issues & Trials - Product Info.- After Sales Support

- Network Optimization - Production Strategy- Distribution Channels

- Material Handling Strategy - Warehouse Management - Material Handling Systems- Robotics


and supply chain management

SUPPLY CHAIN

MANAGEMENTThermoplastic Rubber Compounds

With intelligent Supply Chain Management the product cost can be optimized.

With smart design, plan and control the intra- and inter-company supply chain without bottlenecks and wastage can be managed and the optimization of the resources can be done for the maximum advantage:

¬ 100% deadline compliance¬ productivity increase in

two-digit gains¬ reduction of throughput

time up to 50%¬ reduction of stocks up to

the half of the capital tied-up Sales

Transportation

Supplier

Customer

Warehouse

ASP

Trade company

Developement

Factory

Information flow Material flowWAY

Supply Chain Simulation


INDUSTRY


The Footwear Industry is a significant segment of the Leather Industry in India.

India ranks second among the footwear producing countries next to China.

India produces more of gents’ footwear while the world’s major production is in ladies footwear.

The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector.

In the case of chappals and sandals, use of non-leather material is prevalent in the domestic market.

The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharastra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country:

OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY


SUPPLY CHAIN MANAGEMENT

RAW MTRL. STOCKS

LOGISTICS & LEAD

TIME

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DEMAND & SUPPLY

OUTSOURCING &

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TECHNICAL CUSTOMER SUPPORT



Indian TPR Industry

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