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RUBBER India, Special Edition-Jan. 2011 37
Industry Profile
All India Rubber Industries Association
INDIAN RUBBER INDUSTRY AT A GLANCE ( Approximate Indicator)
Parameter A/c Unit 2008-09 2009-10
1 Annual Turnover
Tyre Sector Crore Rs. 22000 25000
Non-Tyre Sector ’’ 15000 17000
Total ’’ 37000 42000
2 Exports
Tyre Sector/Tubes Crore Rs. 3585 3650
Rubber Manufactured Products ’’ 3115 3150
Total 6700 6800
3 Revenue to Govt. Exchequer
Through Excise Duties & Cess Crore Rs. 6000 6500 *
Through Import Duties ’’ 3000 3500 *
Total ’’ 9000 10000 *
4 Rubber Production
Natural Rubber M. Tonnes 864500 831400
Synthetic Rubber ’’ 96739 106743
Reclaim Rubber ’’ 86390 93535
Total ’’ 1047629 1031678
5 Rubber Consumption
Natural Rubber M. Tonnes 871720 930565
Synthetic Rubber ’’ 292950 347710
Reclaim Rubber ’’ 86030 92250
Total ’’ 1250700 1370525
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RUBBER India, Special Edition-Jan. 201138
Industry Profile
Parameter A/c Unit 2008-09 2009-10
6 Rubber Imports
Natural Rubber M. Tonnes 81545 170679
Synthetic Rubber ’’ 190630 250210
Total ’’ 272175 420889
7 Rubber Exports
Natural Rubber M. Tonnes 46926 25090
8 Miscellaneous
Total No. of units Number 4700 4327 **
No. of Tyre Factories ’’ 58 51
No of Large/Medium Scale Units ’’ 400 501
No of SSI/ Tiny Units ’’ 4242 3775 **
Employment Gerneration ’’ 465000 475000
9 Tyre Production Million/Nos 82 97
10 Automobile Industry (Production) Numbers
Commercial Vehicles ’’ 416870 566608
Passenger Cars ’’ 1838593 2351240
Two Wheelers ’’ 8419792 10512889
Three Wheelers ’’ 497020 619093
Total ’’ 11172275 14049830
* These pertain to items covered under chapter 40 only
NB: India is fourth largest producer of Natural Rubber next to Thailand,Indonesia
& Malaysia, Second largest consumer of natural rubber next to China,
Fourth largest consumer of all rubber next to China,USA & Japan
RUBBER India, Special Edition-Jan. 201140
Industry Profile
General Profile of Indian Rubber
Industry 2009-10A. Key Indicators of the Natural Rubber (NR) producing IndustryWorld Ranking in Area under rubber Fifth
(Indonesia,Thailand,Malaysias,China,India)
World Ranking in NR Production Fourth(Thailand, Indonesia, Malaysia and India)World Ranking in NR Consumption Second(China and India)World Ranking in productivity (India) FirstRelative share of India in global area 6.10%Relative share of India in global production of NR 8.50%Relative share of India in global consumption of NR 9.60%Relative share of India in global elastomer comsumption 5.90%Total area under rubber plantation 687000 haNumber of small holdings (Less than 20ha. In area) 1.16 milionNumber of estates (20ha and above) 265 nos.Average size of small holdings 0.53 hectareShare of area in small holding sector 90%Share of production in small holding sector 93%Productivity in India 1784 kg/ha.Share of Kerala in planted Area 76%Share of Kerala in production 90%Average market price for RSS-4 (Domestic) Rs. 114.98/kgAverage market price for RSS-3 (World) Rs. 111.13/kg
Maximum rubber price in India for RSS-4 grade Rs. 186.00/kg on 5.08.2010
Maximum rubber price in the world for RSS-3 grade Rs. 185.23/kg on 21.04.2010
Value of NR produced (approx.) Rs. 9559 Crore (approx)
Average daily employment in rubber plantations (direct) 4.45 lakh nos (approx.)
Export earnings of natural rubber USD 52.76 Million
Income by way of cess to Central Government Rs. 100.18 crores
No. of registered rubber goods manufacturers 4528Number of registered dealers 9741No. of TSR factories in India 66
RUBBER India, Special Edition-Jan. 201142
Industry Profile
No. of Centrifuged Latex Units in India 75Number of Rubber Producers Society engaged in the natural rubber production sector. 2276
Expenditure for the development of rubber plantation industry in India for 2008-09 Rs.133.08 Crs
The Value Added Tax in the rubber sector 4% from 1st April 2005
Value of import of rubbr goods (2008-09) Rs. 3307.69 Crore
Value of export of rubber goods (2008-09) Rs. 6993.38 Crore
B. Key indicators of the rubber consuming industryThe rate of cess since 1st Sept, 1998.(Parliament has empowered Government to levy cess upto Rs.2/- kg)
Rs. 1.50/kg
NR and SR consumption ratio in India 73 : 27
NR and SR consumption ratio in the world 44 : 56
Consumption of NR by Auto tyre Sector 62%
Total number of workers in rubber goods mfg. sector 4.60 lakhs (approx)
Per capita consumption of Elastomer in India 1.05 kgs
Tyre and non tyre sector consumption ratio 62 : 38
India’s relative share in global export of NR during 2009 0.30%
Tyre Industry Profile - GeneralTotal number of Tyre Companies 36
Total number of Tyre Factories 51
Tyre Production 2009-10 97.10 Million
Industry Turnover (Estimated) Rs. 25000 Crores
Tyre export (Estimate) 1.60 Lakh tonnes
Taxes & duties paid (Estimated) Rs.5000 Crs
Installed Capacity (Estimated) 1150 Lacs Nos
Capacity Utilisation (Estimated) 84%
Growth in Truck & Bus tyre production 15%
RUBBER India, Special Edition-Jan. 2011 43
Industry Profile
The estimated level of radialisation in the tyre industry in IndiaHeavy Vehicles (Truck and Bus) 12%
Light Commercial Vehicles 18%
Passenger Cars 98%
Trade policy under Tyre Sector- Import & ExportsAll categories of tyres can be exported freely.All categories of new tyres can be imported freely.No WTO bound rates for tyres and tubes.Import of second hand / retreaded tyres (major categories) is restricted under EXIM policy and can be done against an import licence.Tyre imports under Regional Trade Agreements (Asia Pacific Trade Agreement, Indo-Sri Lanka, SAPTA, Indo Singapore and ASEAN) allowed at preferential rates of import duty. All tyre industry related raw material can be imported freely. (under OGL) Tyre industry delicensed in September,1989
Tariff / Duties of Tyres Rate of basic dutyCustom Duty on tyres 10%Custom Duty on Natural Rubber 20%Additional Duty of Customs (ADC) 4%Preferential Import Duty on tyres underAsia Pacific Trade Agreement (Bangkok Agreement) 8.50% (Passenger
Car) & 8.6% for Others
Indo-Sri Lanka Free Trade Agreement NilSAPTA (SAARC Preferential Trade Agreement) (when imported from Pakistan & Sri Lanka)*
5% *
Other SAARC Countries NilIndia Singapore Trade Agreement Nil (truck & bus /
passenger car, tyres & Bus & Motor Cycle)
ASEAN Agreement 10%
Under Regional Trade Agreements,several tyre industry related raw materials can be imported at preferential /concessional rate of import duty. Anti dumping duty on import of radial /bias truck & bus tyres imported from China & Thailand. Anti Dumping Duties applicable on imports of NTCF and Rubber chemicals,Carbon black countries
identified by the anti dumping authority,Govt. of India.
RUBBER India, Special Edition-Jan. 201146
Industry Profile
India- ASEAN Free trade Agreement (Concession to raw materials)
1 Natural Rubber /Latex/TSNR (included in India’s negative/exclusion list)- No concession in tariff
2SBR (10%),PBR(10%),Chloro Butyl (5%),VP Latex (10%)Other NBR (included in normal track 1) tariff to be brought down to Nil by 1st Jan,2013 in a phased manner (year wise)
3 Butyl rubber (5%) (included in normal track 1) - tariff to be brought down to Nil by 1st Jan,2013 in phased manner (year wise)
4 EPDM (10%), Reclaimed Rubber (10%),Carbon Black (5%),Caprolactum (10%) (included in sensitive Track)
Note:
Normal Track 1:Time Period - 1st Jan,2010 to 31st Dec,2013
Sensitive Track 1:Time Period - 1st Jan,2010 to 31st Dec,2019 Exclusion List: Exclusion (negative) list items which shall not be subject to any tariff reduction or elimination.
Duty StructureItems Customs
DutyExcise Duty
Bound Rate (under WTO)
Natural Rubber(dry forms of rubber)
20% Rs.1.50/ Kg*
25%
Latex drc 70% Rs.1.50/kg*
Unbounded
PBR 10% 10% 40%
SBR 10% 10% 40%
Butyl Rubber 5% 10% 40%
Nylon Tyre Cord Fabrics 10% 10% 40%
Steel Tyre Cord 10% 10% 40%
Carbon Black 5% 10% 40%
Re c l a i m e d / Re t r e a d e d Rubber
10% 10% 40%
Rubber Chemicals 7.5% 10% 40%
Note:*Cess on NR exempted on duty free imported rubber
RUBBER India, Special Edition-Jan. 201148
Industry Profile
End users of Natural Rubber
Forms & Grades End use
1 RSS -5 and lower grade Retreading material low quality footwear and soles, cycle tyres, black coloured moulded products and channels.
2 RSS -3 and RSS -4 grades
Automobile tyres,Cycle tyres and tubes, automobile components, moulded and extruded products.
3 RSS IX,RSS-1, and RSS -2 grades
Aero tyres,radial auto tyres,conveyor belts, hosed cables and wires.
4 Pale latex Creap Chlorinated rubber, coloured, Moulded, extruded and calendered products, nipples, teats and high quality footwear.
5 Estate Brown Crepe Automoblile and cycle tyre, retreading material, channels and automobile components.
6 Centrifuged Latex Latex foam,high tech dipped goods such as eximation and surgical gloves, condoms, catheters and elastic thread.
7 Highest Grade TSR - CV Aero tyres and high tech NR products
8 TSR -L Coloured,moulded, extruded and calendered products, high quality footwear and pharmaceutical products.
9 TSR-10 and TSR-20 grades
Automobile tyres, Cycle tyres, tubes, black coloured moulded goods, belts and hoses.
10 TSR-50 grade Retreading material and black coloured
RUBBER India, Special Edition-Jan. 2011 49
Industry Profile
GENERAL REVIEW OF THE RUBBER INDUSTRY
Rubber ConsumptionDuring the year under review, the consumption of natural rubber increased by 6.75% only from 871720 tonnes to 930565 tonnes, while the requirement of synthetic rubbers increased by 18.69% from 292950 tonnes to 347710 tonnes. Among synthetic rubbers, usage of SBR,PBR & other SR increased by 24.30%,26.26% and 5.97% respectively. Thus, the demand for new rubber (NR + SR) registered a growth of 9.75% only from 1164670 tonnes to 1278275 tonnes, a quantum growth of 113605 tonnes. The average compound growth rate of consumption of new rubber during last five years works out to 5.50% per annum. The consumption of reclaim rubber has gone up during 2009-10 by 7.23% as can be seen from Table –1.
2009-10 p 930565 138905 104465 104340 347710 1278275 9.75 92250
(Source: Rubber Board)
RUBBER India, Special Edition-Jan. 201150
Industry Profile
Sector wise ConsumptionFrom the figures available, there is an increase in consumption both in the tyre sector and non-tyre sector by 17.57% and -1.34% respectively during the period as can be observed from Table No. 2 & 3.
Table 2
Rubber Consumption - Sector wise (Qty. in Metric Tonnes)
Total Non – Tyre Sector 533936 541406 546995 571023 570361
Total 1052960 1115140 1169570 1241775 1250700
(Source: Rubber Board)
RUBBER India, Special Edition-Jan. 201152
Industry Profile
Rubber Production The growth rate in NR production has increased to 7.06% in 2005-06, but it has marginally decreased in 2006-07.The production of NR during 2007-08 decreased to 825345 tonnes as compared to 852895 during 2006-07 with negative growth at 3.23% due to vector borne diseases among tappers in the major rubber growing areas in Kerala, unfavorable weather conditions and abnormal leaf fall.
The production of NR has gone down from 864500 tonnes in 2008-09 to 831400 tonnes in 2009-10 with negative growth of 3.82%.The production of SBR, PBR and Other SR has gone up by 43.71%,1. 26% and 29.07 respectively in 2009-10. As a result, the total output of synthetic rubber has increased by 10.34% from 96739 tonnes in 2008-09 to 106743 tonnes during 2009-10.
The overall production of new rubber decreased by 23096 tonnes i.e. by -2.40% as compared to the growth rate of 9.75% in consumption. The average compound growth rate of production of new rubber during the last five years works out to 5.50% per annum as compared the growth in consumption of 5.50% during the same period. The production of reclaim rubber increased by 8.27% to 93535 tonnes during 2009-10 as may be noted from Table-4.
Rubber ImportsAs per the statistics published by the Director General of Commercial Intelligence of Statistics (DGCI&S) and The Rubber Board, the Import of natural rubber during 2008-09 was 81545 tonnes as against 89295 tonnes in 2007-08. The decrease in import figures was due to worldwide recession.
Total import of synthetic rubber was 190630 tonnes during 2008-09 as compared to 195705 tonnes during 2007-08. Overall import of new rubber showed decreased of 12825 tonnes from 285000 tonnes in 2007-08 to 272175 tonnes in 2008-09, as shown in Table 5 below:
Rubber ExportsThe quantity of natural rubber exporting during 2009-10 was 25090 tonnes as against 46926 tonnes in 2008-09 ie decrease by 46.53%
Year Export (Metric Tonnes) % of Growth
2005-06 73830 59.91
2006-07 56545 -23.41
2007-08 60280 6.60
2008-09 46926 -22.15
2009-10 25090 -46.53
(Source:Rubber Board)
RUBBER India, Special Edition-Jan. 201156
Industry Profile
Natural Rubber PricesNatural rubber prices in the domestic as well as in the international market have been ruling high during the year 2009-10. However the average market price of RSS4 grade during 2009-10 was Rs. 11498 per quintal ex-Kottayam, as against Rs.10112 per quintal during 2008-09. There was rise in prices due to increase in consumption of NR by tyre manufacturers, exports of natural rubber and forwarding trading of natural rubber. The prices in India have been ruling significantly higher as may be perused from the following Table.
Table – 6
Average Price of Natural Rubber at Kottayam & Kuala Lumpur
(Rs./Quintal)
Year / Month Kottayam Kuala Lumpur
(RSS4) (RSS3) (RSS4)
2005-06 6699 7432* ---
2006-07 9204 9779* ---
2007-08 9085 9611* ---
2008-09 10112 10379* ---
2009-10 11498 11113 ---
24th July,2010 18350 15305 ---
(Source: Rubber Board)
Note : Malaysian Rubber Board has discontinued the publication of RSS2,RSS3, RSS4 and RSS5 prices of sheet grades of NR from January 2003 onwards.
* Thailand/ Bangkok price, RSS 3 refers to SICOM prices.
RUBBER India, Special Edition-Jan. 2011 57
Industry Profile
Production of Rubber Goods As can be seen from the table below while the production of tyre sector has gone up by 18% during the year 2009-10. In the non tyre sector the production of footwear, conveyor belts and contraceptive has gone up by 9.26% ,11.62% & 4.19 respectively and the production of hoses has gone down by 10.80% respectively.
Table - 7
Production of Major Rubber Goods in Organised (Non-SSI) Sector
Product Unit 2005-06 2006-07 2007-08 2008-09 2009-10 Estimated
Auto Tyres Mil Nos. 36.85 35.72 39.52 40.00 49.00
Giant Tyres Mil Nos. 15.57 22.14 23.70 24.00 26.00
Car Tyres Mil Nos. 13.60 16.30 17.92 18.00 21.00
Giant Tubes Th. Nos 8.22 8.31 8.38 7.71 11.70
Cycle Tyres Mil Nos. 95.76 93.41 95.40 86.74 79.41
Cycle Tubes Mil Nos. 111.45 108.09 117.84 106.56 92.13
Footwear Mil Pairs 25.19 28.26 30.58 31.74 34.68
Conveyor Belting
Metric Tonnes 25178 23727 23178 23949 26734
Hoses (Other Types)
K.Mtrs / ’000. 5.12 6.22 7.50 5.74 5.12
Contraceptives Mil Nos. 2881.70 3614.90 3033.60 2689.50 28.02.30
(Source: ATMA, Rubber Board & Ministry of Industry)
Note: As advised by Government, the figures may undergo change based on factual reporting.
Export of Rubber Products
Export of major segments of other rubber products and Automobile Tyre & Tubes registered marginal growth except cycle tyres & tubes and hygienic products during 2009-10. Exports of automobile tyres / tubes and non tyre sector has registered growth of 1.60% in 2009-10. Footwear exports have been shifted under Leather Goods Export Promotion Council. Overall export of rubber
RUBBER India, Special Edition-Jan. 201158
Industry Profile
goods excluding footwear decreased from Rs. 6682.67 crores in 2008-09 to Rs. 6789.50 crores in 2009-10, showing increase of 1.60% or Rs.106.83 crores in terms of value. The negative growth in export during 2009-10 in respect of cycle tyre & tube and Hygienic product is primarily due to worldwide recession as is evident from Table-8 hereunder:
Demand-Supply of Natural Rubber1) Review of 2009-10
During the year 2009-10, availability of natural rubber was to the extent of 12,02,094 tonnes comprising opening stock of 2,00,015 tonnes, production of 8,31,400 tonnes and import of 1,70,679 tonnes. The Rubber Board is claiming stock of 2,47,895 tonnes as on 31.3.2010 which the actual figure as per Rubber Board figures only works out to 91,345 the demand was 11,10,749 tonnes including consumption of 9,30,565 tonnes, export of 25,090 tonnes and stock requirement of two months of 1,55,094 tonnes.
Stock requirement considered for two months i.e. 1,55,094 tonnes but actual stock was 2,47,895 tonnes. Despite comfortable stock claimed by the Rubber Board natural rubber prices in the domestic as well as in the international market have been ruling high during the year 2009-10. However the average market price of RSS4 grade during 2009-10 was Rs. 11,498 per quintal ex-Kottayam, as against Rs.10,112 per quintal during 2008-09.There was rise in prices due to increase in consumption of NR by tyre manufacturers, exports of natural rubber and speculative activities due to rubber being included in forward trading.
2) During the current year 2010-11, the production and consumption of natural rubber would be 8,56, 000 and 10,24,000 tonnes at estimated growth rates of 3% and 10% respectively. Considering opening stock, production, consumption, import and export, there would be deficit of 1, 64, 000 tonnes as shown below.
Estimated demand Supply Estimates of natural Rubber during 2010-11
Particulars M.Tonnes
Opening Stock 1, 25,000Add: Production 8, 56, 000Add: Imports 1, 00, 000 ------------- 10,81, 000Less:Consumption 10, 24,000Exports 50,000Closing Stock ( two month stock) 1,71,000 ------------ 12,45, 000 Deficit 1, 64,000**In fact industry may face deficit of around 1,75,000According to the Rubber Board, the country’s average productivity decreased to 1784 kg/ha in 2009-10 from 1867 kg/ha in during 2008-09.
RUBBER India, Special Edition-Jan. 201162
Industry Profile
Total Tyre production in India (in 000 Nos.)
Category 2005-06 2006-07 2007-08 2008-09 2009-10
Truck & Bus 11941 12367 13137 12839 14811
Passenger Car 13605 14264 16437 16571 20047
Jeep 1272 1368 1467 1469 1402
Light Commercial Vehicle (LCV)
4529 4820 5320 5298 5739
Tractor Front 1383 1754 1814 1842 2386
Tractor Rear 1134 1296 1234 1315 1634
Tractor Trailer 596 823 886 758 903
A.D.V. 325 381 409 281 294
Scooter 9519 9643 11604 1 0882 13558
Motor Cycle 21053 26079 27921 30148 35664
Moped 55 0* 0* 0 0
Industrial 514 635 733 568 538
O.T.R. 106 115 141 136 161
Aero 0 0 0 0 0
Total 66032 73545 81103 82107 97137
(*wef April 2006 Moped tyre production included in scooter category)
Source: ATMA
RUBBER India, Special Edition-Jan. 201164
Industry Profile
Total Tube Production in India (in 000 Nos.)
Category 2005-06 2006-07 2007-08 2008-09 2009-10
Truck & Bus 10522 11257 12016 11911 14142
Passenger Car 6990 8509 11490 10773 9922
Jeep 1066 1132 1416 1411 1430
Light Commercial Vehicle (LCV)
3775 4156 4147 4213 4912
Tractor 1232 1425 1443 1334 1970
A.D.V. 165 213 181 184 235
Scooter 7044 7461 9128 8242 11610
Motor Cycle 22263 28067 30817 31526 37095
Moped 227 0* 0* 0 0
Industrial 99 108 112 79 64
O.T.R. 38 48 60 60 68
Aero 0 0 0 0 0
Total 53421 62376 70810 69733 81448
(*wef April 2006 Moped tube production included in Scooter Category)
Source: ATMA
RUBBER India, Special Edition-Jan. 201166
Industry Profile
Categorywise Tyre Export (in Nos.)
Category 2005-06 2006-07 2007-08 2008-09 2009-10
Truck & Bus 2408759 2276049 2431545 1933959 2052946
Passenger Car 1052874 966046 1091715 991588 845688