NRL Process
This involves the use of natural latex in a concentrated colloidal
suspension. This type of latex contains a much greater proportion of plant
proteins than latex produced by the DNR process. Most immediate type
reactions result from exposure to NRL products.
Standard Grades
Natural rubber is produced primarily in three countries:
- Thailand
- Malaysia
- Indonesia
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The following are the specifications scheme for each country:
- STR : Standard Thai Rubber
- SMR: Standard Malaysia Rubber
- SIR : Standard Indonesia Rubber
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Present Status in India
With around 6000 unit comprising 30 large scale, 300 medium scale and
around 5600 SSI/tiny sector nits, manufacturing 35000 rubber products,
employing 400 hundred thousand people, including around 22000 technically
qualified support personnel, with a turnover of Rs.200 billions and
contributing Rs.40 billions to the National Exchequer through taxes, duties
and other levies, the Indian Rubber Industry plays a core sector role in the
Indian national economy. The industry has certain distinct advantages like:
- An extensive plantation sector
- Indigenous availability of the basic raw materials, like natural
rubber, synthetic rubber, reclaim rubber, carbon black, rubber
chemicals, fatty acids, rayon and nylon yarn and so on.
- A large domestic market.
- Availability of cheap labor.
- Training facility in various technical institutes.
- On-going economic reforms.
- Improved living standards of the masses.
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India and the World
India is the third largest producer, fourth largest consumer of natural
rubber and fifth largest consumer of natural rubber and synthetic rubber
together in the world. Besides, India is the world's largest manufacturer of
reclaim rubber. In fact, India and China are the only two countries in the
world which have the capacity to consume the entire indigenous production of
natural rubber and thereby obviate the compulsion and over dependence on
exports of surplus quantity of natural rubber. The plantation sector with an
estimated production of over 630 hundred thousand tones of natural rubber
and a projected production of more than one million tones in near future,
helps radical and rapid growth of the Indian rubber industry. The growth
prospect is further enlarged by a boom in the vehicle industry, improved
living standards of the masses and rapid over-all industrialization.
The per capita consumption of rubber in India only 800 grams against 12 to
14 kilos in Japan, USA and Europe. This envisages tremendous growth
prospects of the industry in the years to come as India is far from
attaining any saturation level, so far as consumption of rubber products is
concerned.
Range of Products
The wide range of rubber products manufactured by the Indian rubber
industry are -
- Auto tyres
- Auto tubes
- Automobile parts
- Footwear
- Belting
- Hoses
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- Cycle tyres and tubes
- Cables and wires
- Camelback
- Battery boxes
- Latex products
- Pharmaceutical goods
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The products manufactured also cover hi-tech industrial items.
The important areas which the industry caters to include are -
All the three wings of defence
- Civil
- Aviation
- Aeronautics
- Railways and agriculture transport
- Textile engineering industries
- Pharmaceuticals, mines, steel plants
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Main Sectors
The rubber industry in India is basically divided in two sectors - tyre and
non-tyre sector produces all types of auto tyres, conventional as well as
radial tyres and exports to advance countries like USA.
The non-tyre sector comprises the medium scale, small scale and tiny units.
It produces high technology and sophisticated industrial products. The small
scale sector accounts for over 50% of production of rubber goods in the
non-tyre sector. Going by share of rubber consumption, automotive tyre
sector is the single largest sector accounting for about 50% consumption of
all kinds of rubbers, followed by bicycles tyres and tubes 15% footwear12%,
belts and hoses 6%, camelback and latex products 7%. All other remaining
rubber products put together account for 10%.
Future Scope
With the saturation in rubber consumption in Western countries and the
shift in consumption of rubber to the Asia Pacific region, the focal points
for this decade for development will be India. The industry is expected to
grow at over 8% p.a. in the coming decade. Taking into account the above
prospects, the industry envisaged annual growth rate of 8% and the per
capita consumption of rubber at 0.8 kg. against 14 kg. There exists
tremendous scope for expansion and development in coming years provided
basic raw materials, particularly natural and synthetic rubber, are made
available in adequate quantity and at reasonable prices. Consumption of 1.25
million tones of rubber with per capita usage of 1.2 kgs. And exports of
rubber goods worth Rs.30 billion seems possible by the year 2005.
Asia is now the focus of growth in the rubber industry. All the world's
natural rubber is grown in this region namely Thailand, Indonesia, India,
Malaysia, Sri Lanka etc.
The fastest growing economies in the world are here namely China, India,
Korea, Malaysia etc,
World's powerhouse Japan is here. The largest investments in new synthetic
rubber plants are coming up in Asia. Production of all auto majors is
shifting to Asia, even as consumption-wise Asia's share in the worlds auto
market grows.
Highest growth and availability of technically trained manpower for the
rubber industry is in this region. While EU and US have now become a
saturated market for the rubber industry all the action is shifting to Asia.
Low demand growth for the growth for end products, high labour costs, very
strict environmental norms, non availability of NR in the backyard are all
propelling the worlds major input suppliers for the rubber industry to look
towards Asia.
World Rubber Production
In 1991 Thailand replaced Malaysia as the top producer and exporter of
natural rubber products. This has been the result of a re-planting program.
A majority of Thailand's rubber plantations are located in the southern part
of the country.
Thailand leads the rubber producing countries in research and development
of natural rubber. This makes Thai natural rubber is the most dependable and
consistent.
A majority of rubber products are exported in their raw form such as
Technically Specified Rubbers: STR, RSS, Skim Block, ADS, Crape, and
Concentrate Latex.
Exports account for 90 percent of natural rubber production. The remaining
10 percent is utilized by local manufactures.
Of the 10 percent of total production that is utilized domestically, 55
percent of this amount is processes as value-added goods. Major manufactured
rubber product are tires and inner tubes for automotive.
Financial Evaluation of the Rubber Industry
The Rubber Industry has continuously provided a high income for Thailand.
Both the value of production and export have increased.
The samples used in this Financial Evaluation study were 106 business
organizations which were involved with producing and selling the RSS, ADS,
TSR, Crape, Skim block and concentrate latex.
It was found that the average financial standard ratio was 0.92 of the
Current Ratio, 0.52 of the Quick Ratio, 11.99 of the Receivable Turnover
Ratio, 10.46 of the Inventory Turnover Ratio, 4.32 of the Debts to Equity,
0.81 of the Debts to Total Assets, 0.70 of Long-term Debts of Equity, 2.02
of Time Interests Earned, 9.78 percent of the Gross Profit Margin, 4.29
percent of the Operation Profit Margin, 19.86 percent of the Return Equity,
and 4.00 percent of the Return on Investment.
With regard to the average Return on Investment of the Rubber industry ,
the time in which the investment was return was 51 months and 16 days. The
Average Rate of Return was 16.07 percent. Net present value was
10,917,544.48 baht. Benefit Cost Ratio was 1.21 time of total benefit. The
Internal Rate of Return was 18.63 percent. When comparing the size of
business organizations, it was found that a big business organization was
the most profitable, followed by the medium and small business.
Raw Materials & Machinery
The yardstick to measure the growth rate of the industry is the rubber
consumption. Besides rubbers-natural, synthetic and reclaim there are other
raw materials required by the industry. These include: Carbon black, rubber
chemicals, tyre cords, plasticizers, process oils, zinc oxide, stearic acid,
titanium dioxide and other miscellaneous chemicals which are all available
indigenously. This apart, almost all types of major rubber machinery being
manufactured in the country.
Exports
India's exports of rubber products, including tyres exceed Rs.2000 Crores.
The range of products exported are -
- Automotive tyres and tubes
- Rubber and canvas footwear
- Cycle tyres
- Pharmaceutical goods
- Rubber hoses, cots and aprons
- Belts and beltings
- Sheeting
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These products are exported to over 85 countries, including
- USA
- Germany
- France
- U.K.
- Italy
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- UAE
- Saudi Arabia
- Africa
- Afghanistan
- Bangladesh
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Market Influencing Factors
- The rubber production fluctuates between months and it is
normally low during the rainy season.
- Growth in industrial production: automobile industry.
- The ratio of utilization of domestic production and imported
rubber by tyre manufacturers.
- Government policies have a profound influence on rubber prices.
These include subsidies, restrictions on ports etc.
- International rubber price movements, have a slow influence.
- Stockists and speculators also play a significant role in
influencing prices.
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