Rubber Industry

 

Overview

It is a major agricultural crop of India and is considered to be divided into two major parts, the Tire segment and the non-tire segment. The different types of products grown are:

 

Buy Industry Analysis

 
Rubber caters as a product to a spectrum of sectors and industries like the automotive, healthcare, materials handling, aeronautics and too many other sectors. The statistics collected by the Rubber board for the year 2014-15 are as follows:
 
 
Domestic & Global Outlook

With a recent slowdown in the Indian economy and inadequate rains, the Indian rubber industry has observed a reduction of demand in the non-tire sector of 2.4% and an increase in demand of 2.7% in the tire sector that is due to increased demand for automobiles in India. Due to unusual monsoons and loss of yield due to leaf diseases, the productivity has decreased in the agricultural fields. In 2014-15, it has gone down from 1629kg/ha to 1443kg/ha due to untapped mature area and bad weather.

The Indian Rubber board, constituted under the Rubber (Production and Marketing) Act 1947, is the apex body that was brought to existence to organize the rubber market, promote, develop, assist and improve the rubber industry and to collect industry statistics as its operations in economic research. It plays an advisory role to central government in all related policy matters.

Kerala is responsible for around 90% of the total rubber produce for India, it is grown majorly in the midlands and highlands of the state and major producing as well as processing companies have set up there so as to reduce logistics cost to the bare minimum. Although mature rubber area has expanded to 534,000 ha, produce for 2014-15 was down by 16.7% from previous year at 645,000 tons. With about 65% of the produce being used to cater to the tire segment, only 35% of rubber production is used in making other goods, thus the numbers of players in this segment are high but no major company is dealing in the non-tire segment.

Global Outlook

With Thailand and Indonesia claiming the highest natural rubber production globally, India remains, one of the leading producers of natural rubber with an approximate production of 950,000 tons. Globally the production has increased at an average of 3% in the past 3 years and there is a situation of higher demand for the produce realized by the industry.

In terms of the import- export of the country, the import and exports for 2014-15, also taking into consideration the price difference in the same:

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Future Potential

With the Indian economy making an uptrend of growth and the first quarter IIP figures of 2014-15 being optimistic, the growth in annual production is expected to be at 3%. On the back of a healthy monsoon for 2015-16, the productivity is also estimated to be rising by 16.3% to 7,50,000 tons. The domestic consumption itself is expected to rise by 3.5% in the 2015-16 to reach to 10.56 lakh tons on the back of strong demand from the automotive sector.

As it is a major agriculture sector relying heavily on monsoon and irrigation capacity. We will also cover the highlights of the monsoon patterns of 2015-18 to get more accuracy in our growth estimates.

 

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models

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