1. EXPORTS OF RUBBER PRODUCTS & AUTO TYRES & TUBES FROM INDIA
C A P E X I L
(India’s Premier Export Promotion Council)
Set up by Ministry of Commerce & Industry, Govt. of India
7th August 2014

2. C A P E X I L
CAPEXIL (Formerly, Chemical & Allied Products Export Promotion Council), was set up on 28th March, 1958 by Ministry of Commerce, Government of India.
The vision of CAPEXIL is to promote India’s export of a wide spectrum of Chemical based and Allied products and thereby stimulate the country’s economic growth and help in employment generation.
CAPEXIL is a Multi Products Export Promotion Council and it has sixteen different group of products subdivided broadly under Mineral and Non-Mineral Sector.
Exports of Rubber Products & Auto Tyre & Tubes Panels falls under Non-Mineral Sector.
CAPEXIL has its headquarters in Kolkata and has regional offices in Mumbai, Delhi, Chennai & Kolkata.

3. C A P E X I L
CAPEXIL understand the various facets of international trade and assist the Indian business community to enhance their exports, attain and sustain a pre-eminent global standing.
CAPEXIL act as an intermediary in establishing business contacts between foreign importers and Indian exporters and thus, providing a two-way service as global trade facilitator
CAPEXIL undertake various promotional measures to promote exports.
CAPEXIL being an ISO certified organization, endeavors to offer a full range of services including on-line services to Indian exporters and foreign importers.
CAPEXIL has around 4500 member-exporters across India and their quality products enjoy the preference of all major markets across the globe.

4. CAPEXIL AND ITS SERVICES
An Interface between the Government and the members regarding Trade and Policy related matters.
Participation in national/international trade fairs, organizing seminars/buyer-seller meets.
Dissemination of trade enquiries.
Preparation of market reports.
Analysis of Indian export trend abroad.
Collection and dissemination of global trade data.
Disbursement of grants through various market assistance programmes.
Publicity & Promoting the “Made in India” brand.
Services to Overseas buyers.

5. TOP 10 GLOBAL EXPORTERS FOR RUBBER AND ARTICLES THERE OF (CHAPTER 40)
Value exported in 2013 (USD thousand)
Annual Growth in Value Between (%)
Share in World Exports (%)
World 13
100.00
China 21
11.50
Germany 10
8.80
Thailand 15
8.40
USA 12
7.30
Japan 8
6.70
Indonesia
4.70
Korea, Republic of 16
4.10
Malaysia
France 3
3.80
Belgium 9
3.00

6. GLOBAL EXPORTS OF RUBBER PRODUCTS (CHAPTER 40) 4-DIGIT H.S. CODE WISE
Products Description
Exported Value 2013 (USD thousand)
Annual growth in value between (%, p.a.)
4011
New pneumatic tires, of rubber 13
4016
Articles of vulcanised rubber o/t hard rubber, nes
4001
Natural rubber,balata,gutta-percha etc 17
4002
Synthetic rubber&factice from oil 14
4005
Compounded rubber,unvulcanised,in primary forms 16
4009
Tubes, pipes & hoses of vulcanised rubber otner than hard rubber
4015
Articles of apparel&clothing accessories of vulcanised rubber 12
4010
Conveyor or transmission belts or belting of vulcanised rubber 10
4008
Plate,sheet,strip,rods of vulcanised rubber other than hard rubber 7

7. GLOBAL EXPORTS OF RUBBER ARTICLES (CHAPTER 40) 4 DIGIT H.S. CODE WISE
Products Description
Exported value 2013 (USD thousand)
Annual growth in value between (%, p.a.)
4008
Plate,sheet,strip,rods of vulcanised rubber other than hard rubber 7
4012
Retreaded/used tire;solid tire,interchangeable tire treads& flaps 15
4013
Inner tubes of rubber 11
4014
Hygienic/pharmaceutical art of vulcanised rubber -2
4007
Vulcanised rubber thread and cord
676864 5
4006
Rubber unvulcanised form & articles nes, excl. rods, tubes, discs & ri
598109 2
4003
Reclaimed rubber in primary forms or in plates, sheets or strip
380243 18
4017
Hard rubber in all forms,including waste&scrap;articles of hard rubber
334397
4004
Waste,parings&scrap (excl. hard rubber)&powder/granule obtaind therefr
232244 -1

8. TOP 10 GLOBAL IMPORTERS FOR RUBBER AND ARTICLES THERE OF (CHAPTER 40)
Value imported in 2013 (USD thousand)
Annual growth in value between (%)
Annual growth in value between (%)
Share in world imports (%)
USA 15 -4
13.7
China 16
9.5
Germany 9 1 8
France 7
3.9
Canada 10 -8
3.2
Mexico 19 -1 3
United Kingdom 2
2.9
Belgium
2.7
Italy 5
2.6
Japan 11
-15
Sources: ITC calculations based on UN COMTRADE statistics.

9. TOP 5 COUNTRIES CONSUMPTION FIGURES OF RUBBER
LAST 5 YEARS CONSUMPTION (NATURAL RUBBER (NR) + SYNTHETIC RUBBER (SR) FIGURES
CHINA
INDIA
JAPAN
THAILAND
USA
% Increase
YEAR NR SR
TOTAL
2009
3307
4230
7537
905
321
1226
636
832
1468
399
253
652
687
1448
2135
27%
2010
3655
4442
8097
944
406
1350
749
989
1738
458
358
816
925
1732
2657
22%
2011
3601
4664
8265
957
423
1380
772
978
1750
487
377
864
1029
1867
2896
14%
2012
3857
5039
8896
988
439
1427
728
962
1690
505
391
896
949
1766
2715
17%
2013
4150
5470
9620
471
1433
712
956
1668
520
448
968
913
1698
2611
48%
All data are in ‘000 tonnes
SOURCE – INTERNATIONAL RUBBER STUDY GROUP

10. PER CAPITA RUBBER CONSUMPTION OF THE WORLD
COUNTRY
KILOGRAM
JAPAN
11.51
CANADA
7.73
GERMANY
7.57
USA
6.95
CHINA
5.80
FRANCE
5.32
ITALY
4.31
BRAZIL
3.65 UK
2.86
AUSTRALIA
2.15
INDIA
1.16
WORLD AVERAGE
3.12

11. INDIA’S SHARE IN GLOBAL EXPORTS
(In US $ Billion)
Percentage
Global Exports of Rubber Articles
201.37
100
India's Exports of Rubber Articles
2.77
1.38
India's Exports
(In US $ Million
Auto Tyres & Tubes
Rubber Articles
Natural Rubber (ITC H. S. Code 4001)
27.21
Total

12. PERCENTAGE SHARE IN RUBBER EXPORTS

13. EXPORTS OF AUTO TYRES & TUBES FROM INDIA OVER THE LAST 5 YEARS
Value in US D Million

14. ITEM WISE EXPORTS OF AUTO TYRES & TUBES FROM INDIA
Value in US$ Million
Products
% Change
Auto Tubes
64.44
58.65
9.87
Auto Tyres
-2.82
Tyre Flaps
20.11
23.99
-16.17
Total
-2.58

15. EXPORTS OF RUBBER MANUFACTURED PRODUCTS OVER THE LAST 5 YEARS
Value in US$ Million

16. ITEM WISE EXPORTS OF RUBBER MANUFACTURED PRODUCTS FROM INDIA
Value in US $ Million
Item Descriptions
% Change
Automotive Components
101.79
86.62
17.51
Bicycle Tubes
40.19
45.12
-10.93
Bicycle Tyres
50.9
56.19
-9.41
Conveyor, Transmission, V Belts
119.71
121.11
-1.16
Floor Covering & Mats
60.05
50.47
18.98
Gaskets, Washers & Seals
68.27
65.93
3.55
Hoses
73.23
68.05
7.61
Latex, Dipped & Medical Including Contraceptives
84.66
82.12
3.09
Reclaim Rubber & Waste Pairings & Scrap
110.05
75.05
46.64
Rubber Coats & Aprons
1.18
0.92
28.26
Rubber Products Nes
12.98
15.13
-14.21
Rubber Sheets
294.45
295.12
-0.23
Tyre Retread/Camel Back
39.36
33.27
18.30
Grand Total
995.1
6.20

17. INDIAN RUBBER PRODUCTS EXPORTS – STRENGTHS
Indian Rubber Products have grown over 15% CAGR for the past decade.
Exports of Automobile Tyres & Tubes from India have grown over CAGR 21% for the last 10 years.
With an extensive plantation sector, indigenous availability of raw materials and a growing automobile hub, India is a major player in the global rubber industry.
India rubber industry is basically divided into two sectors - tyre and non-tyre. The tyre sector produces all types of auto tyres, conventional as well as radial tyres and exports to advanced countries like USA, EU etc.
The non-tyre sector comprises the large, 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.

18. INDIAN RUBBER PRODUCTS EXPORTS – STRENGTHS
The Indian rubber products have been exported over 90 countries in the world including USA, Russia, UK, Bangladesh, Italy, Nepal, Germany, Oman, France, Saudi Arabia, UAE, African countries etc
Rubber industry in India has evolved over a century from plantation-based raw rubber production to manufacture of technologically-advanced rubber products. The industry comprises small and large rubber growers, nursery owners, rubber processors, traders, synthetic and reclaimed rubber producers, tyre and non-tyre product manufacturers/exporters, rubber-wood processors, workforce and consumers in their millions.
The Rubber Industry is highly labour and energy intensive. The Indian Rubber Industry comprises about 450/500 large / medium scale units and nearly 5500 Small and Tiny units.

19. INDIAN RUBBER INDUSTRY – AN OVERVIEW
Industry Turnover (Est.)
Rs.76,000 Crore
- Tyre Sector (Est.)
Rs.46,000 Crore
- Non Tyre Sector (Est.)
Rs.30,000 Crore
Total Employment (Est.)
30 Lakh
- Plantation / Growers
10 Lakh
- Non Tyre Sector (Direct & Indirect)
- Tyre Sector (Direct & Indirect, excl. growers)
14 Lakh
- Other Stakeholders (Processing, Rubber Trade, Grading, Quality etc.)
1 Lakh
Global Ranking in Rubber Consumption
4th
Global Ranking in Natural Rubber Production
5th

20. INDIAN RUBBER SECTOR - STRENGTHS
1st In Natural Rubber Productivity.
2nd Largest In Natural Rubber Consumption.
5th Largest Producer Of Natural Rubber.
4th Largest Global Rubber Consumer.
Huge Scope For Rubber Consumption As Per Capita Consumption Presently is
1.1 Kg China Which Is 5kg. Developed Nations At 12 Kgs.
Fast Emerging As Global Automotive Hub.
India- A Certified Manufacturer Of Quality Rubber Products As Our Exports Have Been Growing At More Than 20% YoY For More Than 10 Years.
Availability Of Technologists Though Short, Largest Amongst Rubber Producing And Consuming Nations.

21. POLYMER CONSUMPTION vs PRODUCTION - 2013
PRODUCTION IN ‘ 000 MT
CONSUMPTION IN ‘000 MT
NATURAL RUBBER
919
988
SYNTHETIC RUBBER
110
440
RECLAIM RUBBER
115
112
TOTAL
1144
1540

22. INDIA’S IMPORTS OF RUBBER PRODUCTS
Figures in Rs.Crores
PRODUCT DESCRIPTION
GROWTH CAGR %
RUBBER COMPOUND
122.35
155
267.28
331.06
170.6
HOSES, TUBES & PIPES
387.38
468.73
622.22
742.72
91.7
CONVEYOR & TRANSMISSION BELT
265.89
305.83
424.08
555.1
108.8
PNEUMATIC TYRES
2546.5
79.3
RUBBER SHEETS & FLOOR COVERING ARTICLES 99
MISCELLANEOUS (RUBBER SHEETS, THREAD, GLOVES, EBONITE PRODUCTS ETC)
249.42
351.24
536.53
717.39
187.6
99.7
Source : MOC Export Import Data Bank
IMPORTS RISE 100% IN 3 YEARS A LOSS TO EXCHEQUER & LOSS OF DOMESTIC JOBS

23. IMPORT DUTY ON FINISHED RUBBER PRODUCTS
SI. No.
Item
Import Duty
India
China
Sri Lanka
Bangladesh 1
Compounded rubber, unvulcanised
5 - 10%
 8%
Up to 15%
12%  2
Plates, sheets, strip, rods and profile shapes of vulcanized rubber
  %
 8 %
15%
25% 3
Tubes, pipes and hoses
 6 - 10%
  % % 4
Conveyor or transmission belts or belting of vulcanized rubber
 10%
  % % 5
Articles of vulcanized rubber other than hard rubber
 8 - 18%
0 - 30%
5 - 25% 6
Rubber Rice De-husking Rolls 0%
 Up to 80%
Up to 20%
LOWEST IMPORT DUTY ON FINISHED GOODS

24. HIGHEST IMPORT DUTY ON RAW MATERIALS AMONG RUBBER CONSUMING NATIONS
Sl.
Item
Import Duty No
India
China
Sri Lanka
Bangladesh 1A
Natural Rubber (Dry)
20%/ Rs.30/- 10 15 12 1B
Natural Rubber (Latex)
70% 2
SBR / PBR/ NBR/ EPDM / Chloroprene
10%
7.5 5 3
Rubber Chemicals
6.5 4
Butyl 5%
Silicon & FKM
7.50% 6
Zinc Oxide
5.5 7
PPT Silica Filler 9
Carbon Black
Titanium Dioxide 11
Magnesium Oxide
Process Oils
12% 16
HIGHEST IMPORT DUTY ON RAW MATERIALS AMONG RUBBER CONSUMING NATIONS

26. 40% OF RUBBER PRODUCT MANUFACTURERS CLOSED DOWN BUSINESS
SURVEY OF RUBBER PRODUCT MANUFACTURERS
States
Total Running Units
Working Units
Number of Units
% of Total units not functioning
Closed
Not Reach-able
Total not functioning
Kerala
853
517 55
281
336
39.4 %
Punjab
402
233 20
149
169
42 %
Tamil Nadu
606
346 58
202
260
42.9 %
Maharashtra
598
383 54
161
225
37.6 %
Total
2459
1479
187
796
990
40.2 %
Source : RSDC
40% OF RUBBER PRODUCT MANUFACTURERS CLOSED DOWN BUSINESS

28. Production, Consumption, Import & Export of Latex Concentrates
LATEX INDUSTRY
Production, Consumption, Import & Export of Latex Concentrates
(Tonnes)
p (Tonnes)
p (Tonnes)
Production
76490
73150
68000
Consumption
73190
76705
77500
Capacity
216000
235000
Latex being produced in India can be used to manufacture rubber product
Focus on using the under utilized installed capacity to produce Latex based rubber products such as balloons, condoms, Latex Foam, etc.
Assist Latex based rubber product manufacturers with technical marketing financial support.
Mechanism should be in place to ensure domestic Latex production is consumed in manufacture of Latex based rubber product.

29. STEPS TAKEN BY OTHER RUBBER PRODUCING NATIONS

30. EXPORTS CONCERNS Non-Availability of Natural Rubber
Import Duty & Inverted Duty Structure
Imports of Increasing Finished/Rubber Products into India
Cess on Imported Rubber & Rubber Cess
Carbon Black – An Important Input for Manufacturing Rubber Products Placed on the Restricted List & under Safeguard Duty
Futures Trading in Rubber may be banned
Setting up Manufacturing Clusters or Industrial Parks for Rubber Products & Auto Tyre and Tubes
Purchase Tax on Natural Rubber by the State Government to be abolished
Inclusion of “Reclaimed Rubber” in Focus Product Scheme under Chapter 3 of FTP

31. EXPORTS CONCERNS Withdrawal of Anti-Dumping Duty on Nitrile Rubber
Definition of SME Unit and Requirement for the Revision Thereof
Imports Should be Allowed Based on BIS Standards
Focus Product Scheme (FPS) & Focus Market Scheme (FMS), scrips should be directly credited to exporters account electronically.
15% of the exporters make up 85% of the total exports from our country. This core group of 15% should be clearly identified to offer special facilitation & fast track clearances in the DGFT, Customs, Excise & other trade facilitators to address their needs on an urgent basis.
Income Tax Deduction Under Section 80 HHC

32. EXPORTS CONCERNS
Shipping Companies to Charge Cost Based Charges as it adds to Transaction Costs, DG Shipping should be appointed with Regulatory Powers on the same lines as Sri Lanka & Bangladesh
Drawback Rates should factor in surcharges & duties to offset the high cost of fuel, electricity, octroi, CST & other taxes without value cap.
Second Hand Machinery should be allowed to import at 0% custom duty against each authorization.
Labour laws to be made exporters’ friendly to encourage exporters to take commitments without fear of facing labor disputes and costs.
Development Commissioner for Rubber Industry
Credit facilities at cheaper rate

33. How do you make it happen ?
OPPORTUNITIES
Easy to achieve more than 15% Year on Year
Opportunity to increase our exports approximately by 20% year on year competing with China.
We have technologist, entrepreneurs to do business in the rubber product industry.
Per Capita Consumption of rubber is only 1.6 kg. in India viz-a-viz a global average of 3.12 kg.
How do you make it happen ?

34. Even if we target to reach per capita consumption of 2 kgs our compounded average growth rate shall be 18% per annum.
Easy to achieve as 60% of the rubber products are used in the automotive industry and with a growth witnessed by the Indian Automotive Industry for domestic as well as exports rubber industry is poised for a similar growth.
Double digit growth in export year over year, Indian rubber industry has the proven capability of manufacturing the right quality of products which are accepted globally

35. INDIA LOSING COMPETITIVE EDGE FAST
CHALLENGES
Importing of raw materials used for rubber products manufacturing attract higher import duty than finished products. this inverted duty structure is causing manufacturers to become importers of finished products.
Sectors like balloon, rice-dehusking rollers, rubber compounding fast disappearing from manufacturing horizon.
Countries like Indonesia, Philippines, Vietnam, etc gearing up to manufacture of rubber products, which are traditionally exporting NR.
INDIA LOSING COMPETITIVE EDGE FAST

36. NEED FOR A NATIONAL POLICY ON RUBBER
What is National Policy on Rubber ?
National Policy on Rubber will be one document which will provide the necessary vision and guide the industry for actions to be taken by various stake holders including the government, Rubber Board, CAPEXIL, AIRIA, ATMA, Planters, Manufacturers, Importers, Exporters etc. for the benefit of each segment resulting in propelling the entire sector to a growth rate it is capable of.
Make India one of the largest consumer and producer of Raw Material and finished rubber products for domestic as well as exports.
Create a Brand India Synonymous with Rubber and Rubber Products transforming the rubber industry into a global hub for sourcing, similar to the Indian IT Industry.

37. CONCLUSION
Critical to retain and escalate our position as a rubber consuming nation of upto 5 kgs per capita in next 10 yrs.
Establish “Brand India” like the IT sector for quality of rubber and rubber products made in India for global consumption.
We badly need a NATIONAL POLICY ON RUBBER.
Last but not the least the government must trust the industry and the industrialists.

38. THANK YOU