EXPORTS OF RUBBER PRODUCTS & AUTO
TYRES & TUBES FROM INDIA
CAPEXIL
(India’s Premier Export Promotion Council)
Set up by Ministry of Commerce & Industry,
Govt. of India
7th August 2014
CAPEXIL
 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 NonMineral Sector.
 CAPEXIL has its headquarters in Kolkata and has regional offices in Mumbai,
Delhi, Chennai & Kolkata.
CAPEXIL
 CAPEXIL understand the various facets of international trade and assist the
Indian business community to enhance their exports, attain and sustain a preeminent 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 9001-2008 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.
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.
TOP 10 GLOBAL EXPORTERS FOR RUBBER AND
ARTICLES THERE OF (CHAPTER 40)
Exporters
Value exported in
2013 (USD
thousand)
Annual Growth in Value
Between 2009-13 (%)
Share in World
Exports (%)
World
201365050
13
100.00
China
23136996
21
11.50
Germany
17649701
10
8.80
Thailand
16959610
15
8.40
USA
14710407
12
7.30
Japan
13439759
8
6.70
Indonesia
9394177
15
4.70
Korea, Republic of
8321428
16
4.10
Malaysia
8295440
13
4.10
France
7741922
3
3.80
Belgium
6010251
9
3.00
GLOBAL EXPORTS OF RUBBER PRODUCTS
(CHAPTER 40) 4-DIGIT H.S. CODE WISE
Code
Products Description
Exported Value
2013 (USD
thousand)
Annual growth in
value between 20092013 (%, p.a.)
4011
New pneumatic tires, of rubber
85555526
13
4016
Articles of vulcanised rubber o/t hard rubber, nes
24678651
13
4001
Natural rubber,balata,gutta-percha etc
23283442
17
4002
Synthetic rubber&factice from oil
22891073
14
4005
Compounded rubber,unvulcanised,in primary forms
10064472
16
4009
Tubes, pipes & hoses of vulcanised rubber otner than
hard rubber
9339870
4015
Articles of apparel&clothing accessories of vulcanised
rubber
6840757
4010
Conveyor or transmission belts or belting of
vulcanised rubber
6043895
4008
Plate,sheet,strip,rods of vulcanised rubber other than
hard rubber
4209145
13
12
10
7
GLOBAL EXPORTS OF RUBBER ARTICLES
(CHAPTER 40) 4 DIGIT H.S. CODE WISE
Code
Products Description
Exported value
2013 (USD
thousand)
Annual growth in
value between 20092013 (%, p.a.)
4008
Plate,sheet,strip,rods of vulcanised rubber other than
hard rubber
4209145
7
4012
Retreaded/used tire;solid tire,interchangeable tire treads&
flaps
2948580
15
4013
Inner tubes of rubber
1460367
11
4014
Hygienic/pharmaceutical art of vulcanised rubber
1136522
-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
5
4004
Waste,parings&scrap (excl. hard rubber)&powder/granule
obtaind therefr
232244
-1
TOP 10 GLOBAL IMPORTERS FOR RUBBER AND
ARTICLES THERE OF (CHAPTER 40)
Importers
Value imported
in 2013 (USD
thousand)
Annual growth
in value
between 20092013 (%)
Annual growth in
value between
2012-2013 (%)
Share in
world
imports (%)
USA
28729529
15
-4
13.7
China
19894818
16
-4
9.5
Germany
16792354
9
1
8
France
8207319
7
0
3.9
Canada
6810754
10
-8
3.2
Mexico
6284016
19
-1
3
United Kingdom
6028928
8
2
2.9
Belgium
5590366
9
7
2.7
Italy
5413019
5
2
2.6
Japan
5405319
11
-15
2.6
Sources: ITC calculations based on UN COMTRADE statistics.
TOP 5 COUNTRIES CONSUMPTION FIGURES OF RUBBER
LAST 5 YEARS CONSUMPTION (NATURAL RUBBER (NR) +
SYNTHETIC RUBBER (SR) FIGURES
CHINA
INDIA
JAPAN
THAILAND
USA
NR
SR
4230
7537
905
321
1226
636
832
1468
399
253
652
687
1448
2135
27%
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
962
471
1433
712
956
1668
520
448
968
913
1698
2611
48%
SR
2009
3307
2010
NR
SR
NR
SR
SR
TOTAL
NR
TOTA
L
TOTA
L
TOTA
L
YEAR
TOTA
L
%
Incr
ease
NR
All data are in ‘000 tonnes
SOURCE – INTERNATIONAL RUBBER
STUDY GROUP
PER CAPITA RUBBER CONSUMPTION
OF THE WORLD
COUNTRY
JAPAN
KILOGRAM
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
INDIA’S SHARE IN GLOBAL EXPORTS
2013-14
(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
2013-14
(In US $ Million
Auto Tyres & Tubes
1686.82
Rubber Articles
1056.82
Natural Rubber (ITC H. S. Code 4001)
Total
27.21
2770.85
PERCENTAGE SHARE IN RUBBER EXPORTS
Natural
Rubber
1%
Rubber
Articles
38%
Auto
Tyres &
Tubes
61%
EXPORTS OF AUTO TYRES & TUBES FROM
INDIA OVER THE LAST 5 YEARS
Value in US D Million
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1617
1731
1687
2012-13
2013-14
1058
787
768
2008-09
2009-10
2010-11
2011-12
ITEM WISE EXPORTS OF AUTO TYRES &
TUBES FROM INDIA
Value in US$ Million
Products
2013-14
2012-13
Auto Tubes
64.44
58.65
9.87
Auto Tyres
1602.27
1648.83
-2.82
Tyre Flaps
20.11
23.99
-16.17
1686.82
1731.47
-2.58
Total
% Change
EXPORTS OF RUBBER MANUFACTURED
PRODUCTS OVER THE LAST 5 YEARS
Value in US$ Million
1200
999
995
2011-12
2012-13
1057
1000
800
751
675
546
600
400
200
0
2008-09
2009-10
2010-11
2013-14
ITEM WISE EXPORTS OF RUBBER
MANUFACTURED PRODUCTS FROM INDIA
Value in US $ Million
Item Descriptions
2013-14
2012-13
101.79
86.62
17.51
Bicycle Tubes
40.19
45.12
-10.93
Bicycle Tyres
50.9
56.19
-9.41
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
110.05
75.05
46.64
1.18
0.92
28.26
12.98
15.13
-14.21
294.45
295.12
-0.23
39.36
33.27
18.30
1056.82
995.1
6.20
Automotive Components
Conveyor, Transmission, V Belts
Reclaim Rubber & Waste Pairings & Scrap
Rubber Coats & Aprons
Rubber Products Nes
Rubber Sheets
Tyre Retread/Camel Back
Grand Total
% Change
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.
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 plantationbased raw rubber production to manufacture of technologicallyadvanced 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.
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)
10 Lakh
- 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
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.
POLYMER CONSUMPTION
vs
PRODUCTION - 2013
POLYMER
PRODUCTION IN ‘ 000 MT
CONSUMPTION IN ‘000 MT
NATURAL RUBBER
919
988
SYNTHETIC RUBBER
110
440
RECLAIM RUBBER
115
112
TOTAL
1144
1540
INDIA’S IMPORTS OF RUBBER PRODUCTS
Figures in Rs.Crores
2009-10
2010-11
2011-12
2012-13
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
1420.17
2111.44
2304.69
2546.5
79.3
RUBBER SHEETS & FLOOR
COVERING ARTICLES
1364.99
1836.86
2318.77
2715.65
99
MISCELLANEOUS (RUBBER
SHEETS, THREAD, GLOVES,
EBONITE PRODUCTS ETC)
249.42
351.24
536.53
717.39
187.6
3810.25
5229.16
6473.57
7608.42
99.7
PRODUCT DESCRIPTION
Source : MOC Export Import Data Bank
IMPORTS RISE 100% IN 3 YEARS A LOSS TO EXCHEQUER & LOSS OF DOMESTIC JOBS
IMPORT DUTY ON FINISHED RUBBER PRODUCTS
SI.
No.
Import Duty
Item
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
7.5 - 10%
8%
15%
25%
3
Tubes, pipes and hoses
6 - 10%
10 - 10.5%
15%
12 - 25 %
4
Conveyor or transmission
belts or belting of
vulcanized rubber
10%
8 - 10 %
15%
5
Articles of vulcanized
rubber other than hard
rubber
10%
8 - 18%
0 - 30%
6
Rubber Rice De-husking
Rolls
0%
Up to 80%
15%
LOWEST IMPORT DUTY ON FINISHED GOODS
5 - 25 %
5 - 25%
Up to 20%
IMPORT DUTY ON RAW MATERIALS
Sl.
Item
No
Import Duty
India
China
Sri Lanka
Bangladesh
20%/ Rs.30/-
10
15
12
1A
Natural Rubber (Dry)
1B
Natural Rubber (Latex)
70%
10
15
2
SBR / PBR/ NBR/ EPDM /
Chloroprene
10%
7.5
0
5
3
Rubber Chemicals
10%
6.5
0
5
4
Butyl
5%
7.5
0
5
5
Silicon & FKM
7.50%
6.5
0
5
6
Zinc Oxide
10%
5.5
0
5
7
PPT Silica Filler
10%
9
0
0
9
Carbon Black
5%
5.5
0
5
10
Titanium Dioxide
10%
6.5
0
5
11
Magnesium Oxide
10%
3
0
5
12
Process Oils
12%
16
0
12
HIGHEST IMPORT DUTY ON RAW MATERIALS AMONG RUBBER CONSUMING NATIONS
SURVEY OF RUBBER PRODUCT MANUFACTURERS
Number of Units
States
Total
Running
Units
Working
Units
Closed
Not
Reachable
Total not
functioning
% of Total
units 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
LATEX INDUSTRY
Production, Consumption, Import & Export of Latex Concentrates
2011-12
(Tonnes)
2012-13p
(Tonnes)
2013-14p
(Tonnes)
Production
76490
73150
68000
Consumption
73190
76705
77500
Capacity
216000
235000
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.
STEPS TAKEN BY OTHER RUBBER PRODUCING NATIONS
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
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
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
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 ?
 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
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
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.
CONCLUSIO
 Critical to retainN
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.
THANK YOU