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THE COMPLETE MAGAZINE ON RUBBER

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NOVEMBER-DECEMBER 2012

NOVEMBER-DECEMBER 2012

DR. JaMes JacoB: how gLoBaL waRMing iMpacTs nR pLanTaTions?

DR. kaMaRUL BahaRain BasiR: oppoRTUniTies in nR inDUsTRY

M. aYYappan on hLL’s saga of gReaT TRansfoRMaTion Metin Mansur,

Chief Executive Officer of EGE KIMYA

peTeR J. Makepeace on TYRe TRaDing TRenDs R.N. 44527/85

DhaRMaRaJ on hML’s RoaD Map gUaYULe RUBBeR saMpLes

KIMYA

Turkish chemicals major in for

expansion on-Line TYRe TRaDing caTching Up

vision 2022 viTaL foR sRi Lankan RUBBeR inDUsTRY


Rubber Asia

NOVEMBER-DECEMBER 2012

3


eDIToR‘S noTe The compleTe mAgAzIne on RubbeR Editor Kurian Abraham Executive Director John S. Powath Associate Editor Prof. T.N.Kalamani Assistant Editors A. Saj Mathews P. Venugopal Vice Presidents (Marketing) Antony S. Powath Vijay Kurian Abraham Editorial & Registered Office Dhanam Publications (Pvt) Ltd. Dhanam House 29/609, Cheruparampath Road, Kadavanthra, Cochin - 682 020, India Phone : 91-484-2315840, 2316494, 3297806 Fax : 91-484-2317872 Website : www.rubberasia.com E-mail : dhanrubber@eth.net danam@satyam.net.in Mumbai 501/502, Imperial Plaza, Corner of 27th & 30th Road, Near Nilgiri Garden Bandra (W), Mumbai - 400 050 Phone : 91-22-2640 0829, 2640 0735 Fax : 91-22-2641 1894 E-mail : johnpowath@hotmail.com, johnpowath@rubberasia.com New Delhi N. Kunju, 42-B, Pocket-I, Mayur Vihar New Delhi-110 091, Phone: 91-11-22755357 E-mail: janunkunju@sify.com U.S. Correspondent Petra Vance Crusader Chemical Co., Inc. 2330 Severn Street, Baltimore, Maryland 21230-1698 USA Phone: 001-410-752-7602 Fax: 001-410-547-8713 E-mail: CrusaderCC@aol.com European Represenative John Stone 73 Chaney Road, Wivenhoe Essex, CO79RR, England Sapphire Media, Tel: +44 (0) 1206 822320, M: + 44 (0) 7769 675232, Email: john.stone@sapphire-media.co.uk South East Asia Esther Goh Mobile: 6019-272 0997 E-mail: esthergoh2004@yahoo.com Sri Lanka Prof. Piyasiri A.J. Yapa, 209/7, Gangarama Road, Werahera, Boralesgamuwa, Sri Lanka Phone: 011-2518085, Mobile: 071-8265980 Email: piyasiri.yapa@yahoo.com Australia Jacob Cherian, Ausker Pacific Pty. Ltd. Suite 1, 1401 Burke Road, East Kew Vic 3102 Melbourne Australia Phone: 61 3 9859 8922 Fax: 61 3 9859 9215 E-mail: ausker@auskergroup.com.au Taiwan Stuart Phillips-Laurie, International Relations Manager, Worldwide Services Co. Ltd., 11F-2, No. 540, W.H. Road, Section 1, Taichung, 408, Taiwan. Phone: +886 4 2325 1784, Fax: +886 4 2325 2967 Thailand Ms. Somruetai Patana-anek (Mott). Managing Director, Busgum Co. Ltd., 1093/115, 21st Floor, Central City Tower, Bangna-Trad Road (K.M.3), Bangna, Bangkok 10260, Thailand Phone: +66-2-3993946, 399-4374, 399-3896 Fax: 339-4557, Mobile: 66-1-8429105, Email: somruetai.patana-anek@busgum.com Subscription rates 6 issues: `800, 12 issues : `1,600, 24 issues: `3,000, S. copy : `150 / US$ 20

India’s elusive dream

C

an India combine growth with social justice. Or should it focus on rapid growth ignoring the social, cultural and environmental consequences. This is the dilemma the country, which is at a turning point in its historic journey to prosperity, faces today. It’s true, Iiberalization of its economy has created pockets of affluence, world-class institutions and lifted millions from poverty and instilled the hope of a better tomorrow into the masses. But if the daily scandals appearing in the media are anything to be believed, it has also facilitated unimaginable levels of corruption and massive environmental exploitation and destruction. People untouched or sidelined by the economic reforms are losing hope and some are even turning to extremism. Unless alternative models of development which can bring benefit to all people are developed, things can definitely go out of control. The world is watching India’s tryst with destiny. The present state of affairs is definitely discouraging for a country which has been predicted earlier by the City Group economists as the one that would emerge as the largest economy in the world by 2050. The Brookings Institution in Washington D.C. has also projected that, by 2030, the Indian middle class would spend more than their counterparts in the US and China. The recent downgrading of India’s growth by the IMF to 4.9% in 2012, the slowest in a decade, is an indication of the challenges the country is facing today. India is down, but not out. Things will have to change for the better. It needs new vision, new leaders, bold initiatives and strategies. A few piecemeal initiatives toward liberalization will not take the country to greater heights. A country of world-class companies like Infosys, Wipro, Tata Motors, Apollo Tyres and L&T has definitely the talent pool to set its home in order — both on the economic and social fronts. The proverbial Indian Entrepreneurship, which has unleashed a new wave of enthusiasm, energy and wealth creators, can definitely turn the tide in India’s favour. The global ambitions, innovations and commitment of many to moral values and ethics will ensure that the country treads on the right path in the years to come. The Chairman of India’s prestigious Tata Group, Ratan Tata, reiterates this belief and optimism. Says he: “India would emerge as one of the economic giants of Asia because we have intelligent human capital. The strength and the spirit and the youth of India are going to drive their country to new heights.” But how soon? The world is watching!

Overseas 12 issues: $ 200, 24 issues: $ 400 Printed at Five Star Offset Printers, Kochi - 16 for Viani Printings, Cochin. Edited and Printed by Kurian Abraham, Dhanam House, Cochin - 682 020

Rubber Asia

Kurian Abraham november - december 2012

5


CONTENTS

november-december 2012 vol. 26, no. 6

CoveR stoRy.........34 Prof. t.N. Kalamani

Turkish chemicals major in expansion mode

this family-run business based in Istanbul, turkey, has now emerged as a leading exporter of manufactured chemical products as well as main supplier and solution provider to global corporations. the company is planning expansion into the fast-growing Asian markets.

Peter Taylor

Look for real world benefits beyond labelling................26

John Stone

PCR tyre retreading on come-back trail?......................30

Peter J. makepeace

tyre trading: What when the going gets tough?...................64 6

november - december 2012

dr. James Jacob

Global warming impacts rubber production......49 Rubber Asia


m. Ayyappan

HLL’s is a saga of great transformation........52

dr. Kamarul baharain basir

NR industry: Great opportunities amid challenges...............62

Interview

N Dharmaraj on HML’s road map.................67

Harvey brodsky

Why tyre majors make retreadable truck tyres?......74

PanAridus releases first Guayule samples.......76

Tiyo

Market report....88 RsDC:Breeding the best brains for the rubber industry...............94 MRB launches new technologies.......98 Sharad matade

tyre stock watch................106 John S. Powath dr. n. Yogaratnam

vision 2022 vital for sri Lankan rubber industry.............82 Rubber Asia

Unholy music....108 CUsAt: Nurturing best brains for the rubber industry.............145

Tom K Thomas

Indian tyre industry needs to cope with technological challenges...........................113

D e PA R t M e N t s Letters ...........................................8 In the news.................................18 Tyre world .................................113 Tyre news..................................118 rubber trends...........................122 news digest ..............................126 corporate affairs ......................132 economic trends ......................134 Seminars & conferences..........147 company profiles .....................156 calendar of events ...................158 Index to advertisers .................159 Happenings...............................160 november - december 2012

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LetteRs

Line-up of major players! T

he MARGMA Special issue of Rubber Asia is indeed a commendable edition mainly in terms of its exhaustive coverage of the whole spectrum of global dipped goods industry with special focus on gloves. It’s no doubt a collectors’ copy with lasting reference value. More importantly you have succeeded in parading all the major players in the latex and glove industry. Congrats! Keep it up

Hats off, Team Rubber Asia!

R

ubber Asia MARGMA Special issue has come out excellently well! Content-wise, looks-wise, it’s solid. Hats off, Team RA!

Lim Cheng Indonesia ...................................................................

Raghav Srivastava Mumbai ...................................................................

P

Other dipped goods ignored

C

ontent-wise Rubber Asia’s MARGMA special issue was undoubtedly rich. But we in the dipped goods industry other than gloves are a bit disappointed in that almost 90%

Condolence on Ben’s demise

I

was sad to read the news on Ben Kastein, in Rubber Asia, July-August 2012 issue. I had the opportunity to be associated with Ben since 1962 when I was deputed to Firestone, Akron, when Synthetics And Chemical had collaboration with Firestone for SBR production in India. Ben visited India to guide us on Technical Services Progaramme. He was a gentleman to the core, knowledgeable. I convey our condolences to his family. Manu Patel Mumbai

8

Usman Said Malaysia ................................................................... focus was on gloves. Don’t you think it’s disproportional?

november - december 2012

Welcome deviation! etra Vance’s Micro Loans Present Real Opportunity for Women Entrepreneurs in Rubber Asia’s MARGMA special issue was an article with a difference. While a major part of the contents were on rubber and gloves (quite natural in a Special issue of this kind), Ms Vance’s article was indeed a welcome diversion, adding variety to the whole issue. Nancy D’Suza, California ...................................................................

Lifting of US tariff a boon to China

C

hina can now heave a sigh of relief as the three-year tariff on Chinese tyres imposed by the United States officially ended on September 26. China has been fearing that President Obama would extend the tariff. But since Obama is preoccupied with electioneering for a second term, he obviously wants a decision on the sensitive tariff issue to be left to the next Government. China had even accused the Obama administration of fuelling trade protectionism under the garb of tariff. The decision of the United Steel workers Union (USW) not to ask for an extension of tariff also must have weighed with Obama’s decision not to go for an immediate extension of

tariff. The lifting of the tariff would be a boon to the China tyre industry. China will now have to produce more tyres to meet its overseas commitments. This will push up consumption of rubber — both natural and synthetic— by China. Rise in China’s rubber consumption will also help the NR producers who are hit by fall in prices as a result of weak demand. J C Park Indonesia ...................................................................

Regulate futures trading in NR

T

here is every reason to doubt that the futures market is artificially pushing up prices of natural rubber. Such unnatural and illogical trends in the futures trade heavily hampers the physical trade, resulting in wrong signals to all stakeholders, including the growers. The only beneficiaries are the speculators and the exchange operators. Under such circumstances, farmers and traders tend to hold stocks and consumers have no option but to contract for imports, as availability thins out and the landed price difference is huge. Since such speculative trends do not last, the situation could get worse when heavy imports land up in peak production months. Therefore, I fully support the demand of the user-industries for curbing the volatility in futures prices by reducing the intra-day price fluctuation limit from the current 4% to 1%. Ketan Shah Mumbai Rubber Asia


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NOVEMBER-DECEMBER 2012

Rubber Asia


in the

News

Apollo’s

big plans coming true? onkar S Kanwar

M

edia are rife with reports suggesting that the Indian tyre manufacturer Apollo Tyres is in the process of buying a controlling stake in the US-based Cooper Tire & Rubber Co.

Apollo have not either confirmed or denied the media reports, which have led to all manner of speculation. Buoyed by the rumours, the shares of both the companies scaled high.

At the recent Geneva Motor Show, Apollo Tyres Chairman Onkar S Kanwar had hinted at the company’s intention to make a quick entry into markets like Brazil. He had remarked then: “We never rule out an acquisition. We are looking at all options.”

Apollo’s move on Cooper came as no surprise to the tyre industry circles as the company has spent the last six years spreading its reach around the globe. The company bought South Africa-based Dunlop Tyres International Ltd in 2006 and the Dutch tyre-maker Vredestein Tires in 2009. Since then, Apollo has leveraged Vredestein’s technology to improve its own radial consumer products, and open new markets to its Apollo brand name.

Cooper is already the world’s 9th biggest tyre maker by sales and the new deal, if materialised, would help Apollo to break into the league of top-5 tyre companies in the world, edging out Pirelli from the fifth position. According to Tire Review data, in 2011 Cooper posted sales of $3.9 billion, placing it the ninth on the global list, while Apollo had sales of $2.2 billion, putting it in the 16th spot. If Apollo takes over Cooper, the former will have an estimated $6.1 billion in global sales, with three major tyre brands and footprints touching the US, Europe, South Africa, India and China. According to media reports, the deal could be in the range of $600-800 million. The reports further say that Apollo could be raising close to $600 million of debt, for which the advisor to the deal, Standard Chartered Bank, has already initiated the process. Curiously, the managements of both Cooper and 18

november - december 2012

The acquisition, still in specialisation, would give Apollo Tyres access to the US market for replacement tyres for cars and light and medium trucks. Cooper Tire focuses on replacement tyres, an area of the market that is expected to benefit from growing fleets of aging vehicles in the US. Adding Cooper to the fold would not only improve its position in Europe, but give Apollo immediate access to the North American and Chinese markets, where Cooper has a manufacturing footprint. Apollo’s latest acquisition move would give further momentum to other tyre majors in India like MRF who too are seeking to expand their global reach through acquisitions. Rubber Asia


A many-faceted rubber personality

Top planters at the helm of

UpAsi

G.J. Ancheril

dr. Alan n. Gent

W

orld renowned polymer scientist, Dr. Alan N. Gent, who passed away on September 20 at the age of 85, was well known for his multidimensional contributions to the rubber industry in capacities such as consultant, academician and scholar of polymers and rubber engineering. Gent’s work had the potential of impacting nearly every rubber or plastic product developed today. He was widely regarded as the foremost expert on the fracture mechanics of rubber and plastics. His research yielded significant contributions to the world’s understanding of the physics of adhesion and the fracture of rubbery, crystalline and glassy polymers. During his distinguished career, Gent published more than 200 papers and book chapters on the mechanical properties of rubber and plastics and edited a book titled, “Engineering with Rubber.” A co-holder of two British patents and one U.S. patent, he frequently was invited to address universities, corporations and professional society meetings around the world. He has served as a visiting professor at Queen Mary College at the University of London, McGill University and the University of Minnesota. Gent also presided over three national scientific societies — The HighPolymer Physics Division of the American Physical Society, The Society of Rheology, and The Adhesion Society -- and chaired four Gordon Research Conferences dealing with elastomers, cellular materials, adhesion and composites.

Dr. Gent was the proud winner of the first Tan Sri Dr B C Sekhar Gold Medal 2010, instituted by Rubber Asia. He was also the receipient of several prestigious awards including the Charles Goodyear Medal in 1990 and the Rubber Division’s George S. Whitby Award for Distinguished Teaching and Research in 1987. In honour of his international recognition and his service to the University of Akron, the Board of Trustees of the University voted unanimously to rechristen the Ohio Research Scholar Professor at the University of Akron as the “Alan N. Gent Ohio Research Scholar Professor of Polymers.” Gent will be missed by all within the industry and academia. Rubber Asia

Peter mathias

T

wo verteran planters of South India have taken over the reigns of United Planters Association of India (UPASI). G.J. Ancheril, who has been elected President of UPASI for the year 2012-13, is a Director of A.V. George Group of Companies, Kottayam, which has interest in tea and rubber. He was a former Chairman of Association of Planters of Kerala (APK) and of Tea Trade Association of Cochin. Peter Mathias, the newly-elected Vice President of UPASI, is the Managing Partner of Kelagur Tea, Coffee and Spices Plantation in Chikmagalur District, Karnataka. He has 32 years of experience as planter and has steered the Kelagur Group to new heights, with the tea yields crossing 4,000 kgs per hectare. He was the Chairman of the Karnataka Planters’ Association and a member of the Tea Board of India. november - december 2012

19


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NOVEMBER-DECEMBER 2012

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T

Letter from D Europe

Peter Taylor

Look for real world benefits beyond labelling While admitting that the “information contained on the tyre label is terrifically important,” some of the bigger brands say their philosophy has been to focus on the full range of characteristics for tyres and not on some selected criteria alone

T

yre labelling is the obsession of the moment in Europe, a fact clearly illustrated by the coverage it is receiving in this column among many. For some, thoughts are now turning from the technical challenges of labelling itself to its possible outcomes. The law of unintended consequences may well apply. Yes, one may well be a better informed consumer, but the sub-plot was surely the hope that the very tight timeframe for the introduction of these regulations combined with significant technical and logistical challenges would bear more heavily to the non-European tyre makers. That remains true, but as I have already reported, many imported products are achieving equivalent or even better grades than the indigenous competition. This poses something of a conundrum for the bigger brands and there are already signs that some are rethinking their positions in order to differentiate their brands from these near-equivalent performing ‘upstarts’. Michelin, not surprisingly is the first to face the new reality referring to ‘real world benefits’ beyond labelling.

The writer is director, Imported Tyre manufacturers Association (ITmA), London 26

november - december 2012

At a recent event in Stockholm to mark the end of its ‘Performance Tour 2012’, Michelin executives are reported to have preferred to talk about the full range of characteristics for its latest tyres than to dwell on labelling results alone. Guests were told that “information contained on the tyre label is terrifically important, (but) it has never been (Michelin’s) philosophy to focus on selected criteria.” I sense that tyre marketing guys everywhere are working overtime just now. l

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New rubber

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have written before about attempts to produce natural rubbers from new sources. Back in the 1940’s, when many raw materials were scarce, America experimented with a substance produced from the desert Guayule, a cactus-like plant commonly found in New Mexico and elsewhere in the arid far south of the US and in Mexico itself. At the time it came to nothing because the end of the Second World War saw the return of the Malaysian rubber to the world market. There is now renewed interest in Guayule as well as in another rubber-producing plant, the so called Russian dandelion, but more commonly found in the likes of Uzbekistan than Russia’s icy wastes. Current leader in the field is Apollo Vredestein who has been participating in an EU project to find and commercialise alternative non-traditional sources of natural rubber. The signs are that the gap between pure science and applied science is closing because Apollo Vredestein has announced the first trial production of tyres using these newly-derived materials. Guayule at least appears to have some advantages over Hevea-derived rubber in that it is hypoallergenic. It is estimated that up to 10% of people are allergic to some Hevea proteins which can be a problem for the medicos and others who need to wear rubber gloves for their work. Current alternatives are not as stretchable as natural rubber; so Guayule or even Russia’s dandelion Rubber Asia


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could deliver some real benefits to glove wearers. Plantation owners take note! l

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Future car 2

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few months ago I wrote a piece on the future of the motor car in an age of mass mobility, dwindling resources and near gridlock on many of our roads. For some, the electric car is seen as an obvious part of the solution, but its path to success is still likely to be a difficult one. Already, last year one small producer of electric city cars, the Norwegian ‘Think Global’ company, filed for bankruptcy and others including some battery makers are finding things far from easy. Even those with deeper pockets are struggling to meet sales expectations on both sides of the Atlantic. In the US, Chevrolet’s much-heralded new Volt hybrid electric car can be leased for about $400 per month, too much for many, especially as its electric power is only good for 85 kms (56 miles) whereafter it needs to switch back to gasoline. In the US, GM sold just less than 9000 Volts in the first half of 2012, far fewer than the 45,000 it had hoped. In Europe and elsewhere, things are not much better. Toyota’s hybrid Prius is still the leading and most established contender, but it too finds the market tough these days. Newer all-electric entrants like Nissan’s LEAF, and the smaller Mitsubishi I-MIEV, Peugeot iON are pricy and still short on performance. Each requires a 6 – 8 hour recharge, has a speed capability of between 80 – 90 mph and ranges of no more than 100 miles/160 kms. Potential buyers are not just put off by the prices, their manufacturers’ attempts to reduce weight give the impression of flimsiness and this too can be off-putting. That said though, it is their price which is the real killer, more than twice that of comparable-sized conventional small cars at a time when in some markets like the US, gasoline prices have fallen back this year. So, still too expensive for what they offer and would seem to be the consumer’s conclusion, but inevitably their time must come. The key will be the power pack which is still the main weakness, but ways must also be found to perhaps offer battery exchanges on gas stations forecourts. When these twin issues of price and range are overcome the day of the all electric vehicle will truly have come. l 28

november - december 2012

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Europe’s euro woes

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hese days, no discussion about trading conditions in Europe is complete without reference to the euro. Europe’s ‘single’ currency has been adopted by a majority of member-States for the past decade and that is its problem. The stresses and strains of trying to embrace a range of quite disparate economies with a ‘onesize-fits-all’ currency are threatening its destruction. Eventually, one or two of its weakest members, like Greece, may have to exit the euro altogether and revert to their former currencies; this would at least permit the devaluation they so clearly need to be competitive. Meanwhile, the euro’s fiscal masters led by Germany continue to preach the need for extreme austerity packages which in themselves exacerbate the downturn in these weaker economies and provoke serious social unrest. The effect of all of this is a very serious erosion of market confidence everywhere, a reluctance to spend and invest and even to lend. In other words, there are few fingers on these triggers of growth. Europe’s economic woes are now affecting almost every aspect of the economy and there is no immediate prospect of an upturn. New vehicle sales are dropping and so too are replacement tyre sales as recession hits hard. Clearly, recovery is some way off and will only come when a viable and convincing solution to the Euro-Zone’s problems are found. It will not happen this year. l

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Europe’s wordy legislation

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o one is more fond of words than the European bureaucrats. The boys in Brussels feast on them, as someone has just pointed out to me. Pythagoras’s famous theorem and one of the cornerstones of mathematics was compressed into just 24 words. Archimedes did almost as well, his principle was succinctly delivered in just 67 words. Christianity’s Ten Commandments manage to deliver the message in just 179 bytes, while the entire US Constitution with its accompanying 27 amendments has a word count of 7,818. Brussels, however, truly excels. The EU regulations on the sale of cabbage extend to a whopping 26,911 words. Some crop! Rubber Asia


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Jone Stone

PCR tyre retreading on a come-back trail? There are encouraging signs these days of a revival of the once popular passenger car tyre retreading tradition to the UK and european markets

F

or the past few years, retreaded passenger tyres had virtually vanished from the market place in the UK and Europe, although in Europe, some countries still claim to have maintained a steady but low profile in the market. In the UK, the sales of passenger retreads had almost completely diminished for the last six years or so.

The writer, Rubber Asia’s european representative, is an international tyre and rubber journalist based in the UK

However, recently there have been encouraging signs that this once strong manufacturing tradition is on its way back. The general feeling in the market is that passenger retreading is once more a growing topic of conversation leading to the possibility of a

Will more Pcr casing be retreaded again? 30

november - december 2012

renaissance in the market. This momentum has been supported by the fact that seven passenger retread companies exhibited their products and services at the UK tyre show Brityrex 2012 in October. If this resurgence continues, it could mean that for the first time in almost fifteen years, the retreading of PCR tyres could regain some, if not all, popularity in the market.

Instant fall from grace During the mid 1990's, retreaded tyres had an annual output of around 3.5 million units; what followed can only be described as nothing less than a catastrophic decline as, between 1996 and 2006, sales dropped almost instantly and dramatically even though several of the world's largest retreaders were based in the UK at that time. This change in fortune saw a series of factory closures and the retreading market was forced to re-structure overnight. The lowest point came in 2008 when only about 200,000 passenger retreads were sold in the UK. What caused such an instant fall from grace? Well, there are several reasons including the steady emergence of cheap imported tyres from the Far East causing tyre dealers to deal with brand differentiation which seriously affected their product lines as a choice had to be made between budget new tyres or retreads. At the same time, there was a drop in currency exchange rates which only further aggravated the situation. Perhaps the final 'nail in the coffin' came when the Brazilian market decided to ban Rubber Asia


Rubber Asia

NOVEMBER-DECEMBER 2012

31


the import of retreads to safeguard its own retreading market. It could also be said there was an over-reliance on large contracts by the UK retreaders and that they were not equipped to react swiftly enough to a rapidly changing market. In effect, tyre retailers stopped selling retreads and very quickly the product became unavailable to drivers leading to many retreaders going out of business.

Why the new interest? So why are PCR tyre retreads making a comeback? What has changed? There are several important factors that have led to a new interest in retreaded passenger tyres. First of all, there is a continued cost rise of imported Chinese budget tyres consequent on the withdrawal of support by the Chinese Government. Add to this an overall global tyre shortage and the general economic situation in the UK and the EU, and it is not surprising that retreaders have been given a positive opportunity for a long overdue revival! At the same time, I am reliably informed that this time, there has been a significant

change in the way retreaders approach the market. In the past, the main objective seemed to be to look at producing large volumes of tyres; but now they appreciate the value of sustainable growth and consider the way forward is to establish long-term business relationships with customers. Additionally, retreaders are starting to specialise in niche markets and smaller volumes as well as setting their sights on other market segments including winter tyres, 4x4 tyres and even motorsport. There is also a realisation that the merits of retreaded passenger tyres can benefit from the general trend to embrace environmental issues as much as possible. I have also noticed that retreaders are now looking at other distribution channels to promote their products such as Ebay plus. There is a growing emergence of online retread retailers. At the moment, retread passenger tyres only amount to around one per cent of the UK market. But, following the strong presence at Brityrex, it will be interesting to see if retread PCR tyres can grab back some of the market share it used to enjoy formerly. Only time can tell and it will be interesting to keep a close eye on the progress of retreading.

Beta Healthcare

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november - december NOVEMBER-DECEMBER 20122012

Rubber RubberAsia Asia


CoveR sToRy Prof. T.N. Kalamani

metin mansur, chief executive officer of eGe KImYA

34

november - december 2012

Rubber Asia


KIMYA

Turkish chemicals major in

expansion mode What started off over 56 years ago in Istanbul, Turkey, as a family-run business to supply basic products to the paper, detergent, paint and enameling industries, has now emerged as one of the region’s leading exporters of manufactured chemical products as well as the main supplier and solution provider to global corporations that are market leaders in their respective fields. eGe KIMyA is currently making an all-out effort to furthering its presence in the fast-growing Asian markets

Rubber Asia

november - december 2012

35


CoveR sToRy

eGe KImYA Headquarters in Istanbul

It

is indeed a fascinating saga of tremendous transformation and growth EGE KIMYA, (EGE KIMYA SANAYI VE TICARET A.S., to be in full) — is presenting to the industry world since its inception over 56 years ago! A family-run business, headquartered in Istanbul, Turkey, initially involved in the production of intermediary chemicals, has today emerged as an innovation leader and solution provider to an increasing number of its global customers and business partners!

The inception Explains Metin Mansur, the experienced and resourceful Chief Executive Officer of EGE KIMYA, about the background of its creation: “The company, founded in 1955 and can rightfully pride itself as being one of the precursors of the Turkish chemicals industry, was the outcome of a brave and pioneering effort by Ali Mansur and his friends to cater to the preliminary needs for the Turkish chemicals industry. Those were the days when there was no manufacture of 36

november - december 2012

chemicals of any kind in Turkey. Everything had to be imported, mainly from Western Europe, and these imports were subject to high customs duties. Ali Mansur and his partners found in this a great opportunity to help start production of these chemicals domestically. Responding quickly to the need of the time, they started EGE KIMYA to serve the domestic detergent, enameling and paint industries as the primary supplier of intermediary raw materials. The company grew quickly together with these industries.” “In fact, the first production of many industrial chemical products of Turkey, starting from sodium silicate and metal carboxylates to enamel frits, zinc oxide, pigments, catalyst raw materials and polyester resins, was originally undertaken by EGE KIMYA,” he says. And, parallel to this development, many of the products were also exported, most of them for the first time by a Turkish chemicals manufacturer. “EGE KIMYA’s efforts in this direction not only made it one of the leading exporters of manufactured chemical Rubber Asia


products from Turkey, but also influenced other companies to follow in its footsteps,” the CEO claims. To be brief, what started off over 56 years ago as a supplier of intermediary chemicals is now not only a big exporter of chemical products but also a provider of solutions to the increasing expectations of its customers worldwide.

Milestones of growth The principal milestones in the company’s growth to its present coveted position, according to Metin Mansur, are: A JV in 1989 with the US-based Ferro Corporation, the world leader of enameling raw materials, followed by a second JV in 2001 with Evonik-Degussa GmbH, the German multinational chemical giant, to produce precipitated silicas for the group’s worldwide operation. These collaborations provided

The research and development department considers customer needs as the utmost goal and works to the best of its abilities to support them. It works in order to present new products to its existing customers. And, it studies various products, such as new generations of the existing grades, with a view to developing product modifications

Top management Trio (From L to r): metin mansur, ceo, Yusuf Aryas, member of the board and oguz ozdil, Factory director

the background to adding several other arrangements with other chemical companies by way of co-manufacture, tolling or similar agreements. Currently, EGE KIMYA is in league not only with Evonik-Degussa and Ferro Corporation but also with other leading global chemical companies such as, Rubber Asia

Albemarle Catalysts, Reichhold Resins and the like.

Adapazarı plant EGE KIMYA has broken a new ground in Turkey by expanding its fields of activity through the establishment of its Chemicals november - december 2012

37


CoveR sToRy

TeAm eGe KImYA

Industrial Park facility in a sprawling area of 120,000 square meters in Adapazari. All corporate and financial services have been put in place in order to be able to service the requirements of various sectors. It has gradually grown with support units located around the central factory services. Its infrastructure is capable of increasing capacities as per the requirements of collaborations in place as well as for launching new projects the company is always looking for. The Adapazar覺 plant, 130 km east of the Istanbul city centre, is comparable to a smallscale industrial zone; it serves the various sectors with its immense production, design and research capabilities. What is more, it is close to the main ports and only 2 km away from the TEM highway

Competent R&D The Research and Development Department of EGE KIMYA -- a pioneer in the region in the manufacture of silica and silicates, metal carboxylates, zinc oxide, enamel frits and similar products -- is headed by Dr. Derya Ercikan. Two years ago, he was joined by Dr. Gokhan Caliskan, a graduate of the University of Akron Polymer Science Department, especially for product development for the rubber and tyre sectors. Dr. Caliskan is leading a team which consists of chemists and engineers with rich experience in tyre manufacturing. With continuous in-house and external trainings, Dr. Ercikan is making sure that his team is up-to-date with the 38

november - december 2012

view of factory: Steam engine Rubber Asia


latest technological developments in the fields EGE KIMYA serves. The company operates as an integrated team with its highly proficient technical staff experienced in different fields. The employees, highly committed and industrious, are all trained in their special fields.

Customer the utmost goal The Research and Development operations are done in accordance with the trends, expectations and requirements of all the industries that the firm serves. EGE KIMYA takes too much of care and effort in this regard. The Research and Development Department considers customer needs as the utmost goal and works to the best of its abilities to support them. It works in order to present new products to its existing customers. And, it studies various products, such as new generations of the existing grades, with a view to developing product modifications. The Department is also keen on making innovations in the sectors it serves and

eGe KIMyA opens new opportunities and makes new investments each day to add the latest technological innovations to its facilities, complementing them with professional laboratory and with environmental protection, logistic, engineering, water and steam procurement & treatment, electricity and mechanical services

supporting the R&D teams of collaborating companies. Observes the CEO, regarding innovative products in the pipeline: “With the current and possible future restrictions on chemical materials imposed especially in the EU region, we are trying to create next generation chemicals that are less toxic and more environment-friendly. We have two Government-funded projects focusing on replacing current technologies with less toxic alternatives. Making bio-derived chemical products is another trend that we are closely following. We are considering a few projects in this field, especially for the paint sector.”

Competitive edge EGE KIMYA opens new opportunities and makes new investments each day to add the latest technological innovations to its facilities, complementing them with professional laboratory and with environmental protection, logistic, engineering, water and steam procurement & treatment, electricity and mechanical services. ”The innovations of EGE KIMYA are principally in manufacturing techniques of products we have been involved in -- be it through simpler or leaner manufacture -and in customer-focused products and services,” Metin Mansur says. Regarding the unique strength of EGE KIMYA, he says: “We pride ourselves in providing a fast and effective technical support Rubber Asia

november - december 2012

39


CoveR sToRy Interview

We look for

growing A family-run company grown big over the years, eGe KImYA, based in Istanbul, Turkey, has now the reputation of being one among the first choice of global corporations in the region thanks to the unique products, excellent services and technical supports it offers to the customers. In an interview to Rubber Asia, metin mansur, the seasoned and visionary chief executive officer of this Turkish chemicals giant, elaborates on these services, and touches upon various other things such as the company’s Adapazari facility with an infrastructure ready to serve all manufacturing operations, unique r&d operations, extensive sales and marketing network, close customer relationship etc. According to the ceo, being a larger player of the region, eGe KImYA has ambitious plans to expand its presence in the fast-developing Asian countries like India and china and Southeast Asia. Excerpts: EGE KIMYA is one of the precursors of the Turkish chemicals industry. Could you substantiate this claim? In the 1960s, Turkey was not known as an exporter of goods for the chemical industry. The country was, in fact, a net importer of all types of chemicals and EGE KIMYA’s efforts in this direction not only made it one of the leading exporters of manufactured chemicals products from Turkey; it influenced other companies also to follow in our footsteps. What were the initial chemical products of your company? The initial products were basic products 40

november - december 2012

Rubber Asia


big presence in fast

Asia markets

Metin Mansur,ceo, eGe KImYA for the paper industry and detergent sectors. Paint auxiliaries and enameling raw materials followed these. Please explain what is outstanding about the Adapazarı plant? What are its production, design and research capabilities? Our Adapazari plant is an industrial facility with an infrastructure ready to serve all manufacturing operations. These include all kinds of maintenance, water treatment, power generation and backup as well as laboratories and HR-related facilities. What are the services and technical supports EGE KIMYA offers to its customers to make it one among the first choice of global corporations in the region? In all the major sectors we are serving, our technical team follows the technical developments, current and future needs of our customers very closely. Packaging, delivery, performance, safety and all other parameters that define our products are decided focusing on our customers’ needs. EGE KIMYA has a state-of-the-art laboratory to answer all the technical questions of our partners. In-house rubber performance tests help us understand potential problems in the end-use of our products. We also work with independent labs whenever needed to give all the support needed on the customer’s side. These efforts, in turn, increase their confidence on our products and let them concentrate on what they do the best. Could you tell us what is the latest turnover of the company?

Rubber Asia

Total turnover of our group in 2011 was US$140 million. What is the latest volume of export? We are one of the biggest paint drier (metal carboxylate) manufacturers of Eastern Europe and the Middle East Region and the export of EGE KIMYA Group was around US$ 51 million in 2011. What are the quality certifications won and how do you maintain the high quality of your products? We won ISO 9001:2000 certification in 1997 and are a signatory member of the European Chemical Industry Council (CEFIC) Responsible Care Program. We maintain the high quality profile of our products through continuous R&D work and diligent lab controls on all incoming raw materials and inprocess controls, including on finished products. What is unique about the R&D operations of EGE KIMYA? The same team is responsible for product development from concept to customer trials. Apart from speeding up the product development process, this helps in creating an expert of the product along with the product itself. At the end, the team leader is qualified to answer all the questions about the new project. This is very efficient especially in adapting the product to customer’s application. EGE KIMYA is in league with the leading global chemical companies such as Evonik-Degussa, Albemarle november - december 2012

41


CoveR sToRy Catalysts, Ferro Corporation, Reichhold Resins etc. – Could you elaborate on this? Our industrial setup and professional management structure allow us to serve these companies with excellence. We have a business model whereby we market and conduct R&D for many products of our own. In addition to this, we also operate a state-of-the-art miniindustrial chemicals park where we are providing production and services to the above mentioned multinational companies. Please tell us of the Sales &

customers on a regular basis to follow-up on their requirements and making sure we are always their first choice when it comes to their new or additional requirements. Any expansion or new investment plans in the pipeline? There are several projects in our pipeline which we are quite ready to disclose at a proper time. We can say that these are aimed in part to our existing customer base, and in part to completely new sectors. Do you have any plan to make your company’s strong presence in the fast

eGe KIMyA has a state-of-the-art laboratory to answer all the technical questions of our partners. In-house rubber performance tests help us understand potential problems in the end-use of our products. We also work with independent labs whenever needed to give all the support needed on the customer’s side

Marketing network. Our sales and marketing team is directly contacting multinational customers. We also collaborate with the leading distributors/agents to reach out to the local customers worldwide who need to be served just in time, without dealing with the import and stocking facilities. We are using a customer relationship management program (CRM) where we gather information about our customers’ needs and purchasing history that helps us to plan our marketing and sales activities. How do you maintain close customer relationship? We do this by visiting our customers regularly and by organizing sectorrelated events, keeping in touch with our 42

november - december 2012

developing Asian countries like China and India? Yes, absolutely; this is why we are taking such an active role in promoting our products in these markets! As also mentioned above, we collaborate with the well-known and highly experienced agents and distributors to reach out to the customers in this region. What is your goal for the future and how do you plan to achieve it? Ours is a family-run company with international collaborations and an aspiration to become a larger regional player. Our goal is to increase the existing synergies with additional operations in our industrial facility, to provide a steady reduction in costs, which will help our customers with an ever-reducing cost benefit. Rubber Asia


eGe KImYA booth at rubberTech china

to customers we serve and in adapting our products to customers’ requirements with the least possible delay. What we save our customer in terms of processing costs at their end becomes, in effect, our competitive edge.” And, with pride which is quite natural, he said that EGE KIMYA is supplying the big 5 tyre companies.

Vital for rubber & tyre industry A reliable manufacturer of important rubber ingredients and chemicals since 1955, the cobalt-based rubber adhesion promoters launched by EGE KIMYA are noted for their unique long-term bonding quality. Explains the CEO: “Our cobalt adhesion promoters are vital for use in the rubber and

tyre sectors since the bond between steel cord and rubber is the most important single safety parameter in these products. We are the main zinc oxide and silica supplier of major multinational customers and we have been supplying cobalt salt to the domestic conveyor belt sector. With demand and encouragement from our tyre customers, we decided to develop rubber adhesion promoters to the rubber and tyre industries. The investment was completed by July 2012. Our know-how to produce rubber adhesion promoters comes from our manufacturing experience of metal carboxylates for about 40 years to the paint industry.”

Enhancing global presence EGE KIMYA is one of the biggest paint drier (metal carboxylate) manufacturers of Eastern Europe and the Middle East Region. Today, the company sells its products worldwide -- in 5 continents and more than 50 countries. The main export markets are Europe, the Middle East and North Africa. EGE KIMYA Group’s export in 2011 was around US$ 51 million.

metal carboxylates Production Site Rubber Asia

“As India and China are the emerging economies, we are planning to enter these growing markets as well as Southeast Asia in a big way. With a view to increasing our existing market share and presence and promoting our new products, we are actively participating in most of the important rubber & tyre, paints & coatings exhibitions worldwide, including RubberTech China, India Rubber Expo, K Rubber, Chinacoat, American Coatings Show, Asia Pacific Coatings Show,” Metin Mansur told Rubber Asia. november - december 2012

43


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NOVEMBER-DECEMBER 2012

Rubber Asia


INDIAN RUBBER MANUFACTURERS RESEARCH ASSOCIATION (IRMRA) (Affiliated to Ministry of Commerce and Industry, Govt. of India)

NABL ACCREDITATED LABORATORY (NABL–ISO/IEC 17025:2005) Also Certified by ISO – 9001: 2008, BIS & UL (Underwriters Laboratory) USA

IN THE SERVICE OF NATION FOR MORE THAN 50 YEARS Main Activities:• Process and product development • Material selection / specialisation and development • Reverse engineering / compound development • Testing and certifications (Tyre & Non Tyre Testing) • Rubber engineering and finite element analysis • Quality audit and GMP services • Training & consultancy services on Rubber Technology & LMS (Laboratory Management System) • Storage and service life prediction • Quality control / assurance • Process improvement / trouble shooting • Cost reduction • Failure analysis

Expertise:• Specification and its interpretation • Reverse engineering • Process development • Indigenisation & import substitution of rubber products • Cost reduction • Life prediction • Control of rejections / wastage • Improvement in quality of final products • TPR

For further details please contact: Dr. P.Thavamani, Director Indian Rubber Manufactures Research Association (IRMRA) (Affiliated to Ministry of Commerce & Industry, Govt. of India) Plot No.254 / 1 B, Road No.16 V, Wagle Industrial Estate, Thane - 400 604 • Telephone : 022-25811348 / 25803753 / 25834650 / 51, Telefax : 022 – 25823910 • E-mail : info@irmra.org • Website :www.irmra.org

48

NOVEMBER-DECEMBER 2012

Rubber Asia


FOCUS Dr. James Jacob

Global warming

impacts nr production

It is estimated that for every one degree rise in temperature, there would be about 15% fall in nr productivity.

T

he world needs more rubber and NR is the natural choice, provided it is available. Global warming, climate change and ecological concerns strain NR production. It is estimated that for every one degree rise in temperature, there would be about 15% fall in NR productivity.

During the past 50 years, the maximum temperature at the Rubber Research Institute of India (RRII) campus in Kottayam has risen by 2.60C and minimum temperature by 1.50C while the annual rainfall decreased by 375 mm. Field productivity of NR increased substantially during the same period.

Satellite mapping With the aid of the Indian satellites in orbit, the RRII has successfully developed the capability to identify potential area for new rubber cultivation in any part of the world and to study impact of global warming on NR productivity. Satellite-based remote sensing techniques have been successfully employed to locate and map existing NR plantations, to perform climate risk analysis and identify potential areas for new

planting anywhere in the world and to study impact of global warming on NR productivity. Potential applications of satellite-based RS/ GIS for climate change studies in NR sector include mapping and estimating existing area under NR, monitoring spatial and temporal shift in NR area, making Digital Elevation Maps (DEM) of NR plantations, integrating different layers of information, GIS data base creation for analysis, interpretation and visualization, climate risk analysis and developing a decision support system. Comparison of satellite based rubber area with ground statistics reveals that there is only 1.04 % variation in satellite based rubber area compared to ground survey statistics. According to satellite based survey, Kerala and Kanyakumari distrct have a combined rubber area of 519,909 ha while the ground survey puts the figure at 514,524 ha.

Demand-supply gap in India In India, the GDP growth has a direct bearing on NR consumption. As the GDP rises,

The author is the director of rubber research Institute of India (rrII). This article is based on the presentation made by him at India rubber Summit & dinner 2012 held recently in Kochi, Kerala Rubber Asia

% reduction in rubber yield

Estimated % reduction in rubber yield for every degree rise in temperature from the present (Direct effect only) 60 50 40 30 20 10 rise in temperature from the present ( 0c) november - december 2012

49


Kg

Per capita rubber consumption (NR + SR) Kg/Person/Year (2007)

country Demand-supply projections for NR in India (‘000 tonnes) Production

Consumption

Deficit

2010-11 (Actual)

862

948

86

2011-12

902

977

75

2016-17

1166

1218

52

2019-20

1341

1389

48

2025-26

1631

1809

178

Potential area available for NR cultivation and area planted with NR in NE India State

Potential area (ha)

Area planted (ha) (ha) (as per RB statistics)

Tripura

100,000

59285

Assam

200,000

23705

meghalaya

50,000

7740

nagaland

15,000

3515

manipur

10,000

2380

mizoram

50,000

735

Arunachal

25,000

720

Total

450,000

Area estimated using satellite image 58637

(All figures are for 2008-09, except Tripura which are as of March 2012)

NR consumption too is found to go up. There is great potential for the development of rubber-based industries in India as the country has the lowest per capita consumption of NR. Demand for NR in India is projected to exceed its domestic supply over the next 10 to 15 years. In 2011-12, India consumed 977,000 tonnes of NR as against a supply of 902,000 tonnes, leaving a deficit of 75,000 tonnes. The deficit will continue in the coming years, touching 178,000 tonnes by 2025-26. 50

november - december 2012

From satellite images, it is estimated that Tripura has about 58,637 ha of NR plantations as of March 2012 and has a potential to cultivate rubber in 100,000 ha. Northeast India as a whole has the potential to grow rubber in 450,000 ha while only less than one-fourth of the actual potential is now achieved. A total of 16,447 ha of potential wastelands are available outside forests where NR can be possibly cultivated. Climate warming may only have very marginal impact on NR productivity in the NE. . Rubber Asia


Serve the Global rubber InduStry Retarder PVI (CTP) Powder Oil coated powder Filler coated powder Granule PVI-80 ACCeleRATORs

MBT(M) TBBS(NS)

MBTS(DM) DPG(D) TBSI

DPT(Replacement of DPG)

CBS(CZ) CBBS(Antireversion of CBS)

Dithiophosphates ZBOP70

ZBOP75 ZDOP70

DBD, A86, A89: Eco-friendly chemical peptizers HPP: Zinc Soap, dispersion and lubrication for carbon black filled NR compounds

PROCessInG PROmOTeRs

HST: Zinc soap and filler, dispersion and lubrication for silica compounds HT: Dispersion and lubrication for carbon black filled SBR or NR/SBR compounds H60: Zinc soap, dispersion agent for silica compounds HT 254: Zinc free polyol and fatty acid ester, dispersion agent for silica compounds H40MSF, HT602 : homogenization resins for different rubbers mixing

OzOne PROTeCTIOn wAxes

PRedIsPeRsed RubbeR ChemICAls (mIxGRAn速 And mIxslAb速)

new PROduCTs

H3236

H3236A

H3240

H3241

H2122

H3841

HB10

H7075

H3241A

Different C distribution and congealing point microwaxes for performance protection of ozone

PVI CTP-80

Resorcinol-80

S-80

IS-80

MBT-80

MBTS-75(80)

CBS-80

TBBS-80

DPG-80

TMTD-80

TMTM-80

ZnO-80

TETD-80

DPTT-70(80)

DOTG-80

ETU-80

DETU-80

HEXA-80

ZDMC-80

ZDBC-80

ZDEC-80

ZEPC-80

ZBEC-70(80)

TDEC-70(80)

Normal binder is EPDM/EVM, tailer made binders are SBR, SBR/IR, NBR, ECO, AEM

Insoluble Sulfur: Oil Coated high insoluble, easy dispersion and heat stability IS Resorcinol formaldehyde resin: Easy dispersing and lower HBU bonding resin

India office:

Add: #F2-Phlox Apartments,#104-Q Block, 3rd Avenue, Anna Nagar, Chennai-600040 Tel: 0091-44-45500180 Fax:0091-44-45500180 Mobile: 00918056138662 Email: india@yghuatai.com HQ:

Shandong Yangu Huatai Chemical Co.,ltd Http://en.yghuatai.com


coRpoRAte MAnAgeMent Interview

m Ayyappan, chairman & ceo, Hindustan Healthcare Ltd.

W

hile everybody wishes to transform, the employees always look at transformation with a lot of fear and anxiety. It may be because the employees exactly do not know what transformation would mean to them. Corporates, especially public sector companies, fail on account of two things — one is that the employees do not know

52

november - december 2012

about their future or, in other words, they are totally unaware of the destiny to which they are driven. Secondly, which is consequent on the above, employees are generally not aligned with the goals, objectives and purposes of the organisation. This results in lack of ownership and commitment. The starting point is to convince the Rubber Asia


HLL’s

is a saga of great transformation M Ayyappan

Transformation in an organization always starts at the highest level – from the CEO. Transformation also requires extraordinary courage, energy and a new mind-set. The soul of an organization is the CEO who needs to have an indomitable will to succeed. The CEO is also the chief role model. In an exclusive interview to Rubber Asia, M. Ayyappan, the resourceful Chairman and CEO of Hindustan Healthcare Ltd., narrates how the unique management style being followed at the company helped its transformation from a single-product company to a multi-product, multi-location one with strong presence in India and 115 countries across the world employees about the need for transformation and also tell them clearly how the posttransformation would benefit them. The CEO’s role is to dream big and convey this dream to the employees of the organisation through continuous communication. While the manager’s role is “transaction” of business, the leader’s role is always “transformation” of business. It is the responsibility of Rubber Asia

the corporate leaders to find the future for the corporation. Here the leader’s task is to create mental energy among people so that they enthusiastically embrace the transformation.

How to make dreams come true We started communicating about our ambitious dream of taking HLL to a Rs.10,000november - december 2012

53


million company in the year 2003, immediately after I took charge as the Managing Director of the company. Though people were hesitant to believe in the fulfilment of this dream, over a period of time we could communicate to all the employees, including workers, middle managers, officers and senior management team, that it was possible to achieve this big dream. The progress in business, year after year, brought the confidence into the team members and eventually all of them became part of the winning team. I always talk of Dr. APJ Abdul Kalam’s words on dream: “Dreams are not what you see in sleep. They are the things that do not let you sleep.” HLL was primarily known as a ‘condom company’ and more as a ‘Nirodh’ company. While focussing and expanding the core areas, we diversified into certain unrelated areas in healthcare, including hospital infrastructure management, procurement consultancy, diagnostic services etc.

From a single-product company, HLL has transformed itself into a total contraceptive company and now to a healthcare delivery company. today HLL is the only company in the world offering anything and everything in contraception

With the successful expansion and diversification, the employees got an opportunity to do a good job which itself was a motivating factor to most of them. With the rapid growth of the company, the employees also grew rapidly in terms of their positions and compensation. Essentially, the expansion and diversification gave a lot of room for growth to our people. Having taken up several projects and services in our portfolio, it became necessary for HLL to change the name from Hindustan Latex Limited (HLL) to Hindustan Lifecare Limited. We also changed our logo. This itself signifies a great transformation of the company. The transformation of the company is the result of the transformation of the people. Today, people have the courage to dream big. With the ability to dream big and the urge to 54

november - december 2012

pursue the goal consistently, minute by minute, day by day with clarity of purpose, we at HLL could turn impossible dreams into reality. I always believe that through participative management, constant communication and transparent governance system, we could build and take any organization to greater heights.

The growth saga How could we achieve Rs. 10,000-million plus business? Because we dared to dream, we were determined; we were united. The public sector gives total freedom to do the work, while the private sector does not give this freedom. It was up to me to utilise this freedom to decide the destiny of the company. HLL was established in 1966 with the objective of providing quality condoms for the National Family Planning Programme. From a single product (condom) company, HLL has now emerged as a multi-product, multi-location company with wide range of healthcare products and services. At present, HLL has 7 state-of-the-art manufacturing facilities and 22 regional offices across India. HLL also has presence in more than 115 countries across the world. HLL, from a single-product company, has transformed to a total contraceptive company and now to a healthcare delivery company. Today, HLL is the only company in the world offering anything and everything in contraception. This makes HLL different from other companies.

Products & services Apart from a range of contraceptive products, HLL is involved in marketing and manufacturing a wide range of hospital products such as: Blood collection bags, hydrocephalus shunt, surgical sutures, tissue expander, ayurvedic, personal hygiene products, vaccines & dignostic kits. The setting up of a Services Division added has new dimension to company’s business philosophy. The Services Division is involved in construction management, procurement consultancy and diagnostic services. HLL has completed several hospital projects(Super speciality blocks at Thiruvanathapuram Medical College, Bangalore Medical College, Salem Medical College each with an outlay of Rs. 1,250 million, JIMPER, Pondicherry with an outlay of Rs. 1,860 million and 3,590 million in two phases.) The company is currently involved in hospital infrastructure development and management of projects worth Rs. 60,000 million. Rubber Asia


Sonia Gandhi, chairperson of India’s ruling United Progressive Alliance, inaugurating the Health Fair organised jointly by HLL and HLFPPT in rae bareli

The Diagnostic Services Division of HLL is offering high-quality, reliable and affordable diagnostic services and is established in the brand name “Hindlabs”. Yet another initiative of the Services Division is the establishment of “Lifecare” Centres attached to government hospitals wherein critical medicines and implants are provided at rates substantially lower than the market rates. The entire business of the company is centred on the “purpose” for which we exist – the purpose being “to offer high-quality products and services at an affordable price to the underserved population.” This doesn’t mean that we are offering low -cost products. On the other hand, our purpose is to reach the benefit of the innovative products to vulnerable sections in our society and to support them, to make their life better. This statement of “purpose” is not merely in words but, by all means, through our action. We also tell our Marketing team that there should not be any situation of overcharging our customers. Keeping in mind HLL’s ‘purpose’ of business, the company recently built a world class R&D centre at Thiruvanathapuram for research in reproductive health and to address various public health challenges.

HR initiatives “Right people are the most important asset.” Today, the old adage “People are your most Rubber Asia

important asset” turns out to be wrong. “People are not your most important asset, but the right people are.” We have a strong team capable of predicting and handling our businesses. The recruitment system has undergone tremendous change by selecting only competent people – the right people. Issuing the appointment orders to the extent possible on the day of the interview, by simplifying the procedures, helped us to be free from external influences and recruit the right people. Over a period of time, we could communicate effectively that any external influence would lead to automatic disqualification of the candidate. The internal promotions are also done based on merit. Though this was not accepted well in the initial years, people have wholeheartedly accepted meritocracy over a period of time. In the case of workmen, a new promotion policy has been formulated wherein they get promoted on a definite time frame subject to their satisfactory performance, attendance and good conduct. This new promotion policy is ensuring career progression for all workmen of the company. In my first address to workmen, I promised to keep the interest of the employees while taking decisions. Today, after 9 years of my taking over, I feel satisfied that we could keep our promise. Always be fair and firm is the philosophy of our governance november - december 2012

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We have implemented a mentoring system among the officers and staff of the company which has tremendous impact on bringing a new culture in the organisation

system. There has been tremendous opposition from trade unions in the initial years. Over a period of time most of the workmen and trade unions have accepted the fairness of the management. What is important in today’s management is communicating the philosophies, strategies and purpose of the organisation at all levels. This is achieved through ‘family magazines’, periodical meetings with the staff members, officers, trade unions and through public address system directly by me.

other words, anyone in the company can SHARE their ideas with me freely.

Value system

Mentoring system

Today, the competitive advantage for the corporations is the “culture of discipline” which they have imbibed over a period of time. Towards this it is essential that the organisation has to be driven by values.

People want to go to work each day and feel they are part of ‘a community’. One of the deepest psychological needs of a human being is the “need for belonging”. People do not align with the organisation mainly because of the factor that they are not cared personally and professionally. We have implemented a mentoring system among the officers and staff of the company which has tremendous impact on bringing a new culture in the organisation.

The three Ts We always talk about values which we should practice. The value system adopted by us is TTT – Trust, Transparency and Teamwork (TTT). i. Trust: Practise what we profess, respect and support each other, never compromise on doing the right things at the right time ii. Transparency: Keep greater transparency and fairness in our dealings, encourage active participation of all stakeholders in our decision-making process iii. Team work: Build a team committed to company goals, foster friendliness, camaraderie and selflessness. Every officer of the company has to sign the value charter and eventually they become owners of this value system and they are expected to translate this value system throughout the company.

Corporate Song The Corporate Song of the company (which is sung by holding hands together in all the official functions) talks about the power of dream and need for unity and team work. This song is highly inspirational. Communication is not always about what is going right, it is also about finding what is going wrong and fixing it. There are lots of inaudible echoes in any organisation. H 2 H – Heart to Heart — is an endeavour to open the channels of communication between employees, well-wishers and me. Through H2H we want to create a culture, where our employees are encouraged to express their opinion, criticism, appreciation, to the best interest of the company. In 56

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Employees can contact me by way of: 1. Mail Boxes: H2H Mail Boxes at different locations. 2. Email: h2h@lifecarehll.com My office will be solely responsible for handling both Emails and Mail Boxes. Employees are assured that their information is in safe hands and will be kept confidential.

There is a counselling centre attached to our factory premises which gives enormous support to our employees who need proper counselling support. We introduced uniform for the executives in the year 2011. They provide a sense of teamwork and community and give the company a unique identity.

Administrative procedures Time bound implementation of ERP was primarily intended to simplify the procedures and bring in a new culture in the organisation. Inefficiency comes out of complicated administrative systems and procedures. People are encouraged to take decision at the lowest possible level. Officers and workmen are today motivated by the power of inclusion.

Marketing Business of the company always has to be driven by marketing through powerful brands. Powerful brands are our inspiration. In fact, brands communicate the culture and image of the company. HLL could create several powerful brands. The flagship brand of the company ‘MOODS” has been recognised as Super brand and Power brand. Today, the marketing infrastructure of the company is spread over the country with more than 500,000 plus retailers and manned by about 600 Marketing staff. The international operations of the company are spread over 115 countries with Rubber Asia


executives posted at Dubai, Brazil, Dhaka, Kenya and Nigeria. The real challenge for marketers in India lies in addressing the stunning diversity – different tastes and preferences, hundreds of languages, dozens of religions, diversity of regions, age groups and castes! We have to change with changing times! Markets have changed. Our customers have changed. We have to change ourselves to make our customers “Delight” rather than “Satisfy”. Delighting customer is one step more than satisfying them. A delighted customer will always take an extra-step to come back to us every time he needs.

Partnerships with stakesholders Trust and respect – these are in our heart. We build trust and respect in HLL through effective relations with our partners in business, and our employees (by holding partners meet every year). Our partners in business include the Government, suppliers, distributors, customers, communities etc. Since we play a crucial role in the business growth of our customers all over India and globally in more than 115 countries, they consider us as their preferred business associate or partner. We extend the same philosophy to our suppliers as well. We consider each supplier as HLL’s partners in growth, not merely as a supplier of raw material. We also foster effective collaborations. We continually seek to understand how our needs and capabilities could be aligned to build our businesses together with our stake-holders or partners.

The HLL model The business of the company has been rapidly growing year after year. The compounded annual growth rate for the period 20032010 works out to 35%. This rapid growth has infused a high level of confidence and energy throughout the organisation. Discipline, hard work and passion for excellence have helped to bring in transformation in the company. I ask one question my colleagues often raise. How can we do things differently? How can we do things differently is “about innovative way of doing things with the objective of consistent and continuous improvement” In the initial stages, people were not convinced about the dream goal. The trade unions were hesitant till they were convinced that the management is committed to fairness in all actions. In fact, we have revamped all our manufacturing facilities and Rubber Asia

offices during the last 7-8 years. Today, our offices and facilities are on a par with any other private sector establishments. Getting right people has always been a challenge. However, the success and credibility which we had built over a period of time have helped us to recruit competent people in the organisation. Life Spring Hospital & Hindustan Latex Family Planning Promotion Trust (HLFPPT) have separate CEOs and these two organisations are managed by separate Boards. Proper governance through the Board structure helped us to develop systems in these two organisations. Today, they are independent and are growing. HLFPPT, which is one of the largest social marketing organisations in India, is employing nearly 700 people. Life Spring Hospitals run 12 hospitals in the country and they are on the verge of under-

the transformation of any organisation purely depends upon the leadership – leadership driven by values. It is possible to transform a company provided there is leadership commitment for the same, even in public sector. today the opportunities are many and business is not that difficult

taking a major expansion of setting up of 100 hospitals by 2016. Managing a diversified business portfolio has been the real challenge. It was difficult to change the production-oriented company to a marketing-oriented company or in other words, a customer-oriented company. By building powerful brands, we started offering what the customer wants.

Vaccine project In order to set up an integrated vaccine complex (involving an outlay of Rs. 5940 million), HLL has already formed a fully owned subsidiary company by name HLL Biotech Limited. The project activities such as technology transfer arrangements, recruitment of key personnel, layout and concept plans, setting up the lab facilities etc. have commenced. The construction activities will commence by early november - december 2012

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November 2012. The project is scheduled to be completed by 2014.

Transformation manthra The transformation of any organisation purely depends upon the leadership – leadership driven by values. It is possible to transform a company provided there is leadership commitment for the same, even in the public sector. Today, the opportunities are many and business is not that difficult. Our transformation manthra is: 1. Inspire people for change — the need, advantages; positives; long-term benefits in terms of costs etc. 2. Communicate, Communicate and Communicate – communicate in a simple| but effective way the purpose of change. 3. Appreciate and Reward Change – As a best practice, let us recognize and re ward progress and achievements. 4. Give them a helping hand; an enabling atmosphere: help to remove obstacles, provide a conducive environment, enable constructive feedback and give lots of support 5. Make change stick - Reinforce the value of successful change among all members. Transform change into a culture.

I always tell my senior management team, if everything goes well, fine and succeed, the credit goes to you; but if something goes wrong, there is only one person responsible – and that is me! Leadership is both responsibility and accountability 58

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Having achieved the first milestone of doing a Rs. 10,000-million business, we are aiming at a much bigger goal of Rs. 100,000-million by 2020. One of the internationally renowned consultants have prepared the long-term plan – Vision 2020. This plan is under implementation. HLL will emerge as a global healthcare delivery company having manufacturing facilities at different locations and a global marketing network, in the years to come.

Trade unionism The multiplicity of trade unions is a real problem in Kerala. By being fair and firm, we were able to enforce discipline in our factories which ultimately resulted in business growth and growth of people. There is a general belief that politicians exploit the public sector corporations. The Chief Executive is equally responsible for such a situation. When the Chief Executives give right type of leadership and their actions are driven by values, my experience is that politicians and bureaucrats support the corporations.

Programmes We have taken up several programmes which helped us to transform our workmen. Let me highlight two such programmes as under: (a) Sargasangamam: We started this initiative, which is a festival of industrial employees of Kerala. The initiative was taken up by HLL by organising drama competitions in the year 1999. We have so far conducted 5 Sargasangamams. Started with drama competition spanning for 5 days, competitions for other art forms have also been introduced. Now we are in the process of forming a Trust to conduct Sargasangamam involving employees of all industries in Kerala. Essentially this gives an opportunity to utilise the energy and talents of our workmen for creative and positive thinking. (b) HLL Expo: As we were rapidly growing, many people did not know what exactly the products and services are being offered by the Company to the general public. An exhibition involving all Manufacturing Units and Marketing Units was organised at Thiruvanathapuram which gave an opportunity for our employees to understand the diversified activities of the company.

Motivating people An organisation should always have a purpose which would be motivating to all the employees. It should have a customer orientation and a passion for excellence. The organisation should always take care of the employees during the transformation process. The transformation should ultimately result in growth of the people. Money making should not be the purpose of the business. Here again I would suggest that entrepreneurs should define the purpose which are meaningful to the society at large and they should drive the business through values. Today, in a globalised economy, the opportunities are plenty and they should have the ability to smell business. I always tell my senior management team, if everything goes well, fine and succeed, the credit goes to you; but if something goes wrong, there is only one person responsible – and that is me! Leadership is both responsibility and accountability. As leaders, our ability to “see beyond” and “reach beyond” will help us to take right decisions at the right time to ensure business success. Be Simple and Be Sincere: Great leaders are uncomplicated in their thoughts, words and deeds. Rubber Asia


NR Industry

Great opportunities amid challenges: Dr. Kamarul Baharain Basir Secretary General, ANRPC

Despite pressures of the changing economy, outlook is quite positive for the global natural rubber industry. Signs of improvement in the US, China and the European economies of late are indicators favourable to NR producers

T

here is no doubt that tough times are ahead for natural rubber industry on account of the lingering slowdown in major economies, slow pace of new planting and replanting, lethargy in adopting good agricultural practices, the widening technology gap, labour shortage, climatic constraints and many more. However, there are ample opportunities amid these challenges. In fact, opportunities for production and demand growth for NR globally are encouraging, especially in the light of improvement in the US, China, Japan and the European economies. Meanwhile, NR producers also need to take position with scientific and technological advancement in their efforts for other sources of NR.

Challenges and opportunities According to 2011 statistics relating to the member-countries of ANRPC, NR production totalled 10.342 million tonnes accounting for as much as 93% of the global NR production. The total yield area was around 7.255 million hectares while average yield was 1,426 kg/ha/yr. It may also be noted that 90 % of the production was by smallholdings.

dr Kamarul baharain basir

Against this statistical backdrop, the production challenges the NR industry need to overcome are mainly the small land size i.e 0.2 ha to 2.3 ha, poor quality of planting materials, lack of good agricultural practices, bridging or narrowing the widening technology gap, insufficient government incentives, enticing industry into production, climatic vagaries and constraints and the advent of other sources of NR. Meanwhile opportunities galore in

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respect of NR production. First and foremost are the land availabilities in countries like Indonesia and Cambodia. There are also indications of improvement in productivity and farm management. Currently total planted area is 10.62 million ha in major NR producing countries. High domestic/regional consumption in countries like China, India, Malaysia and Thailand coupled with substantial GDP growth in NR producing countries and emerging economies are also encouraging for NR industry.

NR demand and consumption In this context, it would be worthwhile to look at the pattern of NR demand and consumption especially the usage of natural rubber in tyres, the major consumer of NR. Of the total NR consumption by tyre industry, OEMs account for 30% while replacement segment accounts for the remaining 70%. The ratio of SR:NR varies in passenger car tyres. But the usage of NR is high in light & heavy vehicles and it is higher in aviation tyres. Radialisation has lead to increased usage of NR in passenger car and commercial vehicle tyres. It has to be seen whether tyre labelling will trigger increase or decrease as in usage of NR in tyres. Another encouraging thing is that massive investments are being made by tyre manufacturers on expansion. Investments worth $10 billion have been made by Hankook, Bridgestone, Continental, Michelin, Pirelli, Goodyear etc in 2011 alone.

Science and technology opportunities Latest advancements in science and Rubber Asia

technology also augur well for the Global NR industry. These include the advancement in plant breeding, R&D in other species of Hevea, Biotechnology, and Gnome sequencing. Innovative or increased usage of NR in non-tyre sector, growing popularity of NR as an eco-friendly and sustainable material and exploitation of fine chemicals in NR are also good indications of a bright future for NR. However there is a need to accelerate utilization of R&D findings and advancement in NR science. Also new material developments need to be given priority by NR research establishments. Other areas which need to be given priority are innovative or increased use of NR in non-tyre sector, commercially exploiting other sources of NR and NR substitutions and tyres recycling.

Other sources Hunt for other sources of rubber is once again gathering momentum. Russian Dandelion (Taraxacum koksaghy) and Guayule (a desert shrub) are again on the centre-stage of research relating to NR alternatives. Researches are also on into producing Bio-Isoprene and Isobutene from sugar and producing Bio-Isoprene from Glycol. This renewed interest in alternate sources has been triggered because of the issues arising out of the total dependency on NR. Uncertainty of NR supply/price, shortage of supply from Hevea NR, risk on SALB disease in hevea, protein allergy issue of NR etc. are some of the problematic issues arising out of total dependence on NR. Other issues before the NR industry are the pressures of globalised economy, challenges posed by physical vs. future markets, fluctuations in producing and exporting countries, currencies, volatility in crude oil prices, speculative investment and global natural disasters/ conflicts. USA and China have already embarked on initiatives aimed at economic recovery with changes in fiscal policy, increasing domestic demand and introducing governments’ stimulus assistance. This coupled with Germany’s support for rescue fund of $645 billion for European economic recovery through ESM can be considered as positive indicators for the global NR industry. It is also good news that Japan machinery orders are on the rise and auto-market is showing growth of late. november - december 2012

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Peter J Makepeace

Tyre trading

What when the going gets tough? With the days when a particular brand was the influence or incentive to purchase a particular product gone by, the tyre outlets can survive only if they have access to the numerous new brands finding their way into wholesale tyre price listings

I

t is becoming increasingly obvious that the longer established tyre brand names are oblivious to the changes taking place in the various countries where they previously maintained market share dominance for many years. With the ever-increasing new additional names finding their way into wholesale tyre price listings, who really knows just how many brands are competing for the motorists business! One thing is certain: Countries with small populations would appear to be the most competitive when the bottom line comes down to

prices being offered and market share. The better known brands advertising these days have changed a lot and we see 'Up to $100 Gift Card' or ‘Buy 4 - Pay for 3' promotion offers. Others promote business with offers of fuel cards as an attraction. ‘Off What’ or ‘How Much’ is not mentioned in their promotion.

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In recent years, most of the above have been turned around with the addition of expanded size availability, design and, most importantly, reputation. This has convinced those involved in the tyre industry to offer greater support to the newcomers. Recently, it was necessary to replace the 2SS/3SR19 OE European tyres on my vehicle at 24,000 k. I changed to an Asian brand for two reasons: 1) To replace with the same brand, I was quoted three times the price I eventually paid, and 2) After a phone discussion with the manufacturer of the OE brand, I was advised that the 24,000 k was considered acceptable because their brand was high speed-rated at 96Y and, of course, safety was a paramount factor for the high cost. Tyre retailers report they can obtain much improved profit margins by promoting the newer brands and consumers need little convincing to change from the OE fitment when advised of the quality and Public liability Insurance cover of the recommended replacement.

markets galore with brands

The writer has diverse involvement with most aspects of the tyre industry both in Australia and globally and has travelled extensively.

When the Asian brands began to infiltrate the various global markets, the non-Western names, sub-standard quality, lack of clinical appearance and performance were not always considered to be acceptable.

These days, the motoring public is very much aware of ‘How Much’ and gone are the days when a particular brand was the influence or incentive to purchase a particular product.

In Australia, the longer established tyre brands are traditionally marketed through franchise outlets and the tyre dealers are required to purchase 70% plus of their total sales. This is not always possible and questions are raised if shortfalls occur. In many cases, the tyre outlets would not survive if they did not have access to numerous other brands. It will be interesting to determine what changes will occur in future marketing and many believe it will be a matter of ‘Watch This Space.’ Rubber Asia


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inteRview

HML

to focus more on productspecific NR N. Dharmaraj

n. dharmaraj

H

arrison malayalam Ltd (rP Sanjiv Goenka Group) has redefined its priorities and is giving added focus on rubber after the company’s vertical bifurcation recently. The HmL team, under the dynamic and visionary leadership of the experienced executive director & Head n. Dharmaraj, is charting new strategies with a view to taking the company to greater heights. With his over 24-year experience in managing plantations and factories, it is not at all a difficult task for him. dharmaraj has worked with companies like HLL, Unilever Tea Plantations and Plant Science group in the UK, Shapoorji Pallonji group, Agri management Services etc. before joining HmL in 1999. He has hands-on national and international work experience in plantation and factory management, product development and supply chain integration. He has served in various levels such as vice chairman of the Association of Planters Kerala (APK), vice chairman of Tea committee of the United Planters Association of Southern India (UPASI), member of the Tea board of India etc. and was official member

Rubber Asia

of the Indian delegation to the FAo (IGG). He is also the founding convener of The Golden Leaf India Awards (TGLIA). At present, he is also chairman of UPASI commodities exchange. In an exclusive interview to rubber Asia, he explains the company’s road map ahead and a host of other topical industry issues. Excerpts: “HML stands for quality and is wellrenowned for the excellent quality of the rubber we produce. Our strength lies not only in our ability to produce diverse forms of NR but also in the premium quality of our products for which we get premium price. The company has been adopting continuous modernization and innovation in its bid to excel and build superior brands sought after by customers,” says Dharmaraj. A pioneer of rubber planting in India, HML can very well boast of a tradition spanning more than 100 years in raising rubber plantations and producing quality NR for the Indian and international customers. november - december 2012

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“The company has very strong presence in the centrifuged latex and latex crepe segments where we are a market leader. We have also been a pioneer in supplying technically specified, product-specific branded centrifuged latex (Cenex) for making quality dipped products such as condoms, balloons, carpets and adhesives,” Dharmaraj says. The company is well-focussed on meeting the diverse technically specified, product-specific needs of the manufacturing industry. According to Dharmaraj, this has helped the company in a big way to withstand the fluctuations in commodity prices.

onwards. The company is resorting to innovative plantation practices like early morning tapping which gives higher yield. Of late, the company is exploring the possibility of segmenting tapping and latex collection so that the tappers could be utilized more productively.

“HML’s quality improvement initiatives start from the very planting of rubber. We plant superior quality, high-yielding clones and adopt excellent plantation management practices. With an eye on the future, we have embarked on a major drive to replant more than 60% of our area with superior genetic material,” he says.

The company is also seriously looking at expanding its footprints in rubber cultivation abroad by way of acquiring land for NR planting, acquiring or setting up Joint ventures for manufacturing product-specific rubber. “We are mainly looking at Africa and Southeast Asia for these forays as the soil and climate there are conducive for rubber and the Governments investment-friendly. Our team has already visited Gabon, Ghana and West Africa, Dharmaraj says. “The company is also planning to enter the field of rubber retailing and is looking for some kind of joint venture arrangements with leading Indian glove producers to manufacture their products at our factory premises,” he told Rubber Asia.

Interestingly enough, the major replantation initiative unleashed by the company has led to surplus labour at present. However, all are being retained because the replanted trees are expected to start yielding from 2014

“In respect of tea, which is another core sector of the company, we have ambitious plans,” he said, adding: “One idea is to re-introduce the retailing of tea, especially reviving some of our earlier premium brands.”

Associated & Periyar Latex Ad

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november - december NOVEMBER-DECEMBER 20122012

Rubber Rubber Asia Asia


Asian rubber world in your hand ! Highlights History of rubber  NR & SR Reclaimed rubber Types of NR & SR  Production, consumption & stock of NR & SR (country-wise) Rubber trade  Rubber products industry in Asia  Tyre companies in Asia Rubber footwear industry  Global industry trends  WTO and rubber  Futures trading  Rubber-related institutions  Statistics  Pioneers in rubber industry  Who’s who in rubber industry  Listing of units, product-wise and country-wise, in alphabetical order  Chemicals, machinery and raw materials manufacturers  Leading dealers and exporters  

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I would like to reserve ........................................................ copy/copies of Asian Rubber Handbook & Directory 2011 at US$ 200/ ` 2,000 per copy. I am enclosing the payment by Draft/Cheque No ..................................................................................... Date ...................................................................... favouring Dhanam Publications Pvt. Ltd., Kochi towards cost of ....................................................................................................................copy/copies. Name and Address ................................................................................................................................................................................................................ ........................................................................................................................................................Signature ......................................................................


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TyRe ReTReAding Harvey Brodsky

Why tyre majors make retreadable truck tyres? Truck tyre manufacturers know better than any other that by producing retreadable truck tyres, they not only make their tyres more economical for the end-user but also make a major contribution to the environment

E

very major new truck tyre manufacturer manufactures their line of truck tyres to be retreadable and the concept of multiple lives for a truck tyre plays a big part of every truck tyre they produce. By producing retreadable truck tyres, they not only make their tyres more economical for the end-user but they also make a major contribution to the environment, since a retreaded truck tire is very environmentfriendly. It takes approximately 22 gallons of oil to produce a new average size truck tyre, but only 7 gallons of oil go into the retreading of that tyre, saving approximately 15 gallons of oil for every truck tyre retreaded. Since truck tyres contain a significant amount of petroleum-based synthetic rubber, retreading saves hundreds of gallons of oil every year, which is a big plus for the environment. Also, every truck tyre that is retreaded is one less tyre for the landfill. The major truck tyre manufacturers who produce retreadable truck tyres include Retread Tire Association (RTA) members Hankook, Sailun, Alliance Tire Americas, Cooper Tire & Rubber Company, Continental Tire, GITI Tire, along with a number of other major truck tyre manufacturers worldwide.

Are truck tyre retreads safe?

The writer is managing director, retread Tire Association, USA. He can be contacted by email: info@retreadtire.org 74

november - december 2012

Absolutely! Truck tyre retreads are safely used on school and city buses, fire engines and other emergency vehicles, small package delivery services such as DHL, FED EX, Purolator, UPS and the US Postal Service, There is even a Federal Executive Order (13149) MANDATING the use of retreads on Federal Government trucks.

Why tyre debris on the highways?

Don’t be fooled by the naysayers who spread the false news that tyre debris on the highways is caused by retreads. The fact is that much of the tyre debris (road alligators) on our highways comes from tyres that have NEVER been retreaded. Tyres fail and come apart throwing rubber on our highways because of improper tyre maintenance, with under-inflation being the main culprit, followed by over-inflation, mismatching of tyres in the dual wheel position on trucks, improper tyre repairs, misaligned vehicles and tyres being driven with less than the legal amount of tread remaining. Tyres that are improperly maintained will fail given enough time and it does not matter if the tyre is a retread or one that has never been near a retread factory. But don’t take our word for it. Have a look at a report by the National Highway Traffic and Safety Administration (NHTSA) titled Commercial Medium Tire Debris Study, December 2008 (you can find this easily on Google). To blame a retread for tyre debris on our highways is the same as blaming a vehicle for an accident caused by a drunkun driver. The blame is simply misplaced. Millions of retreaded truck tyres are produced annually and are safely being used by millions of trucks and other types of vehicles worldwide, including commercial and military airlines. This would never be happening if retreads did not perform as well as the best, much higher priced and less environment-friendly new tyres. So the next time you are in the market for tyres or when it’s time to have your own truck tyres replaced, look for retreads. You will be glad you did and so will your checkbook and the environment. Rubber Asia


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Guayule seeds

NR alternatives

PanAridus releases Guayule rubber samples P

anAridus CEO Michael Fraley announced recently to the rubber and tyre industry executives and onlookers at the International Tire Exhibition and Conference 2012 that the company was publicly

releasing the first samples of domestically produced Guayule rubber to them. "For the first time, the industry is being offered samples of Guayule rubber to independently verify it meets the necessary

Guayule seedlings

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Rubber Asia


standards to be a viable alternative for making tyres and countless other products,” Fraley said. The mission of the company, based in Casa Grande, AZ, is growing drought-tolerant crops in arid regions. It began breeding and cultivating Guayule, a native Sonoran Desert plant, in 2009 — one hundred years after John D. Rockefeller Jr. first invested in the crop. In addition to significantly reducing water use, the entire Guayule plant can be used for rubber, resins or cellulosic feedstock for biomass, making it virtually waste-free.

"At PanAridus, we're 'seeding rubber's future' by unlocking its profit at the farm gate, making it viable for farmers in arid climates like the Southwestern US to make more money per acre growing it (Guayule) than they can growing traditional waterintensive crops like cotton and alfalfa.” Fraley credited the company's success with the quiet way it acquired the world's largest privately-owned Guayule germ-plasm bank; its team of world renowned experts developing patented genetic strains in their Casa Grande facility over the last four years; and their patent pending extraction process. "History is replete with examples of short rubber supplies due to monopolies, high rubber prices due to the cost and global demand of oil, and short bursts of intense research into rubber alternatives because of geopolitical crises. Today, all of the

michael Fraley

view of a vast Guayule test field in Arizona

above apply; and with emerging markets around the globe, cheap oil peaked and cartels artificially altering supply levels to inflate their profits, the time is right to realize the dreams of Thomas Edison, Harvey Firestone, Dwight Eisenhower and Henry Ford to create a natural and domestically produced source of high-quality rubber,” Fraley said. Qualified parties can request samples through the PanAridus website at www. PanAridus.com/contact and choosing the subject topic “Guayule Sample Inquires.” Rubber Asia

rolled Guayule rubber

november - december 2012

77


CHINA CHEMICAL GUILIN ENGINEERING CO., LTD. CGEC is one of the earliest rubber machinery R&D institutes in China. CGEC has established its own production and R&D base, and has achieved a number of patents. With advanced technology and excellent after-sales service, CGEC would like to provide complete sets of equipment of semi-steel and all steel radial tyres, and cycle tyres, key equipment of OTR tyre, complete sets of production equipment of wire and cable, as well as production technology (know-how) and complete sets of equipment

PIN BARREL COLD FEED EXTRUDER

for tyre retreading.

2500MM WIDE RUBBER SHEET EXTRUSION LINE

QUADRUPLEX EXTRUSION LINE

TWIN-SCREW SHEETER

DUPLEX EXTRUDERS

STEEL BELT EXTRUSION LINE

Address: No. 77 Qixing Road Guilin, Guangxi, P.R. China P.C: 541004 TEL: 0086-773-5833045 EMAIL: cgec@vip.163.com

FAX: 0086-773-5833195 Http: //www.cgec.com.cn


Dr. N. Yogaratnam

Sri Lankan plantation scene

Vision 2022 vital for NR industry There is dire need for Sri Lanka to evolve a vision for achieving a productivity of 2,000 kg/ha/year in the next ten years.

D The writer is chairman, Tree crops Agro consultants, Sri Lanka

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espite impressive progress, the Sri Lankan rubber industry is still plagued by a series of drawbacks such as: Incapability of the aged tappers which can greatly affect NR productivity, declining planted area, labour shortage, low land and worker productivity, high cost of production,

inadequate resources, social disparity, poverty in the estates etc.

Vision 2022 There is, therefore, a dire need to evolve a vision for 2022 covering the next 10-year period, for long-term sustainability and setting

Rubber Asia


revised goals for the industry. This should very broadly include: Enhancing productivity and competitiveness and modernising both the co-operative and smallholder sectors with a view to maximising the industry’s contribution to the national economy. In tandem with these, it is vital that the industry re-examines its strategies, taking into consideration the changing global scenario and developments. In this regard, the major strategies should outline the prioritisation and implementation of action plans and the expected outcomes that industry would have in order to ensure the continued viability of a fully integrated rubber industry that generates sustainable income and returns. The thrust of the action plans should be to remove the barriers to the growth of the rubber industry and to ensure sustainable benefits to the stakeholders.

Value addition Asia has the largest base in making rubber products. With advent of the World Trade Organisation and the consequent globalisation of trade, many multinational compaFollowing the example of nies from Europe and North America embarked on rubMalaysia, continued efforts ber manufacturing ventures at value addition should in the low- cost Asian counbe made in Sri Lanka too, tries, particularly in China. thereby transferring rubMost of the natural rubber ber from a “commodity” to producing countries attracted investment of multian “industrial product.” If nationals on account of low an earnest effort is made labour cost, availability of in this direction, Sri Lanka technically educated mancould also become a power and natural rubber, leading exporter of NR the major raw material. This has helped advanced techproducts nologies in product manufacture to percolate into the Asian region and Asia is now better placed to provide quality rubber products to the world market. In addition to tyres, Asia has supremacy over other continents in production of industrial, engineering and general rubber goods. Besides majors like China and Japan, countries such as the Republic of Korea, Taiwan, India, Malaysia, Thailand, Indonesia, Sri Lanka, Philippines, Israel, Iran, Pakistan, Vietnam and Bangladesh have reasonably good rubber manufacturing ventures. In the production of dipped goods like gloves and condoms and medical rubber products, Asia has a virtual monopoly. That lead is likely to continue unabated at least in the next decade. 84

november - december 2012

Sri Lanka Within a relatively short period, Sri Lanka has grown into a reputable and major supplier of quality rubber products to the world market. Sri Lanka has the potential to be one of the world’s leading rubber product manufacturing countries due to its ability to produce high-quality raw materials -- top quality NR grades with very low protein level at relatively low processing cost. Sri Lanka currently manufactures a wide variety of rubber products. Surgical, household, agricultural and examination gloves, balloons, hallowing masks and rubber toys are among the major latex products manufactured by the country. Latex industry has expanded significantly over the last decade and presently it accounts for around 35% of the local consumption of NR. Some of the leading rubber product manufacturers in the country are Ansell Lanka (Pvt), DSI Group, Loadstar Ltd, Hanwella Rubber Products Ltd, Lalan Group, Dipped Products Ltd , Trelleborg (Pvt) Ltd, Associated Motorways Ltd, Richard Peries Group etc. Loadstar has recently introduced some innovations in their manufacturing technology by linking nanotechnology. In terms of export value, the rubber products manufacturing industry in Sri Lanka (tyres, tyre cases and tubes, plates, sheets and strips, surgical gloves and other gloves, floor coverings and mats etc.) recorded a whopping 45% growth from Rs 44,163 million in 2009 to Rs 64,033 million in 2010 due to increased global demand for these products. Following the example of Malaysia, continued efforts at value addition should be made in Sri Lanka too, thereby transferring rubber from a “commodity” to an “industrial product.” If an earnest effort is made in this direction, Sri Lanka could also become a leading exporter of NR products.

Support The rubber products industry needs further diversification, with greater focus on valueadded and high-tech rubber products, such as products for engineering, construction and marine applications. More R&D efforts need to be undertaken in product development and downstream activities. New areas for promotion should include the extraction of biochemical products from latex using biotechnology. These efforts will ensure continuous improvement in quality to maintain competitiveness in the export market. Rubber Asia


The Government should continue to promote Sri Lanka’s resource-based industries to accelerate the country’s growth. In addition to fiscal incentives, the Government should further fine-tune the incentives to promote specific activities such as in the rubber products industry. To further encourage investments in resource-based industries, local companies in the rubber industry that reinvest in expanding their projects should be made eligible for further Investment Tax concessions.

Land productivity potential suggests that Sri Lanka has the capacity to increase its total production by increasing productivity levels in existing areas by replanting with high-yielding clones and following accepted management practices

Rapid expansion of the rubber products industry can be achieved only by implementing several well-planned and focussed industrial growth strategies, unfailing Government commitment, political and economic stability, stable infrastructure, progressive Government policies, a large pool of well-trained local workforce, a pragmatic R&D policy as well as by technical and product testing support.

R&D The industry has to continue intensifying R&D efforts to promote the downstream, value-added sector. R&D to promote selected areas in the upstream should continue in order to maintain the industry’s competitiveness. In addition, as one of the world leaders in R&D in the NR sector, the Rubber Research Board (RRB) should continue to be a resource centre for the supply of trained, experienced and highly qualified manpower to the rubber industry, especially the downstream rubber products sector. Research should also develop cost-effective products for value addition by the Small/ Medium Enterprises. The RRB should, in collaboration with the NIPM, continue to conduct training to fulfil every requirement of the NR industry. It should include plantation and industrial courses as well as transfer of technology to entrepreneurs on the manufacturing of rubber products. In order to address the issue on tapper shortage, concerted efforts should be made to train youngsters as tappers offering the. attractive remuneration package.

Smallholder development The current NR price of over Sri Lankan rupee 400 per kg has helped to lift the majority of smallholders above the poverty line. It has also helped to bring some of the idle rubber areas back to production. The high price has encouraged the estate sector too to replant some of their areas. Natural rubber is a strategic crop. Its 86

november - december 2012

socio-economic importance is great as it sustains the livelihood of about 130,000 smallholder families in the country. The economic well-being of the smallholders is thus of considerable importance to ensure the stability in the rubber sector in the rural areas. The current and future prices will be the determinant factors in the selection of the crop to be planted when the old trees are due for replanting. Any crop to be planted will take at least 20 years cycle before replanting. Due to traditionally depressed and protracted low NR prices in the 1990s and 2000s, few rubber areas were converted to cultivate other more lucrative crops, especially the oil palm (with no regrets now). Therefore, to encourage the existing smallholders to remain in rubber as well as to encourage other smallholders to venture into rubber cultivation, NR prices must remain remunerative and ensure sustainability of the industry. Smallholder extent is expected to grow further in Sri Lanka with rubber being planted outside the traditional areas although the level of productivity is debatable in such areas.

Productivity Another area of priority is productivity. In Sri Lanka, the rubber smallholding sector has been contributing significantly. Their contribution in 2010 was around 79% of the national production. Five years ago, it was 65 % by the smallholders and 35 % by the RPCs. Despite several constraints, the smallholder sector has been demonstrating an increasing trend in performance with an increase o. 16 % over their production in the previous year. Productivity of Sri Lankan smallholdings is in the region of 1,290 kg/ha whereas in Malaysia it is around 1,330 to 1,440 and in Indonesia it is in the range of1,250 to 1,500 kg/ha. However, Sri Lanka’s national productivity is in the region of 1,437 kg/ha, which probably is due to higher productivity in the corporate sector. Land productivity potential suggests that Sri Lanka has the capacity to increase its total production by increasing productivity levels in existing areas by replanting with high-yielding clones and following accepted management practices. Achieving a productivity of 2,000 kg/ha/year and a total production of about 200 million kg from a tapped area of about 100, 000 ha by 2020 should be the industry’s goal. Rubber Asia


mARket RepoRt tiyo

Lower output,

higher demand

lift NR market While growth in nr production was in the low gear in the first half of 2012, nr consumption moved up smartly by 5.6% thanks to enhanced tyre production

N

atural rubber producing region was passing through an inhospitable climate phase during the past few months owing to erratic weather. This is not peculiar to the current year, erratic weather has been seriously affecting rubber production for some years now.

Low growth rate The year 2012-13 started with subdued growth in NR production. The first half saw production going up only by 1.1% to 395,700 tonnes, compared to 391,400 tonnes in the first half of the previous financial year. Noticing this trend, the Rubber Board revised down the original projection of NR production from 942,000 tonnes to 920,000 tonnes for 2012-13. Consequently the growth rate came down to 2.9% for the year. The 1.1% growth achieved during the first half is not even half of this. The second half may see better output as the peak season in rubber production is in this half. Rubber growing regions received some rains at the fag end of the capricious Southwest monsoon season in September. Heralding the onset of the Northeast monsoon, showers were received in the first half of October also. If it proceeds to fulfil expectations of a good phase of downpour, rubber production would rise as the 88

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cool months of November to January generally favours generation of copious latex in the trees.

Market movement Generally, yield of the rubber plantations improves from September paving the way for better crop in the following quarter. In September 2012, NR production approximated to 82,000 tonnes, about 12% higher than the output of 73,000 tonnes in August. Peak season in NR production starts in October and the rubber crop has started flowing to the market in greater quantum. But the price has not seen a decline corresponding to the enhanced supply; in fact, it has moved up. By the end of September price of RSS 4 grade sheet rubber moved up to Rs.195 a kg from Rs.171 at the beginning of the month. This level was continued in the first week of October, but the price slipped to Rs.183 by October 15. Obviously, buyers pared down purchases noticing the improvement in arrivals. Despite the improvement in crop generation, flow of rubber to the market did not witness a corresponding increase in volume initially, as a section of the growers with capacity to hold stocks were averse to sell rubber soon after processing. This made an effect on the market. The slide was arrested Rubber Asia


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Natural rubber market (rs. per kg) october 2012 Date

RSS 4

ISNR 20

Ltx 60%

1

195.00

177.00

177.00

2

Gandhi Jayanti

3

195.50

177.00

128.40

4

196.00

178.00

128.90

5

195.00

177.00

128.90

6

193.00

176.00

128.40

7

Sunday

8

191.00

175.00

128.90

9

191.00

174.00

126.30

10

190.00

173.00

124.20

11

189.00

171.00

124.20

12

186.50

180.50

132.50

13

188.00

170.00

123.15

14

Sunday

15

183.00

16

183.00

63.00

120.00

17

184.00

164.00

120.00

18

185.00

165.00

120.00

19

184.00

164.00

121.00

20

183.00

163.00

121.00

21 22

180.50

23

180.00

24

178.00

25

163.00

121.00

and the price started looking up. On October 18, RSS 4 moved up to Rs.185 a kg, though the price dropped to Rs.184 the next day. Improvement in demand concurrent with the increase in crop generation also helped the market to look up. Launch of new passenger car models by a few major vehicle manufacturers in October stimulated demand for tyres and auto rubber components. Arrival of NR in the market was quickly mopped up by the producers of these products, which helped to hold the price line. Current trends indicate that the market may not come down significantly in the peak season as NR consumption may maintain the rising trend.

Consumption up

While growth in NR production was in the low gear in the first half, NR consumpSunday tion moved up smartly by 162.00 121.00 5.6% to 501,940 tonnes, from 475,485 tonnes in the cor161.00 121.00 responding half of 2011-12. 161.00 121.00 This advancement in consumption was higher than the 4.3% growth projected for 2012-13. The Rubber Board assessed the gap between demand and supply of NR at 76,000 tonnes during the year. The industry could easily meet it from the entitlement of 150,000 tonnes of NR import through duty-free channel. However, the import was over 100,000 tonnes during the first half itself, clearly indicating that price advantage abroad is their prime consideration, not the optimum quantum to balance demand and supply. Consumption moved up mainly on account of enhanced tyre production, a significant portion of which was disposed of in markets abroad. If the growth in consumption is maintained during the second half of 201213 at the already achieved 5.6% acceleration, the industry would end up consuming 1,018,422 tonnes in the year, around 12,422 tonnes more than the projection. This would push up the deficit to 88,422 tonnes. As the industry continues to enjoy price advantage in purchasing NR from the overseas market,

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import is likely to go beyond the duty-free entitlement during 2012-13. The rise in NR consumption is in spite of the fall in production of vehicles in the recent past. However, the excellent sales growth of vehicles in the past few years has substantially enhanced tyre demand in the replacement market. Robust sale of tyres in the overseas market has also helped good growth in tyre production.

Import surges The manufacturing industry’s spokesperson has maintained that import of NR during the current fiscal would be more by 10% over last year’s import. Last year’s import was 213,785 tonnes. Ten per cent addition to it would mean import of 235,163 tonnes in 2012-13. The rubber manufacturing industry has already brought in from abroad 112,640 tonnes of NR during the first six months (April - September 2012), about 23.5% higher than the import during the same period of 2011. In spite of this, further imports may come in as rubber price abroad currently rules Rs.14 a kg below the Indian price for comparable grades of sheet rubber and Rs. 9 a kg lower for block rubber TSR 20. Price of RSS 4 in India was Rs.184 a kg on October 19, 2012 while its counterpart RSS 3 was traded at Rs.170 a kg in the Bangkok market. At the same time, block rubber ISNR 20 was priced at Rs.164 a kg in the domestic market even as SMR 20 was traded at Rs.155 a kg in the Kuala Lumpur market. The tempo of import may come down only if the price advantage is nullified either by rise in the overseas price or fall in the domestic price.

Global scenario World production of natural rubber is poised to rise in 2012, while the consumption is set to fall marginally. The International Rubber Study Group (IRSG) has projected the global production of natural rubber at 11.197 million tonnes in the year, about 2% higher than the output of 10.987 million tonnes in 2011. At the same time world NR consumption at 10.88 million tonnes would be marginally lower than 10.92 million tonnes consumed in 2011. Along with the excess over consumption of 315,000 tonnes, world NR stock balance has moved up to 1.54 million tonnes. Share of the Asian region in the world output would be 10.86 million tonnes, according to the Association of Natural Rubber Producing Countries(ANRPC), 5% higher Rubber Asia


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Export cut may push up NR price The recent decision of three major NR producing countries -- Thailand, Indonesia and Malaysia -- to reduce export of NR by 300,000 tonnes in six months from October 2012 is likely to raise NR price overseas as it may result in a supply crunch. A corresponding rise in the Indian market is doubtful in the short-run as NR production is now in the peak season and the major buyers may enhance supply from abroad to check price rise in the domestic market. Thailand’s Farm Ministry has advised the exporters who ship more than 5,000 tonnes of rubber a year to cut exports falling in line with the Government’s commitment to limit exports. Thailand has to curtail NR export by 150,000 tonnes out of the proposed 300,000 tonnes of export. Indonesia has to cut export by 100,000 tonnes and Malaysia by 39,000 – 40,000 tonnes. Though these countries have started slashing exports, rubber price has not moved up. On the other hand, sheet rubber RSS 3 came down in price from $ 3.26 on October 1 to $ 3.19 by October 19. Similarly, price of block rubber SMR 20 came down from $ 3.1 to $ 2.94 during the period. Some of the market analysts have commented that the export cut can make only limited effect now as it had already been factored into the market since its announcement in August 2012.

than the output of 10.34 million tonnes in 2011. The Asian output comes to 98.8% of the global production. Growth rates in production of three countries stand out in this; Cambodian production is set to advance by 35.3% to 69,000 tonnes from 51,000 tonnes in 2011, production of Vietnam may rise by 14.5% to 930,000 tonnes over the 2011 output of 812,000 tonnes and the Chinese output may climb by 9.4% to 795,000 tonnes from 727,000 tonnes in 2011. Malaysia’s output growth is the lowest, only 0.4% with the output advancing to 1,000,000 tonnes from 996,000 tonnes. Thailand’s output may grow by 1.2% to 3,612,000 tonnes from 3,569,000 tonnes, while Indonesia’s output may go up at a healthy rate of 7.7% to 3,261,000 tonnes from 3,039,000 tonnes in 2011. Vietnam is set to overtake India this year to become the fourth largest world NR producer as the NR output of Vietnam this year 92

november - december 2012

is estimated to be 930,000 tonnes against India’s 920,000 tonnes.

Stock position The carryover stock of over 1.5 million tonnes is the major inhibiting factor in the world NR market. Attempt for price support procurement has also not been a success of late. Thailand’s National Rubber Policy Committee has recommended a budget of 300 billion Baht ($ 974 million) to procure sheet rubber from the farmers above the market rate. Thai Government has approved it and the amount of 300 billion baht has been included in the budget. But the procurement could not start as a joint sitting of the threenation combine -- Thailand, Indonesia and Malaysia -- has assessed the market trend in the light of the slowing world economy and recommended that price support measures can start once the market falls to $ 2.70 a kg. As sheet rubber RSS 3 has been ruling above $ 3.00 a kg, implementation of the proposal could not be initiated.

Focus on manufacturing Top NR producers such as Thailand and Malaysia are now focussing on substantially enhancing domestic consumption of rubber and reducing outgo to the overseas market. China too is poised to expand rubber manufacturing activities, though economic growth has slowed to 7.4% in the quarter ended September 2012, the lowest in the past three years. The US Government has lifted the three-year long tariff barrier on the Chinese tyres. Major tyre producers in China are now bracing themselves for substantial tyre export to the US as the level playing field gives them opportunity to recapture the sizable market share they enjoyed three years ago. In order to ensure enough supply of the key raw material, China has been going about strongly in importing natural rubber in the recent past. In September 2012, the import was 210,000 tonnes, same as in August. NR import progressed to 1.58 million tonnes in nine months from January to September, up 9.7% from 1.44 million tonnes imported in the corresponding months of 2011. Analysts anticipate stronger NR imports in the months ahead. Recent recovery in the US economy, rise in the job data and better vehicle sales are positive for a robust demand surge for tyres in the US. China is in a better position to take advantage of the surge as its tyres are competitively priced without compromising on quality parameters. Rubber Asia


Rubber Skill Development Centre (RSDC)

Breeding the best skills for rubber industry In a major initiative, national Skill development corporation (nSdc), in collaboration with All India rubber Industries Association (AIrIA) and Automotive Tyre manufacturers Association (ATmA), has set up the rubber Skill development centre (rSdc) with the aim to identify and fulfill skill development needs in the rubber sector. rSdc will encourage the industry to employ skilled and certified manpower

T

here is a dire need to create talent that is industry-ready. Skill development of existing personnel is also necessary to sharpen the competitive edge of the industry. It is to take on these challenges that Rubber Skill Development Centre (RSDC) has been set up by National Skill Development Corporation (NSDC), in collaboration with major industry organizations like All India Rubber Industries Association (AIRIA) and Automotive Tyre Manufacturers Association (ATMA). Rubber Skill Development Centre (RSDC) has the specific aim of identifying and fulfilling skill development needs in the Rubber sector. “RSDC will also encourage the industry to employ skilled and certified manpower,” says Vinod Simon, Chairman of the Centre. RSDC is to focus on developing national level skill for both the tyre and the non-tyre sectors, providing employment opportunities to the youth across the nation, creating career paths in roles existing within the unorganized and organized segments of the rubber industry and ensuring active participation of the industry in absorption of skilled manpower generated through the centre. RSDC will create a dynamic Labour Market Information System (LMIS) to keep track of the labour market skill gaps, frame occupational standards, facilitate development of practical and high-quality training

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content, ensure adequate availability of faculty through trainer initiatives, build accreditation and certification mechanisms and encourage capacity building through private sector participation. In the process, RSDC will indulge in preparing a catalogue of skill sets, range and depth of skills to facilitate individuals to choose from. RSDC has been registered as a Section 25 company.

Current scenario In the current scenario, most of the skill learning on the shop floor happens through largely unstructured, on-the-job training. The institutions running certification courses with rubber specialisation are few and far between. There is an urgent need to develop modular, short-term skill development programmes for frontline shop floor workers and supervisors. “It is also very important to build capacity and affordability in the training infrastructure to encourage persons from the less educated and lower income groups to opt for such courses and develop fruitful careers in the Indian rubber Industry,” says Ms. Anupama Giri, CEO, RSDC.

Objectives of RSDC RSDC has been formed with a wide range of objectives such as providing skilled manpower to meet the requirement of the industry in coming years, offering tailor-made courses that satisfy the industry’s need for technical professionals, framing certifications Rubber Asia


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Over a period of 10 years, RSDC plans to provide training to over 600,000 persons for entry-level jobs, over 100,000 in service personnel and over 2,000 Master Trainers, apart from giving accreditation to around 100 training organizations 96

november - december 2012

vinod Simon, chairman, rSdc

Anupama Giri, ceo rSdc

& accreditations for short and mid-term courses in various trades of rubber industry both for new people joining industry and for upgrading skill level of existing employees, designing and offering courses to create career opportunities across functions at all levels especially entry level and setting standards of quality in the skills required for different job roles in the rubber industry.

developing skill competency standards, standardisation of affiliation and accreditation process, capacity creation in skill development, plan and execute training of trainers, promotion of academies of excellence, etc.

Besides, RSDC also aims to frame occupational standards and competency matrix for job roles in the rubber industry and align the training content and curriculum with them, to develop training programs, which are application-based, with simulation or live projects, as per the requirement of the industry, to ensure training of adequate number of trainers to cope with the skill development and to encourage private players to participate in the skill development initiative to build capacities.

Mandate and activities Over a period of 10 years, RSDC plans to provide training to over 600,000 persons for entry level jobs, over 10,000 in-service personnel and over 2,000 Master Trainers apart from give accreditation to around 100 training organizations. The activities of the RSDC comprise setting up Labour Market Information System (LMIS) to assist planning and delivery of training, identification of skill development needs and preparing a catalogue of skill types, develop a sector skill development plan and maintain skill inventory,

Perks to the industry • Skilled manpower to meet the require- ment of the industry in coming years.

• Bespoke training programs that satisfy the industry’s need for technical professionals (Both in-service and new recruitments). • Certifications and accreditations for short and mid-term courses in various trades of rubber industry both for new people joining industry and for upgrading skill level of existing employees. • Setting quality standards skills required for different job roles in rubber Industry. • Training programmes, which are applica- tion-based, with simulation or live projects, as per the requirement of the industry. “RSDC aims to complement the existing vocational educational system for the industry and help in meeting the requirements of trained manpower across the ecosystem on a sustained and evolving basis,” says, Vinod Simon, who is the immediate past President of AIRIA. To accomplish the stated objectives successfully, RSDC seeks active support of all major players in the rubber industry. Rubber Asia


Malaysian Rubber Board launches

innovative technologies The International rubber Technology and economic congress (IrTec) ’12 organized by the malaysian rubber board (mrb) from october 10-11, at one World Hotel, Petaling Jaya, Selangor, was noted mostly for the launch of the board’s innovative technologies by Yb Tan Sri bernard dompok, minister of Plantation Industries and commodities. The technologies, that aptly justified the theme of the congress, Sustaining Competitiveness Through Technological Innovation, have the ultimate goal of increasing national productivity and nr planted area, reducing labour-dependency. The technologies include the following:

S

election and planting of high-yielding rubber clones in the field is important to ensure high latex production in future. iKlon is the latest innovation developed by the Malaysian Rubber Board (MRB) as an alternative to the shortage of experienced Clone Inspectors who could safeguards the quality and legitimacy of the rubber clones in licensed nurseries. This application is able to function smoothly on any smartphone using Android as operating system. Furthermore, it is operated without sim card memory and connection to the Internet. Therefore, this application is very suitable for operator in nurseries to identify rubber clones. The process of rubber clone recognition is first activated by clicking on the icon which will be downloaded on the smart-phone screen. This recognition process needs a plain background which focuses on the middle leaflet of the rubber trifoliate. Then, the leaflet properly is aligned with reference grids on smart-phone interface. Later, by tapping anywhere on smart-phone screen, you can capture the image and analysis which will take not more than five seconds to complete. The result of image analysis will be displayed on the smart-phone screen. i-Klon manages to positively identify six different clones at various nurseries in 98

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smallholders and industries. A mandatory use of the RITeS is suggested for all private nursery operators. The system requires the nursery owner to fill in all the important information needed into the software that will later generate and produce the unique barcode. The barcode will be printed using high thermal printer onto the special barcode label and must be attached to every single planting material using a cable ties. The barcode labels are made from high-quality materials and should remain in a good condition for up to three years in the field. The system allows the enforcement officer to detect and monitor the source of planting materials immediately after scanning the unique barcode attached to the plants. In the event where one or any part of the conditions stated above has not been met, the MRB has the right to suspend or cancel the license of the private nursery subject to Licensing Act of MRB. MRB has successfully developed the trial system which comes with the package consisting of a laptop, RITeS software (laptop version), thumb print scanner, wireless bar code scanner, thermal barcode printer, android phone and RITeS software (phone version). The trial system will be tested for three months in the selected private nursercertificate awarded to i-Klon at ITeX 2012

Malaysia including RRIM928, RRIM 2024, RRIM2025, PB260, PB350 and RRIM3001. This application is registered and its Intellectual Property (IP) obtained with number PI 2012002127 in 2012. i-Klon has also successfully bagged the Gold Medal for novel invention at the International Invention, Innovation and Technology Exhibition (ITEX 2012). The digital automation recognition process, as presented in i-Klon, is an easier alternative to identify the authenticity of clones and it is time saving too. Likewise, this innovation will assist those who try to recognize rubber clones manually in nurseries. Therefore, i-Klon is guiding and moulding more new Clone Inspectors and increasing efficiency in clone inspection.

Rubber Information and Traceability System (RITeS) The objective of the Rubber Information and Traceability System (RITeS) is to create a stringent mechanism for monitoring and tracing the source of planting materials produced by registered private nursery operators in order to ensure only high-quality planting materials are supplied to the 100

november - december 2012

Smartphone screen will display the rubber clone identified from the image analysis Rubber Asia


Cell: +919869005020, kewalkantekar@specificengg.com, www.specificengg.com


ies to monitor its performance and for improvement (if any) before the commercial version is implemented to all registered private nurseries throughout the country. The mandatory implementation of this system by the private nursery operators will ensure that only the high-quality planting materials are produced and supplied to the smallholders and industries for the new planting and replanting program in the future. This will increase the average national productivity to 2,000 kg / ha / year by 2020 as stated in the NKEA for rubber.

Automatic Rubber Nursery Machine The issue of labour-dependency is often related to the upstream activities of the rubber industry. With recent technological advancements, the concepts of automation and mechanization are common approaches

An Automatic Planting Machine is one of the inventions developed to overcome the issue of labour dependency and productivity in the rubber upstream industry Software and equipment requirement

to resolve problems on labour dependency and to optimize the productivity. The rubber nursery is an important component of the rubber upstream sector. There are several activities involved within a nursery, such as filling the poly-bag with planting media for seed germination. Filing the polybag with planting media is a labour-intensive and repetitive task. Therefore, automation of poly-bag filling would be a solution to increase the productivity of planting material preparation and also to ensure consistency of the quality of planting materials. The development of the automated nursery machine is in line with the NKEA program to increase the rubber hectarage through the new planting and replanting program. This system would be able to support this program by increasing the supply of the planting material.

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The machine lifts poly-bags from the stock using a vacuum system. The poly-bag in the horizontal position will be partially opened by gravity and air blower. The partially opened poly-bag will be slotted into a gripper and rotated into the vertical position. Rubber Asia


This machine automates the processes of preparing planting platform and dropping seedlings into the planting platform. The operation of the machine is controlled by the operator where a required distance from the previous planting location is decided by the machine operator and the planting process is initiated by the operator. Once the new planting location is marked, the operator communicates with the machine to start the planting process.

Prototype of an automatic rubber nursery machine

The soil will be released into the poly-bag. The amount soil released into the poly-bag is based on the size of cassette installed onto the machine. Soil is transferred from the lower chute to the upper chute by means of a rotating auger. An actuator is installed within the system to move the poly-bag filled with planting media to the pallet. Once the pallet is filled with poly-bags, the pallet can be collected by the operator for storage and seed germination.

Automatic Planting Machine for rubber seedlings An Automatic Planting Machine is one of the inventions developed to overcome the issue of labour dependency and productivity in the rubber upstream industry. This invention is also in line with the NKEA project on the new planting and replanting program to improve productivity and efficiency of the planting activities.

Prototype of an automatic planting machine for rubber seedlings

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The machine is attached with an auger where a hole for planting can be created. The auger displaces soil which subsequently produces a hole for planting. A conveyor system on the machine allows the seedling to be temporarily stored on the machine while the planting task is being carried out. The seedlings are arranged in an array form where the conveyor moves backwards resulting with a row of seedlings to fall onto the chute. The actuator designed and installed to move along the chute pushes one seedling towards the planting spot when the hole is ready. After all seedlings on the chute are dispensed, the actuator retracts and the conveyor moves backwards to refill the chute by dropping another row of seedlings stored on the conveyor. The temporary storage space on the machine allows the planting activity to be performed continuously while more seedlings are being transported from the store to the planting machine. The adoption of mechanization not only increases productivity and efficiency of the planting activity but also helps to develop a knowledge and technology-based community.

Latex Collection Vehicle Latex harvesting is both science and art in the rubber industry. Latex harvesting is made by bark excision where a thin slice of bark is removed to expose latex vessels located within the bark. The resulting latex is channelled into a collection cup attached to each tree. The yield from the tapping can be collected in two forms -- latex or cuplumps. The main objective of this innovation is to facilitate the work in the field on latex collection and to encourage smallholders to collect the yield in the form of latex as compared to cuplumps. The current practice sees that the collection is usually done in the form of cuplumps instead of latex as cuplumps collection is relatively simpler as compared to latex collection. The importation of latex by Malaysia represents approximately 50% of the total Rubber Asia


has to import large amounts of latex from neighbouring natural rubber producing countries. The Malaysian Rubber Board has taken initiatives to develop a prototype for latex collection system to overcome the above problems. The concept of this vehicle is to enable smallholders and/or estate owners to draw latex from collection cups from one tree to another into the temporary storage tank in the vehicle. The latex collected in the temporary storage tank can be transferred to the main collection tank at the collection centre for the subsequent processes.

Prototype of latex collection vehicle

imports of natural rubber into Malaysia. Domestic consumption of latex in Malaysia is high as 80 % of the total exports of rubber products are in the form of latex-based products. Nevertheless, latex supply in Malaysia is still very low such that the country

This system consists of five main components including a latex storage tank to store latex during the collection process at the field, an air compressor to operate a diaphragm pump, a diaphragm pump to draw latex from the collection cup into the storage tank, a teflon tubing for latex handling and a carriage vehicle. This innovation is expected to encourage the collection of fresh field latex rather than cuplumps to reduce dependency on imported latex and labour workforce.

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RubberAsia Asia Rubber

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Stock wAtch Sharad Matade

Downslide continues in tyre stocks as auto sales fall

Though Sensex increased by more than 5%, stocks of most tyre companies fell 1% to 9% consequent on fall in car sales and rise in raw material prices.

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ost Indian tyre companies continued their downtrend and failed to trail the broad market momentum on account of fall in car sales and spike in raw material prices. Among the tyre companies’ stocks, only three companies registered gains. Modi Rubber bucked the sectoral trend and registered double-digit growth and others such as Dunlop India and Ceat grew in single digit on the bourses.

Bullish trend The Bombay Stock Exchange continued to keep an upward momentum following the Government’s much awaited decision to allow Foreign Direct Investment in multibrand retail, aviation, insurance, pension and broadcasting sectors. However, an increase in inflation and diesel prices put some brake on the bourses’ momentum. In September, inflation rose to 7.8%, which is the highest level since November last year, due to steep rise in fuel prices. In the period September 10 - October 19, 2012, the Bombay Stock Exchange’s Benchmark 30-share Sensex increased slightly more than 5%. However, stocks of most tyre companies fell 1% to 9%. The stocks of industry majors like Apollo Tyres, MRF, Balkrishna Industries, TVS Srichakra, and Goodyear India dropped by 9%, 5%,4.50%, 3.65%, 4,57% and 1.39% respectively during the period due to falling auto sales and a rise in natural rubber prices. However, the stocks of Modi Rubber and Performance of stock index (September 10 - october 19, 2012)

Sensex Index 106

Share prices on october 19, 2012

Share prices on September10, 2012

change in share prices

change in %

18,682.31

17766.78

915.53

5.15

november - december 2012

Dunlop India grew by 13.25% and 9.45% during the period.

Impact of Apollo’s buyout plan The stocks of the country’s leading tyre manufacturer, Apollo Tyres, saw the high of Rs102 on September 13 after the media reported the company is buying the US-based Cooper Tires. However, the stock could not sustain the momentum for a long time and the company stocks continued to fall on the bourse except on October 1 when the stock increased by 2.5%, as the Board members approved a hike in investment limit of foreign institutional investors to 40% from 30 % earlier. The MRF stock, which has been falling for the last three months, lost another 5.10% during the period. However, the stock saw some growth on October 3. JK Tyre and Balkrishna Industries, which had registered impressive 43.65% and 17.58% rise respectively during the period of June 6, 2012 September 7, 2012, fell by 3.65% and 4.48% during this period of September 10, 2012 - October 19, 2012. Ceat’s stocks did not show much enthusiasm and went up only by 1.25% in the period. However, despite the BSE’s warning to the investors to take extra diligence in trading of illiquid stocks, Modi Rubber rose on the bourses.

Weak auto sales After seeing a growth in June, July and August, car sales in September fell by around 5.36%. According to the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in September dropped by 5.36 %, while motorcycle segment plunged by 18.85 %, the sharpest decline in three years and nine months due to overall economic situation of the country, low sentiments, high petrol prices and interest rates. Rubber Asia


Performance of tyre companies’ stocks ( September 10 - october 19, 2012) Share prices on october 19, 2012 Apollo Tyres mrF balkrishna Industries

Share prices on September 10, 2012

change in share prices

change in%

84.55

93.55

-9

-9.62

10164.5

10205.95

-548.9

-5.10

273.45

286.3

-12.85

-4.48

JK Tyre & Industries

108.1

112.2

-4.1

-3.65

TvS Srichakra

311.1

326

-14.9

-4.57

ceAT

116.9

115.45

1.45

1.25

30

30.5

-0.5

-1.63 -1.39

Premier Tyres PTL ent Goodyear India

317.4

321.9

-4.5

Falcon Tyres

24

24.45

-0.45

-1.84

modi rubber

30.75

27.15

-3.6

13.25

9.03

8.25

0.78

9.45

dunlop India Ltd

However, in the first half of the financial year (April - September), passenger vehicles segment grew 6.96% over the same period last year. The overall commercial vehicles segment registered a growth of 3.71% in AprilSeptember 2012 as compared to the same period last year. While medium and heavy commercial vehicles registered a 12.49% fall, light commercial vehicles grew 16.04%.

After bearing a 35% drop in sales in August due to the month-long lockout at its Manesar plant, the country’s largest car maker Maruti Suzuki’s sales increased by 3.43% to 68,957 units in September. Hyundai Motor India’s sales, however, decreased by 13.88 % to 30,795 units. Another auto major Tata Motors’ car sales were down by 18.46 % at 17,133 unit s.

NR price fluctuation On raw material front, after witnessing some relief in August, prices of natural rubber again increased in September. Average prices of RSS4 and RSS1 were Rs18,465 and Rs19,204 per 100 kg respectively in September, while in August RSS4 and RSS1 the prices were Rs17,313 and Rs 18,063 per 100 kg respectively. The prices also continued to climb up in the second week of October. On October 4, prices of RSS4 touched Rs19,600 per 100 kg at Kottayam. However, since the third week of October, the RSS4 prices started coming down. On October 19, RSS4 prices fell to Rs18,300 per 100 kg.

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‘Unholy’ talk

The writer is executive Director Rubber Asia

John S. Powath

Unholy music It’s hightime we created a situation that is congenial to enjoy music which is divine and, indeed, a gift of God!

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usic, like sex, has a universal charm. Everyone loves and enjoys music irrespective of wherever one is and in whatever language it is sung for, music has no space or language; it transcends the frontiers of space and language. Of course, with a possible exception: You can’t enjoy music when you are pre-occupied, busy and disturbed. Teenagers enjoy music the most as they are not that much busy and are almost free from all worries and cares of life. However, even music sounds unholy at

times. It is made unholy most often by youngsters who go around driving cars with music switched on in full blast, thus polluting the whole atmosphere with jarring notes and annoying everyone around. They do it at home as well, even at late hours, creating a hell for everyone. Knowing that music is for everybody’s enjoyment, can’t we think of a compromise? Boys, of course, will have to behave with a little bit of understanding. Let us all together create a situation that is congenial to enjoy music which is divine and, indeed, a gift of God!

Unholy tipping THANK GOD, SHE HAS IGNORED MY LATE STAY AT CLUB

SEE DEAR WHAT I HAVE BOUGHT FOR YOU, A DIAMOND RING !

B

usy, busy, busy, that is what everyone in Mumbai is. In the process, you miss out some very important things in life. There is no assembly of family members, let alone a meal together. Everyone has very busy schedules, stretching right from morning till very late into the night. These days, a father has no time for his children and vice versa. A husband is busy preoccupied with his business and the worries and tensions associated with it. And, in a bid to keep everyone happy, the head of the family is very lavish in doling out tips to his wife, children and other relations. In this materialistic world, money matters a lot and plays an important role. Everyone is happy with the donor of tips. This includes the servants, drivers and the like so that even big secrets can be kept safe with tips! That is the rule of the game.

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g n i s lea

Re

! y l t r sho

A Rubber Asia Exclusive Industry updates, news and views, movers and shakers of Indian rubber industry and much more... For Ad space and Sponsorship Please contact: Kochi : Phone: 91-484-2315840, 2316494, Email: dhanrubber@eth.net, danam@satyam.net.in Mumbai : Phone: 91-22-2640 0829, 2640 0735 Email: johnpowath@rubberasia.com, johnpowath@dhanam.in www.rubberasia.com

A unique issue, wor th preser ving


TyreWorld This section is exclusively set apart for news and views on the tyre industry. This regular feature also draws on a vast pool of news sources, made possible by our arrangement with leading tyre and rubber industry magazines across the globe.

Online tyre buying catching up

All about Tubeless Tyre

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US tariff on Chinese tyre goes

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Indian tyre industry needs to cope with

technological challenges

Tom K Thomas

Tyre makers, on the one hand, have to reduce price, weight, noise, vibration and rolling resistance and, on the other, increase handling, uniformity, active safety, comfort, speed capability and visual appeal

T

he Indian tyre Industry is on a take-off stage of growth and technology. The industry has a turnover of Rs.320 billion and is growing at 8% with an expected CAGR of 10%. The passenger segment is expected to grow at a CAGR of over 12%. All MNC tyre majors have made entry into India. The development of the tyre industry in India is aided by the automotive sector which is growing at around 18% per annum. The number of vehicles has been growing at an average pace of 10.16% per annum over the last five years. India is the second largest two-wheeler manufacturer, the 4th largest passenger vehicle market in Asia and the fifth largest commercial vehicle manufacturer in the world.

India has an extensive road network with a total length of 3.3 million km(approximate), consisting of Expressways (200 km), National Highways (66,590 km), State Highways (1,31,899 km), major district roads (4,67,763 km), rural and other roads (26,50,000 km). About 65% of freight and 80% passenger traffic is carried by the roads. National Highways constitute only about 2% of the road network but carry about 40% of the total road traffic.

Emerging customer needs The Indian tyre industry has to meet many technological challenges to cater to emerging customer requirements. Increasing need for speed with safety requirement is one of the challenges. Tyre makers, on the

The writer is vice President (Technical), ceat Tyres Ltd. This article is based on the presentation made by him at the 40th anniversary celebrations of the department of Polymer Science & rubber Technology of the cochin University of Science & Technology. Rubber Asia

november - december 2012

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TyreWorld one hand, have to reduce price, weight, noise, vibration and rolling resistance and, on the other, increase handling, uniformity, active safety, comfort, speed capability, visual appeal and trouble-free service. They also have to ensure green compliance.

Quicker development and testing time call for higher investment in simulation techniques like FEA.

Tyre makers have to strive for optimization of tyre performance and matching of tyre with vehicle suspension. Durability, fuel efficiency, trouble-free service, weight, safety, handling/ comfort, retreadability etc are the desirable characterists as far as TBR tyres are concerned. Radial tyre requirements include handling, ride comfort, noise & vibration, rolling resistance and mileage.

Tubeless tyres have been around since 1954. Today, they are the standard construction of tyres. The advantages of tubeless tyre include more fuel efficiency, less rolling resistance, less tyre assembly weight, no tyre failure due to tube, reduced chances of air loss and better riding comfort .

India is on the threshold of radialisation of the commercial segment. Passenger car and UV category is almost 90% radialised. Popularisation of tubeless tyre is another noteworthy development

There is need for mastering advanced Silica / SSBR/ Silane-based material technology and nano materials. There is also need for reduction in tyre development and testing time due to OE pressure.

Tubeless tyres India is on the threshold of radialisation of the commercial segment. Passenger car and UV category is almost 90% radialised. Popularisation of tubeless tyre is another noteworthy development.

The tubeless tyre also has certain disadvantages. There are more chances of leakage if rim condition is poor. Tubeless tyre requires fitment by tyre mounting machines to prevent rim damages. Poor facility in India for repairing punctures, especially in small cities and highways, is another disadvantage.

Major rubber-related Directories from Rubber Asia Asian Rubber Rubber Asian Handbook and and Handbook Directory 2011 2005 Directory

Asian Dipped Goods Handbook & Directory 2004

Global Handbook and Directory on NR & SR Latices 2006

Global Handbook and Directory on Rubber Machinery, Equipment and Accessories

China Rubber Industry Handbook

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An updated updated version version of of the the An 2005 2003 edition, edition,focusing focusing on on Asia, whichhas hasnow now Asia, which become become the the largest largest producer producer and and consumer consumer of of both both natural natural and and synthetic synthetic rubbers. rubbers. Price 2000 /US$$200. 200. Price ::Rs Rs.2000/US Also available in CD form priced at Rs. 500/US $50

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The Directory contains detailed information on these latices in addition to listings of NR & SR latex processors, chemicals and machinery suppliers. in different countries. Price : Rs.2000/US $200.

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For copies write to us with payment:Dhanam Publications Pvt. Ltd., Dhanam House, Cheruparambath Road, Kadavanthra, Cochin - 682 020, India, Tel: 91- 484 - 2315840, 2316494 Fax: 91- 484 - 2317872 E-mail: danam@satyam.net.in, dhanrubber@eth.net Website: www.rubberasia.com

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TyreWorld

Online tyre buying gaining popularity It is estimated that online tyre business will grow more than 10 % in the next five to seven years in europe

T

he selection of tyres depends highly on the recommendations of dealers or other sources such as blogs, friends or advertisements. Customers generally don’t have access to prices of tyres and they have to go to dealers to get quotes. In a situation where tyre prices are controlled by the dealers, tyre buying becomes very unpleasant for the customers at the end of the day. The Internet has made tyre buying more convenient and transparent. Online tyre retailers offer customers options to research, compare brands and prices, and choose the best suitable tyres for their vehicles.

Online tyre retailers Online tyre retailers offer customers options to research, compare brands and prices, and choose the best suitable tyres for their vehicles

The concept of online tyre selling was started more than a decade ago and by now several online tyre retailers are available in the European markets. In some Asian markets such as Singapore, Malaysia and Japan too, online tyre buying has already gained popularity. “Online tyre business will grow more than 10% in the next five to seven years in Europe,” predicts Alexis Nerguisian, CEO, Pneus Online, one of the largest online tyre retailers in Europe. Online tyre buying has not been much popular in India till sometime back, thanks to almost non-availability of online tyre retailers, lack of knowledge about tyres among customers and strong hold of tyre dealers in the market. However, online tyre buying is picking up fast in India, say online tyre retailers. ChangeMyTyre.com and SimplyTyre.com are among the online tyre retailers who have commenced operations in India in recent times. Both the companies have different

Rubber Asia

business modules as the first sells all major domestic and international brands online whereas the latter acts as an exclusive online dealer for certain brands of tyres, which are not available in the retail market in the country.

Simple and transparent Retailers say that online tyre buying is a very simple process. “It’s simple, on our website, visitors can select tyres for their vehicles based on the model they have or by the tyre size. They are presented with multiple options with full description and prices. The selected tyres are shipped to the customer and the customer can have these fitted for free at designated fitment centres,” explains Neeraj Chauhan, Co-founder and CEO, ChangeMyTyre.com. “We publish prices of the products listed on our websites through SMS and mails. So our customers have easy access to our pricing,” says Ravi Nagar Dimri, Founder of SimplyTyre.com. Till now the customers had no opportunity to have such a large selection of competitively priced tyres at one single location. Online tyre retailers allow the customer to have a look at various tyre options for his vehicle and their prices. The price discovery which was very difficult earlier has suddenly become very easy. “Further, this initiative brings transparency to the process of buying tyres. Presently, the tyre dealers try to push the tyre on which they enjoy greater margins. The customer would be dependent on the tyre dealer to recommend the tyre and invariably he will november - december 2012

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TyreWorld

‘Secret mantra’ for online tyre business

S

Pneus Online is one of the largest online retailers in Europe and has presence in Great Britain, Spain, Germany, Switzerland, Belgium, Austria, Luxembourg, Italy, Portugal, Ireland, the Netherlands, Canada and Poland. It has more than 15,554 fitting centres across Europe.

haring a secret mantra for online tyre business, Alexis Nerguisian, CEO of Pneus Online, a leading online tyre retailer in Europe, says: “Have a large offer, large network, best prices and communicate massively to be the leader quickly.” According to him, European online tyre retail leaders do not offer large price discounts but provide wide range of brands, size, tyre accessories, customer supports, insurances on certain tyre and free mobile fitting at home or work place. “People look for price and convenience of buying

Alexis nerguisian

online from home or work, they also look for a large choice and a professional advice,” says Nerguisian.

always get the tyre that the dealer wants to sell. At our site there is no attempt to push any brands. The facts are placed on the table. The customer is encouraged to study characteristics of various brands and make their own informed choice,” says Chauhan.

Fitment of tyres Pointing out a difference between online buying of tyres and other products, Ravi Nagar Dimri says: “Online tyre buying is a bit different from other online buying. Unlike electronic goods or other products, which once delivered, the business is over; online tyre buying is not completed until the tyre is fitted at a fitment centre.”

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Talking about Pneus Online’s plan to enter into India, the CEO says, “Possibly, yes, but nothing clearly defined at this stage. We are open to any discussion with local players.”

too. The centre is expected to possess a professional attitude and customer service orientation. If the fitment centre is located far away, then the customer would not reap any benefits from buying tyre online. In online tyre buying, buyers cannot examine products and their features as in physical buying at stores and have a face-to-face conversation with an expert. So there would be some chance for the rejection of the product after the delivery. However, online tyre retailers too take back products if the tyres possess some defect.

Fitment of the tyre is a crucial factor of this business which helps to gain customers’ confidence. Online tyre retailers have tie-ups with various fitment centres. The fitment centre is expected to balance the tyre and fit the tyre when the customers bring it to them. Hence the fitment centre is required to have a tyre changer and wheel balancer.

Online tyre retailers are in the process of expanding their fitting networks so as to reach out to their customers. Many European online tyre retailers have more than a thousand fitting centres each. ChangeMyTyre. com has set up a network of fitment centres in NCR region and is rolling out fitment centres in other cities too. SimplyTyres.com has around 23 fitment centres in Mumbai and has opened four fitment centres in Delhi.

Apart from that the centre should have a computer and web connection to allow him to book orders for his walk-in customers

As more and more people are turning netsavvy, online tyre buying/selling is bound to gain further momentum in the near future. Rubber Asia


TyreWorld

Everything you want to know about

tyre

industry — 6

All about Tubeless tyre

In this series on the tyre industry, we present answers from experts and users to common queries on Tubeless tyre. What is a tubeless tyre? Tubeless tyres, as the name suggests, are tyres without the tube. The tyre is built in such a way that it can contain the air by itself. The tyre and rim assembly form an air container, to seal and contain the compressed air inside the assembly. A valve is fitted on to the rim for inflation or deflation to the assembly.

What are the advantages of tubeless tyre? Tubeless tyres are more economical as there is cost saving on tube and fuel consumption. If a tubeless tyre gets punctured, air escapes only through the hole created by the nail, giving substantial time between a puncture and a flat tyre. Thus there is less chance of accidents due to sudden air leakage. Since tube is eliminated, friction between tyre and tube is not experienced, which results in lower rolling resistance, improved fuel efficiency, less vibrations , less heat generation, enhanced safety and better comfort.

What are the disadvantages of tubeless tyre? There are more chances of leakage if rim condition is poor. Tubeless tyre requires fitment by tyre mounting machines to prevent rim damages. Poor Rubber Asia

facility in India for repairing puncture, especially in small towns and highways, is another disadvantage.

What is the cost of a tubeless tyre as against a conventional tyre? Currently, tubeless tyres are 5-7% costlier than a corresponding tubed radial tyres. Tyre makers claim that consumers can more than recover the extra cost by the savings on tube and better mileage.

Is tubeless tyre difficult to repair in case of a puncture? Generally it is quite simple and sometimes easier to repair a tubeless tyre than a tubed one. The tubeless tyre has the advantage of repairing punctures without removing the tyre from the rim and this means individuals can repair tyres by themselves if they carry a puncture repair kit in the car.

Which are the countries where tubeless tyre is marketed most? In Europe, the US and other major countries, tubeless tyres are the norm. All the vehicles, including buses and trucks,

come with factory-fitted tubeless radials. In India, tyre makers estimate that tubeless tyres now account for 12-15% of passenger car sales. The figure is greater for luxury cars.

How suitable are tubeless tyres the for Indian road conditions? The chances of tubeless radials getting damaged are high on Indian roads thanks to the conditions they have to go through. Debris and potholes on the roads can dent the rim or cause air leakage. Damage to tyre wall will necessitate replacement of tyres. Moreoever, the general misconception that the repair of tubeless tyre is difficult too has led to slow adoption of tubeless tyre in the Indian market.

What are the future prospects of tubeless tyre technology? Tubeless tyre is fast phasing out the tube-type tyre because it is better than the latter in terms of fuel economy, reliability, safety and performance. Most of the big automotive players are now offering their products with the option of tubeless and tube-type tyres. The technology is gaining in popularity all over the world and it won’t be long before tubeless tyres will become the norm. november - december 2012

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Tyre news from around the world is brought to you by Rubber Asia in association with Tyres & Accessories of the UK, rubber & Plastics news, USA and a host of other tyrerelated publications across the globe

China to raise tyre output as US tariff goes The Chinese tyre factories are gearing up to meet the increased demand as the threeyear tariff on the Chinese tyres imposed by the United States officially ended on September 26. The Chinese tyre makers are assuming their sales to increase significantly after the lifting of the ban. As a result, China's rubber consumption is expected to go up in the coming months. There is also speculation from industry analysts that the US tyre prices could come down sharply in the foreseeable future. There was intense speculation that Presi-

has announced that it will invest an additional $27.3 million towards expanding its OTR tyre plant in Bloomington, US. The investment will primarily go towards new machinery for the production of giant loader tyres (GLT). The Bloomington plant currently specialises in producing cross-ply GLT.

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Michelin launches most advanced production line Michelin North America Inc. has inaugurated production on the expanded manufacturing line at its Lexington passenger and light truck tyre plant, involving an investment of $200 million. The 1.2 million-sq.ft. plant will have a capacity to produce 25,000 units a day, mainly performance tyres for SUVs and crossovers. The project employs the latest technologies, making the new tyre production line among the most advanced in the world, Michelin says.

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Goodyear develops self-inflating tyre

dent Obama would extend the tariff. Now an extension seems unlikely as the United Steel Workers Union (USW) has decided not to ask for an extension after it found out the US might have to pay reparations to China. In the first year, the tariff on China-made passenger and light truck tyres totalled 39%. They dropped 34% in their second year and 29% in their third. At midnight September 26, the duties were reverted to their traditional level of 4%.

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Bridgestone develops new retreading technology Bridgestone Corp. has developed a truck and bus tyre manufacturing technology that incorporates elements of retreading that it claims will reduce costs, resource consumption and CO2 emissions. Called Trisaver, the technology seeks to improve the performance of the tyre by optimizing each component’s production throughout the process. The company says by introducing the new technology, it expects to achieve reduced rolling resistance and increase the number of times a tyre can be retreaded. Bloomington plant: Meanwhile, Bridgestone 118

november - december 2012

Goodyear Tire & Rubber Company has developed a new self-inflating tyre for commercial vehicles. The Air Maintenance Technology system uses an internal pressure regulator to determine when the tyre is low. When pressure falls below a certain parameter, the regulator opens to allow air into a pumping tube. Once the tyre is properly inflated, the regulator closes off the pumping tube and the truck continues on its way without ever stopping or having to rely on an external compressor. Goodyear says implementing Air Maintenance Technology on commercial vehicles was particularly difficult due to the higher-than-normal pressures found on large truck tyres. Highway Hero Award: Meanwhile, Goodyear is accepting nominations for its 2012 North America Highway Hero Award through January 31, 2013 at www.goodyeartrucktires. com. The prestigious award honours truck drivers who put themselves in harm’s way to help other people. The winner will receive a $5,000 cash award, a custom Goodyear Highway Hero Ring, and other prizes. The person who nominates the winning Highway Hero will receive a $1,000 cash award.

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Tyre makers commit $10 bn in investments The world’s major tyre makers committed a Rubber Asia


record $10 billion in capital investments in the past year to expand and upgrade their manufacturing operations worldwide, according to an analysis of available data done by Rubber & Plastics News. The investments represent at least 222,000 units of new daily passenger tyre capacity, 23,000 units of new daily truck tyre capacity and roughly 600 metric tonnes of new daily off-highway (farm, off-the-road, etc.) tyre capacity. The largest share of the capital expenditures, roughly $2.9 billion, will be invested in Asia and $2.75 billion in North America. More than $1 billion is committed to projects in Europe, with the bulk going to Eastern Europe. The remainder of the expenditures are split between Latin America and Africa/the Middle East. For the second year running, Bridgestone Corp. topped the investment ladder, with $2.6 billion in committed spending, followed by Yokohama Rubber Co. Ltd. ($1.75 billion), Pirelli & C. S.p.A ($1.12 billion) and Michelin ($1 billion).

2011 a ‘peak year' for winter tyres A total of 73.8 million winter passenger car and 4x4 tyres were sold in Western Europe last year and a further 18.7 million in Central Europe, up 12.8% and 10.7% year-on-year respectively, according to the statistics shared at Continental’s recent European ContiWinterRoadshow. Last year’s sale of 92.5 million units is viewed as a ‘peak’ for winter tyres. Continental says it expects sales to stabilise at around 90 million by 2015. This year, Continental anticipates that both the Western and Central European markets will experience a moderate decline; it estimates 65.8 million winter passenger car and 4x4 tyres will be sold in Western Europe and 17.7 million in Central Europe.

India's tyre sector hit by duty structure: Survey Tyre manufacturing in India is one of the sectors most affected by the ‘inverted Customs duty structure’, according to a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI). The survey reveals that the tyre sector, along with several others, are most keenly Rubber Asia

disadvantaged by the structure of India’s import duties, which charge higher duties for imported raw materials than for imported finished products. This anomaly in duty rates is in part the result of the Free Trade Agreements India operates with a number of Asian countries. These agreements call for a level playing field when it comes to finished products, yet imported raw materials continue to be taxed at a higher rate, FICCI notes. The survey recommends that domestic manufacturers in India be afforded the same level playing field when importing raw materials.

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Apollo launches ‘You-First' campaign Apollo Tyres has launched a rebranding strategy that repositions tyre from being a commodity to a lifestyle product. In its new handbook titled ‘YOU-FIRST’, Apollo says its core brand idea centres on two things, namely, “go the distance” and “safety.” “Apollo enables people to go the distance, safely,” the tyre maker elaborates in the handbook. To communicate the key message of the repositioning, Apollo has launched a largescale advertising campaign in India, parts of the Middle East, and in Europe. The campaign’s motto is “You-First”, which reflects that people – be it customers, business partners or employees – always come before everything else at Apollo. The company adds that You-First is about Apollo’s search for quality and a passion for excellence to ensure customers have a safe driving experience.

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Conti launches new VAIs Continental Tyres has introduced new visual alignment indicators (VAI) on two long distance truck tyre sizes; the first time such indicators have become available on truck tyres in Europe. The VAIs aim to show operators incorrect wheel alignment on trucks and trailers more easily and without the use of expensive electronic measuring systems. Conti says the system should help fleet operators to spot excessive positive or negative camber angles or too much toe-in or toe-out, all of which can decrease tyre life through uneven wear and increase fuel consumption.

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Pirelli invests in eco tyre development Pirelli has chosen its Carlisle plant as the november - december 2012

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research and development centre for a new range of high technology eco tyres. Pirelli has announced a further £11.4m investment in the eco tyres project together with a further £9m in new process machinery for volume production.

Sumitomo to build 2 new plants

The company plans to increase manufacturing capacity of bicycles at its Ludhiana plant and to set up a bicycle manufacturing plant at Dahej in the near future.

Meanwhile, Sumitomo Rubber (Thailand), a fully-owned subsidiary of Sumitomo Rubber Industries, recently held a groundbreaking ceremony for its new agricultural tyre factory in Thailand. The plant, which is currently under construction in the Amata City Industrial Estate, Rayong Province, will be Sumitomo’s first agricultural tyre factory outside of Japan.

The organisers of the 13th Tire Technology Expo Conference being held at Cologne Messe,Cologne,Germany from February 5-7, 2013, have instituted a 'Young Scientist of the Year' award which will be presented to the best paper given by a student/industry trainee aged under 28 years and working on a tyre-related subject.

Toyo Tire & Rubber Co. Ltd. is planning a new technical centre in Kawanishi City, Japan, that will consolidate existing tech centres in Ibaraki City and Itami City, Japan. The unit will combine basic research and applied research in tyre technologies, Toyo said. The unit is being designed to be aligned closely with manufacturing and marketing functions to speed up the process of developing a tyre for market, the company said.

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Aeolus opens new PLT plant China’s fifth largest tyre company, Aeolus Tyre Co. Ltd., has built a new plant to produce passenger and light truck radial tyres (PLT), adding to its existing product lines of truck and OTR tyres. The company is currently the 20th largest tyre maker in the world. Aeolus Chairman and General Manager Feng Wang said the aim is to get to the 10th position. The company sold more than $1.5 billion in the US in 2011.

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Govind Rubber plans to set up a new tyre and bicycle manufacturing facility at Dahej in Gujarat at an investment of Rs 7,500 million, the company said. The plant will have a production capacity of 225 metric tonnes a day. The company envisages 100% growth in bicycle business.

Sumitomo Rubber Industries intends to invest 40 billion yen (£315 million) in building a tyre factory in Çankiri, about 90 miles from Turkey’s capital Ankara. Construction on the plant is set to start next year and the first phase will be ready in 2014, with further work completed in 2015.

Toyo plans new tech centre in Japan

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Govind Rubber plans new tyre facility

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'Young Scientist' award for tyre research

The prize will be £1000 plus paper publication in its magazine Tire Technology International and also a plaque presented at the gala dinner on February 6.

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Shandong Linglong to build plant in Thailand China’s Shandong Linglong Tyre Co. Ltd. plans to build a $115 million passenger and light truck tyre plant in Thailand, with production expected to begin by June 2014. The facility is expected to have the capacity to make 2 million tyres annually, the company says. The plant will be the company’s first outside China, where it ranks as the fourthlargest tyre manufacturer.

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Kenda to build its fifth tyre plant in China Taiwanese tyre maker Kenda Rubber Co. Ltd. plans to invest $333 million to build a factory for car, light truck, trailer and motorcycle tyres in the Southeast China city of Huizhou, in Guangdong province. By 2016, the factory will have the capacity to produce 83,000 radial tyres per day, according to Kenda Chairman Yang Ying-ming. The plant, set on a 10-acre site, will be Taipeibased Kenda’s fifth in China. Rubber Asia


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rubber Trends ANRPC sees better outlook for NR in 2012 Opportunities for production and demand growth for NR globally are encouraging in view of the improvement in the economic indicators of the US, China, Japan and Europe, according to ANRPC. The Association anticipates impressive growth in both production and consumption of NR in 2012. Supply forecast to rise 5%: ANRPC expects NR production to rise 5% to 10.86 million tonnes in 2012 from 10.34 million tonnes in 2011, boosted by an expected increase in production in Indonesia, Malaysia, China and Vietnam. Both China and Vietnam have revised their production by 15,000 tonnes to 795,000 tonnes and 930,000 tonnes respectively. NR production for the month of September 2012 amounted to 991,000 tonnes compared to 948,000 tonnes in September 2011, a rise of 4.5%. However, in view of lower production in some regions, only a marginal growth of 0.2% is expected in Q3 2012 with a volume of 2.86 million tonnes as compared to a much higher 6.2% growth registered in Q3 2011. Consumption grows 3.8 %: For the ninemonth period between January to September 2012, the total of NR consumed by ANRPC’s member-countries showed growth at 3.8% against 2.6% for the same period in 2011. A total volume of 4.81 million tonnes of NR was consumed by the ANRPC region up to September 2012 led by China and India which accounted for about 72% of the total consumption in the region. In Q3 2012, the total consumption registered a growth of 2.8% from 1.630 million tonnes to 1.675 million tonnes with 4% growth in September 2012. The consumption of NR in 2012 is likely to maintain a growth of 3.6% with volume of 6.496 million tonnes, thanks to upward revision in consumption figures by China, India and the Philippines. China revised the country’s consumption of NR from 3.670 million tonnes to 3.690 million tonnes — India from 999,000 tonnes to 1.005 million tonnes and the Philippines 122

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from 55,600 tonnes to 62,600 tonnes.

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Vietnam set to overtake India in NR output Vietnam has increased its estimate of natural rubber production this year to a level that would take it past India as the world’s fourth-largest producer of the commodity. Vietnam has raised its estimate to 930,000 tonnes from a previous estimate of 915,000 tonnes, thanks to increase in tapping area to 528,400 hectares from 520,000 hectares, says the ANRPC. This would make Vietnam’s natural rubber production 14.5% higher than its 2011 total. India, the world’s second-largest natural rubber consumer after China, has estimated its 2012 production at 920,000 tonnes. Thus, Vietnam will overtake India by a 10,000 tonnes lead.

NR exports on recovery path In Q2 2012, NR exports by ANRPC’s Members have registered a betterthan-expected rise of 5.4% growth as compared to a 4.9% growth in the same period a year ago. Such achievement was supported by the highest production growth in Q2 2012 at 10.3% as compared to the other quarters during the year. In the month of August a marginal positive growth at 1% was recorded as against a negative growth at 2.4% reported earlier. The exports in September have recovered to a positive growth at 4.2% with volume of 713,000 tonnes from a negative growth at 0.3% in the year before. However, the exports in Q3 2012 have recorded a lower growth of 1.3% at 2.064 million tonnes with similar trend being observed for Q3 production by member-countries.

Remarkable growth in NR imports For the period between January to September 2012, NR imports by member-countries of ANRPC have shown a remarkable Rubber Asia


rubber Trends growth of 15.7% with volume of 3.175 million tonnes. Such remarkable growth is supported by the persistent growth of imports by China, Malaysia, India and Indonesia at the rate of 14.4%, 15.7%, 56.1% and 50.0% respectively. However, countries like Vietnam, Sri Lanka and Thailand recorded a fall in imports during the first nine months in 2012 as compared to the same period a year ago. Vietnam and Thailand recorded a decline by 1,000 tonnes of NR imported; whereas Sri Lanka registered a fall by 5,000 tonnes. For the year 2012, total import of NR by member-countries of ANRPC is revised up by 11,000 tonnes to 4.21 million tonnes as compared to 4.20 million tonnes reported earlier. The upward revision is mainly due to the increase in import by China and some adjustments made by India and Vietnam.

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Slowdown impacts SR trade Most of major producers of SR saw a sharp fall in their exports in Q2 2012, driven downwards by the deteriorating global economic environment and slowdown in SR production, according to the data compiled by IRSG. Japan and Korea were the two exceptions, which saw exports grow at accelerating rates in Q2 2012 as compared to Q1 2012. For H1 2012, total SR exports of Korea increased by 7.2%, which was mainly the result of significant capacity expansion. For Japan, the total SR exports increased by 7.1% in H1 2012, and by 8.4% in Q2 2012. The deteriorating economic environment also took a varying toll on the volume of imports of the five major importing countries -- Thailand, India, the US, China and the European Union. The sharp rise in imports by Thailand in Q2 was due to the loss of a large part of the country’s production capacity as a result of the May 5, 2012 explosion at the Bangkok petrochemical complex.

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No NR shortage likely in India: Rubber Board Rubber Board, India, estimates the country's production and consumption of NR for the year 2012-13 to be around 9,30,000 tonnes and 10,06,000 tonnes respectively 124

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with a deficit of 76,000 tonnes. However, there would not be any shortage of NR in the domestic market in 2012–2013 as the projected opening stock of NR in April 2012 is 236,275 tonnes and as the rubber consuming industry has entitlement to import around 150,000 tonnes of NR through dutyfree channels, Rubber Board Chairman Sheela Thomas says.

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Rise in rubber stocks as consumption falls In the twelve months to June 2012, NR production outstripped consumption by 315,000 tonnes on an annual basis. As a result, the implied stocks increased to 1.54 million tonnes in June, sharply increasing from March 2012, says IRSG. The SR producers responded aggressively in Q2 2012 to the weakening state of the global rubber industry, sharply reducing the surplus to 97,000 tonnes in June 2012 on an annual basis from 149,000 tonnes in March 2012. As a result, there was only a marginal increase in implied stocks of SR to 3.59 million tonnes in June 2012, from 3.56 million tonnes in March 2012.

NR productivity: India remains on top ANRPC anticipates a 1.1% increase in average yield of NR to 1,441 kg/ha in 2012. Among the top NR producers, India is poised to maintain its lead in productivity in 2012 as well, according to ANRPC. India's average annual yield is estimated to be 1,818 kg per hectare of tapped area in 2012, followed by Vietnam (1,760), Thailand (1,720), Sri Lanka (1,580) and Malaysia (1,466). India’s average annual yield in 2011 is estimated at 1,819. However, countries such as Cambodia, Indonesia and the Philippines are still lagging behind in NR productivity, with their average yield in 2012 expected to be 1,150, 1,159 and 1,226 respectively.

Big increase in yielding area The new planting/replanting drive being undertaken by many NR producing countries in a big way is expected to substantially increase the yielding area. ANRPC anticipates that the yield area would rise 3.7% to 7.52 million hectares in 2012. Rubber Asia


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News Digest India Govt plans `555’ scheme to boost exports

for Commerce and Industry Jyotiraditya Scindia. Addressing the 119th annual general meeting of the United Planters Association of India (UPASI) at Coonoor, he said the five countries identified for the scheme include Kazakhstan, Iran, Egypt, Russia and the US. The total corpus size is Rs 1,000 million for a period of five years with private participation in 75:25 ratio. He informed that the Government has set up a Small Grower Development Directorate as part of the Tea Board to exclusively address issues pertaining to the small sector. The Directorate, to become functional soon, will provide effective extension services, better management of the entire chain — from plantation to marketing, quality enhancement, value addition, export potential and better price realisation.

Jyotiraditya Scindia (third from left), minister of State for commerce & Industry, Government of India, addressing the 119th Annual conference of UpASI

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ith a view to boosting consumption of plantation products and diversifying exports, the Indian Government has drawn up a ‘555’ scheme that would focus on “five countries over a period of five years with five strategies,” said Union Minister of State

In his presidential address, UPASI President D. Hegde expressed concern over the escalating production costs. He said the prices of fertilisers have more than doubled in the last one year. Wages are also going up exponentially, whereas prices are moving up at a slower pace. The association has requested the Government to allot more funds towards research and mechanisation activities.

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George Valy reelected IRDF President The 22nd Annual General Meeting of the Indian Rubber Dealers Federation (IRDF) held at Kottayam reelectd George Valy as President of IRDF. The other newly-elected

George valy

c .J Augustine

Rubber Export Awards: Rubber Export Awards 2012 instituted by IRDF for exporting maximum quantity of natural rubber during 2011-12 were presented by Dr. J Thomas, Rubber Production Commissioner, Rubber Board. The following are the award winners who came first and second respectively in various categories: IrdF Annual General meeting in progress

office-bearers are: C. J. Augustine (General Secretary), Jose Mamparambil, Biju P Thomas (Vice Presidents), Ditto Thomas (Joint Secretary), Ibrahim Jalal (Treasurer) and E.T. Varghese (Patron). 126

November - december 2012

TSR: Thomson Rubbers India Pvt. Ltd, Kanjirappally (first place); A V Thomas & Company, Ernakulam, and Malaya Rub Tech Industries, Ernakulam. Latex: St. Marys Rubbers Pvt Ltd, Kanjirappally; Thomson Rubbers India Pvt. Ltd, Kanjirappally. Rubber Asia


News Digest India Sheet rubber: Anil Rubbers, Kanjirappally; R 1 International, Kochi.

Board Field Stations would be completed in a period of one year.

Cell to ensure safety of women at HLL

AIRIA plans forum of young entrepreneurs

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A cell for the redressal of grievances relating to sexual harassment of employees has been formed at HLL Lifecare Ltd. Inaugurating the cell, Kerala Minister for Youth Welfare P K Jayalakshmi said the State Government would soon introduce a legislation to ensure the safety of women at work places. M Ayyappan, Chairman & Managing Director of HLL Lifecare, said his company was in the process of developing a valuebased work culture Kerala minister p K Jayalakshmi inaugurating a cell for which would act as redressal of women’s grievances at HLL Lifecare Ltd. a deterrent against atrocities on women.

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Survey for tapper data bank launched The Rubber Board has launched a Statelevel survey for the preparation of tapper data bank. While inaugurating the survey at Chirakkadavu Rubber Producers’ Society near Kanjirappally, Board Chairman Sheela Thomas said a statistical data base of rubber tappers is a prerequisite for formulating any welfare measure in the sector. She hoped that the data bank would be beneficial not only for the Rubber Board but also for the State Sheela Thomas inaugurating state-level survey for the Government to preparation of tapper data bank formulate welfare plans for the labour sector. Dr. Thomas J, Rubber Production Commissioner, expressed the hope that the survey being implemented through the Rubber Producers’ Societies (RPSs) and the Rubber 128

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The Managing Committee of All India Rubber Industries Association (AIRIA) at its first meeting in principle accepted the proposal put forward by the new President Neeraj Thakkar to form a forum of the young entrepreneurs of the AIRIA members. The proposed forum will have the second generation automatically inducted into the activities of AIRIA thereby having a lineup of future leaders and active members to further its cause. There will be specific programmes for better exposure to the second generation. The forum will organize programmes for its members to broaden their horizons of knowledge in rubber industry by arranging industry visits, technical seminars, commercial seminars etc.

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RRII observes Foundation Day Rubber Research Institute of India (RRII) observed its Foundation Day to commemorate the official transfer of its present premises to the Rubber Board by the then Travancore-Cochin Government on October 5,

dr. rajan Gurukkal delivering Foundation day lecture. To his right is dr. James Jacob

1955. Over the years, RRII has grown into a premier research institute of international repute. The Foundation Day lecture was delivered by Dr. Rajan Gurukkal, Vice Chancellor, Mahathma Gandhi University, on the subject Invention Development Technology: A Critical Appraisal. Dr. James Jacob, Director, RRII, welcomed the gathering. Rubber Asia


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News Digest International NR producers to cut exports to boost prices

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orld's top natural rubber producers have drawn up a joint strategy to stabilise rubber prices which are showing a downtrend of late. Thailand, Malaysia and Indonesia, members of the International Rubber Consortium (IRC), said they would cut 450,000 tonnes of NR exports to boost prices. They would withdraw 300,000 tonnes of NR exports and take another 150,000 tonnes of rubber off the market. The decision was taken in the wake of fall in NR prices by as much as 15% in the first half of this year. The three countries will also accelerate a replanting programme of 100,000 hectares. The IRC said demand for NR remained strong, and inventories low. “The drop in NR price was mainly contributed by negative market sentiment caused by various other factors including uncertainties in global economic growth,” according to the organization. The Group expects its action would boost prices and help smallholders and other stakeholders in the NR trade. Vietnam to attend ITRC meet: In another major development, Vietnam has agreed to participate in the December 2012 meeting of the International Tripartite Rubber Council (ITRC), suggesting the possibility of becoming a new member of the council. Established 10 years ago, the ITRC represents the world's three largest rubber producers — Indonesia, Thailand and Malaysia. Its main goal is to stabilise rubber prices. Thailand, Indonesia and Malaysia, represent 70% of global output and if Vietnam agrees to join, up to 80% of the world's rubber exports will be represented by the Group.

Professor at the University of Akron, for the George S. Whitby Award, Wilma Dierkes, an Associate Professor at the University of Twente in the Netherlands, for the SparksThomas Award, and Stuart Cooper, Chair of the Ohio State University Department of Chemical and Biomolecular Engineering, for the Chemistry of Thermoplastics Award.

LANXESS breaks ground for Singapore plant LANXESS has broken ground for its new neodymium-based performance butadiene rubber (Nd-PBR) plant in Singapore. The German speciality chemicals company is investing roughly EUR 200 million in a 140,000 tonne per annum facility on Jurong Island. The facility will be the largest of its kind globally and will serve the growing market for “Green” tyres, especially in Asia. The plant is expected to start up in the first half of 2015. EPDM business: Meanwhile, LANXESS A.G. has said it will add a 14th business unit when it splits its EPDM business from its Technical Rubber Products next February. The EPDM business will have about 600 employees at sites in the U.S., the Netherlands, China, Germany and Brazil. The remainder of the Technical Rubber Products business unit— which includes polychloroprene, hydrogenated nitrile, ethylene vinyl acetate and nitrile rubber—will be called High Performance Elastomers . It will have about 800 employees at sites in the U.S., Germany, France and China.

Medical items in Malaysia ..................................................................... to be registered ACS Rubber Division awards announced The ACS Rubber Division has nominated Russell Livigni, a former Vice President of GenCorp Inc. and a Consultant for Omnova, for its 2013 Charles Goodyear Medal. The Division has also announced the names of four other people who will receive awards at next year’s spring meeting in Akron. They include William Hergenrother, a research fellow for Bridgestone Americas, for the Melvin Mooney Award, Ali Dhinojwala, a 130

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All medical items manufactured in or imported into Malaysia — ranging from bandages, condoms and syringes to the sophisticated magnetic resonance imaging equipment -- must be registered with the authorities effective from November 2012. This is to protect consumers from lowquality products that could pose health risks. Even beauty products such as facial fillers and breast implants, as well as slimming or weight reduction equipment used in beauty saloons, are also required to be registered.

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Rubber Asia


Sri Lanka plans rubber industry survey The Sri Lankan Government is launching the first ever national rubber industry survey and also looking at creating high-tech rubber testing lab facilities that the industry needs, said Rishard Bathiudeen, Minister of Industry & Commerce, Government of Sri Lanka. Speaking to representatives of Sri Lanka Association of Rubber Products Manufacturers & Exports (SLARPME), he said once the survey was completed, a database would be created and the findings would be fed into the comprehensive Rubber Labour Force Development Survey that follows. He disclosed that Sri Lanka was aiming for $ 4 billion rubber exports by 2022.

tyre partners and employees, but also to the wider community, taking the view that business should be willing to give something back to society,” says Jorge Crespo, General Manager of Eternity Tyres.

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Van Horn, Phillips Carbon Black enter deal Van Horn Metz & Co. Inc., a raw materials distributor, has signed a supply chain partnership agreement with Phillips Carbon Black Ltd of India. The deal allows Van Horn to offer a complete line of ASTM and speciality grades for all rubber, plastics and speciality application in North America.

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Vystar acquires SleepHealth

Al Dobowi launches ‘Eternity Cares’

Vystar® Corporation, the exclusive creator of Vytex® Natural Rubber Latex (NRL), has announced the strategic acquisition of SleepHealth, LLC, a privately held sleep diagnostic company headquartered in Monroe, GA. SleepHealth provides sleep lab management services to hospitals and physicians’ offices in the Southeastern US. The acquisition is mutually beneficial for both companies as it will provide each with additional avenues for expansion.

The Al Dobowi Group has launched `Eternity Cares’, the latest charitable enterprise to be established by the Group.Under this banner, the company aims to employ its Eternity trademark to the greater good. Even though Eternity tyres are yet to reach the market, Al Dobowi has already diverted funds to the Eternity Cares initiative to support UK charitable causes. Under this initiative, Eternity sponsored a

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ExxonMobil launches lightweight film ExxonMobil Chemical has introduced new Label-Lyte™ 52LLC210 film, a new lightweight oriented polyolefin film which offers excellent converting characteristics, conformability and flexibility for pressure sensitive label (PSL) applications. Robust and clear, the conformability and squeezability of Label-Lyte 52LLC210 film enable brand owners to enhance point-ofsale impact, encouraging consumer “pickup.” The film is engineered to improve overall output with consistent web handling, reduced curl and die cutting advantages, the company says.

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Trelleborg opens plant in Brazil members of eternity-sponsored team in 2012 bristol dragon boat challenge

local team in the 2012 Bristol Dragon Boat Challenge in aid of St Peter’s Hospice, Bristol’s only adult hospice caring for local people with life-limiting illnesses. “The Al Dobowi Group sets great value on loyalty and continuity, not just to its many Rubber Asia

Trelleborg A.B. has begun operations at a plant in Brazil that will develop, manufacture and supply high-performance polymer and syntactic foam-based solutions for the offshore industry, such as various buoyancy products. It will also feature the world’s largest hydrostatic pressure testing vessel for products used in deep-sea environments. november - december 2012

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Yokohama Rubber ends JV in Vietnam Yokohama rubber has ended its 15year old joint venture in Vietnam and intends to integrate this into its local subsidiary, Yokohama tire Vietnam inc. the company announced that the three joint investors in Yokohama tire Vietnam company(YtVc) — Yokohama rubber, southern rubber industry company (casumina) and Mitsubishi corporation — started preparing to end the joint venture company in august as part of Yokohama’s enhancement of its tyre manufacturing and marketing operation in Vietnam. the joint venture company produces crossply tyres for motorcycles and light commercial vehicles. Steep rise in sales, income: Meanwhile, Yokohama rubber has reported a strong increase in both sales and earnings during the first half of 2012. Net income increased by 280.6% over the same period of the previous year to 13.7 billion yen (£111.5 million), operating income by 232.2% to 19.9 billion yen (£161.9 million), and net sales by 7% to 269.0 billion yen (£2.2 billion).

Sumitomo, Stamford plan sales JV in India sumitomo rubber industries Ltd. and stamford tyres international pte. Ltd. plan to set up a sales joint venture in india. the company will be called falken tyre india private Ltd. sumitomo will be the majority shareholder in the 60:40 venture. it aims to strengthen sales of replacement tyres in india, where the market is expected to keep growing. the company will start business in april 2013.

Himadri to form carbon black company the Kolkata (india)-based rs 11,000 million Himadri chemicals and industries Ltd has decided to carve out its carbon black division into a separate company. the new entity — Himadri e-carbon — would be a wholly-owned subsidiary of Himadri chemicals. carbon black accounts for nearly 40% of the company’s turnover. plans are afoot to expand the carbon black manufacturing capacity by over 60% in two to three years. the company has 132

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corporate affairs earmarked rs 4,000 million for its expansion programme.

Hankook’s revenues, profit up Hankook tire has reported higher revenues and operating profit for the second quarter of 2012. the Korean tyre maker’s revenues rose 18.5% year-onyear to KrW 1.84 trillion (£1.03 billion) in the three months to June 30 and operating profit jumped 112.1% to KrW 215.5 billion (£121.15 million). sales to original equipment customers outside of Korea rose 41.3% year-on-year, while ultra-high performance product sales increased 22.2%.

Rise in Cooper’s sales, income cooper tire & rubber co. has reported net income of $86.6 million for the first half of 2012, against total sales of $2.04 billion for the period. the first half sales were up compared to $1.82 billion for the same period in 2011, and net income surpassed last year’s $32.9 million.

Toyo reports growth in tyre business toyo tire & rubber has reported net sales of 120,474 million yen (£980.8 million) for the first quarter of its current financial year ended June 30, 2012. the company’s tyre business unit accounted for 96,448 million yen (£785.2 million) of these sales, 80.1% of the total. the company’s operating income amounted to 3,529 million yen (£28.7 million), while tyre business operating income was 2,428 million yen (£19.8 million). total net income came to 1,252 million yen (£10.2 million).

Titan posts record sales, profit titan international has reported record

second quarter sales and operating profit. sales during the three months to June 30 were at $459.2 million, 14% higher than in the corresponding quarter of 2011. Gross profit increased 28% to $82.1 million, or 17.9% of net sales. second quarter income from operations was $81.0 million, up 82% compared with last year’s second quarter result of $44.4 million. adjusted net income for the second quarter was $28.8 million, compared to $23.7 million in the second quarter of last year.

Nexen Tire sales, profit rise the Korean tyre maker Nexen tire achieved net sales of KrW 433.3 billion (£242.8 million) during the second quarter of 2012. this result represents year-on-year growth of 29.8%. Gross profit, at KrW 118.6 billion (£66.4 million), was up 49.2% year-on-year. operating profit amounted to KrW 51.8 billion (£29.0 million), up 90.1%.

Govind profits up 248% india’s Govind rubber Ltd has reported net sales of rs 782.3 million (£8.9 million) for the three months to June 30, 2012, a 35.6% year-on-year increase. Net profit, at rs 10.1 million (£), was up 248% on the corresponding quarter of 2011. the tyre maker recently announced a rs 8.5 billion (£115,500) expansion project at its alwar plant in india, and the company also intends to set up a new greenfield facility in Dahej.

Nokian posts higher sales, profit Nokian tyres have reported 27.1% rise in sales during the first half of 2012. the company achieved group net sales of 798.0 million in the six months to June 30, while operating profit increased 31.5% to 217.7 million euros. Net profit went up 33.9% to 182.9 million euros.

Dow Corning’s sales, profit fall Dow corning corp. has announced sales of $3.09 billion and net income $192 million for the first half of 2012. this represents a fall of 5% and 48% in sales and net income respectively, compared to the year-ago period as oversupply and high raw material costs continue to challenge the company’s profits. Rubber Asia


ecoNomIcTrends Global slowdown to continue: IMF

took office in January 2009.

The International Monetary Fund (IMF) has predicted a further slowdown in the global economy's growth rate. The global economy is predicted to rise 3.3% this year and 3.6% next year. In its previous forecast, three months ago, the IMF had pegged growth this year at 3.5% and 3.9% in 2013. The IMF says there is an “alarmingly high” risk of a global slowdown with an 80% chance of recession in the Euro Zone next year.

.....................................................................

The IMF also expects an economic slowdown in China and India, two countries whose economic booms helped the world recover from the most recent recession. It warns of continued uncertainty in the Middle East and North Africa amid political and economic transitions. In that region, real GDP growth is forecast to slow to about 1.25% this year, but expected to rebound moderately in 2013.

China’s economic growth slowed down to 7.4% year-on-year in the third quarter of 2012, slower from 7.6% in the second quarter and 8.1% in the first, the National Bureau of Statistics (NBS) said. This has been the slowest pace since the first quarter of 2009. Meanwhile, the World Bank has reported that fall in exports and investments may cut China’s GDP growth from 9.3% last year to 7.7% this year.

India's economy in for worse times

Asian economy hit by demand recession The World Bank and the Asian Development Bank have lowered their growth estimates for Asia, citing the slowdown in China and India and the Euro Zone crisis as potential reasons. The World Bank lowered its growth outlook for Asia to be 7.2% in 2012, down from the 7.6% projection made in May and lower than last year's rate of 8.2%.

The International Monetary Fund (IMF) has revised India's growth forecast down to 4.9% in 2012, compared with 6.8% in 2011. But improvements in external conditions and confidence, helped by a variety of reforms announced very recently, are projected to raise real GDP growth to about 6% in 2013, the IMF says.

The ADB cut its 2012 growth forecast for developing Asia, which comprises 45 nations, from 6.9% in April to 6.1% — the lowest since 2009 when the region expanded 6.0%.

Asian Development Bank (ADB) has cut India's economic growth forecast for the current financial year to 5.6%, from its earlier projection of 7.0%.

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Us unemployment rate at four-year low The US unemployment rate dropped to a near four-year low of 7.8% in September, 2012, from 8.1% in August, raising doubts on the effectiveness of the stimulus measures put in place by the Obama administration to boost the labour market. The drop in September marks the lowest level since President Barack Obama November - december 2012

China’s Q3 growth slows to 7.4%

Plunging global demand and a delayed monsoon will worsen the slowdown in India, Asia's third largest economy, international financial agencies have said

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The decline in job rate comes in the wake of further fall in the US GDP growth rate to 1.5% in the April-June quarter.

Japan's growth forecast trimmed to 2.2% In its semi-annual World Economic Outlook, the IMF has trimmed its growth forecasts for Japan citing factors affecting Asian economies in general — weaker demand for exports and a slowdown in China. Compared with its July forecast update, the IMF cut this year's growth estimate for Japan to about 2.2% from 2.4% and next year's to 1.2% from 1.5%. Rubber Asia


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EvEnt

rubber board chairman Sheela Thomas inaugurating the ruby Jubilee celebrations of the department of Polymer Science & rubber Technology of the cochin University of Science and Technology

CUSAT: Nurturing best brains for the rubber industry The department of Polymer Science & rubber Technology of the cochin University of Science & Technology (cUSaT), which completes 40 years of its glorious existence, has earned a well-deserved name as a centre of excellence for plastics and rubber education and research

2012

coincides with the completion of forty years in the history of the Department of Polymer Science & Rubber Technology of the Cochin University of Science & Technology (CUSaT), which has produced many best-known names in the rubber and plastics field in India and abroad. To commemorate its Ruby Jubilee (40th anniversary), the Department organised "Confluence 2012", a get-together of teachers and students — past and present. For the teachers who were with the Department right from its inception in 1971, it was a rare opportunity to share their experiences with the new generation and relive the nostalgic moments of their golden days in the campus.

Centre of excellence While welcoming the gathering at the inaugural function, Prof Sunil K N Kutty, the present Head of the Department, said Rubber Asia

over the years, the Department has earned a well-deserved name as a centre of excellence for plastics and rubber education and research. The alumni of the Department play stellar roles in many industrial/academic/research organisations in India as well as abroad, he said. Inaugurating the function, Sheela Thomas, Chairman, Rubber Board, India, complemented the Department for developing many innovative programmes for the development of the polymer sector. She said science and technology institutions should look at the real needs of the industry and there should be greater industry-institute interaction for developing new technologies needed by the industry. There is vast potential for further development of tyre and other rubber-based industries in India and the country is well-poised to be a hub of the global rubber industry. The NR and SR industries should work november - december 2012

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the meeting of two great minds While speaking at the 40th anniversary celebrations of the Department of Polymer Science & Rubber Technology, Dr V K Bhaskaran Nair, former Director of RRII, reminisced how the meeting of two great minds — one an English Professor and the other a Malayalam Professor -- led to the creation of the Department 40 years back. Bhaskaran Nair, the then Director of RRII, felt sad that though Kerala was the home of natural rubber in India, Prof. Joseph mundasseri students from the State had to move out to other parts of the country or abroad to pursue a course in Polymer Science and Rubber Technology. He was therefore keen to establish a Department of Polymer Science and Rubber Technology under the aegis of the Cochin University. This was how Nair recounted the sequence of events that led to the creation of the Department:

“I broached the idea with the then Chairman of Rubber Board Prof K M Chandy, an eminent English Professor. Chandy sought an appointment with Prof Joseph Mundasseri, the then Vice Chancellor of Cochin University and a reputed litterateur and Malayalam Professor. “When Prof Chandy and I met Mundasseri at the University office, which then functioned at Hill Palace in Tripunithura, Mundasseri, in his characteristic Prof. Km chandy style, lighted up a Dinesh beedi and gave a patient hearing to us on the proposal to create a Department of Polymer Science and Rubber Technology. Mundasseri was so impressed with the idea that before he had finished his beedi, he called the Pro Vice Chancellor and gave a verbal order to take the follow-up measures for the creation of the Department.”

together for the overall development of the rubber sector, she said. Prof D J Francis, former HOD, presided over the function. Former Directors of RRII C M George and V K Bhaskaran Nair offered felicitations. Prof K E George proposed a vote of thanks. Senior teachers of the Department were felicitated on the occasion.

Alumini meet Dr N M Mathew, former Director of RRII, chaired the Technical Session in which distinguished member of the alumni

Kalayil T Varghese, Tom K Thomas, S Suryanarayanan and V Noushad made presentations. The alumni meet held in the afternoon was inaugurated by the University Vice Chancellor Dr. Ramachandran Thekkedeth. The alumni meet was an occasion for many old students and teachers to go down the memory lane. The audience burst into laughter when C M George, the then Deputy Director of RRII, said, pointing towards Dr Rani Joseph, now Professor at the Department, sitting among the audience: “Rani was the first girl student of the Department. Since she lived on my way to the college, I had to give a lift to her. So I not only had to help her in her studies but also ensure her personal safety.”

Innovative programmes

down the memory lane: Students of the first batch of Polymer Science & rubber Technology with the present faculty of the department 146

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The Department offers B.Tech in Polymer Science and Engineering, M.Tech in Polymer Technology and Ph.D Programme. apart from its academic programmes, the Department also undertakes various programmes for the benefit of the industry and rubber technology professionals. an active consultancy wing of the Department caters to the needs of the polymer industries in the state. Rubber Asia


SeminARS & confeRenceS

Focus on

‘Green’ technology

innovations T

he second edition of Asian Tyre & Rubber Conference (ATRC 2013) being organized by Asia’s premier tyre industry magazine, Polymers & Tyre Asia, will focus on “Green” technology and innovations in global tyre and rubber industry. Preparations are in full swing for the Conference scheduled to be held from July 21-22, 2013, at Hyatt Hotel in Chennai, the auto and tyre hub of India.

Zachariah George

Kurian Abraham

After the grand success of the inaugural edition in 2011, the biennial event is back in Chennai with a host of value additions both in content and profile — be it tyre design, retreading, manufacturing, testing, evaluation or even branding and marketing. Strategically themed Road to a Green Planet: Technology, Innovations and Advancements, the two-day conference will be rich in experts’ presentations. The conference will update you on the latest trends in the industry.

The “Green” factor

John Powath Rubber Asia

Organising Committee Chairman and renowned rubber technologist Zachariah George says: “ATRC 2011 was the first of its kind in India and the success it achieved in attracting some of the most sought-after brains in the industry to be part of it made us proud. However, changes have been happening and priorities are getting redefined. This prompted us to create a more finetuned platform for the conference’s second

edition, ATRC 2013. We have combined two of the most vital elements in the industry as the main theme – technology and the ‘Green’ factor. As to how ATRC 2013 can contribute to the “Green” cause, Zachariah adds: “The ATRC 2013 will provide a forum to generate ideas and discussions among the leading personalities of the tyre industry, the supporting raw material suppliers, the equipment manufacturers, the automotive manufacturers and the knowledgeable and critical consumers and product users. The utopian “Green” planet that we are contemplating can only be achieved by dedication and serious thought processes and hence the theme Technology Innovations and Advancement: Road to a Green Planet.

Great industry support “Our preparations for the conference have been boosted by the great support we have been receiving from some of the leading companies in the industry from across the world. This shows how much of importance ATRC has gained after our debut conference in 2011. Encouraged by this we are aiming to make ATRC 2013 a bigger success.” VMI Group, leading tyre and rubber machinery manufacturer, will be the Corporate Sponsor of the event which is also being supported by leading tyre manufacturing and tyre machinery companies like BKT, Infinity, MESNAC and Bainite as Cosponsors, Strutkol as Laynard Sponsor and TechSci Research as Tea & Coffee Sponsor. The second edition of this biennial event has Automobile Tyre Manufacturers Association (ATMA), Retread Tire Association (RTA), Tire Retread & Repair Information novEMBER - dEcEMBER 2012

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Curtains rising for RubberTech China & Reifen China 2012 T

he International Exhibition on Rubber Technology and the Asian Essen Tire Show 2012 are set for staging from November 14-16 in Shanghai, China, according to China United Rubber Corporation and Messe Essen, the organisers.World’s leading tyre manufacturers will converge in Shanghai New International Exhibition Center for the 6th edition of Reifen China to be held from November 14 16, 2012. Around 130 exhibitors from 14 countries will present their diverse product ranges at the show. More than 10,000 trade visitors are expected for the event. Bundesverband Reifenhandel und Vulkaniseur-Handwerk (BRV -

"Federal Association of the Tyre Trade and the Vulcanisers' Skilled Trade") will be the ideal sponsor of the event. Leading Chinese tyre manufacturers participating in the event include Double Coin Holdings, Shandong Linglong Tyre, Cooper Chengshan, Triangle Tyre, South China Tire & Rubber, GuiZhou Tyre, Aeolus Tyre, Shengtai and Guangzhou Pearl River Rubber Tyre. Besides, a large number of companies from Belgium, Germany, England, India, Italy, Malaysia, Japan, Poland, Russia, Taiwan, the USA, Venezuela and the United Arab Emirates will also present their portfolios at Reifen China 2012.

Bureau (TRIB), International Institute of Synthetic Rubber Producers (IISRP) and International Rubber Study Group (IRSG) as Associates. Rubber Asia, Rubber India and Dr Gupta Verlag are the media partners of the event

Value additions According to him, the success of the conference depends upon how much of prior planning goes into it and how well it is executed. “ATRC 2011 received worldwide praise because of its excellent execution. Participants and delegates were happy with the results. There were exciting interactive sessions that threw up new ideas. At ATRC 2013, we intend to add more value,” he said. The organisers are also focussing on meaningful networking sessions in an ambience that encourages positive social interaction. A conference of this class must offer the best for business and relaxation, George says. As preparations for ATRC 2013 continue in full swing, George points out that the 148

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Rubber Tech China, the trade fair for rubber processing and rubber manufacture, will take place parallel to Reifen China. Around 430 exhibitors will showcase their available ranges. The China Forum, which will provide an overview of the latest developments of the market, will be organized under the banner of Rubber Tech China and Reifen China. Speakers from companies such as Siemens, Michelin, LANxESS, VMI, Cabot, Bekaert and Sinorgchem will make presentations on legal foundations, new material developments and the sector's achievements with regard to energy effciency. For more informations: www.reifenchina.com

goal is to set a benchmark for the way an industry event of this magnitude is organised. “With the kind of professional support we have, I am sure this goal is achievable,” he says.

Rich agenda Kurian Abraham, Editor of Polymers & Tyre Asia and Managing Director of the Dhanam Group, expressed the hope that ATRC 2013 can provide the right thrust to tyre and rubber industry by presenting new ideas. “Economic slowdowns have become a reality. The most effective way to stay out of them is to keep up with the changes and pursue new, innovative ideas. Going ‘Green’ is no more an option, but a necessity. ATRC 2013 will thus be just what the changing times look for,” he says. “Sharing of knowledge and networking can make significant difference to the success of business and we are providing exactly such an opportunity during ATRC 2013,” adds John Powath, Executive Director of Dhanam Group. Rubber Asia


Brityrex 2012 scores high B

rityrex 2012, organised by ECI International, once again proved its worth as the biggest tyre industry exhibition in Britain, recording a 5% increase in the number of visitors, at 2435 compared to the 2010 exhibition. Coming prior to the Nov 1 implementation of the new European Union tyre labelling legislation, the exhibition and the talks on its sidelines by industry experts, attracted special attention. The organisers expressed their happiness over the highly successful show at EventCAl dobowi booth at the show

Richard Edy, Director of show sponsor the NTDA, commented: “Brityrex is a well-established focal point for the tyre industry and proved to be a real success for the association. The move to a new venue in EventCity worked extremely well.” The TyreTalk seminars held on the sidelines of the exhibition saw leading industry figures addressing issues like the new tyre labelling law, the technological revolution happening in the tyre pressure monitoring system and the disposal of tyre waste.

Tyre Talk Workshop in progress

The annual dinner and TAFF Awards were a sell-out event, attracting over 500 guests and raising over £10,000 for BEN motor industry charity. The amount included an auction bid of £6,000 for a luxury trip to Dubai sponsored by the Al Dobowi Group.

Rubber Asia and Polymers & Tyre Asia stall

ity Manchester on October 9-11. ECI Managing Director Paul Farrant said: “We were delighted with the positive feedback received from the show, particularly comments relating to the quality of visitors and the facilities at our new venue, EventCity. Rubber Asia

At the TAFF Awards 2012, Continental Tyre Group was named ‘Tyre Manufacturer of the Year.’ Other winners included BITS (Wholesaler of the Year), Michelin Tyre (Product Innovation; Industry Advertisement Campaign), Sapphire Energy Recovery (Environment), Pang UK (Tyre & Aftermarket Equipment Supplier of the Year) and ATS Euromaster – Brighton West (Tyre Centre of the Year). novEMBER - dEcEMBER 2012

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CITEXPO 2012

Might of world tyre industry on show

O

rganized by Reliable International Exhibition Services Co., Ltd., the tenth edition of China International Tire Expo (CITExPO) has concluded successfully on September 14, 2012.

result has exceeded almost all of the exhibitors’ expectation. The organizer claimed that there were 3,035 international and 4,165 domestic visitors from 102 countries

In the three-day event, 305 exhibitors occupying 22,500 square meters of exhibition area showcased their latest products, services and technologies in Shanghai Everbright Convention and Exhibition Center. Three exhibition halls have been taken up this year in order to accommodate the increased number of the exhibitors. Being one of the world’s most influential and the largest tyre related trade show in the Asian region, CITExPO has put together the tremendous buying power of the worldwide tyre industry in the three-day event. And the

representatives and other suppliers, the exhibitors also included the worldwide suppliers from the ≠ve continents such as the United States, United Kingdom, Spain, Germany, Korea, Thailand, India, Australia, The Netherlands, Italy, Singapore, China, Taiwan and other countries and regions. According to the organizer, Reliable International Exhibition Services Company Limited, 80% of the exhibition space has been rebooked by 180 exhibitors before and during the show for CITExPO 2012. The eleventh edition of CITExPO will be held at the same venue in September 4-6 in 2013.

and 32 Chinese provinces and regions have attended this year’s show. Besides the major Chinese manufacturers, foreign brands’

For further information, visit the of≠cial website at http://www.citexpo.com.cn or email: citexpo@ reliable.org.cn / Tel.:+86(0)108589-8181

IRI Delhi Branch holds technical seminar I

ndian Rubber Institute Delhi Branch organized a Technical Seminar on The Concept of Using New Materials and Technology for Manufacturing Quality Rubber Products on October 6, 2012 at India Habitat Centre, New Delhi. There were four technical sessions covering the following areas: - Eco-friendly technology for rubber industry - High-performance materials - Improvement in quality and cost reduction - Importance of testing equipments in rubber industry

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Technical presentations were made by eminent speakers from the industry and institutes. There was overwhelming response to the Technical Seminar with more than 120 delegates attending it. Rubber Asia


India Rubber Expo & Tyre Show 2013

The global show expands adding tyre and SSI sectors I ndia Rubber Expo (IRE) 2013, the largest global event exclusively for rubber organised by All India Rubber Industries Association (AIRIA), is back to Mumbai where it was debuted in 2001. The Expo is scheduled to take place at BEC, Mumbai from January 22–24, 2013 The organisers of IRE have always striven to bring about innovation in every show and the IRE'13 will be no exception. A unique feature of IRE’13 is that the show has been expanded to cover the Ashok Mittal entire gamut of the rubber industry, literally, including the TYRE SECTOR as well as the NON-TYRE products sector. Says Ashok Mittal, Chairman, IRE’13: “For the entire rubber Industry in India and, in fact, globally, all the vendors are common – whether they be machinery suppliers, raw materials manufacturers, tes-ting equipment or miscellaneous service providers. Why fragment the industry? Let us all be under one roof and benefit from the show of strength. Why can’t a tyre valve or tube manufacturer be at the show as all tyre manufacturers visit? Why can’t the tyre manufacturers exhibit as we invite global tyre dealers to the show? With tyre production and exports growing YOY, India can be a hub for “label manufacturing” of tyres too.”

various international exhibitions to gain greater visibi-lity for the Indian rubber industry and IRE, Mittal says. The 7th India Rubber Expo, Conference and TYRE SHOW has already partnered with various associations such as IRMRA, IRI, CAPExIL, etc. to promote the event for the benefit of various industries related to rubber. Besides the tyre and SSI pavilions, there will be other country pavilions. IRE’13 will also have technical conference and workshops for technocrats and entrepreneurs to dwell into the future of rubber technology, he adds. For further Information, contact: Tel : +91 22 2839 2095/ 2109, Email: ire2013@allindiarubber.net Website: www.indiarubberexpo.in

Pappady ad..

There is a special pavilion for SSI/MSE’s at special discounted tariff. “We will ensure that not only the rubber industry but also the user industries (engineering, pharmaceutical, auto etc.) visit the show. To ensure these, the organisers will be participating in Rubber Asia

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Tyrexpo India 2013

Global trade interchange for booming Indian tyre market

T

yrexpo India 2013 to be held in Chennai trade Centre from 9-11 July 2013 is set to act as a global trade interchange offering international companies direct access to the booming Indian tyre market, while providing Indian suppliers the chance to grow their export sales contacts and networks. While economic growth in Europe and the US stalls, India continues to move ahead with massive investment plans in new tyre production facilities by domestic and international giants such as Apollo, BKT, JK Tyre, Govind Rubber, Michelin and Continental. Together with the rapidly growing personal ownership of cars for a new generation of affluent citizens and a developing national roads network, these factors are fuelling the continued growth of the Indian market.

According to Tyrexpo India organiser Paul Farrant of ECI International, next July’s exhibition will encourage both inward investment and export opportunities.“We know there is massive interest from international companies who want to get involved in supplying the Indian domestic market with everything from raw materials to tyre building technology and aftermarket tyres and service equipment. “At the same time there are many Indian producers who want to develop their export business by meeting the international buyers and distributors who will attend the show. Tyrexpo India will be the catalyst that allows these ambitions to be realised,” predicts Farrant. The ≠rst staging of Tyrexpo India exhibition in 2011 drew almost 4,000 trade buyers and delegates from India and 20 overseas countries to Chennai and Paul Farrant is con≠dent on building on this excellent start. For further details: Email: sales@eci-international.com | T. + 44 (0)1892 863888 | F. + 44 (0)1892 863828 | www.eci-international.com

60th AIRIA Annual General Meeting

Industry issues highlighted T he 60th Annual General Meeting of All India Rubber Industries Association (AIRIA) held on September 22, 2012 at Chennai highlighted various issues confronting the industry, including the inverted duty structure.

strive to complement the existing vocational education system for the industry in meeting the entire value chain’s requirement of trained manpower in quantity and quality across all levels and on a sustained basis.

Presenting the annual report, Vinod Simon, the outgoing President, AIRIA, expressed concern that the competitiveness of the rubber sector has been adversely affected

Niraj Thakkar, Chairman of India Rubber Expo and Tyre Show 2013, updated members on the status of the Expo and briefed its highlights. Ms. Anupama Giri, CEO of RSDC, made a presentation on the plans of the RSDC.

60th AIRIA AGM in progress

due to inverted duty structure prevailing in the sector. He also highlighted many other issues that were challenging the rubber industry. He drew the attention of the august body to the various activities of the Association, including the formation of Rubber Skill Development Centre (RSDC), which would 152

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M F Vohra, Convenor, Export Promotion Sub Committee, gave insights into the export scenario and the challenges faced by the exporters due to the new restrictions imposed by the Government, consignments facing detention, retention and payment of penalty in terms of demurrage etc In spite of all the challenges, the export of rubber products have been increasing at a compounded growth rate of more than 25% to 30% every year, he said. MV Subbiah, Chairman, National Small Industries Corporation, graced the occasion as the Chief Guest. Rubber Asia


GLOBAL RUBBER CONFERENCE 2012 (GRC)

Vietnam Rubber Group to host GRC 2012

T

he Vietnam Rubber Group (VRG) will be hosting the 2nd Global Rubber Conference (GRC 2012) from November 29 to December 1, 2012, in Ho Chi Minh City, co-located with the Vietnam Rubber Association Annual Dinner 2012. Supported by the Ministry of Agriculture & Rural Development and the Ministry of Industry & Trade of Vietnam, GRC 2012 is expected to attract more than 500 delegates from natural and synthetic rubber — from upstream, midstream and downstream sectors and their supporting industries representing about 25 countries. Over 800 international delegates and guests would be attending the co-located dinners. The Conference is co-organized by Confexhub and Vietnam Rubber Association, also supported by the International Rubber Research Development Board (IRRDB) and over 20 government

agencies and associations globally.

Wide range of topics GRC 2012 is tailored to give everyone a chance to meet face-to-face and discuss a wide spectrum of commercial and R&D developments, keeping in mind future price trends. GRC 2012 will once again create the perfect climate for NR experts and policy makers, captains of industry and serious investors to converge and meet. More than 18 eminent guest speakers representing government agencies, rubber research bodies, rubber associations and commercial companies from over 10 countries will speak on a range of topics. For more information, log on to http:// www.globalrubberconference.com For further information and registration, please contact Tel: +603 4045 5999 Fax: +603 4050 5099 Email: conference@confexhub.com

Tyre & Rubber Indonesia 2013

Indonesia’s dedicated event for tyre & rubber T he 2nd edition Tyre & Rubber Indonesia 2013 to be held together with INAPA 2013, IIBT 2013, Heavy Equipment and INAGRITECH 2013, from March 26 – 29, 2013, at JIExpo, Jakarta, will be ASEAN's Important tyre and automotive event. This will be Indonesia's unparalled one-stop AUTOMOTIVE platform that can show the complete convergence of technology and products through value chain.

The exclusive tyre zone for agriculture vehicle, bicycle, motorcycle, car, bus, truck, heavy duty vehicle and aircraft will help the exhibitor to meet with all the companies connected with the tyre business.

Indonesia, a must-do market? With a fast-growing domestic automotive industry, Indonesia has become one of the most potential tyre and rubber industry markets in the world. Several automakers including Toyota, Honda, Daihatsu, Mitsubishi, General Motors, BMW, Ford and Tata have raised their investment in Indonesia Rubber Asia

and announced plans for the construction of new assembly plants that would roll out new models for fast-growing Indonesian middle class. Auto sales in Indonesia are expected to reach 1 million in 2012 and 2 million vehicles by 2020. Indonesia with more than 240 million of population is the ASEAN largest market for Tyre. The sales performance of Indonesia tyre industries still grow very positive, although European crisis has affected the global economy. The tyre sales for domestic market in Q1 2012 increased 16.3% to 8.56 million units, higher than the realization of the same period last year of 7.36 million units. Indonesia also imports about 3 - 4 million of units from Korea, China, India, Taiwan, etc. For further information, contact: PT. Global Expo Management (GEM Indonesia), Tel:: +62 - 21 - 5435 8118, E-mail : info@gemindonesia.net novEMBER - dEcEMBER 2012

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13th Tire Technology Expo Conference

Call for papers T

he organisers of the 13th Tire Technology Expo Conference are inviting technical presentations. This event will once again take place on 5, 6 and 7, February 2013, within the Cologne Messe, Cologne, Germany. There will also be a gala dinner where the Annual Tire Technology International Awards for Innovation and Excellence will be presented.

Young Scientist of the Year Award What is new for the 2013 conference is the introduction of a 'Young Scientist of the Year' award which will be presented to the best paper given by a student/industry trainee aged under 28 years and working on a tyre-related subject. The prize will be £1000 plus paper publication in the magazine

Tire Technology International and also a plaque presented at the gala dinner on February 6. Papers presented within the conference will be judged by a leading expert. The deadline for Powerpoint presentation is January 11, 2013 The link for website registration is: http://www.tiretechnologyexpo.com/form.php?f=1246&dd=y

National Rubber Conference (NRC) 2012

N

ational Rubber Conference (NRC) organized by All India Rubber Industries Association (AIRIA), from November 2 - 3,

2012, at The Lalit, Mumbai, India, is to apprise stake-holders of the domestic rubber industry of the global trends affecting them

and help them take strategic decisions for their furure growth -- short-term as well as long-term. The Conference will enlighten the delegates about: Kemstock ad

• Sustainability of the Indian rubber industry vs global competition • Availability and price prediction of rubbers • Man power availability and solutions, specifically for the rubber industry • Defence/auto industry requirements, current shortcomings and future trends for auto rubber components • Developments in rubber machinery and raw materials with reference to future trends. Rubber Asia is one of the media partners of the Conference. For detailed programme, delegate fees etc., contact: Western Region - NRC Mumbai Conference Secretariat, AIRIA, Mumbai, India. Tel: 28392095, E-mail: wr@allindiarubber.ne, www.allindiarubber.net.

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Rubber Asia


CompAny pRofile

mardec RK latex

India’s major player in centrifuged latex

dr ranjit Kuruvilla, chairman, mardec r K Latex

M

ardec R K Latex is one of India’s major players in the centrifuged latex with the largest installed processing capacity for latex in the country. Its ISNR division, which commenced operations in 2007, has already made a mark in the crumb rubber industry and is in the approved supplier list of leading tyre companies. Having completed it expansion plan, Mardec RK Latex is now set to scale new heights in its domain of business.

rajiv Suri, ceo

Mardec RK Latex Group had its formative origin during the 1940s when large rubber estates were purchased and cultivated in Kerala by the group. During the 1980s and early 1990s the Group expanded its activities into creamed and centrifuged latex. Headquartered in Thrissur, Kerala, India, it is one of the largest processors of creamed and centrifuged latex in the country today.

Pan-India presence Moulded at the hands of illustrious planter family, the company follows the Japanese mode of management. Under the leadership and guidance of Dr Ranjit Kuruvilla, the company has blanketed the whole length and breadth of the country with its products and has emerged 156

november - december 2012

as the market leader over the years. The Group has at present four processing plants strategically located in the north, central and south Kerala, manufacturing centrifuged latex, skim crepe, pale latex crepe, pre-vulcanised latex, compounded latex and ISNR. The units of the company are equipped with the latest machinery and technical know-how and their laboratories are considered to be one of the best in the country. All the factories of Mardec RK Latex are ISO 9001: 2008 certified besides environment compliant with ISO 14000 certification. MRK Group is specialised in the supply of latex to the condom segment and is India’s largest supplier to this segment as well as the mattress segment.

Growth track Global networking, Professional Management and access to the best international business practices augur well for the continued growth of Mardec RK Latex. It is now poised to scale new heights and is aiming at a turnover of Rs 2,000 million by the next financial year by fully utilizing its expanded processing capacity. Rubber Asia


high-grade centrifuged latex & technically specified natural rubber.

Aspinwall & Company Limited

Driving high on checkered legacy

One of the strengths of Aspinwall’s rubber division is its R&D orientation. By developing high-yielding clones, applying innovative agricultural techniques and intercropping with medicinal plants, the Group has been able to bring about higher yields and better quality.

Natural Fiber Products (Coir) Aspinwall entered the coir industry over a hundred years ago, with factories in Alleppey for producing handloom products and a power loom for machine-made runners, matting and geo-textiles. The product range includes entrance mats, corridor mats, carpets, matting, rugs, runners, mesh matting and geotextiles. Aspinwall is one of the oldest exporters of coir and coir products from India. The markets for the products are spread throughout the world. With coir as its traditional base, Aspinwall has diversified into the production of PVC & rubberbacked coir products, jute floor-coverings and furnishings.

Tourism and Hospitality

rama varma, md, Aspinwall

A

spinwall & Company Limited, with a colorful and checkered history spanning over 143 years, is today a highly broad-based corporate business house. The activities comprise Rubber Plantations, Coffee Process and Trading, Natural Fiber Products, Shipping services, Tours and Travels.

Rubber and Coffee

Headquarters of Aspinwall Rubber Asia

Aspinwall has been involved with rubber since the beginning of the 20th century. Nestled amidst the idyllic,evergreen hill ranges of northern Kerala are the rubber plantations of Aspinwall. These are among the first rubber estates to be developed in Kerala’s organized plantation sector. The Group owns and manages about 2,000 acres of rubber plantations and produces

Aspinwall Tours offers dozens of carefully designed, cost-effective tour packages, which sum up the essence of Kerala. Aspinwall Tours has immediate access to full-fledged infrastructure and other facilities throughout the state to take care of all categories of inbound as well as outbound tourists.

Shipping Services Aspinwall’s involvement with shipping dates back to the very origins of the Group, dedicating nearly a century-anda-half to the development of India’s maritime trade. In tune with the growing tempo in marine traffic, Aspinwall steadily expanded its sphere of operations, building upon its rich expertise and extensive experience in ship chartering and marine/ general insurance. The Group is now a hub of activity in areas like liner services, clearing and forwarding, air cargo services, ship agency services, stevedoring services and cargo consolidation services. The Group’s Managing Director is Rama Varma, Prince of the Travancore Royal Family. Contact: Mohan Kurian, Deputy General Manager, ASPINWALL & COMPANY LTD. Ph: 91.484.234.9687 (Office Direct), Ph: 91.484.234.2000 (Office Main), Mob: 91.989.577.6251. Web: www.aspinwall.in E-mail: mohan.kurian@aspinwall.in november - december 2012

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CaleNDar Of EVENTS Contact: Christina Ho Head of Management & Administration IRSG 111 North Bridge Road, # 23 - 06 Peninsula Plaza, Singapore 179098 T: +65 68372411 x 201 Email : christina@rubberstudy.com

November 2012 Carbon Black World 2012

at Omini San Diego Hotel, San Diego, CA. November 7 - 9, 2012

Website: www.rubbertech.com.cn, www.reifenchina.com .....................................................................

RubberTech China & Reifen China 2012 SWEECC, Shanghai World Expo Exhibition & Convention Center, China. November 14 - 16, 2012

Website: www.rubbertech.com.cn, www.reifenchina.com .....................................................................

W: www.rubberstudy.com ..................................................................... organised by AIRIA at Bombay Exhibition Centre, Mumbai, India.

Bologna, Italy.

May 22-26 2013

January 22 - 24, 2013

Contact: Promotec S.r.l., Tel: +39 051 6424000 info@autopromotec.it, www.autopromotec.it

Tel: +91 22 28392095 / 2107 Email: ire2013@indiarubberexpo.in Website: www.indiarubberexpo.in

February 2013 Tire Technology EXPO 2013

organised by Confexhub & Vietnam Rubber Association at InterContinental Asiana Saigon, Vietnam.

Contact: Colin Scott, Sales Director Tel: +44 (0) 1306 743744 Email: colinscott@ukintpress.com www.tiretechnology

February 5 - 7, 2013

March 2013 PNEU EXPO 2013

Eurexpo Lyon Hall 4, Versailles, France.

January 2013

March 12-14, 2013

African Seminar 2013

organised by IRSG at Abidjan. January 8, 2013

Contact: Tél: +33 (0) 1 39 20 88 05 info@pneu-expo.com, www.pneu-expo.com .....................................................................

Tyrexpo Asia 2013 Singapore Expo Centre, Singapore.

An ISO 9001-2008 Certified Company

Identification No. 1293

Manufacturers & Exporters of:

Sterile and non-sterile Surgical, Examination and Gynecological Gloves In powdered and powder free form. Our Factory site

March 19 - 21, 2013

Contact: Rowena Suthers, ECI International Ltd, Tel: + 44 (0) 1892 863888 rsuthers@btconnect.com .........................................

Tyre & Rubber Indonesia 2013 Organised by PT. Global Expo Management (GEM Indonesia), JIExpo Kemayoran, Jakarta - Indonesia. March 26 - 29, 2013

Contact: Jeanette (Ms.), Telp: +62 21 54358190 (Direct Line) Mob: + 62 85691711400 Safeshield

April 2013 Clemson Tire Conference 2013

Westin Hilton Head Resort & Spa. April 10-12, 2013 SAFESHIELD INDIA RUBBER PRODUCTS PVT. LTD. An ISO 9001:2008 & ISO13485:2003 And CE Certified Company Plot No. 16-B, Cochin Special Economic Zone, Kakkanad, Kochi - 682 037, Kerala, India. Tel: +91 484 2413174/92/4058175, Fax: +91 484 2413174 / 92 / 4058175, Fax: +91 484 2413175 E-mail: sshield@sify.com, safeshield@vsnl.net, safeshield@airtelmail.in Website: www.safeshieldindia.com, www.indiamart.com/safeshieldindia

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NOVember - DeCember 2012

May 2013

7th India Rubber Expo & Tyre Show

Koelnmesse, Koeln, Germany.

Contact: Paul Yeo, Tel: +603 40455999 Email: conference@confexhub.com Website: www.globalrubberconference.com

Contact: Shirley Abraham : Business Head, CNCIC India, Tel: +91 44 42615494 Mobile: +91 9840641101 email: shirley@cncictradeexpo.com

Autopromotec 2013

Global Rubber Conference 2012 & VRA Annual Dinner

November 29 – December 1, 2012

April 11-13, 2013

Contact: Jim Burns, Chairman, jjjburns@att.net ...................................

Rubber and Tyre Vietnam 2013 Saigon Exhibition and Convention Center, Ho Chi Minh City, Vietnam.

June 2013 Asian Tyre & Rubber Conference Chennai, India.

June 21 - 22, 2013

Contact: Antony Powath, VP-Mktg., Mobile: +91 9833 901 586 Tel: +91 22 26400735, 26400829 Email: antonypowath@rubberasia.com Website : www.atrc.in

July 2013 Tyrexpo India 2013

Chennai Trade Centre, India. July 9 - 11, 2013

Contact: Rowena Suthers, ECI International Ltd, Tel: + 44 (0) 1892 863888, rsuthers@btconnect.com, www.eci-international.com .....................................................................

Latin American & Caribbean Tyre Expo 2013 ATLAPA Convention Center, Panama, Republic of Panama. July 24 - 27, 2013

Linda Bassitt, Show Director Tel: +1 786-293-5186, Email: Linda@LatinTyreExpo.com, Website: www. LatinTyreExpo.com

September 2013 CITEXPO 2013 Shanghai Everbright Convention & Exhibition Center, Shanghai, China. September 4 - 6, 2013 Tel: +86(0)10 8589 8181,Email: citexpo@reliable.org.cn/, Visit: http://www.citexpo.com.cn .....................................................................

India Rubber Summit & Dinner 2013 organised by Rubber Asia at Ramada Resort, Kochi, India. September 2013 Contact: Rubber Asia, Kochi – 682 020, India Tel: +91 484 2316494/2315840, Email: dhanrubber@eth.net Website: www.rubberasia.com

March 2014 Rubber Technology Expo 2014 organised by TechnoBiz Communications Co., Ltd., Bangkok, Thailand. March 12 - 15, 2014 Contact: Peram Prasada Rao, Tel: 66-2-933 0077 Email: peram@rubbertechnology-expo.com Rubber Asia


index to AdveRtiseRs Acmechem Limited.................................. 103 Akron Special Machinery Inc ..................... 4 AMCL Machinery Ltd ................................ 75 Aquaspersions ............................................ 29 ARHD 2011 ................................................. 70 Associated Rubber Chemicals Pvt. Ltd. .. 68 ATRC 2013 .................................................. 97 Bainite ......................................................... 21 Balaji............................................................ 83 Balkrishna Industries Limited .................... 9 Beta Healthcare ......................................... 32 Bymer Elastomers ..................................... 23 Calcutta Chrome ........................................ 23 Ceebee Chemicals Sdn Bhd...................... 61 Ceyennar ................................................... 123 China Chemical Guilin Engg Co. ............. 79 Citexpo ...................................................... 136 Cochin Rubbers ......................................... 80 D V Deo ....................................................... 23 Dow Corning .............................................. 13 Eastern Treads ........................................... 27 Edathala Polymers................................... 107 EGE Kimya Sanayi ve, Ticaret A.S. . B Cover Elecon Engineering Co. Ltd...................... 71 Elgi Rubber Company Limited ................. 85 EVMathai .................................................. 105 Excelkos Sdn. Bhd..................................... 65 Finornic Chemicals (India) Pvt. Ltd. ....... 23 Fishfa........................................................... 87 FLEXILIS PVT. LTD. .................................. 89 Gandhar Oil Refinery India Ltd. ............... 10 Global Rubber Conference 2012 ............ 138 GoldStar ...................................................... 22

Guangdong Yizumi Precision Machinery Co.Ltd... .......................................Back Inside Gujarat Rubber & Reclaims........................ 2 Harrisons Malayalam Ltd. ......................... 72 Hwaseung Materials India Pvt Ltd......... 159 I R Tubes ..................................................... 78 India Rubber Expo 2013 .................. 137,139 Indian Rubber Institute ........................... 155 IRMRA ......................................................... 48 J K Tyre & Industries Ltd. ......................... 25 JG Chemicals.............................................. 47 Kemstock .................................................. 154 Kurian Abraham Pvt.Ltd. .......................... 11 Kwik Patch ................................................. 44 Larsen & Toubro Limited .......................... 91 M M Rubbers .............................................. 73 Malaya Trade Impex .................................. 81 Mardec R K Latex Pvt. Ltd. ......................... 3 Maria Rubber Links ................................. 125 Merchem ................................................... 110 Mesnac Co.Ltd.............................................. 1 Metro Trading Syndicate........................... 22 Njavallil Latex .......................................... 112 NMCE .......................................................... 45 NOCIL........................................................ 127 Omnova Solutions India Pvt. Ltd. ............ 33 Pampady Rubbers.................................... 151 Periyar Latex .............................................. 68 Pioneer Rubber & Chemical Company. 109 Polymers & Tyre Asia ................................ 69 Premier........................................................ 99 Raei Polymers .......................................... 121 Reifen China ............................................. 141

Royal Latex ................................................. 60 Rubber & Tyre Vietnam ........................... 143 Rubber Asia .............................................. 135 Rubber Asia IRE special issue .............. 111 Rubber Asia Website ................................. 23 Rubber Board ............................................. 66 Rubber Linkers........................................... 22 RubberTech China ................................... 140 Rumal BV .................................................... 46 S Gopal Kamath ......................................... 22 S.F. Engineering Works ............................. 93 S+S Separation & Sorting Tech. GmbH... 95 Safeshield India Rubber Products . ....... 158 Sah Petroleums .......................................... 31 Schill and Schilacher ................Front Inside Shandong Yangu Huatai Chemical Co. .... 51 Soberay & Sons, Ltd. ................................. 12 South Marketing Corporation ................ 121 Specific Engineering Corpn Pvt. Ltd. .... 101 Sriram Enterprises..................................... 23 St. Mary’s Rubbers ..................................... 15 Synthomer .................................................. 20 Techno Waxchem....................................... 24 Tianjin Saixiang Technology Co. Ltd. .... 80a Tolins ........................................................... 16 Tyre & Rubber Indonesia 2013 ............... 133 Tyrexpo Asia 2013.................................... 142 Tyrexpo India 2013 .................................. 144 Udaya Engg............................................... 129 VMI Holland BV.......................................... 17 Wuxi Huasheng Chemicals Factory ........ 14 Zenith Industrial Rubber Products . ........ 59

REQUIRED RECRUITMENT OF PROFESSIONAL WITH 20 YEARS OF EXPERIENCE IN RUBBER INDUSTRY Hwaseung Materials

Hwaseung Materials India Pvt. Ltd. Is a leading Korean MNC engaged in producing quality rubber compound from a state -of-the art mixing plant located at Chennai. We are into recruiting a personnel with 20 years experience as agent for selling rubber compound, whose age should be between 45 to 55 years. The candidate should have technocommercial background, who can fully devote his time for this job. Initially we are recruiting personnel for Chennai, Mumbai, Delhi, Pune & Kolkata, for this position local residents are preferred. It is a full time position on contract basis with consolidated pay and additionally with commission on volume of sales. Interested dynamic candidates can send their profiles to the following address: HR Department

Hwaseung Materials India Pvt. Ltd.

Survey No.73, “A” Block, 100 Thandalam, Mevalurkuppam, Sriperumbudur, Kancheepuram, Tamilnadu-602 105. Email: hsihr@hsiauto.com / hsihrd@hsiauto.com Mobile: 9940684196, 9500092853 Rubber Asia Rubber Asia

november - december 2012 NOVEMBER-DECEMBER 2012

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Paul Fitzhenry

J Thomas, rubber Production commissioner, rubber board (second from right), presenting nr export award to G Anil Kumar, Proprietor of Anil rubbers.

PcbL md and ceo Ashok Goyal(third from right) and his Kochi unit team receiving Golden Peacock Award from dr. Karan Singh mP

HAPPENINGS HAPPENINGS HAPPENINGS HAPPENIN Appointed  Jeffrey S. Edwards as President and CEO of Cooper-Standard Holdings Inc.  Paul Fitzhenry as Senior Vice President of Global Communications at Goodyear.

robert (bob) newton

 Meletis Xigakis as Managing Director of Continental Tire Canada and Shaun Uys as General ManagerSales of Continental Tyre South Africa (CTSA).  Shawn Denlein as Senior Vice President of Marketing and Sales of Hankook Tire America Corporation.

Joy Kallarackal

 Michael A. Simon as Vice President, Strategic Marketing and Planning, and Phil Kortokrax as Vice President of Manufacturing respectively for North America Tire Operations of Cooper Tire. Awarded  2012 Tyre and Fast-Fit (TAFF) Product Innovation Award to Michelin and Tyre Manufacturer of the Year Award to Continental Tyre Group.   Distinguished

160

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Service

Award instituted by ACS Rubber Division to Charles Rader, a former executive of Advanced Elastomer Systems.

passenger tyre production plant on October 11, 2012.

 The Popular Mechanics Breakthrough Award 2012 to Goodyear Tire & Rubber for its Air Maintenance Technology (AMT).

 RCMA Commodities Asia as Affiliate Member of International Institute of Synthetic Rubber Producers. (IISRP).

 Award instituted by Indian Rubber Dealers Federation (IRDF) for securing the first place in NR (RSS grade) export during the year 201112 to Anil Rubbers, Kanjirappally.  Golden Peacock Award, instituted by World Environment Foundation, to Phillips Carbon Black Ltd. Kochi Unit by Dr. Karan Singh MP.  AGCO Corp.’s European, African and Middle Eastern region 2012 Supplier of the Year Award in the Collaboration category to Trelleborg Wheel Systems S.p.A.  National Safety Council ( Maharashtra Chapter) award to Clariant Chemicals (India) Ltd. Opened  Nexen Tire Corp.’s Changnyeong, South Korea,

Admitted

Released  2012 edition of Worldwide Rubber Statistics by International Institute of Synthetic Rubber Producers (IISRP). Launched  “Be One With It” winter global television ad campaign by Hankook Tire Corp. Inaugurated  SleepHealth, LLC, a privately held sleep diagnostic company headquartered in Monroe, GA, by Vystar. Expired   Robert (Bob) Newton, founder of Hoosier Racing Tire Co. and the driving force behind Hoosier racing tyres, at the age of 85.   Joy Kallarackal, Managing Patner, Santhome Latex, Thiruvananthapuram, at the age of 55. Rubber Asia


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Rubber Asia-Nov-Dec 2012