Rubber Chemicals Industry- WorldOfChemicals

An Overview of the Indian Rubber Chemicals Industry

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

Introduction

Rubber chemicals are chemicals used in the production of various rubber products. They are added in the process of production to enhance products elasticity, durability, flexibility and strength.

 

Rubber is usually of two types:

Natural Rubber: This type of rubber is directly derived from the rubber tree and is known as Latex. After some processing it is used as raw materials for several products.

Synthetic Rubber:  This is any artificial elastomer, mainly polymers synthesized from petroleum byproducts.

 

Market Outlook

The Tyre industry is the leading consumer of the rubber chemicals, with over 70% of the global market share. For making tyre more durable and provide them strength to withstand any harsh environment rubber processing chemicals are being used.

 

In the coming years, rubber processing chemicals global market is expected to witness rapid growth, majorly because of the inflating demand from the automotive and tyre industries. 

 

Apart from the automotive and the tyre industry, rubber chemicals are used in construction, electronic, medical, aerospace, footwear manufacturing and many more such industries. 

 

The use of rubber processing chemicals in the construction industry as floor coverings, roofing component, insulators and sealants is also on a rise.

 

Rubber Chemical Industry in India

The Indian Rubber Chemicals industry has great potential for growth with increased in consumption from tyre and rubber industries. According to McKinsey and Company, a global consulting firm, in Indian specialty chemical industry is expected to grow at 15-17% per year rate, reaching $80-100bn by year 2020.

Indian rubber processing chemical market came up to $288mn for the FY 2017 and is expected to rise at a CAGR of 7.5%, reaching $443 million by the year 2023.

Approx. 80% of the rubber produces is consumed by the tyre industry in India and rest by other rubber products manufacturers.

 

Major Indian Players

Some of the chief players of rubber chemicals in the Indian market includes: 

  1. NOCIL: Largest manufacturer of rubber chemicals in India with manufacturing plants at Mumbai (Maharashtra) and Dahej (Gujarat).
  2. LANXESS India: Strong base of manufacturing in India with manufacturing facilities in Jhagadia (Gujarat) and Nagda (Madhya Pradesh).
  3. BASF India: Another major rubber chemicals player in India with 11 production sites, Mangalore (Karnataka) being the largest site.
  4. Yasho Industries Pvt. Ltd: Manufacturing base in Mumbai (Maharashtra) and Vapi (Gujarat).
  5. Swarup Chemicals Pvt. Ltd: Branch office and manufacturing plantin Lucknow (Uttar Pradesh).

 

Challenges and Opportunities

The Rubber Chemicals industry is facing many challenges.

  1. Complying with stringent regulations related to environmental pollution and quality, to reduce greenhouse gases emissions.
  2. Anti-Dumping duty on rubber chemicals, mainly from china.
  3. The rise in green tires production is going to cause reduction in the consumption of rubber chemicals by the tyre industry.
  4. Another cause of concern for the rubber industry is economic slowdown in china.
  5. Rise in R&D Expenditure due to government regulations and competition is posing new challenges for the rubber chemicals industry.

However, with so many challenges in hand, rubber industry offers rewarding opportunities for the investors with the expected growth in demand in the coming years.