The Hindu Business Line : `2000 rubber units likely to be closed'

Nearly 2,000 small and tiny rubber manufacturing units in the country are likely to be closed down in the next two years due to their inefficiency and not adopting latest technology, according to Mr Anil Sampat, Chairman, India Rubber Expo 2007, a four-day international rubber show to be held in Chennai in January.

"The small and tiny units are left way behind due to competition from large players from India and abroad," he told Business Line. There are nearly 5,000 units, including large, medium, small and tiny, manufacturing rubber products ranging from rubber bands to tyres. The 50-odd large and around 100 medium size players would dominate the sector in the next couple of years and force small units to go out of the market, he said.

For instance, two years ago in Jalandhar (Punjab) there were around 440 rubber units manufacturing products such as rubber footwear and belts. However, the number reduced to 85 and even the existing ones are under threat of closure. "This is a similar scene across the country and the small units are under tremendous pressure for survival," he said.

"We are trying our best to create awareness among the small units to improve," he said.

India's annual rubber consumption has grown from 7 lakh tonne in 1996 to 9.5 lakh tonne now making it the fourth largest consumer of rubber after China, the US and Japan, and ranks above Germany, France, Korea, Malaysia and Thailand.

India's rubber industry will cross one million tonne this year. Some of the major players in the rubber industry through direct investment and technical tie-ups include Gates India, Phoenix Yule, Michelin, Continental AG, Bridgestone, Goodyear, Dow Corning, Lord, he said. The Indian rubber industry, including tyre manufacturing, is valued at around Rs 25,000 crore a year and of this Rs 4,000 crore was exports, he said.