Chapter 1 INTRODUCTION

Rubber is a product that is frequently used and is known for its elastic property. It is an
established industry in India. It can be of two types: natural and synthetic. Rubber is naturally produced by rubber plants that can be obtained and it can also be produced synthetically. Rubber industry in India was introduced by the British for commercial cultivation but the government of India has improved the scope of rubber production considerably. Today rubber and rubber related products are established industries in India. The manufacturing industries of rubber in India are in turnoff two kinds, based on the types of raw materials that are used by the industries.

One set of industries that are engaged with the processing of rubber and include mostly the centrifugal factories, the crumb rubber industries and industries engaged with creaming of rubber. These industries are mainly known as the capital intensive industries and produce tubes and tyres, erasers, automobile parts and moulded goods. A total of around 35,000 products could possibly be made by the manufacturing industries of rubber.

The Government of India has also set up the All India Rubber Industries Association (AIRIA) to help and guide the rubber companies in India towards success. It is a non-profit making body serving the rubber industry and trade with the objectives of safeguarding and promoting the interests of the industry. 1

This research has been basically done on the factors that have influenced the growth of the rubber industry over the years. In recent years, Indian rubber industry has experienced a growth of 8% thereby giving more opportunities to novice to earn their livelihood through the industry and strengthening opportunities for those who already exist in it. It has been estimated that the growth of this industry will be a massive 10% in the years to come. The vital objective is to analyze the growth of the domestic industry as a whole and the various factors leading to it.

OBJECTIVES
The basic matter dealt with in this project has been the statistical analysis of the growth in the rubber market in India.

To analyze the consumption and the price trend. To show the relation between price and consumption level.

To analyze the relation between production and price.

To examine the trade relating to export and import of rubber.

To examine the employment opportunities due to growth in rubber industry.

Analysis of a rubber company M R F Limited.

RESEARCH METHODOLGY

Data Sources :

Secondary Data: Secondary data is data collected by someone else. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research..In addition to that, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.

Data has been collected from websites suchs as www.rubberboard.org.in, www.tradefair.com, www.ansers.yahoo.com, www.wikipedia.org.com, www.britannica.com etc.

LITERATURE REVIEW
Rubber has been one of the major contributors of the Indian economic growth. Despite the rise in its price over and over again, the demand for rubber has kept on escalating. However the earnings of the tyre making companies, the major consumers of rubber, have been suffering in the near future due to high rise in the price of rubber. While industry is confident of growth, they are concerned about rubber prices which are firming up again after stabilizing at Rs 85 per kg.

The whopping rise in rubber prices is set to deflate the earnings of tyre companies. After the stock prices registered a fall, these companies looked reasonably priced and offered an investment opportunity with an upside potential of 15-25% in 12 months time.

While the domestic rubber spot price is trading up from Rs 160/kg in October, 2010 to all-time high at Rs 242/kg. The price at the international market too shot up from 297 yen/kg in August, 2010 to Rs 535 yen/kg. The demand for rubber has escalated following a ramp-up in global auto sales. India's rubber consumption is expected to continue growing in the next few year, driven by the auto sector, industry officials said on Friday, reports Reuters.

YS Lathia, head of the All India Rubber Industries Association, told Reuters on the sidelines of a rubber conference he expected Indian rubber consumption to grow at a rate of at least 10 to 12% per year."We expect it to continue growing because the automobile industry is growing at 10 to 15 percent a year," Lathia said.

Addressing the Annual Rubber Conference 2010, organized by the Association of Natural Rubber Producing Countries Rubber (ANRPC), Prof K.V. Thomas, Minister of State for Agriculture and Consumer Affairs, said that rubber remains a vital component in India's commercial agriculture accounting for 38 per cent of the total area under plantation crops.

RELEVANCE

The rubber industry is one of the most important contributors to the growth of the Indian economy. Rubber is a product that is frequently used and is known for its elastic property. It is an established industry in India. Rubber industry in India was introduced by the British for commercial cultivation but the government of India has improved the scope of rubber production considerably. The demand for rubber has escalated following a ramp-up in global auto sales. India is the worlds third largest producer and fourth largest consumer of rubber. Major Rubber consuming countries such as China, India and Malaysia together account for 45 per cent of the global rubber consumption. A total of around 35,000 products could possibly be made by the manufacturing industries of rubber. There are variety of finished products that is made from rubber i.e, Rubber belt, Automobile Rubber Products, Medical Rubber products, Rubber Ball, Rubber Cable, Rubber gloves, Rubber Bullets etc. The number of people employed in this sector has consistently been rising over the period. Hence, this is an indication to the growth of the rubber sector as a whole. The availability of area under has risen over time, thereby showing the increased demand for rubber which is an indication for the growth of this industry. This Project has helped me to know that the increasing price of rubber products over the years does not lead to a fall in consumption which indicates a bright future for the Indian Rubber Industry.

According to a recent estimates, world tyre demand is projected to expand 2.6% every year, with OEM tyre demand growth by strong gains in the global motor vehicle industry, and this requires a boost in the replacement needs by a steadily rising global motor. After analyzing the financial Position of Rubber Industry i.e, MRF LIMITED, it can be said that company is highly profitable and growing concern.

CONCLUSION

Indian rubber industry is one of the fastest growing industries that have a million of opportunities to explore. Nearly 6000 rubber manufacturing units are set up across various states of the nation. These units together produce more than 35000 types of rubber items. The sector employs over four lakh people in India. Indian rubber manufacturers have transformed India into a leading exporter and supplier of rubber products all across the world. The gamut of products manufacturing by Indian manufacturers include natural rubber, reclaim rubber, carbon black, synthetic rubber, fatty acids, rubber chemicals, rayon, etc. Latex products, auto tyres, tubes, belting, hoses, automobile parts, cable and wires, etc. are the products created widely by rubber products distributors. Indian rubber industry is broadly divided into two categories, tyre and nontyre. India is the third largest rubber producer of the world. Rubber products manufactured by Indian manufacturers do not only cater to the domestic needs but in recent times, a considerable amount is supplied and exported to foreign countries by the Indian exporters. Mainly, the products are exported to the wide markets of countries like France, UAE, Italy, Germany, USA and UK. Saudi Arabia, Africa, Bangladesh and Afghanistan are some of the leading importers of rubber who buy products from India. It is a typical thing but rubber products' consumption in western countries has reached to a saturation point. Therefore, the prospective market for India's export is gradually shifting from western countries to Asian countries. As it is a booming industry, its demand can never face decadence because it caters to a broad sector, almost every sector, including engineering, aviation, aeronautics, pharmaceuticals, steel plants, railways and agricultural transport, mines, textiles, etc. The Indian rubber industry is a core sector that plays crucial role in Indian economy with a turnover of USD 8 billion. The industry contributes USD 1.6 billion to the National Exchequer through taxes, duties and other similar levies. The estimated growth rate has been projected at 10.2%. This is again providing a huge scope to the Indian rubber products manufacturers.