Rubber Asia Mar-April 17 by Asian Busniess Media

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K M Philip

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MIKE HINSEY ON TYRE RECYCLING INDUSTRY

2017

Feather light and velvety soft, the Sempercare® Velvet heightens extraordinary wearing comfort and tactile sensitiﬁty.

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March-April 2017 Vol.32/Issue No.2 `200 US$ 20

velvet

www.rubberasia.com

IRAN REVIVAL TRACK

TYRE INDUSTRY ON

S u pe r x tr a i o

Exc a e

touch

Light as

rt fo

fe nt sens e le

RAJENDRA V. GANDHI & DR. RK MATTHAN REQUIEM FOR THE DOYEN OF RUBBER INDUSTRY

e a r in g c o m r w material

r athe

K M Philip

MIKE HINSEY ON TYRE RECYCLING INDUSTRY

2017

Feather light and velvety soft, the Sempercare® Velvet heightens extraordinary wearing comfort and tactile sensitiﬁty.

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EDITORIAL

BUDGET BLUES T

he Indian Prime Minister Narendra Modi’s maiden Budget, after the controversial demonetization of high value currencies, has evoked mixed response from trade, industry and the public. The Budget presented by Finance Minister Arun Jaitley is a mixed bag of fortunes for different sectors including the rubber industry. There were hopes, high expectations and fear among different sections about the shape of things to come. The industry and trade were expecting daring and visionary initiatives to boost investment, income and employment, especially in the context of the economic slowdown and adverse effects of demonetization. The planters and farmers wanted support to beat the crash in prices of their produce. There were also wide speculations about harsher laws to tackle black money and parallel economy. Beating all expectations, the Finance Minister has chosen a softer, conservative route instead of a breakthrough Budget. In the process he has belied the expectations of many sectors including the rubber industry. Of course, the higher allocation for rural and infrastructure development in the Budget is a big boost for the automobile sector which, in turn, will result in increased demand for tyres, especially commercial vehicle tyres. The reduction in corporate tax for MSMEs from 30% to 25% too is a welcome proposal since as many as 5,500 out of 6,000 rubber units in India are operating in the MSME sector. However, this tax cut benefit is limited only to companies with a turnover of less than Rs 500 million. The Finance Minister should have extended the benefit to units with a higher turnover as well to raise their competitiveness in the Asian market. The pressing demands of the rubber industry included correction of the inverted duty on natural rubber import which has led to an anomalous situation where the import of natural rubber attracts 25% duty while the duty on import of tyres is just 7 per cent. Moreover, the industry has been urging the Government to impose anti-dumping duty on cheap China-made tyres which has very adversely impacted the domestic industry. But the Budget has overlooked this demand too. The Budget allocation for the Rubber Board is too inadequate to clear the arrears in subsidy payable to the growers and to finance the Board’s Research & Development activities. There is considerable disappointment among small planters who are reeling under the impact of the price crash in NR. They were expecting ban on imports and a remunerative price for natural rubber. The need of the hour is a daring and innovative policy to safeguard the interests and boost the prospects of all the sections for a major breakthrough of the total economy, which is already one of the fastest growing economies in the world.

Kurian Abraham Editor-in-Chief Kurian Abraham Chief Executive Officer John S Powath Associate Editor Prof. T.N.Kalamani Assistant Editors A. Saj Mathews, P. Venugopal Correspondents Dr Louis P Rumao (Detroit, USA) Sharad P Matade Vice Presidents (Marketing) Antony Powath Vijay Kurian Abraham Head-Marketing R C Devakumar Marketing Manager Anil Panicker Asst. Marketing Manager Praveen Manchal

Asian Business Media LLP, Registered/Marketing Office, 501/502, Imperial Plaza, Corner of 27th & 30th Road, Near Nilgiri Garden, Bandra (W), Mumbai - 400 050, iPh: +91-22-2640 0829, 2640 0735, Fax: +91-22-2641 189 Email: asp@abm.net.in, Website: rubberasia.com, Editorial/Marketing Office: 39/3993-B7, Ground Floor, Vantage Point, V.R.M. Road, Ravipuram, Kochi-682 016, India, Ph: +91 484 4016284, 2356284, Email: mail@abm.net.in Editorial/Marketing Office: 22/37, 1ST Floor, Karpaga Vinayagar Koil Street, Alandur, Chennai–600 016. Ph: +91 44 42641425 Delhi, LUG Enterprises, 2A Neethi Apartments, 84 I P Exten-sion,Delhi 110092, Email: lugenterprises@gmail.com US Representative, Jennifer L. Poda, Publishers Representative, Akron, Ohio, USA,Email: jennifer.poda@gmail.com European Representative: John Stone, Email: john.stone@sapphire-media.co.uk, Mob: + 44 7769 675232, Ph: +44 (0) 1206 822320 South America, Carina Bini Fernandes, Email: carina.bini@gmail.com, Ph: +55 61 3033 8007, +55 6181497800 (Brasil) +919895555281 (India) Australia, Jacob Cherian, Ausker Pacific Pty. Ltd., Email: ausker@auskergroup.com.au, Ph: +61 3 9859 8922 Japan, Shinichi Kato, Shinichi Kato Office Co., Ltd., Email: shinichi.kato@rubberstation.com, Ph: +81 3-5645-8670 South East Asia, A. Divakaran A.D. Nair, Malaysia, Email: aaps_avico@yahoo.com, Mobile: +60 12 3985357, Ph: +60 3 78454608 China, Monika Yu, General Manager, Exhibition, China National Chemical Information Center (CNCIC), Ph: 86-10-64447112,Mobile: +86-1391130188, E-mail: m.yu@cncic.cn, Website: www.expocncic.com Thailand, Ms Somruetai Patana-anek (Mott), Managing Director, Busgum Co. Ltd., Email: somruetai.patana-anek@busgum.com, Mobile: +66-1-8429105, Ph: +66-2-3993946, 399-4374, 399-3896 Sri Lanka P P Perera, No.20, 4th Cross Lane, Borupana Road, Ratmalana, Sri Lanka. Ph: +94 11 4863529, HP: +94 772 972571, Email: ppperera1946@gmail.com Iran, Ms.Azita Eftekhary, International Business Development Manager, RIERCO, Karaj Highway- Pajouhesh Blvd. – Iran Rubber Industries Researches Institute, TEHRAN-IRAN, ZipCode: 1497716365, P.O.Box: 15875-5981 Middle East, Varghese Philip, Managing Director, Riqa International Co. LLC, Dubai, UAE. Ph: +971 4 2276825, Mob: +971 50 7480984, Email: vp39386@gmail.com & Markose Chenthitta, Email: 101@hotmail.com Subscription rates: 6 issues: ` 1,100, 12 issues : ` 2,100, 24 issues: ` 4,000, Single copy : ` 200 / $ 20 Overseas: 12 issues: $ 200, 24 issues: $ 400 Printed, Published and Owned by Kurian Abraham, and Printed at Five Star Offset Printers, Kochi - 16 for Viani Printings, Kochi. Edited by Kurian Abraham, Asian Business Media LLP, Kochi - 682 016

Rubber Asia | March - April 2017 | 5

CONTENTS 26

Peter R Taylor

Waste tyres: Shrinking options

Adam Gosling

Alternative facts for tyre maintenance: Donâ&#x20AC;&#x2122;t ignore them

78 34

John Stone

Beware, poor tyre care kills

COVER STORY Sharad P. Matade

IRAN REVIVAL TRACK TYRE INDUSTRY ON

Following the progressive lifting of sanctions since Janauary 2017, the Iranian tyre industry is looking forward to fresh investments, technology collaborations and joint ventures in a bid to reviving, modernising and expanding the industry.

6 | Rubber Asia | March-April

2017

March-April 2017 Vol. 32, Issue No. 2

K M Philip

Rajendra V. Gandhi & Dr. RK Matthan

It’s interesting times for tyre recycling industry: Mike Hinsey

Apollo can grow more in Europe: Neeraj Kanwar

Indian glove industry must raise capacity: G. Narayana Pillai

P. Venugopal

Requiem for the doyen of Indian Rubber Industry

OK " DON'T I LO " Y? EX S Y VER

Diogo Esperante

Dr. T.U. Thomas

Dr. Sisira Ranatunga

Technology transfer: Brazilian experience Low frequency weekly tapping: Benefits aplenty Finite element modelling for polymer composites A. Saj Mathews

NR Market Good tidings: How long?

But the jury is still out – some experts think that baldness has been linked to increased risks of heart disease and cancer. Another survey researching baldness has found that a bald scalp is seen by many as associated with more “manly” professions, such as soldiers, cops and fire fighters.

102

If you believe in evolution, our ancient ancestors, such as gorillas, clearly use an enlarged forehead created through frontal balding to convey increased status and maturity.

Good economics

RA News Bureau

Budget impact on rubber industry

You save time, and save on shampoos, conditioners, combs, brushes, creams and the hair dresser – we may not notice, but these expenses add up.

Bald men are seen by many as having better leadership potential, as more assertive and more powerful. That is why experts recommend that men who are losing their hair bite the bullet and completely shave their head.

106

John S. Powath

108

Sharad P. Matade

Remember, some of the strongest and most influential leaders of all time, including Winston Churchill, Vladimir Lenin, Mahatma Gandhi and Vladimir Putin, were bald!

'Unholy' hair loss worry

If you’ve already said goodbye to your hair, you’ve probably already realised it’s not that bad, and you are no longer accompanied by this daily fear – one less thing to worry about!

The bottom line: Men who are bald may look older at first. But as time goes by, they have no hair to turn grey or hair to lose. Other than a few wrinkles, they keep looking of the same age as they always have. Likewise, bald men look very sexy and thus attract the opposite sex and gain better sex.

Drop in auto sales hits tyre stocks

Bald or grey hair pronounces “maturity” and so it commands a real price. Besides, you stand out in the crowd. Being bald has various plus points and you need to be very positive in your thinking. For the bald, life goes on smooth and effortless as usual.

Rubber Asia | March - April 2017 | 3

Prof. T.N. Kalamani

P.Venugopal

DEPARTMENTS 5 6 9 18 86 112 116 120 124 125 126 128 142 143 144

Editors note Contents Letters In the news Tyre world & Tyre news Events: IRMRA deal Rubber trends News digest Croporate affairs Economic trends Company profile Seminars & conferences Calendar of events Index to advertizers Happenings Rubber Asia |March-April 2017 | 7

LETTERS Homage to K M Philip

he sad demise of K M Philip (Rubber Asia IRE Issue) is a great loss to the Indian rubber industry. He was one of the pioneers and foremost authorities of the Indian rubber industry and helped many an entrepreneur to make a flourishing career in the rubber industry. He always had a soft corner for Kerala, his home State. At Rubber Board meetings, he strongly advocated the need to provide incentives for

As an active member of the YMCA, he brought prestige to the organisation. The All India Rubber Industries Association (AIRIA) deserves a pat on its back for instituting the K M Philip Award to perpetuate the memory of this patriarch of Indian rubber industry.

Thomas Mathew

K M Philip

Kudos to Rubber Asia

confess I am progressively being allured and seduced by the continuous improvement in presentation, quality in content, and even advertisements in the Rubber Asia. I, of course, have only had a glance and see that some facts I mentioned about the NR industry are also mentioned in one of the articles! I enjoy reading the UNHOLY TALK column by John S Powath and I must say that I not only agree with the contents, appreciate the humour and sarcasm but also commend the author’s writing ability. Warm Congrats for a good piece.

J C Rajarao Malaysia

Content-rich IRE Special

he India Rubber Expo Special of Rubber Asia make interesting reading. It has a rich menu consisting of in-depth articles, enlightening interviews and special features. The articles by Jom Jacob and Dr Lakshmi Nair on NR demand scenario are particularly revealing. The icing on the cake is the 'Unholy’ column by John Powath. Kudos to Rubber Asia team for bringing out a worth-preserving issue.

Michelle Chong Singapore

Disappointing Union Budget

attracting more industrialists to the rubber sector in Kerala, rather than expanding rubber cultivation to the Northeastern states by providing massive subsidies.

ndia’s Union Budget 2017 is highly disappointing to the rubber industry. In the pre-Budget discussions, industry bodies like Automotive Tyre Manufacturers

Mumbai

Association (ATMA), All India Rubber Industries Association (AIRIA), Indian Rubber Dealers Federation etc had highlighted various issues faced by the industry like inverted duty structure on tyre and rubber, increase in import duty on finished rubber goods, dumping of cheap tyres from China etc. But none of these issues have been addressed in the Budget. There are huge arrears in payment of subsidies to rubber growers. The Budget has not made allocation for this also. It is hoped that the Government would address these issues in right earnest without further loss of time.

Mani Shankar Chennai

Merger of Commodity Boards

here are reports that the Commerce Ministry, Government of India, is planning to merge the Commodity Boards and set up an umbrella organisation in order to improve production and exports of plantation crops like tea, coffee and spices. This is a welcome and long overdue measure. Some of these Boards were set up way back in 1940s and are responsible for production, development and export of tea, coffee, rubber, spices and tobacco. But because of official lethargy and bureaucratic delays, these Boards have outlived their utility and failed to serve their intended purposes. The merger of the Boards could help harmonise their activities and improve production and export of plantation crops, besides substantially cutting administrative expenditure.

G P Wadia Mumbai

Rubber Asia |March-April 2017 | 9

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IN THE NEWS IN-HOUSE TALENT TO HEAD

YOKOHAMA RUBBER

asataka Yamaishi, who has been appointed President of Yokohama Rubber Co. Ltd., is a homegrown professional who has served the Japanese tyre company in several senior positions for a long period. Before taking up the new assignment, Yamaishi has been serving as President of Yokohama Rubber Corporationâ&#x20AC;&#x2122;s Tire Business. The other positions held by him include that of Head of Corporate Planning Division and Head of Tire Business Planning Division at The Yokohama Rubber Company Ltd., President of Yokohama Motorsports International and President of Acty Corporation. Yamaishi has been Director of The Yokohama Rubber Company since March 27, 2015. Yamaishi will continue to head Yokohama Rubberâ&#x20AC;&#x2122;s Corporate Planning Division.

Masataka Yamaishi

K M Mammen presenting K M Philip Award 2017 to P K Mohamed

REPUTED TYRE TECHNOLOGIST HONOURED

K Mohamed, winner of K M Philip Award 2017, is a passionate leader with 49 years of experience in the field of tyre technology and manufacturing.

The award, instituted in memory of late K M Philip, the doyen of Indian rubber industry, was conferred on him by K M Mammen, Chairman and Managing Director of MRF Ltd., at the inaugural function of IRE 2017 in Chennai. As the Chief Advisor (Research & Development) of Apollo Tyres Ltd, he is responsible for the development

18 | Rubber Asia | March-April

2017

of several successful products in Cross Ply Truck, LCV, Agricultural and Truck & Passenger Radial Tyres. He is also credited with developing indigenous technology for truck radial , OTR and scooter & motor cycle tyres for Apollo.

His areas of expertise include Tire technology, Process optimization in tyre manufacturing, Product specialization, General management, Business plan, Research projects (Internal and External) and IndustryUniversity collaboration. Apart from the K M Philip Award

2017, the awards and recognitions won by him include TRILA ( Tyre & Rubber Industries Leadership Award) for 2016, Best Tyre Technologist Award of Indian institute of Technology (IIT), Kharagpur, Best Manager Award in the RPG Group of Companies for his technical contribution to Ceat Tyres etc. A past Chairman of Indian Rubber Institute(IRI), he is the Area Director of American Chemical Society Rubber Division and Industry Advisor Board Member of Centre for Tire Research, USA.

IN THE NEWS NEW AGRI COMMERCIAL DIRECTOR FOR

MICHELIN

Martyn Pointer

yre major Michelin has appointed Martyn Pointer as the new Commercial Director of Agriculture, with responsibility for the UK, Ireland and the Nordics. He replaces Mike Lawton who has assumed the position as Head of Communications after his fiveyear stint in the role.

An Engineer with previous service at reputed companies, Pointer joined Michelin in 2013 as Country Distribution Development Manager for the UK and Ireland, focusing on the car, van and truck product lines. He soon rose to be the National Sales Manager for the car, 4×4 and LCV product lines, overseeing a team of 20.

In his new role, Pointer will report to Dominique Pelletier, Commercial Director for Michelin’s Agricultural business in Europe, with responsibility for Denmark, Finland, Ireland, Norway, Sweden and the UK.

Says an excited Pointer: “My first priority is meeting a crosssection of customers across all markets to better understand their individual challenges for the year ahead and how we can best support them.”

RECOGNITION FOR RRII CHIEF

irector, Rubber Research Institute of India (RRII), Dr James Jacob has added yet another feather to his cap when he was presented with the Distinguished Scientist Award instituted by Dr C S Venkataram Memorial Trust at the recently held National Symposium on Plantation crops at CPCRI, Kasaragod, Kerala. The Trust recognized Dr Jacob’s contributions made in the areas of photosynthesis, stress physiology, climate change, sustainable development and the leadership that he has been giving to RRII and plantation crops research in the country. The award is given every two years to a leading scientist from spices and plantation crops research fraternity. Dr. James Jacob has been Chairman of International Rubber Research and Development Board (IRRDB) for a two-year term from November 2014. He has also served as the Liaison Officer of Physiology Specialist Group of IRRDB.

Dr James Jacob

20 | Rubber Asia | March-April

2017

A graduate in Agriculture, Dr James Jacob has a PhD in Plant Physiology from University of Agricultural Sciences, Bangalore, and another PhD in Biochemistry from Imperial College, London. Before joining RRII, he had worked with the Smithsonian Environmental Research Center in the US.

RRII LATEX HARVEST EXPERT RETIRES

fter 31 years of continuous research in the field of Latex Harvest Technology, Dr K.U. Thomas retired from the service of the Rubber Research Institute of India, under the Rubber Board, on December 31, 2016. “I leave the organization with satisfaction that during my tenure I could do a few things directly benefiting the small rubber growers as well as the large estates,” he says.

production from old and senile trees at least by 50% for the long-term.

His main contributions include: lAdoption, recommendation and modification of Controlled Upward Tapping to suit the Indian conditions - a sure shot to increase

lRecommendation of quarter spiral once in three days tapping to ensure 28 years’ virgin panel tapping, and also to ensure early opening and larger task size.

lRecommendation of once in three, once in four or weekly tapping systems with yield stimulation which the growers can choose depending on their need. Now weekly tapping and CUT are being popularized by the Rubber Board to help the growers reduce production cost considerably.

Dr K.U. Thomas

His latest contribution is the development and recommendation of totally degradable polythene for rain-guarding rubber trees. “After retirement, I wish to continue as a consultant in the same field of latex harvesting,” Dr. Thomas told Rubber Asia.

Rubber Asia |March-April 2017 | 21

STANDARDS AC

MALAYSIA

CRE

OD DITED CERTIFICATION B

LETTER FROM EUROPE

Peter R Taylor

WASTE TYRES

SHRINKING OPTIONS

It is sad to note that tyre-recycling business is sleep-walking into a world of narrowing opportunities and no one, least of all the new tyre manufacturers, seem to care

Peter Taylor OBE, Secretary General, Tyre Recovery Association, is also former Director, Imported Tyre Manufacturers Association (ITMA), London

ombination of factors affecting our capacity to deal with all our old tyres is starting to cause concern. Traditional disposal routes like cement kilns have other perhaps more profitable burn options, even if they still have the wherewithal to take tyres while export then is also becoming more difficult. This is a picture which is repeating itself across Europe and way beyond.

consequences will be that investment in granulate will shrink and more useful processing capacity lost that will not easily be replaced.

A number of factors are in play and not just the ability or willingness of cement kilns to take more tyres. Export shipping costs between W. Europe and Asia almost doubled in 2016 while at the same time local availability of waste tyres has increased everywhere. Meanwhile, we are making the progress needed to ensure that rubber asphalt becomes an important mainstream use for tyre-derived granulate. More worrying still are the incessant claims from some quarters that TD granulate used as infill in sports pitches or play surfaces is a potential carcinogen despite an almost total lack of evidence to support the assertion. So insistent are such claims that one is led to suspect that vested interests are at play. A further list of chemicals commonly used in tyre manufacturing has now been flagged up by Germany as being ‘of concern’ so ensuring that this particular debate will run and run. What a pity! The inevitable

Why is it we read so much creative PR stories of how new tyres are being developed with ever better rolling resistance (economy) and using ever more exotic alternatives to natural rubber and other materials that go into tyres but which do virtually nothing to facilitate true recyclability. Perhaps much sooner rather than later this will change.

26 | Rubber Asia | March - April 2017

If all this sounds a tad pessimistic so it should, the business of tyre-recycling is sleep-walking into a world of narrowing opportunities and no-one, least of all our new tyre manufacturers, seem to care.

Playing the Game Everywhere, the options of what to do with our waste’ tyres are diminishing as annual volumes (known as arisings) increase. Right now, freight rates ex Europe are rising and favoured destinations for our waste rubber such as the Indian sub-continent and East Asia have only a limited appetite for more.

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LETTER FROM EUROPE Sadly, the export of tyre waste, often at very low cost, has itself undermined preferred market solutions such as granulation and incineration by cement kilns. The unnerving truth is that adequate new uses for tyrederived and recyclate are just not coming along as quickly as we would like. As the likelihood of a capacity crunch edges closer, the way we handle our waste will come under increasing scrutiny as current market models fail to deal with the problem. In a number of European states quite ridged schemes exist with the express aim of taking care, or even ownership of the problem and they are funded by consumers or manufacturers to helping. Do just that, but how effective are they? Typically, manufacturers or consumers pay a ‘recycling’ fee; but what actually happens to the money? In some EU-member States, especially the smaller ones, this is often no more than a logistics charge that actually does no more than cover the cost of moving on their waste tyres to somewhere else.

on our continent. The obvious danger now is that as the market tightens more surreptitious ways will be found to facilitate disposal possibly through a misuse of the mandatory recycling charges in countries favouring these. Such behaviour is not difficult and may already be happening; at least one European country so thought to exporting tyre-derived granulate well below market rates, there may well be more. I wager this subject will soon assume an intergovernmental dimension.

Support for retreading In what is being portrayed a sign of hope for retreading, the European Commission has proposed a change of emphasis in the way it approaches anti-dumping and unfair subsidy rules. The Commission is proposing a new way of assessing dumping on imports from countries where ‘for example’ there is known clear over capacity. This is quite a change of direction for the European Union and for the Commission who have tended to remain steadfastly ‘Olympian’ in these matters; but is it China’s relentless undercutting of European steel makers that has prompted this shift? Now the Commission is stating that ‘only fair trade is really free trade’.

Neither ideal, nor sustainable; but many of our industry leaders appear quite content with the situation. Looking beyond all of this the bigger question perhaps is what happens when disposal (sorry, recycling) routes tighten as they inevitably will. The answer, of course, is further market distortion. We in Europe have long been subject to Producer Responsibility in its various forms which have been interpreted and imposed in various forms, not all of which pass the transparency test. Some are short of being market-friendly which is one reason why tyre recycling as an industry in its own right has shown such small progress

28 | Rubber Asia | March - April 2017

Europe’s truck tyre retreaders spot a ray of hope here. They have long complained that very cheap first life China-made truck tyres are damaging the market for quality retreads. Furthermore, it is alleged that very few of these China-made products are retreadable so prematurely contributing to Europe’s scrap tyre mountain and detracting from our recycling priorities. The real driver in all this though is jobs, or rather prospect of job losses which have been particularly acute in the European steel industry. But steel is not alone in its problems, tyres and many other product streams are crying foul and Europe’s governments have been calling for resolute action. That action may now be on its way at last.

TYRE SAFETY TALK

Adam Gosling

ALTERNATIVE FACTS FOR TYRE MAINTENANCE:

DON’T IGNORE THEM It’s really strange that we rarely consider the ALTERNATIVE FACTS we provide in regards to our own tyre maintenance. With modern TPMS, pressures can be checked from the driver’s seat with the push of a button and records maintained electronically

e are all witness to the rise of the new terms ALTERNATIVE FACTS in the English language. It’s been a long time story for tyres! Many people observe a tyre that is wearing in an irregular fashion, or has gone flat at an inconvenient time and invariably blame the tyre without any consideration of the outcomes of their own actions (or lack of them) on the tyre, which only does as it is told even to the point of its own demise! ALTERNATIVE FACTS are presented as to why the tyre failed to perform to unreal expectations.

The writer heads up TyreSafe Australia (tyresafe.com.au) providing guidance and direction for mining and transport fleets around the globe. He is an executive committee member of TransafeWA (http://transafewa. com.au/about-us/) for heavy transport safety in Western Australia as well as contributing to Road Safety Alliances funded by the Road Safety Commission of Western Australia (https://www. rsc.wa.gov.au/).

30 | Rubber Asia | March - April 2017

Increased tyre life and safety Modern tyre design, manufacturing and post production inspection processes have improved the quality of tyres of all sizes. Improvements in material science and production techniques have enabled increased tyre life and safety with decreased fuel consumption and cost. How many other consumer products can lay claim to such enhancements? The motor vehicle may do, but how many cars cost less than they did in the past? The Research and Development that is required to engage these improvements

TYRE SAFETY TALK in tyres is expensive and requires people with expansive outlooks and large-scale capital to fund such programs. High power computers to design and model the tyre, expensive equipment to produce then test the tyre before it goes into production well, before the tyre hits the warehouse ready for distribution.

Quality is related to price A small factory is invariably at a disadvantage when compared to major industrial conglomerates; but this doesn’t always equate to producing a sub-standard product. Quality is nearly always related to price. If you wish to buy cheap, then why and how do you expect a high-quality product? Tyres which appear cheap initially may well cost more down the line as there are components omitted. The weight of a tyre is a good gauge on its construction, so don’t take the manufacturers’ word. For commercial users, a sample of the shipment should be inspected, including actually weighing the tyre to determine compliance to manufacturers specifications. Too much work I hear some say, do tell your drivers that after they experience a steer tyre failure at highway speeds. I would never wish to have to face a driver’s family and inform them their parent/partner is not coming home tonight. The same relates to a tyre service regime. A cheap or non-existent development program will not provide the intelligence and detail required to provide a long life and safe outcome. Anyone who suggests otherwise is presenting ALTERNATIVE FACTS. In these days of GPS tracking, over speed alerts, harsh braking, lane change warning, collision avoidance even by autonomous vehicles, the same assumption is made by too many: “The tyres are ok” or “Tyres, what have they got to do with lane change warnings, why should I spend money to maintain my tyres?” A tyre responds to the load applied, just as any machine does. For a tyre it’s not only the actual mass it is supporting but also the operating speed. Whilst the pavement makes contribution to the work a tyre performs, the speed at which a tyre operates in is the major contributing factor. That small bump you felt at 15 km/hr is magnified exponentially at 100 km/hr.

No tyre pressure records Tyre specifications are detailed by the various Tyre and Rim Associations (T&RA) around the globe, a tyre is a true global ambassador. The dimensional specifications of a tyre are well governed and regimented so that, regardless of where the tyre is made, it will be within a small tolerance of tyres

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manufactured elsewhere. The physical loads a tyre can support are also detailed by the T&RA’s, with load and speed tables freely available. A tyre relies upon the contained air to support and carry the applied load. The larger the tyre the more load it will support. The largest of mining tyres are now in excess of 4 metres in diameter and will support 100,000 kgs. Every tyre relies upon the operator to maintain the correct level of inflation. At this point in tyre development a tyre does not have the capacity to self-inflate; it may change in time but for the moment the driver of the vehicle is responsible for the tyre’s appropriate inflation. Lately I have been investigating steer tyre failures on road transport trucks, 22.5” tyres that mysteriously “just blew apart” the initial question in the investigation is: “Where are the tyre pressure records? Please produce evidence you have maintained the tyre within the manufacturer’s operating parameters.” This is usually met with blank stares, or suggestions the tyres were checked at the last service, or the tyre service provider does that and we don’t know. ALTERNATIVE FACTS is where I group these excuses. Whilst the truck operator understands the physical mass carried by the truck and how compliance with local regulation is met, they usually cannot determine the compliance of the actual item that supports the carried mass, the tyre. For many years now on road trucks have been fitted with extensive instrumentation to determine coolant temperature, oil pressure, exhaust gas temperature and other metrics for performance and safety; yet tyres seem to live in the ALTERNATIVE FACTS bin. When was the last time your drivers removed the radiator cap to dip a thermometer into the coolant to check the temperature? Yes, I agree it’s a laughable situation but surely is this not the same as applying a manual pressure gauge to a tyre to determine its serviceability? Why is tyre service stuck in the 1950’s? With great amusement we view ALTERNATIVE FACTS dumped upon us, but rarely do we consider the ALTERNATIVE FACTS we provide in regards to our own tyre maintenance. WHY? “Look after your tyres, so when you call upon them to look after you they will be equipped to do so!” It’s not rocket science and with modern TPMS pressures can be checked from the driver’s seat with the push of a button and records maintained electronically.

COVER STORY Sharad P Matade

34 | Rubber Asia | March-April

2017

IRAN TYRE INDUSTRY ON

REVIVAL TRACK

There is a cautious optimism on the economic horizon of Iran which is gearing up to emerge as a powerful economy in the Middle East following the progressive lifting of sanctions since January 2017. The Iranian tyre industry is also now looking forward to fresh investments, technology collaborations and joint ventures in a bid to reviving, modernising and expanding the industry. Yes, these are challenging times for the tyre industry in Iran, especially as uncertainty prevails in the country’s relations with the US.

s long years of economic isolation ended early this year, Iran is engaged in a cautious but ambitious bid to regain its status as a lucrative market in the Middle East region for many businesses, including the tyre business. Many international tyre manufacturers and allied companies are exploring the possibilities to enter the Iranian market while the domestic tyre industry is on the look out of financial, technological and other collaborations with foreign tyre majors in its bid to revive the industry. But the road ahead is not that smooth either for the foreign tyre majors or the domestic industry. Managing the possible tough competition in the industry in the years ahead is certainly going to be a tough task.

Impact of sanctions International sanctions imposed by the Western world have had its toll on Iran’s economy and also the country’s tyre industry. “The tyre market of Iran has been majorly hampered by the restrictions on the import and export of automobiles as well as tyres on account of sanctions imposed by P5+1 nations (France, the United Kingdom, Russia, China, the United States, plus Germany) due to Iran’s Nuclear Enrichment Programme,” says Karan Chechi, Research Director at TechSci, which has recently

published a comprehensive report on the Iranian tyre industry, titled Iran Tire Market Forecast & Opportunities, 2021. The Iranian tyre industry at present consists of nine to ten manufacturing companies with production capacity of 230,000 tonnes a year. Among local tyre companies, Barez Tire is the largest tyre manufacturer in Iran, followed by Dena Tire and Yazd Tire in 2014, according to Hassan Shaebani, CEO, Rubber Industries Engineering and Research Company (RIERCO). The country’s requirement for tyres is currently 330,000 tonnes annually, of which 230,000 tonnes are produced domestically and 100,000 tonnes met through imports. Business restrictions due to the sanctions is clearly seen in the domestic tyre companies’ production, exports and imports, and product developments over the years. According to the data compiled by RIERCO, production of different types of tyres and tubes in Iran was recorded at 229,206 tonnes in 2004 and it grew 8.26% to 248,144 tonnes in 2014. However, consumption of tyres and tubes surged over 53% to 370,111 tonnes in 2014 from 240,502 tonnes in 2004 on demand from automobile sector. The glaring difference between domestic production and consumption is being met by imports, mainly from China. However, according to industry sources, Rubber Asia |March-April 2017 | 35

COVER STORY

Yazd Tire plant in Iran

production in 2015 declined further on liquidity crunch, growing cheap imports and inflation. “In 2015 , the actual production decreased from 243,440 tonnes to less than 194,000 tonnes because of lack of liquidity, import of low-quality and very cheap tyres from China as well as huge economic recession. It is expected that the total production may not exceed 200,000 tonnes in 2016 and the year ahead.

Revival of economy Iran is the second-largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia, and the 18th biggest in the world, according to the World Bank. Experts anticipate some relief for tyre manufacturers in Iran on revival of economy and the automobile sector. “ During 2014, due to the partial relief from sanctions, the automobile market reflected a bullish trend, exhibiting a whopping growth of around 29% in automobile production, which had a direct positive impact on the growth of OEM tyre market of

36 | Rubber Asia | March-April

the country,” says Karan Chechi. The economy of Iran is witnessing revival as can be witnessed from a boost in the sale of passenger cars, which rose to 1,055,400 units in 2015 from 691,709 units in 2013. Post sanctions, the country’s tyre industry is expected to post a double-digit growth in the next five years. According to TechSci Research report,the tyre market in Iran is anticipated to grow at a CAGR of over 12% during 2016-2021 on account of the anticipated growth in automobile production and sales. Moreover, lifting of sanctions and anticipated economic revival are

further anticipated to augment demand for tyres in the country through 2021.

Raising production capacity The removal of sanctions has bolstered the sentiments of tyre manufacturers in the country. Now the Iranian tyre industry intends almost to double its production capacity from the current level of 230,000 tonnes to 500,000 tonnes in the next five years. “After lifting the sanctions, we have started increasing our production capacity. In the initial phase, we are planning to add 100,000 tonnes and then reach 500,000 tonnes in five years from today. We have four to five automotive companies that produce 2 million cars per year and they are in negotiations for Joint Ventures and we hope that in the coming two years, we will see new brands in Iran, which will lead to an increase in domestic consumption of tyres,” says Mohammad Reza Ganji, Chairman of Iran Tire Association.

Source: RIERCO

2017

Tyre companies in Iran are

Hassan Shaebani

Mohammad Reza Ganji

Asghar Asgharpour

already gearing up to enhance their production capacity. According to reports, the largest Iranian tyre company Barez Tire is set to boost its production by setting up a new plant in Kerman. Barez Group targets to produce 150,000 tonnes of tyres per year by 2021 from the current production of 85,000 tonnes per year. Another company, Iran Tire, is also planning to increase production to expand its local market.

tyre markets in the Middle East, Iran is being targeted by major international tyre companies. According to reports, Michelin is exploring opportunities to resume its business in Iran which was Michelin’s biggest market until it stopped exports to Iran in 2011.

major export market. Kaisheng Hou, Senior Consultant, China Chemical Guilin Engineering Co.,Ltd. (CGEC), predicts that the Iranian tyre consumption will increase 20% in the coming years and radial tyre production will increase 15% to 30%. Hou expects that the Iranian tyre companies will be able to match the European regulations. However, according to Hou, the Iranian tyre companies will face stiff challenges on technology upgradations and cost. The Chinese tyre industry can support Iranian tyre companies in improving service and quality, she says.

“Our current production capacity is 70,000 tonnes per day out of which 7,000 tonnes are passenger radial tyres. We will increase PCR production to 25,000 units in the next three years,” says Asghar Asgharpour, Deputy of Sales & Marketing at Iran Tire. With the increased production, Iran Tire’s market share will increase to 10% from the current 7 per cent. “The Iranian Government is keen to increase the production capacity and in October 2015 the Government announced that it is looking for private sector partners to establish the proposed four greenfield facilities. The four new facilities will have a capacity of 50,000 tonnes each and will be located in four cities -Khorramabad, Kermanshah, Sanandaj and Zabol -- where there is no tyre manufacturing unit at present,” says an industry source.

Chinese tyre company Shandong Linglong Tyre has also entered into a strategic partnership with the Iranian company Tosse Tabdil Sina (TTS). Under the deal, TTS will act as an exclusive agent for the Linglong brand in Iran and handle its sales, marketing and after-sales service. Indian tyre major Apollo Tyres too has increased its sales in Iran. Apollo sells its products through a local channel partner and claims it has a dominant position in Iran’s cross-ply truck and bus tyre market. According to Apollo Tyres, Iran contributes more than 25% to the country’s Middle East & North African (MENA) revenue and since the lifting of sanctions on Iran in early 2016, the business has gone up nearly 50% for the Indian company. Chinese tyre companies already have a significant presence in Iran and looks upon the country as a

Shift from bias to radial tyres A gradual shift from bias tyres to radial tyres is also taking place in the country, though bias tyre segment is dominating commercial tyre segment largely. In 2014, 11,972,349 units were produced in the passenger car tyre segment, while bias tyres production stood at 289,151 units. By the third quarter of 2015, radial truck and bus tyre production stood at 215,467 units, while production of bias tyres is estimated at 843,187 units. However, according to tyre professionals, global trends and norms for regulations will lead to higher demand for radial tyres.

The domestic market for tyre building machinery is picking up, though 50% requirement of the machines is met through imports, mainly from China.

Gaining momentum) Being one of the largest

Source: RIERCO

Bias tyres account for around 60% of Iran’s tyre production capacity. The demand for radial tyre is growing in the market. For instance, Iran Tire, which produces bias tyres based on General Tire technology, has already started radial tyre production. “We Rubber Asia |March-April 2017 | 37

COVER STORY started producing radial passenger car tyres three years ago. The company purchased radial tyre technology under license from Matador Continental. The company also plans to convert its bias tyre capacity to radial tyres,” says Asgharpour. Growing radialisation will change the demand pattern for the main raw materials, natural rubber and synthetic rubber, in the country. The contribution of natural rubber, synthetic rubber and carbon black in the cost of tyre production varies between 58% to 68% mainly because of the technology for bias and radial production. In bias tyre production, the use of natural rubber is more than synthetic rubber. Since Iran is going to focus mainly on radial tyre production in the future, the demand for synthetic rubber will exceed the demand for natural rubber, experts say. Total rubber consumption by all Iranian tyre manufactures in 2015 Natural rubber

68,000-75,000 tonnes

Synthetic rubber

65,000 - 70,000 tonnes

Carbon black

65,000 tonnes

On the raw material front, around 100% of natural rubber is imported from South East Asian countries like Malaysia, Indonesia, Thailand and some other Asian countries. “However, over 65% of the requirement of synthetic rubber is supplied through local manufacturers such as Shazand Petrochemical Company, Takhte Jamshid Petrochemical Company and Bandar Imam Petrochemical Company. The rest, mainly Butyl Rubber and Pro Butyl Rubber, are imported from Korea, China, India etc. Majority of Carbon Black is supplied in-house by companies like San-ati Doodeh Faam Company (SADAF), Iran Carbon Company, Pars Carbon Black Company, Carbon Simorgh Company, etc. Even as the Iranian tyre industry is aiming to increase production capacity to meet future demand, there increasing awareness about the need to have eco-friendly products, explains the source.

Focus on green tyres According to Mehrtash Sepahan Company, which produces

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2017

Tyres rolling out from a plant in Iran

industrial chemical materials and lubrication for various industries, usage of aromatic oils will decline on tightening regulations to encourage green tyres in Iran as well as globally. “The Iran tyre industry mainly consumes aromatic oil. However, we are expecting reduction in the usage of aromatic oil in the near future owing to export market requirements and emphasis on eco-friendly products in the country,” says B Iranpour, Director Manager at Mehrtash Sepahan Company.

A few Iranian companies are looking for expanding their business in other countries along with their neighbouring countries through exports. “Majority of nations in the Middle East region are importdependent countries. Neighbouring nations such as Saudi Arabia, Qatar, Oman, the United Arab Emirates (UAE), Kuwait, etc and various countries of the African region are expected to be the potential export markets for the Iranian tyre companies,” says Karan Chechi.

Though aromatic oil usage is higher than paraffinic oil in Iran, the profit margins in paraffinic oil is higher than aromatic oils. The usage of aromatic oils for making tyres has already been banned in the developed markets citing its hazardous impact on environment and humans.

Iran tyre companies do very little exports. “Our current capacity is only 230,000 tonnes which is not much and does not meet the domestic demand. We export only around 5% of total production and that too to neighbouring countries,” says Ganji.

Mehrtash Sepahan Company dominates the paraffinic oil segment in Iran with a share of 90%, while in aromatic oil segment, it holds 20% share in the country and Behran Oil Co holds 50% share. The Swedish oil company Nynas, which has been supplying industrial oil to Iran, is now also exploring opportunities to supply its tyre oil, which is considered as green oil, anticipating future growth.

The Iranian tyre companies are not keen on setting up plants in other countries. However, a few Iranian companies are trying to enter into the Asian markets along with their traditional export market. Mehrtash Sepahan, which has a capacity of 50,000 MT of industrial oil annually, is planning to set up business in India. “The company is interested in entering India in a big way. It already has an office in India. We are evaluating the Indian market right now. We

have visited some potential customers,” says B Iranpour.

Major challenges Though the Iranian tyre industry’s future looks bright, there are serious challenges ahead. Many tyre companies are on the verge of bankruptcy. Technology and machines are outdated. Import of Chinese tyres is on the increase. Production cost is higher due to low production volume and even in such conditions, innovations and R&D are not a priority for the Iranian tyre companies.

of international tyre companies. “Sometime we also do reverse engineering on machinery and technology bought from China and Europe,” says Mehdi Ghavami, Project Manager, Novin Fanavaran Ned Group, which makes tyre and rubber building machines. Many international companies are looking for Joint Ventures to expand production and upgrade technology. “We see a lot of potential in solid tyre business and we want to enter into solid tyre production and will be ready to form a JV with a foreign company for the same,” says Raza Moghaddam of Kian Tire, the largest OTR tyre producer in Iran.

check inflow of cheap tyres. However, imports and export duty policies of the Government are in favour of local tyre companies. Import duty on raw materials is around 4%, while export duty on finished products and raw materials is nil. However, for imports of radial tyres, traders should pay 32% import duty and on heavy tyres they have to pay 20%.

The road ahead Though doors are open for foreign companies to enter into the Iranian market, the going will not be easy for both local and foreign companies. Prior to the imposition of nuclear sanctions on the country, the tyre market of Iran was highly diversified with various international brands such as Bridgestone, Continental, Michelin etc. and domestic tyre brands such as Barez, Kavir, Goldstone etc.

The Iranian tyre industry has already set an ambitious target to double its production capacity in Kiran Tire produces different sizes the next five years, and for that tyre for the local and foreign markets. companies are in a desperate search However, producing different sizes of investments. Most tyre and other is another challenge. “Since the tyre-related companies are seeking size of tyres are changing almost foreign investment as financing every day, we find it very difficult from local banks are not being to produce sizes on demand. For preferred due higher interest rates. changed sizes, we have to buy However, the situation became “Local banks’ interest rates are as new moulds and augment our critical after the imposition of high as 28%, so we are reluctant production capacity which is not a sanctions on Iran. International to approach local banks for tyre majors halted loans,” says Asgharpour Import of different types of tyres to Iran (Tonnes) 2004-2014 operations in the country, The high domestic interest which eventually helped rates, electricity charge domestic tyre brands in and other charges are a Iran to gain share in the disincentive to attract foreign market and establish a investments. However, Ganji strong foothold. says that the Government Therefore, the packages for loans are international tyre majors competitive and tyre who are now planning companies can opt for it. to resume operations “We need finance to expand in Iran will have to face tyre production capacity in stiff competition from the country. Banks’ interest domestic players and it rates are quite high, but the Source: RIERCO would be a challenging Government allocates some task for them to regain funds to the industry with feasible option,” says the company their share in the Iran market. special interest rates comparable spokesman. to international interest rates. According to the Chair-man of Iran Anybody who wants to come to Iran Import of Chinese tyres Tire Association, the foreign brands for tyre business can avail of these can now have an effective entry Import of tyres from China is a special facilities,” says Ganji. into Iran market only through joint major threat to domestic tyre ventures with Iranian companies. Funding for Research & companies. Around 40% of Iran’s Developments is a major issue for tyre demand is being met through Meanwhile, the uncertainty the Iranian tyre industry. “Along imports. Imports from 2004 to 2014 clouding Iran’s future relationship with research and technical surged around 150% to 133,136 with the United States, particularly support, we also need financial tonnes. Imported Chinese tyres after Donald Trump became support to conduct research in are 40% cheaper than the locally the new US President, has put a various segments in the industry,” produced tyres. question mark over Iran’s ambitious says Shaebani. development plans. The possibility Many Chinese companies grossly of Trump imposing new sanctions Upgradation of technology is undervalue the tyres exported to on Iran is viewed with anxiety Iran to escape higher import duties. another challenge confronting the Iran tyre industry professionals have by the international business Iranian tyre industry. Most tyre community. called for higher import duty to companies use outdated technology Rubber Asia |March-April 2017 | 39

INTERVIEW Sharad Matade

IRAN TYRE INDUSTRY LOOKS FOR INVESTMENTS AND JVS

Mohammad Reza Ganji, Chairman, Iran Tire Association

As economic sanctions on Iran were lifted from this January, the country’s tyre companies are looking for fresh investments and technology collaborations to be more competitive, according to Mohammad Reza Ganji, Chairman of Iran Tire Association. “We are planning to double our production capacity in the next five years and for that we need foreign investments and Joint Ventures to get the latest technologies to make products that meet the demand from all markets,” says Ganji in an interview to Rubber Asia. The Association consists of all nine tyre companies in Iran and is pushing hard to protect its members’ interests in the changing scenario. While speaking at length on the current status of Iranian tyre industry, he expressed the view that import of the cheap Chinese tyres should be regulated and foreign tyre companies should join hands with local companies to set up business in Iran. Excerpts: In the wake of lifting the economical sanctions, how do you see the future of the Iran tyre industry? In Iran, there are only nine tyre manufacturers and the current capacity of the industry is 235,000 tonnes per year. After lifting the sanctions, we have started increasing our production capacity. In the initial phase, we are planning to add 100,000 tonnes and then reach 500,000 tonnes in five years from now. The increased capacity will be distributed among all the nine member-companies. We have four to five automotive companies and they produce 2 million cars per year and they are in negotiations for Joint Ventures now. In the coming two years, we hope to see a host of new brands in Iran leading to an increase in domestic consumption of tyre. What are the main challenges facing the Iranian tyre industry? We need finance to expand tyre production capacity in the country. Bank interest rates are quite high, but the Government

40 | Rubber Asia | March-April

2017

allocates some funds to the industry with special interest rates which are comparatively the same as international interest rates. Anybody who wants to come to Iran for tyre business can utilise these special facilities. On the technology front, though most of the companies’ production facilities were established on foreign companies’ technology, they have now become quite old. Yes, we are in talks with major tyre companies globally regarding improvement of technology, but we are not successful till now as they are very conservative about the sanctions. They are waiting for lifting the sanctions completely.

international tyre companies were here in some form of collaboration with local tyre manufacturers. They came to Iran alone too, but I feel if they form Joint Ventures with us ( local tyre companies), they can reach their goals sooner. The import of China-made tyres is on the rise. As the leader of the Association, what is your strategy to protect the interests of the domestic players?

Many international companies have shown interest in doing business in Iran. How do you see the competition from international companies, armed with latest technology and strong finance backing, entering the Iranian market?

We are open to quality tyre imports from international companies. The Chinese tyre companies are currently exporting 100,000 tonnes of tyres to Iran. We address this issue in two ways. First, we have had talks with the Government officials to ensure taking some actions such as higher tariff duty, countervailing anti-dumping duty on import of poor-quality tyres etc. So far, the response from the Government is lukewarm and it (Government) emphasises on having more talks on the subject.

Considering the current realities, they will have to enter Iran through Joint Ventures with Iranian companies. In the past ,

Another course is that we have a Commission under the Ministry of Industry for the imports of tyres and we are one of the members

companies are exporting their products to neighboring countries such as Pakistan, Afghanistan, Iraq, the CSI countries and some parts of Turkey. We are also exporting bicycle tyres to African countries like Nigeria and Kenya. Labour cost is very competitive here. Right now, la bour cost in Iran is lower than that of China. The minimum wage in Iran is $300 per month which is less than that in China. Electricity tariff is also not very high. Tax rate is 25% on net profit which is also not very high. What is the present status of the Iranian tyre industry with respect to R&D and product development? The technology of most of the tyre companies in Iran is mainly based only on the US and European companies. For instance, Yazd Tire produces tyres based on Vredestine technology. We have Rubber Industries Engineering and Research Company (RIERCO), which is Iran’s finest rubber expertise centre to support the rubber and tyre sector of the country with technical and engineering support services, research and development projects, training and professional publications.

of the Commission. Anybody who wants to import tyre in Iran has to get approval from this Commission. The permission is given based on certain quality standards and one of them is the European mark, known as E mark and SWR (Sound, Wet grip and Rolling resistance) requirements. Around eighty Chinese tyre companies are importing their tyres in Iran and I believe half of them don’t meet these quality norms. What are the steps being taken to improve the quality of Iranian tyres ? I believe Iranian tyres are good in quality. Iranian tyres have a mixture of European and the US standards. We are not worried about this right now as we can meet any standards.

Could you please give us un update on raw materials, labour cost and import & export duty? Iran is a net importer of natural rubber. Most of the natural rubber is imported from Malaysia, Thailand and Vietnam. With regard to the rest of the raw materials such as synthetic rubber, carbon black, chemicals, oil and others, 50% of the requirement is met domestically and the rest through imports. Iran’s import and export policies are very industry-friendly. Import duty on raw materials is around 4%, while the export duty on finished products and raw materials is nill. However, on imports of radial tyres, traders should pay 32% import duty, and on heavy tyres they have to pay 20%. Currently, most of the tyre

Main shareholders of RIERCO are the nine Iranian tyre manufacturers who hold about 98% of the shares. RIERCO is also equipped with Bead unseating and plunger testing facilities. In the near future, it will be fully equipped to test rolling resistance, wet grip and noise. What are the steps being taken by the Association to introduce Iranian tyre industry to the outer world? Our current capacity is only 230,000 tonnes which is not much and does not meet the domestic demand. We export only around 5 per cent of our total production and that too only to neighboring countries. That’s the reason why we are not seen at the global expos and seminars. The recent sanctions also have limited our business with Western world. We don’t have plans to set up plants in other countries right now. But, of course, as I said, we are looking for technology and Joint Ventures with foreign companies. Rubber Asia |March-April 2017 | 41

TRIBUTE

REQUIEM FOR THE DOYEN OF INDIAN RUBBER INDUSTRY K M Philip who passed away in Chennai on January 11, 2017, at the age of 104, has played a pivotal role in the development and progress of rubber and tyre industries in India. In the following columns, two close associates of Philip — Rajendra V Gandhi, Chairman and Managing Director of GRP Ltd, and Dr R K Matthan, Hon. Member, AIRIA — recall Philip’s signal contributions to the rubber industry and his qualities as a great human being. Read on....

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2017

MY MENTOR AND ROLE MODEL Rajendra V. Gandhi

n the early morning of January 11, Mr KM Philip passed away peacefully in Chennai at a matured age of 104. He lived a full life. He was considered as a father of the Indian rubber industry due to his unparalleled service to the cause of the rubber industry. It was under his leadership, his personal care, guidance spread over 5 decades that AIRIA has emerged as a formidable association representing the interest of the rubber manufacturing sectors, mainly non-tyre. We all know Mr Philip was a devout Syrian Christian. I am a Jain who believe in karma. Hence, I can say proudly and yet with humility that it must be my past good karma that brought me in touch with this Godfearing, humble and yet a towering personality.

43 year-long association In my association with Mr Philip spanning over 43 years, I have come to know and appreciate some aspects of his personality. I would like to share what I have learnt from him, while I worked under his guidance in GRP, as well as what I have observed while participating in numerous meetings of the Managing Committee of AIRIA, the Governing Council meetings of IRMRA and in various other industrial, social and family events.

I first met Mr Philip sometime in 1973 when I was exploring various options to set up a new venture. I went to see him with my late father Vadilal C Gandhi. In that very first meeting, I developed enormous respect for him. Mr Philip encouraged me to set up a reclaim rubber plant. At the end of that meeting, my father conveyed to Mr Philip that he was handing over his son to him. It was indeed a true handover. Just three years later my father passed away, and thereafter, till his last breadth, I have enjoyed with privilege the blessings and guidance of this father, “Papa”.

Birth of GRP With Mr Philip’s encouragement and blessings, Gujarat Reclaim & Rubber Products Ltd (now known as GRP) was born (incorporated) in 1974. At my father’s invitation, Mr Philip readily agreed to become the Chairman of GRP Ltd. Mr W G Desai was appointed as Managing Director. I became the Joint Managing Director. GRP decided to set up the first plant in Ankleshwar, Gujarat. In those days, machines required for reclaim rubber manufacturing were not indigenously made. One had to import these machines. For this import license was required

from DGTD. I was not comfortable with the idea of “greasing palm” to get import license. In one of our conversions, Mr W G Desai proposed that if the promoters were ready he had the knowledge and experience to design and build the entire plant indigenously. When Mr Philip said he had faith in Mr Desai’s ability, I decided to take the plunge. There were many challenges in the initial period of the company. There were times when I was quite frustrated and desperate. Mr Philip’s advice on such occasions was very useful. When chips were down he never showed his displeasure. Instead there were words of encouragement and practical advice. At a point, due to financial over-run and project delay, there was a trust deficit with financial institutions in Gujarat. On one occasion the lenders asked Mr Philip to come to Ahmadabad to explain the situation. I was feeling extremely embarrassed. But Mr Philip agreed to travel with me overnight in a crowded train to meet the officials of the financial institutes to convince them about the viability of this project. This demonstrated his sense of unselfishness to help someone like me even at the cost of physical discomfort. Rubber Asia |March-April 2017 | 45

TRIBUTE Inspite of my best efforts to make the company viable, the task looked too daunting for me. Things became more difficult due to severe difference of opinion with Mr W G Desai. So I decided to sell promoters shareholding. But at the last moment, negotiation collapsed. I was unsure whether Mr Philip with his reputation and stature, would like to continue to be the Chairman of such a sinking company. I gathered courage to request him to continue as the Chairman for some time. He could have refused. Instead

“I am a Jain who believe in karma. Hence, I can say proudly and yet with humility that it must be my past good karma that brought me in touch with this God- fearing, humble and yet a towering personality.”

During over 40 years, I have observed Mr Philip conducting and participating in various meetings -be they Board meetings, association or industry forum meetings, or even personal one-to-one informal meetings. His outstanding quality has been listening with empathy. With this quality, he could win the hearts of the young and the old, the ordinary as well as powerful and influential people.

At the helm of AIRIA He was the co-founder of AIRIA and he became the President of AIRIA in 1949, 1950 and again in 1961. He was also instrumental in persuading AIRIA to form the Indian Rubber Manufacturers Research Association (IRMRA) in 1959 to provide muchneeded testing and quality research for MSME industries in rubber manufacturing.

he chose to put faith in me and was willing to be patient. In addition, he offered to buy out the shares of Mr W G Desai when the later wanted to step down as Managing Director.

Lessons in management Mr Philip’s positive thinking and trust in me gave me the strength to put my heart and soul into reviving the company. He made himself available at every step. He encouraged his son Dr Peter Philip to join the Board of GRP to guide and support me. The company survived the crisis under his guidance. I learnt several valuable lessons during this crisis which helped me to graduate from a typical family-controlled proprietary style of management to a professional participatory style of management

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Under his Chairmanship, GRP has achieved commendable progress by becoming one of the largest reclaim rubber companies in the world. He attended every meeting of the Board of Directors till he reached the centenary year, and actively participated in the deliberations. When we shared this information with Limca Book of Records, they entered his name in their Book of Records as the longest serving and active Chairman of a public listed company.

2017

He had ceaselessly worked in so many public institutions without any ambition or selfish motive. He had held many influential and coveted positions but while holding these positions he had demonstrated another outstanding quality --i.e. humility and absence of pride and ego. Just before he completed his centenary year, in one conversation with me he revealed another secret — willingness to forgive. He said then when you carry grudge against someone, you only suffer and not the other person. He said forgiving should be from the bottom of the heart, then only you will get peace within. For forgiving someone you need to have inner strength and that inner strength comes from regular prayers. Although rolling in riches, he

lived a very simple lifestyle. He ensured that all his children and grandchildren also had similar upbringing. Once while talking about contentment, he had said that contentment will not come all of a sudden, it takes years of reflection and introspection to achieve contentment. When I asked him how at his advanced age he managed to be so alert and able to remember and recall so may precise facts, he revealed yet another insight i.e. regular exercise, his regular game of bridge in the evening and positive thinking. So one can see that between the time he finished his morning golf which kept him physically fit, and few games of bridge in the evening which kept him mentally alert, in the intervening hours, he had contributed so much for the wellbeing of his family, his community, the rubber industry and the nation as a whole.

Institution of K M Philip Award When he completed 80 years, the industry (AIRIA) decided to celebrate the occasion. I was one of those who proposed that in recognition of the services rendered by Mr K M Philip to the rubber industry, a suitable award should be instituted in his name. The Managing Committee of AIRIA kindly agreed to institute the award carrying a gold medal and a cheque of Rs 250,000 (now). Since the inception of this award, twelve distinguished individuals have been the recipients of this coveted honour. Because of his selfless service during the last eight decades of his active life, Mr Philip had earned many honours, recognitions including Padma Shri and Hancock Medal. But more than that, he had earned the love, respect and gratitude of thousands of families whose lives had a positive impact directly or indirectly through his contributions. I am personally so fortunate and grateful to have had Mr Philip as my mentor. GRP has also been so privileged to have had him as its Chairman for over forty years. May his soul rest in eternal peace.

A LOVING 'PAPA’ TO THE RUBBER FRATERNITY Dr R K Matthan

r.K.M.Philip, the last of the generation of Founding Fathers of the Indian Rubber Industry, was widely referred to in the media as the Doyen of the Industry, but affectionately called “Papa” by his extended family and friends across the globe and five generations. His demise was peaceful in the early hours of 12th January 2017, after a life replete with significant documented milestones, astonishing achievements and the visible attainment of a final inner peace and contentment. Smiling and soft-spoken with a mien that was rarely perturbed or angered, he was an attentive listener to the young and the old, friend or foe, the eager entrepreneur or the impatient businessman.

Purveyor of sound advice Well-read and widely travelled, his experience and acquired knowledge gave him a holistic appreciation of conflicts, problems and potentials, such that he was the purveyor of sound advice -- but only when called upon to do so. Generations of individuals within and outside his family ambit and the rubber community have had the benefit of his attention, affection and considered views. He migrated in the 1930’s from his traditional Orthodox

Syrian Christian roots in Central Travancore, Kerala, to the ‘modern’ multicultural mix and plurality of Mumbai society and business. Engaged in the nascent Indian Rubber Industry from pre-war days, with its draconian British restrictions on procurement and use of natural rubber, he was then pitchforked into a postindependence era, wherein the rubber industry was poised and eager for rapid growth. Unfortunately the industry was progressively hobbled by imperfections of the planned socialist economic development model. This was compounded by an ‘all-knowing’ bureaucracy, and the inequalities and favouritisms of the “Licence Raj.”

Institution-builder In this churning mix, Mr. Philip worked in the early years for the establishment, survival and growth of Institutions such as the AIRIA, ATMA, IRMRA and IRI that would be pivotal in a maturing rubber economy. This was in addition to his contributions to overcome the multifaceted challenges to his own and other emerging family businesses. Learning from his fathers’ experience (though oft bitter) of the power of the press, he with other Association stalwarts launched

Rubber India Magazine to inform, highlight key issues and project the industry concerns. A reading of his collated published editorials and articles of 50 years provides an unfolding panorama of historical insights, as it records the genesis and growth of a post-Independence essentially entrepreneurial modern rubber industry. He played an important role in promoting the unification of the West and East Rubber Associations thus strengthening the AIRIA and gave his unstinting support, in the face of criticisms, to late Mr. Anil Sampats’ initiatives for the biennial Indian Rubber Expos showcasing “Brand Rubber India”. Ironically, the inauguration ceremony of the successful Chennai IRE 2017, held a week after his demise, was witness to both the release of his final message in the souvenir and industry leaders’ condolences and tributes to his life and contributions to the industry.

Formation of IRMRA Foreseeing the need to create as a common future R&D platform for the rubber industry, he worked with late Dr D Banerjee, Mr. L.M.Jamnadas and the new generation of rubber technologists including Mr.W.G.Desai, Mr. S.V Lathia, Mr. Manu Patel and Mr.D.Bose to form the IRMRA Rubber Asia |March-April 2017 | 47

TRIBUTE (Indian Rubber Manufacturers Research Association) in the late 1960’s in partnership with the Government. In the 1990’s he reluctantly assumed the Chairmanship of the IRMRA after its lacklustre performance but convinced the Ministry to allow it to retain its autonomy. He sought and obtained a virtual ‘carte blanche’ to revive it with support through the Five Year Plan Funds. He charted a course with the successive Directors to initially reposition its R&D focus to Defence products substitution and selfreliance through greater focus on testing services for SMSE’s. His objective was a deeper engagement with an increasingly robust Indian tyre industry. Despite lukewarm tyre industry support and opposition within the Governing Council, his persistence paid. The Planning Commission approved the funding for the creation of a state-of-the-art tyre testing facility. Once set in motion, he was determined to demit office, despite the Government requests to remain. The commissioning of the facility with its operational and financial success gave him great satisfaction, but in his humility he never claimed credit for the idea or the implementation.

Unbounded optimism His unbounded optimism of the future of the Indian Rubber Industry was suddenly expressed in a presentation, predating the 1990’s economic reforms era, predicting a million metric tonnes of annual rubber consumption in India by the turn of the century. The sceptics and pragmatists in the industry, faced with their daily struggles of managing their businesses, could not easily envision this, but his good friend late Tan Sri Dr B C Sekhar, Chairman and Controller of Rubber Research of the Malaysian Rubber Board, endorsed this giving him the sobriquet “Million Tonne Philip.” The attainment of the million tonne milestone was appropriately celebrated by them, shortly before Dr Sekhar’s sudden demise at Chennai. Mr Philip was a Fellow of the Institute of Materials, UK, and his international recognition came with the 1984 Award of the Hancock

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Medal by the Institute. He was committed to ‘sustainable development’ before they became the buzz words of the environmentalists and the subject of global conferences and seminars. As an industry representative on the Rubber Board, he voiced his support for Natural Rubber supplies at remunerative prices for the producers to ensure their commitment and continuity.

Mr Philip expressed his unbounded optimism of the future of the Indian Rubber Industry by predicting a million metric tonnes of annual rubber consumption in India by the turn of the century. The sceptics and pragmatists in the industry could not easily envision this, but his good friend the late Tan Sri Dr B C Sekhar endorsed this and gave him the sobriquet “Million Tonne Philip.”

He completed the closed recycling loop by promoting natural and synthetic reclaimed rubbers as important raw materials for the industry. The moving tribute by Mr Rajendra Gandhi, Chairman, GRP Ltd, is a testimony of his endto-end commitment to the rubber industry. He played an important role in extending the reach and activities of the Indian YMCA in socio-cultural, sports and skill development activities. He was elected and honoured to serve as the President of the World Alliance of YMCA’s. He was a respected elder of Orthodox Syrian Christian Church and of the vibrant Malayalee Community in Mumbai.

His relocation to Chennai, after his centenary year celebrations in Mumbai, distanced him from the hustle, bustle, tussle and love of Mumbai and his large circle of friends and acquaintances, but he continued to maintain a keen interest in the goings-on in the rubber milieu. He surprised his visitors with current state of knowledge in many spheres. The loss of his wife and devoted companion of 78 years in 2015 perceptibly lessened his interest in the outside world – though he remained remarkably attentive to the progress of the various M M Group family-managed businesses including the Malayala Manorama Publications, M M Rubber Ltd, Plantation Companies (coffee, tea, rubber and pepper) and MRF Ltd.

Mentor ‘nonpareil’ My own very deep sense of personal loss is assuaged by the fact that he had found his inner peace and contentment. For me he was a mentor ‘nonpareil’ with his benevolent tutelage over six-anda-half decades, with interaction at the family level, in career and professional guidance and industry institutional activities. He always had the time to listen, guide, chastise and encourage me. His adherence to Christian principles and family values with the result of regulation of pride and ego was coupled with an unbiased mind capable of absorbing all shades of opinion. These provided invaluable lessons for me in my professional and personal life. It provides me great comfort that when I visited him on the 11th of January 2017, after an extended absence from Chennai, he registered my presence by lifting his right hand and firmly gripping my own, opening his eyes and nodding his head in acknowledgement. I thought it was a sign that he was on the mend, but in retrospect he was saying a final goodbye. He was indeed the last notable of his generation of his family, and, of the Indian rubber fraternity which was his extended family. May his Soul Rest in Peace.

INTERVIEW P.Venugopal

Mike Hinsey ITâ&#x20AC;&#x2122;S INTERESTING

TIMES FOR TYRE RECYCLING INDUSTRY 50 | Rubber Asia | March-April

2017

Mike Hinsey,International Vice President, Granutech Saturn Systems, USA, a leading industrial recycling systems manufacturer, is widely considered to be a legend in the tyre recycling industry. He has been with Granutech for 33 long years and has been instrumental in taking the company to the world’s Top 3 position. Among the awards and accolades won by him include the coveted award from the Institute of Scrap Recycling Industries Inc. (ISRI), USA, the largest recycling association in the world, for his outstanding contribution to the recycling industry. In an interview to Rubber Asia on the sidelines of India Rubber Expo (IRE) 2017 in Chennai, he explains the high points of his 33-yearlong association with Granutech and shares his views on wide-ranging issues such as the current status and future prospects of tyre recycling industry, the problem of mounting tyre wastes, recent innovations/improvements made in tyre recycling technology etc. He says that the new developments in processing and product applications augur well for the industry, which continues on a path to produce finer and finer powder, find opportunities to blend rubber with plastics, and expand other traditional granulate markets. He feels that India is a unique case where demand for rubber granulate exceeds supply of scrap tyres and the scrap tyres have a value where processors are paying to receive the tyres. Excerpts from the interview:

You are widely acknowledged as a living legend in the global tyre recycling industry. Please explain how you got attracted to tyre recycling as a career and what have been your major contributions to the industry. I don’t view myself as any sort of legend, nor do I believe others do. I am fortunate to have been involved in an industry for more than three decades and have met and learned from true industry veterans. My position allows me to see and meet the best in the world, learn from what make them successful, and perhaps share an idea or two that helps them. Having been involved in the global recycling community I place a high value on relationships and wanting to see a customer be successful. I believe that customers view my intentions as genuine and as such, they are candid and open with me about their business. I see first-hand how supporting and contributing to an industry rewards you in many different ways, from direct machinery sales to professional growth, and innumerable friendships. You have been with Granutech for 33 long years and has been instrumental in taking the company to the world’s Top 3 position. Please explain how you achieved this rare feat and also please give us an insight into your management philosophy that helped you to achieve outstanding corporate success. To be candid, I joined the firm in 1983 at the age of 24 with little vision that I would get to this position, have the chance to meet the people I have, and be a part of such an emerging industry. I don’t get too hung up on rankings and what the competition is doing. That’s not to say that you don’t want

to be aware and knowledgeable of their abilities, but I have no control over their products and strategies. I can only have influence on what happens within Granutech Saturn and I am outspoken in my opinions about where the company should be going and how I think we can best get there. Please share your views on the current status and future prospects of tyre recycling industry? What are the new and innovative products made out of recycled rubber? It is interesting times for the tyre recycling industry at the moment. The unfounded media concern of granulated rubber’s health effects have dampened growth in the sports field market. While this movement has led to more studies from a wide variety of entities, I expect they will confirm what the decades of other studies have found, that recycled rubber is safe. I relate this to the story in the 90’s where we were all going to get brain cancer from our mobile phones according to every media outlet. It took a strong scientific campaign to refute the baseless allegations and cost the mobile phone industry millions of dollars in the process. Unfortunately, tyre recycling processors don’t have the pockets of global phone providers so they are having to fight this in a more budget conscious manner. The encouraging side of the industry is the new developments in processing and product applications. The industry continues on a path to produce finer and finer powder, find opportunities to blend rubber with plastics, and expand other traditional granulate markets. This was primarily the reason for the strongest year for our firm in nearly a decade.

The unfounded media concern of granulated rubber’s health effects have dampened growth in the sports field market. While this movement has led to more studies from a wide variety of entities, I expect they will confirm what the decades of other studies have found, that recycled rubber is safe.

Rubber Asia |March-April 2017 | 51

Please explain the importance of tye recycling in terms of its benefits to people, environment etc. While scrap tyres represent a very small percentage of the total waste stream, they are one of the most difficult products to dispose of. Our firm’s involvement from the late 1970’s drove us to build the most powerful shredders available with the knowledge that if we can design machinery to handle tyre recycling, the machinery will hold up in any other application. You only need to look at the environmental issues of the massive tyre dumps in the Gulf region to be able to still see the impact to the environment of whole scrap tyres. We had similar issues in North America in the late 1980’s to early 1990’s before there was a concentrated effort to clear these stockpiles and eliminate the hazards associated with them. Those hazards include massive fires, ground water run-off concerns, breeding area for insects carrying disease, and a general blight to growth and development of the land holding the tyre pile. Tyre retreading is catching up in the PCR segment as well. What do you think of the future prospects of tyre retreading? I am not particularly close to this part of the market though I have gained from customers that the low cost of imported tyres has virtually eliminated car tyre retreading and is making truck tyre retreading much more challenging due to low costs of new tyres. How serious is the problem of mounting tyre wastes. How do nations tackle this growing environmental menace? I actually see the tyre waste issue being better managed. India is a model for the market where there is demand exceeding supply and the scrap tyres have a value where processors are paying to receive the tyres. There are very few areas in the world where this is the case. I remain puzzled how many Governments chose to do nothing to promote markets while watching their steadily growing scrap tyre

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stockpiles. Only recently has there been a focused effort to promote rubber modified asphalt in the Gulf region. There are processors with warehouses full of rubber with no market demand in the Gulf. Should those Governments get on board with this opportunity they could create demand exceeding supply nearly overnight. As I said, I’m puzzled why in this era with so much knowledge of the benefits of rubber asphalt, Governments with a scrap tyre problem are not more proactive to market development for rubber granulate. What are the recent innovations/ improvements made in tyre recycling technology, such as pyrolysis, devulcanization etc? I continue to watch this part of the market as it has the opportunity to change the game for scrap tyre recyclers. Many of our inquiries are now associated with this market segment but it is still too early in my opinion to state there has been a clear breakthrough for the production of high-quality materials through pyrolysis, or gasification. We have supplied machinery to prepare scrap tyres for pyrolysis and have quoted many more projects. Our ability to make a steel-free feedstock at high capacity has separated us from the competition. The elimination of the steel is significant to reduce wear, eliminate ash residual, and reduce energy since the steel only consumes heat and reduces the thermal value of tyre chips. On the other hand, devulcanization has been effective for an extended time in the production of reclaim rubber sheet. While the process does not fully devulcanize rubber, there is adequate devulcanization achieved to allow the reclaim sheet to be applied in industries around the world. India and China are global leaders in this field.

new market firms. As I mentioned, demand for rubber granulate exceeds supply of scrap tyres and results in a need to import tyres and purchase them as feedstock. There are also challenges to compete with Asian supplied machinery suppliers and this requires us to work with our local partners to supply a mix of machinery in a system from both the US and India. Our ability to make fine powder at high rates ultimately separates us from other suppliers. With low cost labour available, the Indian businessman frequently opts to go with less sophisticated machinery at a lower cost and then surround the process with labour. This is far different than the US or European processors who seek to automate processes and eliminate labour. You are a recipient of an award from the Institute of Scrap Recycling Industries Inc. (ISRI), USA, the largest recycling association in the world, for your outstanding contribution to the recycling industry. Please explain the significance of the award. Also please let us know what are the other major awards and recognitions won by you for your professional excellence. To be candid, I was rather surprised to receive the award. It was the first time a supplier and not a tyre recycler had been honoured for “Service To The Industry”. As I shared at the time, this recognition was more about all the processors that had allowed me into their facilities, shared their successes and also their failures, and allowed me the opportunity to assist where I could. All prior recipients were industry pioneers in my view so I was honoured that an industry felt my support and contribution was worthy of being recognized.

You have been an active participant of IRE 2017. How do you look at the Indian tyre recycling market? Do you have any plans to set up a manufacturing facility in India?

I remain active in the ISRI trade association, serve as President of their Recycling and Research Foundation, and serve locally on the North Texas District Export Committee, a mentoring organization operated by the US Department of Commerce that serves to assist businesses in the export goals.

The Indian market is very wellestablished with major processors, yet there remains a steady stream of

My most satisfying recognition is that smile from my grandsons when returning from travels!

LETTER FROM BRAZIL

TECHNOLOGY TRANSFER:

Diogo Esperante

BRAZILIAN EXPERIENCE

Farmers and Tappers at Tapping Skill Development Training organized by local dealers in the City of São Francisco de Sales - MG, Brazil. (Personal File)

The processing plants in Brazil through dealers, who are mostly Agronomists, play an important role in transferring technologies to the domestic rubber farmers, thus creating a sense of loyalty which helps ensuring the supply volume, stability and quality of rubber The writer is Executive Director at Apabor (São Paulo Farmers and Processing Plants Association) and Market Analyst for Hevea Forte Farmers Association.

ecently I had a consultation with Liu Rui-Jin Raykin of the Rubber Research Institute, Chinese Academy of Tropical Agricultural Sciences. Liu told me he had some information about Brazil NR Industry which he had received from a presentation Madam Sheela Thomas

54 | Rubber Asia | March - April 2017

(then Secretary-General of ANRPC) had made at the IRRDB Annual Conference in Cambodia. That information was the result of the impression left on Jom Jacob’s (ANRPC Senior Economist) mind after his latest visit to Brazil when we had the chance to

LETTER FROM BRAZIL

Opening the first Pannel Tapping Techniques are among the main subjects demanded by farmers. (Personal File)

tour around some rubber plantations and processing plants in the Northeast of the São Paulo State. What Liu had learned from the presentation was that the dealers in Brazil played an important role in transferring technologies to the rubber farmers. Since the introduction was very limited, he asked me to provide him more specific information regarding this. And it was such a great pleasure to do so which now I would like to share with Rubber Asia and its readers.

Role of dealers In fact, it is not the dealers but the processing plants themselves that play this role through the dealers. In this regard, it is important to underscore the fact that these dealers are mostly Agronomists. What is most interesting about this Brazilian experience is that each processing plant used to have big teams of Dealers/ Agronomists that worked exclusively for them. To some extent, that is still true even

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nowadays, of course, with some changes since the number of plants is diminishing with the consolidation processes the sector has experienced in the past few years. Nonetheless, although processing plants don´t hire exclusively the dealers so much anymore, they still preserve a close relationship in the sense that, in most cases, the dealers don´t buy rubber directly from the farmer. Instead, they operate as sales representatives and receive fees based on the quantity of rubber they bring into the processing plant. To guarantee that the farmer won’t choose a different dealer, the Dealer/Agronomist himself offers Technical Assistance and Technological Transfer, thus creating a sense of loyalty. That loyalty helps with the supply (a) Volume and (b) Stability and, obviously, that is perceived as something of a high-value throughout the supply chain. That phenomenon is partly facilitated because here in Brazil we have more demand than production. So in this regard, guaranteeing volume stability might be considered a key strategical factor.

Nonetheless, (c) Quality is also a key factor. To be able to guarantee good quality, it is important for the Dealer/Agronomist to ensure that the farmer has compliance with good production practices witch again induces the dealer to develop an important role in the transfer of technology. In conclusion, since the dealer fees are calculated based on the (a) Volume, (b) Stability and (c) Quality, and since these are strategical factors for the processing plants, the values are often attractive enough to stimulate the Dealer/Agronomist to fulfill his task very efficiently and effectively. There are also cases where the farmer might have some special technical demands costing the Dealer/Agronomist more visits or interaction. In those cases, it is common for the farmer to pay for that difference. In the cases where the farm holding is too small and incapable of paying for the service, cooperatives and clusters have been effective solutions

Two interesting questions. After this short explanation, Mr.Liu had two interesting questions. And those were: 1) What kind of technologies are frequently transferred by the Dealers/Agronomists? Variety, tapping skill, fertilizer, plantation management or processing technologies? 2) What are the main sources of technologies of the dealers and agronomists? In China, the dealer in countryside don’t have enough knowledge to provide technology service to the rubber farmers. The technology transfers are mainly done by the staff in the local governments and public organizations. Regarding question number one: Usually, the Dealers/Agronomists operate as links between the farmers and the various sources of information such as Researach Institutes, Common Bibliography, Congress, Workshops etc. In that sense, (i)Varieties and other planting-related issues (ii) Tapping Skills and (iii) Plantation Management are among the most common technologies transferred. To this latter note it is very important to add Chemical Stimulation Orientation as an important sub-topic. Processing is not a relevant topic. That is because, it is not common among farmers to do any processing activities in-house. To that extend we can affirm that most Brazilian farmers sell their cup lump directly to the processing plants, the so called “Usinas”. Fertilizing for that is a seldom practice in Brazil (although it has

become more common during these last few years). With regard to the second question: As I previously mentioned, (I) Local Research Institutes, (ii) Common Bibliography, (iii) Workshops and other Events organized by Associations of Farmers and Governmental Institutes are the main common sources of knowledge. We may conclude that having dealers with college-level education on Agronomy (or equivalent technical and scientific training) is the main difference between the Brazilian model and the one most commonly found in Southeast Asia.

Larger farmholds The fact that most of the farmers have an average 50 hectares each per farm is also an important characteristic. That makes easier for the dealers to sustain good income from their practice. Good income is the attraction of professionals with higher education to the practice. In the case of farms with smaller areas, clustering and Cooperatives are a solution to the size, volume and eventually attractiveness for dealers to operate as Technology Supporters. It is common for a dealer to make an average US$ 2,000 a month out of his practice. That can go up to US$ 5,000 or even US$ 10,000 depending on how many farms he has under his clientele. This model has suffered some changes recently with the rise of Technical Support Offices that don’t deal rubber and, to that extent, advertise that as a valuable characteristics as to their impartiality and commitment only with the best technical aspects not “getting distracted” by commercial issues. This has attracted the attention of bigger farmers who are able to pay for such service, and for that, it is not yet the most common model. Liu later wrote to me that the areas per household in Brazil were much larger than in China, and the area in China is less than two hectares in the smallholding sector. He also stated that the willingness to pay for the technological service is weak and processing factories do not pay enough attention to the quality control of rubber materials. This was certainly a great opportunity for learning and a simple example of how we can benchmark from each other’s experience in the pursuit of learning more about our own practices. Rubber Asia | March - April 2017 | 57

INTERVIEW Prof. TN Kalamani

APOLLO CAN GROW MORE IN EUROPE

Neeraj Kanwar

As part of a bid to expand global presence, the Indian tyre giant, Apollo Tyres Ltd., is currently concentrating more and more on Europe as well as other geographies. At present, Apollo is fast moving ahead with the construction of a Greenfield facility in Hungary which would be rolling out tyres within 2 months. In an exclusive interview to Rubber Asia at a time when the formal inauguration of the new Greenfield facility is scheduled for early April 2017, Apollo Vice Chairman & MD Neeraj Kanwar shares some of the key facts about the upcoming company such as the multiple factors for choosing Hungary to set up the facility, the initial investment, the most advanced machinery and updated manufacturing technology of the plant and its other unique features. He also explains Apollo’s efforts towards enhancing its global marketing operations and its latest R&D activities across the world. According to Neeraj, while Apollo is confident of further growth in Europe, the company will invest upwards of Rs 35,000 million in India towards adding capacity and setting up a new manufacturing unit. Excerpts: What is the present state of the construction of Apollo’s new facility in Hungary? When is it expected to start operation? The construction of our Greenfield facility in Hungary is moving ahead in full steam. We would be rolling out tyres from this facility within 2 months, and a formal inauguration of this unit is scheduled for early April 2017. How much is the total investment planned? We are looking at investing Euro 475 million in this facility in Phase 1, which should be completed by 2019. Why has Apollo chosen Hungary to set up the new facility?

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Hungary was chosen after a consideration of various factors over some of the neighbouring Central Eastern European countries. There are multiple factors that we consider before shortlisting and finalizing the location for a Greenfield. A few of these include: manufacturing costs, availability of skilled manpower, government policies, including incentive for manufacturing, logistics cost, proximity to highways and a variety of softer factors. Please explain what support you are getting from the Hungarian Government? The Hungarian Government is offering a regional investment aid of approximately Euro 100 million for our Greenfield facility

as permitted under the EU norms. This is towards the development of the Gyongyoshalasz region, where our plant is located and towards providing direct and indirect employment to hundreds of people. Please explain how advanced the facility would be on completion. What about the machinery and equipment? This would be Apollo Tyres’ most advanced manufacturing facility across geographies. The Team has used their learnings and experiences in procuring the most updated manufacturing technology for our Hungary plant. What would be the facility’s unique features?

Rubber Asia |March-April 2017 | 59

Among various other advanced features that we are incorporating in this facility, we are using the most modern, contemporary mixing equipment and technology, for producing the best of high performance and full silica tyres for passenger vehicles and to produce the best of TBR tyres. In addition, this plant would have the best in class manufacturing & quality systems and energy efficiency. What types of tyres would be rolled out from new facility? We are looking at producing both passenger vehicle (PCLT) and heavy commercial vehicle tyres in this facility.

management, and the integration between tyre and vehicle electronic systems. Also, please explain the company’s efforts to enhance its global marketing operations. Building the Apollo brand, as a company and at product level, is a key strategic lever for us. Campaigns along with Manchester United, and on dimensions of CSR and OE partnerships, is being used to promote the positioning of Apollo as a corporate, where as the different product segments are speaking

What will be new facility’s initial capacity?

What are Apollo’s latest expansion / modernization plans in India? What is the investment set apart for these?

Our research and development team is always working towards creating better and technologically advanced products for our customers worldwide. Similarly, several research projects are also underway in collaboration with several of our raw material suppliers and universities.

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We are focusing on the ASEAN, Middle East and US markets for our next phase of growth. We have been using our existing regional Sales and Distribution hubs in Dubai (for Middle East region) and Bangkok (for ASEAN region) to enter newer markets in their respective locations. We have recently hired a senior resource person for the US market, who, along with the R&D Team, is working on the products to suit the US market requirements.

In addition to Europe, we are looking at other geographies as well. Since 2009, we had a certain base in Europe which we grew further and hence the confidence to plan further growth in Europe.

What are Apollo’s latest initiatives to reinforce R&D activities across the world?

In parallel, an Advanced Engineering department is fully focused on development of new systems, technologies and tyre sensors to enhance the tyre

Please tell us about the new markets Apollo is currently focusing on?

Why is the company more and more concentrating on expansion in Europe? Please explain.

As you would understand, any facility would start with manufacturing limited number of tyres initially, and then the capacity would be gradually ramped up. Once Phase 1 is completed, this facility would have a capacity to produce 5.5 million passenger vehicle tyres and 675,000 heavy commercial vehicle tyres per annum.

We have already secured a leading position in the Radial Tyre Technology in India across categories, and gaining a majority share in new products from OEMs, would be the key for R&D going forward. To support the OEM journey and competitiveness in passenger car tyres, new technologies are under development, specifically focused on extended mobility and fuel saving.

to extend our rural outreach, especially in India.

directly to consumers and customers on why they should choose Apollo. Besides TV and Print, the company spends on Digital and OOH is becoming more salient and visible. We have recently launched a new corporate and brand website, which is future-ready and gives higher user-friend Another important aspect of marketing, which we are focusing on, is modern retail. Given the shape, size, location, category and other variables, a range of modern retail solutions are offered -- Super Zone, Zone, Point, Corner and on the similar lines, different variations

As you would be aware, we are in the process of doubling our truckbus radial capacity in Chennai. We are investing close to Rs 25,000 million towards this. The 6,000 truck-bus radials per day capacity would be doubled to 12,000 tyres per day (in addition to the 16,000 passenger vehicle tyres per day that the Chennai facility also produces). In addition, we have also signed an MoU with the Andhra Pradesh Government for setting up a manufacturing facility with an investment of Rs 5,250 million for future. Further, there are investments going on in all other existing plants in terms of modernization or de-bottlenecking. What is the company’s response to the Make in India initiative by the Indian Prime Minister? In line with the Prime Minister’s Make In India initiative, as mentioned above, we are investing upwards of Rs 35,000 million in the country towards adding capacity and setting up a new manufacturing unit.

SPOTLIGHT

Dr K U Thomas The writer is former Joint Director (Latex Harvest Technology), RRII, Rubber Board, Kottayam.

LOW FREQUENCY WEEKLY TAPPING

BENEFITS APLENTY Large-scale adoption of once a week tapping practice, recommended and popularized by Rubber Board, India, has a lot of benefits for the growers, especially in the context of ongoing low rubber prices, rising cost of production and acute shortage of skilled tappers

atural rubber plantation industry in India is passing through difficult times mainly due to very low NR price and acute scarcity for skilled tappers. Productivity in the country has nosedived from worldâ&#x20AC;&#x2122;s top position of almost 1,900 kg/ha to 1,450 kg/ha in the recent past in spite of large-scale adoption of

62 | Rubber Asia | March-April

2017

high-yielding clones. Rubber price crashed from an all-time high of Rs 250 plus during 2011-12 to less than Rs 100 a kilogram in 2016.

Problems on tapping front Along with the rise in NR price, all other costs also increased and the most striking was the increase in tapper wages which continues

to stay at the increased level. Due to the present dayâ&#x20AC;&#x2122;s high cost of living, the tapper is unable to offer a reduced wage to the grower. Acute shortage of skilled tappers is a reality and it is likely to aggravate in the future. The report of a recent survey conducted by the Rubber Research Institute of India (RRII) among small holdings

Tapping in progress

years and the younger generation is reluctant to take tapping as a profession. An area of nearly 100,000 hectare is in the estate sector in which at present there is not much problem for getting tappers. But the cost of production in the estate sector is the highest. By and large, smallholders are on High Frequency Tapping (HFT) like The average age of a tapper in alternate day tapping. This would India is reported to be around 50 require a total of Fig.1: Long term yield performance under various frequencies of more than double tapping the number of tappers who are available at present. Nearly 30% of the area is estimated to be left untapped during 2016. It is believed that NR price will fluctuate between Rs 100-150 at least for the next few years. and their tappers with the active participation of Extension Officers and Rubber Producers Societies indicate availability of only around 78,000 tappers to tap trees in 450,000 hectare in the smallholder sector (Siju, Binny & Tharian & Rajeevan, 2016).

64 | Rubber Asia | March-April

2017

Saving of tapping cost The practice of alternate day or still higher frequency of tapping for high-yielding clones pushes the trees into high incidence of maladies like Tapping Panel Dryness (TPD) or brown bast, ultimately resulting in short life span leading to replanting within 18-20 years, and in high cost of production. At a tapping wage rate of INR 1.50 -2.0 per tree (Rs 600-800/ha/day) in smallholdings under alternate day frequency, the cost of tapping per kg of rubber produced itself is INR 60-80 (@ assumed national productivity of 1,500 kg/ha; 150 days of tapping/ year). If these growers switch to once a week tapping, their cost on tapping can be as low as INR 27-34/kg, a reduction in cost by 55% (including tapping and stimulation cost) without reduction in yield. This makes rubber cultivation still attractive.

Trials show no yield loss

Fig.2: Low Frequency Tapping systems Benefit â&#x20AC;&#x201C;cost analysis of four year data

RRII conducted two large-scale trials (in 30 ha at SFCK estate, Punalur, from 1988 & in 10 ha at Koney estate of M/s Harrisons Malayalam Ltd, from 2010) on Low Frequency Tapping. And, on completion of long-term evaluation, RRII has recommended lower frequencies of once in three days (d3), once in four days (d4) and once a week (d7) tapping with clone and frequencyspecific yield stimulation schedule. The compiled annual mean yield from Koney estate under all systems except for d3 frequency without yield stimulation is on a par with d2 frequency (Fig.1). Detailed biochemical studies viz. sucrose content, thiols, proline, phenols, ATP and invertase activity were conducted during the experiment period to monitor whether there was any adverse effect of yield

stimulation under frequencies such as d7. There was no sign of degradation of laticifer system as indicated by high thiol content, no accumulation of stress indicators

like proline and phenol. The economic analysis of the data indicated BCR (benefit cost ratio) of 5.77 under alternate day (d2) whereas it was 12.35, more than double, under weekly tapping (Fig. 2). Many estates switched over to lower frequencies of d4 and d7, and are continuing successfully with yield on a par with that of d2. Success of LFT depends on disciplined operations like regularity in tapping, scheduled yield stimulation, removal of frequency-dependent bark shaving under each tapping. Estates and growers who strictly follow these are registering good performance and steady improvement in yield (Table 1). Among all the lower frequencies, the best and most economical is weekly tapping (Thomas, 2016a). Unlike many other rubber growing countries that opted weekly tapping and got only lower yield than d2, India could get sustainable high and on a par yield. Since 2009, RRII, in collaboration with the Extension Department of the Rubber Board, has been running demonstration plots on d3 frequency with yield stimulation in small-growers field under all Regional Offices. The performance of these plots was useful in dispelling the fear from the mind of growers on use of ethephon, possibility of yield reduction under LFT and occurrence of high TPD. Later, from 2015, we started similar collaborative demonstration program on Low Frequency weekly tapping with yield stimulation in small-growersâ&#x20AC;&#x2122; plots spread out in

The cup is full: Copious yield

66 | Rubber Asia | March-April

2017

changing to d7 (Table.4). We have around 100 weekly tapping grower plots under Thalassery Regional Office.

Fig.3: Panel application of 2.5% ethephon

Table.1. General yield improvement under long term implementation of LFT at Apella estate, Ujire, Belthangady, S.Karnataka. (Clones: RRII 105 -27.5%, rest with GT 1, RRIM 600 and PB 311)

Growers in India have Year Total Yield (Kg) Yield (Kg/tree) now accepted the reality of tapper shortage. Since 2007-08 53135 3.14 the average holding size is 2008-09 59683 3.53 only 0.5 hectare (200-250 2009-10 65415 3.87 trees), our first target group for extension of the most 2010-11 66174 3.92 economical low-frequency 2011-12 73853 4.37 weekly tapping is the owner2012-13 79509 4.7* tappers of over 25%. (Siju, Binny, Tharian & Rajeevan 2013-14 79707 4.72 2016). Since weekly tapping 2014-15 85357 5.05 ensures equal yield as in any 2015-16 89116 5.27 other, why not they go for weekly tapping and use the *Since 2012-13, entire estate is under weekly tapping irrespective of the clone remaining days for other activities? It is noticed that Kerala, Tamil Nadu and Karnataka. many of our d7 participants Whether it is in the South or the are housewives, teachers, sales men, drier North of Kerala, there was and Government employees. no yield reduction under weekly Trees under low frequency tapping tapping (Table 2) have to be yield-stimulated

Demonstration plots

Since 2002, the Rubber Board has been maintaining a demonstration plot on weekly tapping at Ranni (Table.3). Weekly tapping was being followed in Kanthimathi estate, Kulasekharam, from 2003 and, since 2006, the entire estate has shifted to it. The adjoining Vaikundam estate shifted to weekly tapping in half of their tapping area from 2016. Many of the friends and relatives of RRII demonstration plot-owners on weekly tapping also have shifted to the new system and are continuing it successfully. Thus, through grower-to-grower interaction, the success of weekly tapping is spreading fast and more and more growers are

68 | Rubber Asia | March-April

2017

appropriately from opening for sustainable high yield. The trees will be getting sufficient time interval between successive tappings to recoup the full quantity of rubber extracted. The method of yield stimulation recommended is application of 2.5% ethephon on the panel (applied on recently tapped area just above the tapping cut to a width of 1.5 cm with a brush made from coconut husk) Fig.3. It ranges from 2-3 rounds/ year for d3 frequency to 12 per year under weekly tapping. To get the best stimulatory effect of ethephon, a time gap of 48-72 hrs is required between stimulation and tapping.

The thump rules

We have identified five thump rules for the successful implementation of weekly tapping. They are ensuring regular tapping, ie. in case a regular dayâ&#x20AC;&#x2122;s tapping got skipped, those trees should be tapped on next day. Hence, in our climatic condition with more than 6 months rainfall, timely rain-guarding (if needed fixing a mini-guard) and regular panel washing with fungicide to prevent panel diseases are essential. Yield stimulant, ethephon at 2.5% concentration needs to be applied following panel application method as in Fig.3, three days before the 5th weekly tapping. Since the tapping interval is a week, bark shaving of each tapping should have 2.5mm thickness (thinner shaving will lead to partial opening of latex vessels, reduced yield), but annual bark consumption will be restricted to 13cm. (52x2.5mm =13cm/year). It is also important to ensure correct

Table.2: Comparison of actual rubber yield (Kg/ha) under d7 frequency with Global & Population mean in various agro climatic zones (A-F) Location & region Neria Estate (F) do

Clone

Global mean

Population mean

Actual yield

GT 1

1008

936

1416

RRII 105

1315

936

> 1503

RRII 105

1695

1432

> 2141

RRII 105

1664

1873

>1997

RRII 105

1821

1431

1782-2187

RRII 105

1943

1717

> 2340

Thrithala (D) Chethackal (B) Mundakayam (C) Kanthimathi (A)

Global mean is the overall performance of a clone in a specific agroclimatic region. Population mean is the overall performance of all clones together in an agroclimatic region

Table.3: Long-term dry rubber yield (kg/ha) under weekly tapping in demonstration plot at CES, Chethckal RRII farm Year

Dry Rubber Kg/Ha

2002-03*

2117

2003-04

2917

2004-05

2770

2005-06

1997

2006-07

2695

2007-08

2277

2008-09

4373

2009-10

3295

2010-11

1919

2011-12

2208

2012-13

2790

2013-14

2473

2014-15

1854

2015-16

2137

Average

2559 Kg

*Alternate day tapping for two years before 2002 depth in each tapping, ie. tapping depth should be 1 mm close to the cambium. It is observed that bark growth of 0.5 to 1mm takes place in a week under the influence of ethephon and weekly tapping. Hence, non-compliance can lead to shallow tapping and end up with low yield. For reducing scrap (field coagulum) percentage, effective delayed collection and second collection at around 3.00 pm has to be done. If d.r.c. falls below 30%, scheduled stimulation may be suspended till it is improved.

b) Benefit to the tapper As per the recently published 2016 report ‘census on rubber tappers in small holdings’, the average working days available to a tapper is 151 per year and at Rs.1.50/tree/tap, his annual income from 400 trees will be only Rs.90,600/- from tapping job. The same census report also highlights acute shortage

throughout the year, i.e, at least 300 days/year. At the same daily rate of Rs. 600 for 400 trees, the tapper stands to earn Rs.1,80,000 for 300 days, almost double of what he is getting at present from d2 tapping. If the same tapper is involved in stimulant application for the growers, he stands to earn additional Rs.18,000 per year at the rate of Rs.250 per 400 trees per application x 12 months x 6 grower. Similarly when the grower shares at least 10% of his savings on tapping wage, the tapper again stands to earn Rs.30,000 (Rs.5000 x 6). Thus the total income of a tapper in the case of weekly tapping through the above tapper bank/ consortium will be Rs. 228,080 as against Rs. 90,600 under current condition or 180,000 under 300 days’ assumed engagement under d2. Thus the grower as well as the tapper is benefited much from introduction of weekly tapping -- a win-win situation for both. In the estate sector, there is demand from the workers to allot them LFT area, as their daily income will increase considerably due to over poundage system (average benefit under d2 is only of 2kg/day or Rs 13/day, whereas it will be 32 kg/day. That means Rs 200/day over and above their normal daily wage). We believe this is the best time for

Table.4: Weekly tapping performance in one of the participants field (400 trees) Weekly Tapping June 15 to December, 2015 –Madhavan, Thalassery

Win-win situation for grower and tapper

Item

From the data provided, economic analysis of various tapping systems and information from the field clearly indicates weekly tapping is the best among all the tapping systems recommended so far by Rubber Board. The benefits of weekly tapping are the following: a) Reduction in cost of production When 400 trees are tapped on alternate daily frequency for 150 days in a year at a rate of Rs.1.50/ tree/tapping, the total annual tapping wage will be Rs. 90,000 (150 days x Rs.600) whereas the tapping wage will be only Rs. 31,200 (52 days x Rs.600) if the same number of trees are tapped under weekly frequency. To get an

70 | Rubber Asia | March-April

equivalent crop compared to d2 frequency maximum of 12 rounds of ethephon application (2.5%) is essential. The total cost for the material and labour together (Ethepon, oil Rs 800 and 3,000 for application) will not exceed Rs. 3,800/year. Thus total expenses for harvesting is Rs. 35,000 and the direct saving to the grower in the tapping wage is Rs. 55,000. The grower needs to share at least 10% of this saving to his tapper as an incentive for his extra work in latex collection, and also to ensure the cooperation of the tapper. Thus the grand total expenditure will be Rs. 40,000. Still, the grower can straightaway get a saving of Rs. 50,000 per hectare per year in the cost of harvesting compared alternate daily tapping.

2017

Expense -Rs

Sale Item

Income-Rs

23200

Sheet 1127kg x Rs100

112700

Rainguarding & panel wash

9000

Scrap 400kg x Rs60

24000

Stimulation

2000 1527kg Net profit Rs

136700 84300

Tapping-800 x 29 days

Other cultural operations

20200

Total

52400

of tappers in the small holdings i.e., 77,602 only to tap more than 450,000 hectare area. One of the prerequisites for successful weekly tapping is regular tapping under it throughout the year. Hence a tapper engaged for tapping under weekly frequency either through a grower consortium (6 growers with 1 ha. each employing one tapper) or through tapper bank under the RPS system, the tapper is assured work

extending the most economical LFT d7 tapping to help the growers. We have successful case of a house wife who taps 366 trees under d7 by dividing into batch of 50 plus trees/day (time taken for tapping is around 30-40 minutes) and her yield per tree is over 6.5 kg/year (Rubber, May 2016). As illustrated in Rubber, October, 2016, a small grower called Madhavan from Thalassery reported a net profit

of over Rs 84300 during 2015 (@ rubber price as low as Rs100/kg). Another success story on weekly tapping is that of one Tom Kiran from Irinjalakkuda who introduced his own method of wage payment to tapper, i.e. Rs 1.30/tree for tapping plus 10% of earnings from rubber sale as incentive to his tapper (Table.5). Thus benefit to the tapper can be substantially high. c) Enhancement in the longevity of the tree Under the predominant alternate daily tapping (d2) each virgin panel is tapped for 5 years. That means a total of 10-year tapping on the virgin-basal panels. Due to the high frequency tapping (d2), incidence of tapping panel dryness (brown blast) will be high leading to lower crop making tapping uneconomical and forcing the grower to introduce slaughter tapping early, and ultimately the harvesting life of these trees will be limited to a total of 17 – 20 years. But, if weekly tapping is adopted, virgin panels can be tapped for 20 years (10 + 10) with the least incidence of TPD and hence renewed basal panel also can be tapped for next 20 years. Finally, including slaughter tapping, the economic life (harvesting period) will be 42-43 years (Table.6). When trees stay in the field for prolonged duration, the timber volume will be substantial and is a bonus to the weekly tapping grower.

Campaign theme Considering cost reduction and addressing tapper shortage as the need of the hour, Rubber Board, India, has aptly decided weekly tapping as the current year’s campaign theme. While announcing the popularizing

Table. 5: Weekly tapping performance in growers field--Irinjalakkuda Expenses for 350 trees Income Item Cost-Rs Item Rainguarding & panel 9795 Latex –dry rub 1493.8kg washing Scrap dry rubber-337kg Ethepon application Tapping 44*Rs 470 Incentive to Tapper (10% of rubber sale Transportation Total Rs

2017

4430 20680 20976 2680 58561

1830.8kg Kg/tree= 5.23 Net profit Rs

219904-58561 161343

program on weekly tapping by the present Chairman, practical difficulties in implementation of it, as pointed out by George Jacob in Rubber Asia (Vol 36/5), were considered. Chairman’s view was to have a win-win situation for both the grower and the tapper. The cluster of growers (consortium by grower themselves) or tapper bank under the management of RPSs was well-conceived, modalities formulated and presented to all RPSs officials. The Rubber Board has already formulated the modus operandi of the tapper bank, and on a pilot level started operation under its Regional Offices in Nilambur, Moovattupuzha etc. The grower is assured of regular tapping under weekly system, preferably by the same tapper, and the tapper is assured of regular employment on all days under the jurisdiction of the RPS (preferably 6 or 7 close by grower plots). There are a few grower clusters also in existence in which the like-minded few ( 6 or 7) growers jointly engages one good tapper and enjoy the benefit of cost reduction.

growers are adopting LFT d7 from first year of tapping, the economic life of the tree could be forty plus years, 20 years virgin and 20 years renewed panel and slaughter thereafter. Thus a grower need to go for only one replanting in his life time as against the current 2-3 replanting, and the cost saving is huge in this regard. For the large scale adoption of it to benefit the growers and tappers, institutional support is essential to form effective tapper’s bank/ consortium.

Altogether, nearly 5,000 growers were registered to introduce weekly tapping during the campaign. If

Siju T, Binni Chandy, Tharian George K and Rajeevan B, 2016. Census of Rubber Tappers in the small-holder sector of Kerala. RRII.

Table..6. Comparison between d2, d3 and weekly frequencies of Tapping Comparison between frequencies d2 d3 Yield stimulation nil 2-3/year Yield Equal in all frequencies Tapping days 150 100 Virgin panel tapping -years 5+5 (10) 7+7 (14) Renewed panel 7-10 14 Slaughter Tapping -years 2-3 2-3 Total economic life -years Maximum 20 30 Timber size & volume Small Medium

72 | Rubber Asia | March-April

Price-Rs 219904

d7-weekly 12/year 50 10+10 (20) 20 2-3 42 Large

A win-win situation created through such a mechanism is the need of the hour and the Rubber Producer’s Society need to play a pivotal role. Adoption of weekly tapping as recommended by the Rubber Board is the immediate solution in current crisis of very low NR price through cost reduction and tapper shortage. Instead one skilled tapper used for 2 hectare under d2, the same person can be used up to 7 hectare under d7) in the country. References:

Thomas K.U et al, 2013. IRRDB-RRIV International workshop on latex harvest technology, Vietnam. Thomas K.U, 2016 a. IRRDB-MRB International workshop Agronomy and Transfer of Technology. George Jacob 2016. Rubber Asia Vol 31 (5). Thomas K.U , 2016 b. Rubber, 602 Thomas K.U , 2016 c. Rubber, 605 Thomas K.U , 2016 d. Rubber, 607

INTERVIEW P. Venugopal

INDIAN GLOVE INDUSTRY MUST RAISE CAPACITY G Narayana Pillai 74 | Rubber Asia | March-April

2017

From a Production Foremen with Mysore Rubbers Pvt Ltd (M M Foam) in the early seventies, G Narayana Pillai has gone a long way to become a much-sought-after global Consultant on latex products such as gloves, condoms, balloons and catheters. His long and varied experience with a number of latex foam products manufacturing companies have stood him in good stead to help many companies set up latex manufacturing facilities in India and abroad. Of late, G N Pillai has forayed into cultivation of rubber in Mexico, which is emerging as a new destination for rubber growers and rubber products manufacturers. In an interview to Rubber Asia, Pillai looks back at his tryst with the latex industry and shares his views on wide-ranging issues relating to latex products manufacturing, opportunities for rubber cultivation in new regions, latex vs nitrile gloves, protein allergy etc. He feels that Indian glove manufacturers need to invest substantially in augmenting production capacity as India doesnâ&#x20AC;&#x2122;t have the volume, especially in examination gloves, to compete with countries like Malaysia. Excerpts from the interview:

Please explain how you strayed into the latex products manufacturing industry In 1988, the outbreak of AIDS led to huge demand for medical gloves in the United States. The demandsupply gap was so huge that it cost up to $140 for 1,000 gloves. I saw a great business opportunity therein. With the expertise earned while working with a number of latex foam products manufacturing firms such as Mysore Rubbers Pvt Ltd, Ruby-Marrat, Enfield India ancillary unit etc I decided to specialise in glove manufacturing. Enrolling myself as a Primary Member of Plastics and Rubber Institute, India Chapter, I did a course in Rubber Technology and appeared for the Licentiate (LPRI) examination. In 1988, I joined Polymer Consultancy Services, Chennai, as a Junior Consultant, a position which gave me the opportunity to assist many latex products manufacturing facilities in India and abroad. This period was the start of the examination gloves manufacturing boom due to the AIDS scare. In 1989, I moved to Malaysia and joined Mechmar, one of the leading manufacturers of automated medical glove machines. My job at Mechmar was to help in commissioning latex glove factories in many countries and to educate upcoming entrepreneurs about the art of glove making. During this period, I also had a stint with Guthrie-Laprex Latex Products

SDN BHD, an associate company of Guthrie, a well-established rubber plantation group and rubber research organisation. In 1993, I returned to India to work for the largest Indian latex glove company, Mega Meditex Ltd. I was closely associated with the establishment of Rubek Balloon Factory, Indiaâ&#x20AC;&#x2122;s first automated balloon plant in Rubber Park, Airapuram, Ernakulam district, under the aegis of Kerala State Cooperative Rubber Marketing Federation (RubberMark). When did you start your consultancy firm, Visakh Latex Consultants, and how does it perform now? In 1996, I started my own consultancy company, Visakh Latex Consultants, which now offers technical assistance to a number of units in India and abroad manufacturing latex examination, surgical, post mortem and household gloves as well as latex foam, Foley balloon catheters and condoms. Visakh is engaged mostly in technical solutions, setting up of latex factories, selection of machineries, trouble shooting and rectifications. It is also associated with a few chemical manufacturing companies for developing new chemicals for latex industries and machinery manufacturers for machinery updating works. The companies that Visakh work for include MRK Healthcare, Njavallil Latex and Rub Air Balloons in India,

Corporativo DL in Mexico, Kendek Industries and Vincare Associates in Malaysia etc. When did you start your business association with Mexico? In 1998, I went to Mexico as part of consultancy work and helped DENTILAB Sa de CV, an associate company of Corporativo DL, an international medical technology firm engaged in the development, manufacturing and commercialization of medical devices and hygienic products, to start up a glove manufacturing unit. I am still associated with Corporativo DL as its Technical Advisor for a wide range of its products including latex examination gloves, surgical gloves, Foley balloon catheters, latex male and female condoms, latex medical tubing etc. I also provide consultancy services for many latex gloves units in India, Egypt, Colombia, Malaysia, Indonesia, USA, Sri Lanka, Thailand, Mexico, Brazil and Guatemala on toy balloons, latex condoms, Foley catheters, latex tubing, latex centrifuging, latex foam, latex plantation etc. How did you foray into rubber plantation? In Mexico, import of natural rubber is very costly. If it is imported from Asian regions it takes almost 45 days to reach the factory. The freight charges are as high as almost $ 200 per tonne. Corporativo Rubber Asia |March-April 2017 | 75

INTERVIEW I have a plan to venture into rubber cultivation in Peru. South American countries such as Peru, Brazil, Venezuela etc. offer good scope for rubber cultivation outside the traditional rubber growing belts. The climate is very conducive. Guatemala, Ecuador, Belize etc too offer good scope for rubber. The rubber yield in Guatemala is found to be as high as 2,000 kg per hectare.

DL in Mexico, which which I am associated, used to consume over 500 tonnes of latex per month. So to reduce the cost of production, the company decided to take up rubber cultivation in about 10,000 ha. of land in Mexico mainly to meet home consumption. The plantation is now into its third year of cultivation. What are the special attractions for rubber growers in Mexico? Compared to India, labour is cheap. There is huge availability of virgin land suitable for rubber cultivation. The productivity is also very high, between 1,500 kg and 1,800 kg per hectare. Mexican laws are liberal with regard to investment by foreigners in the rubber sector. Do you have plans to take up rubber cultivation in any other country? I have a plan to venture into rubber cultivation in Peru. South American countries such as Peru, Brazil, Venezuela etc. offer good scope for rubber cultivation outside the traditional rubber growing belts. The climate is very conducive. Guatemala, Ecuador, Belize etc too offer good scope for rubber. The rubber yield in Guatemala is found to be as high as 2,000 kg per hectare.

is shirking. shortage of trained tappers and farming expenses are increasing which are forcing many smallholders to drift away from rubber cultivation. However, I look at it only as a passing phenomenon, NR requirement is substantial for the Indian rubber industry and hence the future prospects are very good. I think the rubber price in India too will bounce back as demand peaks.

to production of powder-free gloves which are free from protein allergy. Polymer coated gloves also take care of the allergy problem.

What do you think of the prospects of glove industry in India?

As a Consultant, I am actively involved in the US Food and Drug Administration(FDA) 510 K submissions and preparation of quality manuals.

In view of the availability of manpower, India has good scope for developing surgical glove manufacturing which is labourintensive. As for examination gloves, India doesnâ&#x20AC;&#x2122;t have the volume to compete with countries like Malaysia. Glove units in India have limited production lines whose output can satisfy only a fraction of the internal demand. Indian glove manufacturers need to invest substantially in augmenting production capacity. What do you think of the future of latex gloves in the face of invasion of nitrile gloves?

Brazil offers five acres of land free of cost for rubber cultivation subject to the condition that rubber would be supplied only to Government agencies.

Demand for nitrile gloves is very much increasing for disposable examination purpose due to no protein content. In the case of surgical gloves nitrile latex will not give the comfort and performance of latex gloves. Polyisoprene is very much expensive and will not be a threat to latex gloves for the time being.

How do you look at the NR plantation scenario in India?

Is protein allergy in latex gloves still a major issue?

Rubber cultivation area in India

Many glove companies have turned

76 | Rubber Asia | March-April

2017

The US FDA has banned import of powdered gloves into the country effective from January 19, 2017. This will give further impetus to production of powder-free gloves. Please explain your contributions to industry related bodies

As a Technical Member of ASTM D11 Group for rubber products, I am involved in framing standards for latex and dry rubber products, which are well accepted as universal standards. Many countries have either adopted these standards or developed own standards in parallel with ASTM. As a Project Consultant, I assisted the Rubber Skill Development Council (RSDC) to develop the draft report for Skill Gap Analyses (SGA) and the draft National Occupation Standards (NOS) for respective Qualification Pack (QP)/job roles for latex products. As an Associate Member of Indian Rubber Institute (IRI), I have contributed to the growth of rubber industry by providing technicians and solutions to many manufacturers and entrepreneurs and helping many students to become good technicians. I am also involved in doing project feasibility analysis and case studies for many industries.

CLOSE WATCH

John Stone

Regular tyre care can save lives

BEWARE, POOR TYRE CARE KILLS! In spite of the continuous rise in tyre-related casualties, drivers are not serious enough to regularly check the condition of their vehicle tyres even at the moment

t the time of writing this article, Europe and the UK are in the tight grip of winter with extremely cold temperatures and snow in some areas. In these dangerous driving months, drivers have to check the condition of their tyres on a regular basis. Unfortunately, that is not the case -- a disturbing fact that is backed by ongoing surveys and reports by various tyre safety organizations. At the same time, the problem of a sheer complacent attitude towards tyres by a lot of motorists is so serious an issue across Europe that even tyre manufacturers are also carrying out their own independent checks.

Alarming statistic For example, I became aware recently from such a random UK study that 20% The writer, Rubber Asiaâ&#x20AC;&#x2122;s of the drivers are only checking their tyre European Representative, is an international tyre and pressures and overall condition of their rubber journalist based in tyres every six month. This is despite the the UK continual marketing campaigns urging that

78 | Rubber Asia | March - April 2017

a check should be carried out on a weekly basis. The survey, which also looked at driversâ&#x20AC;&#x2122; awareness about tyre safety, has come out with the alarming statistic that 10% of the drivers never actually checked their tyre pressures or tyre tread depth and almost 50% were totally unaware of the legal limit for tyre tread on a passenger car. Another interesting fact was that a massive 70% of the drivers, when questioned, admitted that they never even thought about changing a tyre until there was a problem or until they were advised to replace the tyre by a garage or tyre depot. In fact, around 65% of the drivers actually confirmed that they did not know how to change a tyre on their vehicle on an emergency. Also, 20% of the drivers did not even carry a spare tyre in their vehicle even though itâ&#x20AC;&#x2122;s a proven fact that around 25% of the drivers had experienced breaking down as a result of tyre-related problems.

CLOSE WATCH I know the problem of drivers not caring for or looking after the condition of their tyres is an age-old problem; but what is really alarming is the fact that it just never seems to get any better despite the excellent work carried out by tyre safety organizations throughout Europe.

Drivers must regularly check the condition of their vehicle tyres

The study, which also looked into how drivers performed in winter road conditions, discovered that 75% of the drivers were not very confident when travelling on icy and snowbound road surfaces in poor visibility. Less than 10% of them were totally unaware of the correct breaking distances in such dangerous driving conditions. This ignorance also puts other road users as well as themselves by under-estimating safety distances.

The situation becomes even more serious (if that is possible) when you consider that the number of reported casualties directly resulting from tyre-related incidents in the UK over the past five years is 5,677 which has claimed the lives or seriously injured almost 1,000 people. In fact, where casualties arise from an accident involving a vehicle defect, tyres are the single largest contributory factor over the last five years accounting for 36% of the 2.2 million cars in the UK that annually fail the MOT test dues to tyre-related defects. Taking all the facts into consideration, it is a very worrying and dangerous situation that shows no significant signs of improvement even at the moment or in the near future. Meanwhile, people will continue to die or suffer serious and, in some cases, lifechanging injuries just because they did not take the condition of their vehicleâ&#x20AC;&#x2122;s tyres seriously enough.

E.V. Mathai & SonS Registered Office:

Dealers/ exporters in essential oils, spices anD rubber

E.V. Mathai & SonS

Kothamangalam P.O Ernakulam District, Kerala, Pin: 686 691 Administrative Office: Kothamangalam P.O. Ernakulam District, Kerala 686 691Ph: 0485 2822608, 2823897, 2822221 Fax: 0485 2823589 E-mail: evmathaisons@rediffmail.com Factories: Seyam Crumb Rubber Mills Private Ltd., Bhavani (TK), Erode District, Tamil Nadu. Ph: 04256 239295, 239323 Super Rubber Mix APPA Apartments, Flat No. 501, Opp. Mattuthavani, Bus Stand, Melur Road, Madurai - 625 107, Tel. No. 0452 6050234, Mob. 9447122104 Email: srmsuper@gmail.com TIN: 33804941850/CST: 164788/05-0608

80 | Rubber Asia | March - April 2017

RESEARCH & DEVELOPMENT

Dr Sisira Ranatunga Dr Sisira Ranatunga is a Fellow of the Plastics and Rubber Institute of Sri Lanka and the Secretary of The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP).

Finite element modelling for

polymer composites The Finite Element Analysis (FEA) plays a major role in developing new tyre designs to meet various performance demands

ontinuous study on “polymer composites” is a very attractive area for researchers due to increasing demand to significantly alter the base polymer properties resulting in a low-cost composite material with potentially useful properties.

temperature increase due to heat build-up when polymer composites are subjected to dynamic load application on stress and strain behaviour are not substantial.

Significance of FEA

Distribution of stress obtained from FEA for polymer composites wheel under loading

The Finite Element Analysis (FEA) is a numerical method for solving problems of engineering and mathematical physics. FEA started in the period 19401950 and gradually evolved as a very advanced tool with the development of computers and solving algorithms. These FEA methods are widely used in all kinds of industries to analyse the performance of various behavioural parameters in products such as materials, physical, thermal, flow behaviours coupled with metaphysical behaviours. Polymer composites exhibit a wide range of physical parameters according to their composition and manufacturing process.

The main objective of our recent research was to develop a “ model

When products are designed using these composites it is vital to know the final product behaviour

Incorporation of filler into a virgin polymer will affect the melt rheological behaviour of filled composite systems and it is noted that this behaviour will be critically important in defining the processability of the composite in the manufacturing processes. Furthermore, this behaviour is important to study the mechanism by which the addition of filler influences the original polymer and to determine the combinations in which such effect occur. Publications on composites of different polymer as the main matrix, coupled with various types of modified or unmodified fillers and reinforcements, could be found in abundance in many polymer composite journals. However, scientific studies and finite element modelling on the effect of

82 | Rubber Asia | March-April

2017

” to predict vulnerable failure area and stress–strain behavior of polymer composites products at different temperatures using Finite Element Analysis for dynamic load applications.

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in advance, in order to develop optimized product which will perform effectively in the intended application and also is economical to commercially produce and market. In the application of FEA to a composite product, first we have to extract the Stress-Strain behaviour of the composite material at different temperatures. Also other parameters such as poison ratio of the composite, thermal conductivity and thermal expansion need to be measured according to the analysis type which is intended to carry out. Accurate measurements of material parameters are very important for composite analysing in order to achieve realistic and reliable results. Proper model creation, finite element mesh, boundary conditions and appropriate material model selection to represent the real world problem correctly, also influences

84 | Rubber Asia | March-April

2017

the results of the study. Finally proper interpretation of the results must be done to extract valuable inputs from FEA to the product design. It is vital to validate the results obtained by FEA by comparing with actual results in a more simple simulation. After the correct validation more advanced and complicated simulations can be carried out with confidence. Optimized designs of composite products inside the simulation environment itself can be created through simulations coupled with optimization algorithms. Also advanced multi physics simulations such as product interactions with fluid materials, and product interactions with gravel like materials are carried out.

Development of tyre designs FEA plays a major role in developing

new tyre designs to meet various performance demands. Tyre side wall shape optimization methods, tyre tread pattern design and evaluation methods based on various criteria through simulations, tyre behaviour in a moving vehicle and its effect on the vehicle dynamics are a few research areas in which FEA contributes significantly. When tyres are rotated under load, heat is generated by the rubber resulting in complex physical behaviour. This heat generation under cyclic loading can be accurately simulated by stateof-the-art FEA technology available considering strain energy density details. Novel FEA model suggested for polymer composites in the present study can be applied to predict the most vulnerable failure area and the stress and displacement of polymer composites materials at different temperature applications.

TYRE WORLD 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.

Award for Apollo's R&D Centre

Bridgestone targets India

ETRMA reports better sales

BKT UNVEILS HIGH-POWER TYRES After unveiling high-performance tyres for logistics and port handling as well as agricultural machinery, BKT has launched a new series of top-of-the-range Earthmax tyres for construction, mining and earthmoving vehicles.

alkrishna Industries Ltd. (BKT), a major player in the global Off-Highway tire market, offers tailored solutions in the specialist segments for agriculture, earthmoving, mining, and industrial vehicles and machinery as well as port, ATV and gardening applications.

86 | Rubber Asia | March - April 2017

Earthmax SR 45 Plus

After unveiling a rage of highperformance tyres for logistics and port handling as well as agricultural machinery, BKT has launched a new series of top-of-the-range Earthmax tyres for construction, mining and earthmoving vehicles. The new tyres are designed for the

purpose of favouring best load distribution on the ground when fitted on dumpers, wheeled loaders, dozers or graders, the company says in a Press release. All Earthmax patterns have a common feature: the all-steel structure conferring major

of 106.4 inches, or 2.70 meters (size 27.00 R 49). Specifically engineered for rigid dumper, this tyre is ideal for long-haul operations. Additionally, the strong all-steel casing structure ensures excellent stability and makes it particularly resistant to any kind of impacts such as cuts, tears and abrasions, whatever the operating conditions are.

Earthmax SR 22 Earthmax SR 22 is a tyre designed for loaders and graders operating on snow-covered terrains in size 20.5 R 25. The large footprint area provides excellent performance during snow-clearing operations. In addition, the combined action of the compound, the aggressive tread design and its grooves provide outstanding traction and road grip on snowy grounds.

Earthmax SR 30 Earthmax SR 30, in size 20.5 R 25, is engineered for articulated dumpers and wheel loaders. Its special compound, resulting from a particular production process, enables the tyre to resist to cuts and abrasions as well as to quickly dissipate the heat developed during operations.

Earthmax SR 49

resistance to the casing and hence against impacts such as punctures and penetration of foreign matters. These features are of essential importance when facing obstacles on the ground, which might expose the tyre to the serious risks of puncture or casing deterioration. The Earthmax lineup satisfies user needs on difficult terrains

such as those belonging to large construction sites, quarries, pits and mines.

Earthmax SR 45 Plus The most spectacular tyre in the Earthmax range is BKTâ&#x20AC;&#x2122;s new giant radial tyre -- Earthmax SR 45 Plus -- which is a real eye-catcher with its stunning diameter dimensions

BKTâ&#x20AC;&#x2122;s Agrimax Fortis that optimises soil tillage for cultivation purposes

Earthmax SR 41 For articulated dump trucks, BKT has Earthmax SR 41 in size 20.5 R 25. This special tyre shows a deep tread with reinforced connecting elements, which provide better lug stiffness resulting in increased stability. The special lug design also ensures excellent traction â&#x20AC;&#x201C; an essential feature for articulated

BKT tyres for high-power spreaders

Rubber Asia |March - April 2017 | 87

BKT WINS “PORT TYRE MANUFACTURER OF THE YEAR AWARD” Balkrishna Industries Ltd. (BKT) was presented with the “Port Tyre Manufacturer of the Year” Award for port and terminal cargo handling equipment at the recently concluded Terminal Operator Excellence Awards 2016 function in Dubai. The award was based on various parameters including technological innovation, product performance, durability, sustainable manufacturing and ease of recycling, the company says in a Press release. The Terminal Operator team visited BKT’s new production site at Bhuj and rated the plant as the best with a high level of process automation and strict adherence to process control.

BKT Executives with the award

Earthmax SR 22

dump trucks operating on the toughest terrains under severe conditions.

Earthmax SR 49 Earthmax SR 49, in size 33/65 R 33, is specially designed for loaders and dozers operating in severe mining operations requiring exceptional traction. Thanks to the L-4 deep tread, this tyre offers an extended product life-cycle and provides a longer tread wear in addition to excellent resistance to rock cuts,

88 | Rubber Asia | March - April 2017

BKT supplies port application tyres to most of the major terminal operators in the Middle East region. BKT’s new range of radial port tyres include Portmax PM 90 for reach stackers, Portmax PM 93 for straddle carriers and Liftmax LM 81 for forkliftsCaption

Earthmax SR 30

and punctures. Earthmax SR 49 is characterized by a special cutresistant compound enhancing the tyre’s cut resistance on extremely tough terrains. In 2016, BKT came out with a range of tyres for logistics and port handling, under the brand of Portmax PM, SM 55, Container King etc. The distinct features of these tyres include extended tyre life-cycle, extraordinary stability in lift mode, excellent wear and

Earthmax SR 41

puncture resistance, exceptional heat dissipation etc. BKT has also launched a new range of tyres for agricultural machinery such as high-performance tractors, sprayers, harvestors, spreaders, trailers, telehandlers etc. under its polular line-up of Agrimax, Ridemax, Multimax and Can Star tyres. In addition, BKT will be shortly launching its radial tyre range for terminal tractor applications.

Apollo’s Global R&D Centre, Asia

DESIGN AWARD FOR APOLLO’S GLOBAL R&D CENTRE A

pollo Tyres Global R&D Centre, Asia, located in Chennai, India, has won the NDTV Design & Architecture Award 2016 under the ‘Architecture Award, Office’ category. This Asian hub of research and development for Apollo Tyres has been designed and conceptualised for the company by Chennai-based independent architectural design practice, Calm Studio.

Considering the harsh weather conditions in this coastal city, Apollo Tyres Global R&D Centre, Asia has been crafted within a ‘shelter’, with its own inherent quality of light, shade, visual and sensory appeal, and pulse. The work stations, guest areas and ancillaries have been housed in transparent modular units, ensuring

maximum daylight in all areas, and which can be easily multiplied. Energy saving being the key guiding factor in the design, the ‘shelter’ helps in cutting radiation, heat and glare. This project has also been certified LEED Gold.

the entire Asia Pacific, Middle East & Africa region for the company, and has an employee strength of 140-odd people.

The highly coveted NDTV Design & Architecture Awards focuses on the complexities of building project from a design, aesthetic, sustainability and conservation perspective, as well as a strong sense of purpose. The awards takes a collective view of the results confidentially selected after rigorous assessment by the Jury comprising eminent architects and interior designers. Apollo Tyres Global R&D Centre, Asia, in addition to the core research, services the development needs for all product segments for

The 'shelter’ that adds to the eco-friendly ambience of R&D Centre

Rubber Asia |March - April 2017 | 89

TYRE NEWS 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 tyre-related publications across the globe

Goodyear tyre wins Good Design Award G

oodyear’s spherical concept tyre Eagle-360 has won the 2016 Good Design Award (Transportation category), instituted by the Chicago Athenaeum Museum of Architecture and Design and the European Centre for Architecture Art Design and Urban Studies. Eagle-360 has already been named one of Time magazine’s Best Inventions of the Year 2016.

Eagle-360

Bridgestone targets India B

ridgestone Corporation is entering India’s expanding two-wheeler market in a big way with the launch of a new brand of motorcycle and

scooter tyres, Neurun. The company has rolled out five sizes and nine SKUs of the new brand, a range that caters to around 70% of market demand in India.

MRF to invest in Gujarat T

yre major MRF Ltd. plans to invest Rs 45 billion for setting up a new unit in Gujarat for manufacture of automotive tyres, tubes, flabs and related products. The investment will be made over a tenyear period. For this purpose, MRF has entered into a Memorandum of Understanding with

The spherical, 3-D printed tyre highlights Goodyear’s vision for the future and presents an inspiring solution for the long-term future when autonomous driving is expected to be more mainstream. The unique shape of the Goodyear Eagle-360 could contribute to safety and maneuverability to match the demands of autonomous mobility, the company claims.

Gujarat Government expressing its in-principle intention of setting up a new facility. The project will be funded by internal accruals and/ or debt, says the company in a regulatory filing. Currently, MRF has eight manufacturing facilities in Tamil Nadu, Andhra Pradesh, Puducherry, Kerala and Goa

90 | Rubber Asia | March - April 2017

RIL-Sibur JV to build new plant R

eliance Sibur Elastomers Pvt Ltd (RSEPL), a joint venture between Reliance Industries Ltd (RIL) and Russia’s SIBUR, will build a new 60,000 metric tonne per annum halogenated butyl rubber plant near its under-construction 120,000 MT butyl rubber plant at RIL’s integrated petrochemical site in Jamnagar, Gujarat. Both companies signed the Memorandum of Understanding (MoU) for the setting up this

halogenation plant at the recently concluded Vibrant Gujarat Summit, which was attended by the Prime Minister Narendra Modi. RSEPL expects to commission the facility by the next year 2018. Halogenated butyl rubber is a key ingredient for manufacturing inner liner of tubeless tyres, and is also used in the manufacture of pharma stoppers, inner liner of storage tanks etc.

BKT holds meet in Italy B

alkrishna Industries Ltd (BKT) organised its third International Marketing Meeting at Garbagnate Monastero, Italy, recently. At this important Marketing

Meeting, the BKT Europe team met – along with the teams of the Indian headquarters and the US subsidiary – the marketing managers of the companies distributing

TYRE NEWS BKT products, who came from 36 different countries and 5 continents.

the two-day event were dedicated to marketing, sales promotion and communication, opportunities for sharing the results achieved, moments of training and teambuilding, briefing sessions for sharing objectives and strategies for a 2017 under BKT’s corporate motto `Growing together.’

“This is an important indicator for BKT’s grade of internationality, and is representative for its wide-spread distribution network reaching out 130 countries worldwide,” BKT says in a Press release. The many activities of

BKT’s third International Marketing Meeting in progress.

China flays US import duty C hina has taken strong exception to the US decision to levy heavy duties on truck and bus tyres from China and threatened to take retaliatory measures to defend rights of the Chinese firms.

The US Commerce Department has said it will slap anti-dumping duties of up to 22.57% and countervailing duties of up to 65.46% on certain truck and bus tyres imported from China. In response to the US decision, China’s Ministry of Commerce criticized

the US investigation procedures, which it said were defective and ignored facts. The Ministry said the US move had harmed the interests of China’s tyre industry, and urged the US to abide by the World Trade Organization (WTO) rules and correct its mistakes. US imports of truck and bus tyres from China were worth about $1.5 billion in 2015, which fell to more than $1 billion in the first 11 months last year, affected by the investigation, the state-run Xinhua news agency said.

ETRMA reports better sales T

he European Tyre and Rubber Manufacturers’ Association (ETRMA) has reported improved sales by its members for the year 2016 and the last quarter of 2016. Consumer tyres were up 2 per cent in 2016 despite minor fluctuations during the third quarter and with a strong performance in the last quarter (+4%). OE consumer tyres sales increased by 3 per cent. For the truck tyre

segment, the total 2016 sales were positive (+3%) for the fourth year in a row and sales were particularly good in the fourth quarter (+7%). The OE truck tyre market also grew, in line with sales but only slightly. Sales of motorcycle and scooter tyres were up 4 per cent by the end of 2016. Agricultural tyres sales continued to experience, a consistently negative trend, down -6 per cent during 2016.

GRI building new tyre plant

lobal Rubber Industries (GRI) laid the foundation for the construction of its latest Specialized Tyre factory in Badalgama, Sri Lanka, on January 4, 2017. The new factory, which is expected to commence trial production by the end of 2017, will be the largest in Sri Lanka dedicated to producing Specialty Tyres. It will also be the first in Sri Lanka to produce Radial Agriculture Tyres. This factory will be focused

on producing pneumatic tyres for Agriculture, Industrial, Off-the-Road and Construction vehicles. All the products are destined for the export market. GRI will invest over USD 40 million in the new factory, which will be built on 10 acres of land belonging to GRI, ad-jacent to its current solid industrial tyre factory in Badalgama, Sri Lanka.

Ground breaking for new factory by Prabhash Subasinghe

Says Prabhash Subasinghe, GRI Managing Director: “I am proud to lay the foundation for the next phase of growth for GRI in Specialty Tyres. This factory will be

designed and equipped with state-of-the-art technology, will focus on technical innovation, precision engineering and operational excellence. It will rank among the best in the world.”

Rubber Asia | March - April 2017 | 91

NR MARKET WATCH A. Saj Mathews

GOOD TIDINGS:

HOW LONG?

Natural rubber prices continue its upward trend much to the relief of the ailing farmers. Resurgence in prices has brightened India's NR export prospects as the international prices are slightly higher than the domestic prices. However, the crucial question is: How long the trend will last?

he upward trend in natural rubber prices since the beginning of the New Year is continuing in the NR market across the globe. Natural rubber prices in India has touched the Rs 157 a kg mark of late, a two-and-ahalf-year high. This is on account of limited supplies and tracking gains in overseas markets, resulting mainly from supply disruptions in Thailand, the top producer, caused

96 | Rubber Asia | March-April

2017

by devastating floods. Uptrend in the Chinese demand also adds to the positive sentiments in the NR market.

Latest trends The latest price rise is likely to increase the raw material cost of tyre makers, thereby putting pressure on their profitability. Natural rubber accounts for over 40% of the cost of a tyre.

The spot price of the most-traded RSS-4 rubber at the Kottayam, Indiaâ&#x20AC;&#x2122;s major NR market in the top producing southern state of Kerala, has touched Rs 157 a kg ($ 2.35), the highest since the second half of year 2014. Meanwhile, the international prices are ruling higher at Rs 163.33 a kg ($2.52) Benchmark TOCOM rubber futures rallied to their highest in nearly four years, boosted by supply

concerns after flooding hit a major rubber-producing area in Thailand. Rubber, the main economic crop of Thailand, will not survive more than 20 days of flooding, reports say. The national rubber authority of Thailand has said recently that output in 2016-2017 would be about 10% lower because of the floods. Thailand will lose around 10% of its rubber output in the 2016-2017 crop year due to flooding, a senior industry official says. It is against this backdrop, global natural rubber prices have risen.

the Association’s latest report. Consumption of NR witnessed a slowdown to 572,000 tonnes compared to 653,000 tonnes recorded in January 2016, mainly due to low economic activities in China in conjunction with Lunar New Year celebration. The notable uptrend of NR prices at prevailing rates was also attributed to the Japanese yen devaluation against the US dollar and improved world economy outlook by IMF based on its World Economic Outlook released recently.

Production scenario

Rubber dealers in India say that, in Based on the actual figures up to the wake of the rise in prices, the November and preliminary estimate domestic farmers are holding the for December, ANRPC member stocks expecting further increase countries produced 10.746 million in prices. Meanwhile, the Indian tonnes of NR in 2016, down 2.7 per Rubber Board is expecting a boost cent as compared to previous year. in NR exports in the backdrop of Further decline in 2016’s production international prices ruling higher. The Board expects Table 1. Production of NR across countries (‘000 tonnes) export to the tune Country 2015 2016 Likely % change in 2017 of 5,000 tonnes this Actual 2016 Anticipated year as against a Thailand 4,473 4,184 -6.5 4,381 meagre 200 tonnes last year. Indonesia 3,145 3,158 0.4 3,150

tapping area amounting to 9.116 million hectares. Most countries are expected to have an upsurge in production: Thailand (4.7 per cent), Vietnam (6.7 per cent), China (8.5 per cent), Malaysia (4.5 per cent), India (4.8 per cent), Cambodia (37.2%), Philippines (7.8 per cent) and Sri Lanka (6.9 per cent). On the other hand, Indonesia is the only country which forecasts a fall in production from 3.158 million tonnes in 2016 to 3.150 million tonnes. Based on preliminary estimate, production fell by 8.4 per cent to 922,000 tonnes during January 2017 compared to the same period in a year ago. The production decline was mainly due to floods in southern Thailand which badly affected the country’s output while most NR producing countries have entered into an early wintering season.

Despite production declines during January 2017, the production in first quarter of the 4.7 year 2017 is expected to -0.2 grow marginally at 0.2 Vietnam 1,017 1,032 1.5 1,120 6.7 Natural rubber per cent, amounting to prices registered a China 794 774 -2.5 840 8.5 2.466 million tonnes, good start in the year-on-year basis. Malaysia 722 650 -10.0 680 4.5 beginning of 2017 Also, the production is India 575 620 7.8 655 4.8 with an average 10% forecast to increase to Cambodia 127 149 17.3 204 37.2 growth across key 746,000 tonnes during Philippines 100 99 -0.4 107 7.8 NR markets, in spite April 2017, up 9.9 per of the price decline Sri Lanka 89 80 -10.3 85 6.9 cent from the same to US$1.00 per kg period in 2016. Table 2 Total ANRPC¹ 11,042 10,746 -2.7 11,222 4.4 during early last shows monthly figures Notes: Figures for 2016 are based on actuals up to November and preliminary estimates year. Throughout of production and the for December. Figures for 2017 are forecasts. (Source: ANRPC) January 2017, the figures anticipated rubber market has during the first 4 improved and was supported by was attributed to downward revision months in 2017. favourable market fundamental in made by Vietnam, India and supply-demand and other external Malaysia on the respective country’s Consumption scenario factors, say the latest report of output. ANRPC members consumed 8.042 Association of Natural Rubber million tonnes of NR in 2016, up While production grew in four Producing Countries (ANRPC). 5.3 per cent against 2015 as per member countries of ANRPC, actual figures up to November and namely Indonesia (0.4%), Vietnam ANRPC report preliminary estimates for December. (1.5%), India (7.8%) and Cambodia Supply of NR by ANRPC member About 65% of the global demand (17.3%) for the year 2016, five countries has declined with a of NR were consumed by ANRPC member countries of ANRPC, negative annual growth at 8.4%. member countries. Thailand (-6.5%), China (-2.5%), The tight supply was attributed to Malaysia (-10.0%), Philippines China and India, the two major NR production disruption in southern (-0.4%) and Sri Lanka (-10.3%) consumers, recorded 5.911 million Thailand, as major producing recorded a fall in production. tonnes of consumption in 2016, an provinces were badly hit by severe increase of 238,000 tonnes from However, production by ANRPC floods during January 2017 and the previous year. member countries is expected to commencement of early wintering During 2017, ANRPC member grow by 4.4 per cent, amounting to season in major NR producing countries are expected to witness a countries, says Dr. Nguyen Ngoc 11.222 million tonnes during 2017, consumption growth of 1.8 per cent, Bich, Secretary-General, ANRPC in year-on-year basis, with anticipated

98 | Rubber Asia | March-April

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% change in 2017

amounting to 8.189 million tonnes against 2016. China is expecting to consume 4.890 million tonnes of NR and India will consume 1.060 million tonnes during the year. Other ANRPC member countries are expecting a positive growth in consumption except Malaysia. Other observation has shown that consumption growth by major NR exporting countries are likely to grow faster than China and India.

Table 2. Consumption of NR across countries (â&#x20AC;&#x2DC;000 tonnes) Country

2015 Actual

2016 Likely

% change in 2016

2017 Anticipated

% change in 2017

China

4,680

4,877

4.2

4,890

0.3

India

993

1,034

4.1

1,060

2.5

Thailand

601

650

8.3

700

7.7

Indonesia

541

608

12.4

650

6.9

Malaysia

487

498

2.3

490

-1.0

Vietnam

176

194

10.2

214

10.3

Sri Lanka

127

149

17.3

150

0.7

6.7

9.4

23.1% in Vietnam and 7.4 per cent in others, China, the world largest importer, is expected to import 4.304 million tonnes of NR, up 3.7 per cent during 2017 compared to previous year. (See also Rubber Trends).

What is in store?

Apparently, continuous improvement has been Total ANRPC 7,635 8,042 5.3 8,189 1.8 observed in the prices of NR across key markets since Notes: Figures for 2016 are actuals up to November and preliminary December 2016. In January estimate for December. Figures for 2017 are forecasts. (Source: ANRPC) 2017, prices of block rubber among ANRPC member countries further improved by 13.5% Based on preliminary estimates are expected to grow at 8.985 in Kuala Lumpur and 15.3% in for January 2017, consumption by million tonnes, up 2.6 per cent Bangkok from previous month. In ANRPC recorded a lower volume in 2017 compared to a year ago. the case of sheet rubber, price of at 572,000 tonnes during January Positive growth in exports are RSS 3 rose by 16.7% in Bangkok and 2017 as compared to 653,000 anticipated in most ANRPC member RSS 4 rose 9.1 per cent in India. tonnes of the same period a year countries except Vietnam which ago. However, the consumption is Rubber prices during January may record a fall by 4.3 per cent expected to grow by 2.2 per cent to 2017 saw upward trend despite a during 2017. 1.943 million tonnes during the first sharp fall in crude oil price early In January 2017, exports grew quarter of 2017. Based on forecast in the month. Crude oil price 3.1 per cent to 705,000 tonnes, has stabilized around US$50. As figures, the consumption of NR is as compared to January 2016. reported by the International anticipated to fall by 0.7 per cent in Anticipation for a slowdown in Energy Agency (IEA), crude oil April 2017. exports of NR during first quarter price soar was attributed to NR exports and imports of 2017, down 2.7 per cent to compliance made by OPEC with 2.111million tonnes against the its agreed output cut in January Total exports volume of NR same period in previous year. 2017. Furthermore, IEA also adds registered by ANRPC member However, exports are expected to that with such compliance levels countries during 2016 was increase by 3.0 per cent to 760,000 maintained by OPEC, the oil glut 8.761million tonnes, down 3.0 tonnes in April 2017. This is based could be reduced by 600,000 per cent on year-on-year basis. on the forecast figures given for the barrels per day (bpd) in the next six This is based on actual figures up month. months. to November and preliminary estimates for December. Volume of Total imports of NR by ANRPC In the World Economic Outlook NR exported to China in the form member countries recorded 6.129 released by IMF in January 2017, it of compound rubber and mixture million tonnes, up 1.9 per cent has retained its earlier prediction of rubber are included. during 2016 compared to the global economy growth at 3.4 per Philippines

According to ANRPC, exports

Apparently, continuous improvement has been observed in the prices of NR across key markets since December 2016. In January 2017, prices of block rubber further improved by 13.5% in Kuala Lumpur and 15.3% in Bangkok from previous month. In the case of sheet rubber, price of RSS 3 rose by 16.7% in Bangkok and RSS 4 rose 9.1 per cent in India

100 | Rubber Asia | March-April

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previous year. This is inclusive of NR imported into China in the form of compound rubber. During 2016, Malaysia is the only country which witnessed a fall in imports of NR -down 5.2 per cent to 925,000 tonnes as compared 2015. While there was a decline in imports by Malaysia, China imported 4.151 million tonnes of NR to the country, up 1.2 per cent from the previous year. Also, India imported 460,000 tonnes of NR, up 2.2 per cent compared to a year ago.

Imports of NR by ANRPC may record lower imports volume, from 6.129 million tonnes in 2016 to 6.068 million tonnes during 2017. While imports may fall by 7.4 per cent in Malaysia, 8.7 per cent in India,

cent in 2017. The brighter economy outlook in advanced economies and emerging markets & developing economies at 1.9 per cent and 4.5 per cent respectively in 2017 could create some positive sentiments to the global market, especially NR industry.

In short, supply concern caused by early wintering season and floods in Thailand has attributed to negative growth in production by ANRPC during January 2017 at 8.4 per cent. The uptrend of NR prices during January 2017 was mainly supported by the strong market fundamentals in NR market and partly by the Japanese yen devaluation and improved economy outlook by the IMF.

NEWS ANALYSIS RA News Bureau

Union Budget Little to cheer for 2017 Indian rubber industry While the rubber industry leaders hail the increased allocation for infrastructure development and reduction in corporate tax for MSMEs, they have taken strong exception to the Budget not considering their long-standing demand for removal of inverted duty structure on tyre and rubber, anti-dumping duty on cheap Chinese tyres coming to India etc.

nion Budget 2017 presented by Finance Minister Arun Jaitley in the Lok Sabha on February 1, 2017, has brought little cheer for the Indian rubber industry. While the rubber industry leaders hail the increased allocation for infrastructure development in the Union Budget and reduction in corporate tax for MSMEs, they have taken strong exception to the Budget not considering their longstanding demand for removal of inverted duty structure on tyre and rubber, anti-dumping duty on cheap Chinese tyres coming to India etc.

Infrastructure boom “A significant push to the infrastructure spending is a big positive for the automotive tyre

K M Mammen

102 | Rubber Asia | March-April

2017

sector as the growth in tyre is closely linked to the growth in economy. Infrastructure investment means more movement of goods and that translates in increased demand for tyres especially Commercial Vehicle tyres. Increased allocation for the National Highways to Rs 640 billion will also aid the tyre sector,” says K M Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA). “However tyre industry was pinning high hopes on long-pending correction of inverted duty on natural rubber. Regrettably, Tyres or Rubber have not been included in the list of items where duty inversion has been addressed. Correcting inverted duty on rubber is important to increase competitiveness of the tyre sector. Currently the import duty on natural rubber is 25% while the duty on import of tyres is just one-third at around 7%,” he adds.

million too should have been cut to some extent at least to help them compete with Asian neighbours.

Kamal K Chowdhury

Tax relief for MSMEs

He also welcomed the proposal to launch a scheme for the labour intensive leather and footwear sector — similar to the existing one for textiles — to boost its growth and creation of jobs. This is definitely a feel-good factor for the sector.

Kamal K Chowdhury, President, All India Rubber Industries Association (AIRIA), welcomed the Budget proposal to reduce corporate tax for MSMEs from 30% to 25% saying it would help the largely cash-dependent MSMEs that have been reeling under stress after demonetisation. He however felt that corporate tax for companies with a turnover of above Rs500

“It is sad that the Government is yet to release the National Rubber Policy. Inordinate delay on the part of the Government still persists despite caustic remarks in the report of the Department Related Parliamentary Standing Committee on Commerce in this regard. Likewise, the MSME Development (Amendment) Bill introduced in the Lok Sabha on April 20, 2015 is

Tomy Abraham

Karan Chechi

still pending,” he says.

says Tomy Abraham, president, Indian Rubber Dealers Federation (IRDF).

“Apart from allotting Rs 1,426 million to the Rubber Board, the woes of the beleaguered rubber farmers have not been addressed in the Budget. The long-pending demands of growers including agriculture status for rubber farming, issuance of subsidy amount to the farmers, which has been pending for four years now, and steps to boost rubber exports found no mention in the Budget,”

104 | Rubber Asia | March-April

2017

Blow to tyre sector According to Karan Chechi, Research Director with TechSci Research, reduction of taxes on the MSMEs would prove beneficial for the domestic rubber industry since there are around 6,000 rubber units in India at present, out of which 5,500 are MSMEs.

“The Budget is a major disappointment for the tyre industry which was expecting an inversion on duty structure, as the taxation on raw materials (25%) is more than the taxation on finished products (7%), which makes the process of manufacturing rubber products more expensive in the country, thereby allowing cheap rubber products and tyres flood the Indian market. The overall imports of rubber products to India have gone up by 120% during 2011-2015,” he says. According to credit rating agency ICRA, though there are a few indirect benefits to the tyre industry, via. demand stimulants for the automotive sector, particularly those driven by rural disposable incomes, the Union Budget of 2017-18 is a letdown for the Indian tyre industry. Absence of measures to address the inverted duty structure prevailing in the tyre industry is a disappointment, the agency says.

WRS 2017 (210X297).indd 1

13/2/17 6:18 PM

‘UNHOLY’ TALK

John S Powath

‘UNHOLY’ HAIR LOSS WORRY Loss of hair and going bald are not that bad to be a cause of worry. As shaven head is in vogue, it can go as a fashion trend. Some think it to be the hallmark of a thinker, a lover or of a thinking lover! Remember, some of the strongest and most influential leaders of all time were bald!

air today, gone tomorrow! This is not a misprint – I am talking about HAIR!

As we age, we begin to lose some faculties – memory, hearing, eyesight, muscle tone, appetite for food and even sex et al. However, hair is an exception! Women enjoy luxuriant growth of hair and employ hundreds of hair styles to make themselves even more attractive. Men are not that lucky – some begin to lose hair even in their thirties! Men are mostly limited to two hair types – yes or no! However, the bald guys always say: “God created men without hair; however, he put some hair on the fools… “ Hair loss and going bald could be one of the scariest worries men have. However, shaven head is in vogue and, therefore, even if you become bald, you can always take it as a fashion trend and be very proud of that. What a way to console! Well, you have no other choice at all before you.

The writer is Chief Executive Officer Asian Business Media LLP (ABM)

The theories There are a number of theories regarding the causes of male baldness. Some suggest

106 | Rubber Asia | March - April 2017

that one’s diet and stress levels play key roles. Others feel that regular exercise will help keep locks thick and plentiful until well after retirement. Most would agree, though, that our genes hold the most sway, and, if a man loses his hair, then chances are that his sons too will be more susceptible to it as they age! If the sons are happy to inherit father’s wealth (sometimes even debts and liabilities too), there is no reason that they should shy away from this legacy. But the loss of hair and going bald are not that bad. I recall one wise man, no doubt a bald one, used to say this: “Bald in the front, you are a thinker. Bald in the back, you are a lover. Bald all over, you are a thinking lover!”

Opinions vary It turns out that baldness has its own advantages. A study researching prostate cancer has found that men who started to lose hair at a young age had 45% lesser chance of getting prostate cancer than men with heads full of hair.

OOK L I T ' " DON " ? Y X E VERY S

It is reported that large quantities of testosterone, which is one of the causes for male baldness, can slow down the development of tumours. Studies have also shown that men with a high level of testosterone have a lower concentration of fat in the face, and helps the body get in shape, maintain a healthy weight and develop bodily muscles. But the jury is still out – some experts think that baldness has been linked to increased risks of heart disease and cancer. Another survey researching baldness has found that a bald scalp is seen by many as associated with more “manly” professions, such as soldiers, cops and fire fighters. If you believe in evolution, our ancient ancestors, such as gorillas, clearly use an enlarged forehead created through frontal balding to convey increased status and maturity.

Good economics You save time, and save on shampoos, conditioners, combs, brushes, creams and the hair dresser – we may not notice, but these expenses add up. Bald men are seen by many as having better leadership potential, as more assertive and more powerful. That is why experts recommend that men who are losing their hair bite the bullet and completely shave their head. Remember, some of the strongest and most influential leaders of all time, including Winston Churchill, Vladimir Lenin, Mahatma Gandhi and Vladimir Putin, were bald! If you’ve already said goodbye to your hair, you’ve probably already realised it’s not that bad, and you are no longer accompanied by this daily fear – one less thing to worry about! The bottom line: Men who are bald may look older at first. But as time goes by, they have no hair to turn grey or hair to lose. Other than a few wrinkles, they keep looking of the same age as they always have. Likewise, bald men look very sexy and thus attract the opposite sex and gain better sex. Bald or grey hair pronounces “maturity” and so it commands a real price. Besides, you stand out in the crowd. Being bald has various plus points and you need to be very positive in your thinking. For the bald, life goes on smooth and effortless as usual. Rubber Asia | March - April 2017 | 107

STOCK WATCH Sharad P Matade

Drop in auto sales

hits tyre stocks Despite a surge in Sensex, most tyres companies’ stocks reported a negative growth due to falling auto sales, negative corporate results in the Oct-Dec 2016 quarter, impact of demonetisation and Union Budget etc.

alling auto sales and negative quarterly incomes impacted stocks of tyre companies despite a revival in Indian equity markets. During the period of December 9, 2016 to February 14, 2017, most tyres companies’ stocks reported a negative growth, ranging from 1% to 13%. The BSE Sensex in the period rose 5.61% in January. The impact of demonetisation continued in December too. In the month, Indian equity markets dropped to a seven-month low, eroding its gains for the year, on concern over the imposition of long -term capital gains tax on market transactions and uncertainty over the outcome of high-value currency ban.

Global factors Coupled with these, the Dalal Street in December remained under the influence of global factors such as US presidential elections, oil prices, Brexit and US Fed Rate hikes. The net investment by Foreign Institutional Investors (FIIs) stood at Rs 205.66 billion in the year 2016 and sold Rs 81.76 billion worth of equities in December 2016. At the end of December 2016 , the BSE Sensex remained flat and settled at 26,626.46. However, January started with some positive notes on the pre-Budget rally and anticipation of better corporate earnings. Equity markets raised expectations

from the Union Budget after the historic demonetisation move, nearing state elections and clubbing the Rail Budget with the Union Budget. The month finally ended with a positive return of 3.87% to settle at 27,655.96. On the institutional side, FIIs sold Rs 11.77 billion worth of equities during the month while domestic mutual fund houses continued their buying spree with net purchases of Rs 52.34 billion in January 2017.

Performance of tyre majors Following trends on the bourses, most of the tyre companies’ stocks fell during the period of December 9, 2016 to February 14,2017. Only stocks of Balkrishna Industries and PTL managed to have positive growth in the period. Apollo Tyres’ stocks fell 10.87% during the period of December 9, 2016 to February 14,2017. The company’s results for the third quarter ended December 31,2016 did not help its stocks to gains on the bourses. Apollo Tyre’s Q3 consolidated net profit rose 6% to Rs2.96 billion as against Rs2.79 billion in the same period of the previous year. Sales increased 17% to Rs34.35 billion in the quarter. Apollo announced that it will raise Rs15 billion through placement of equity shares to qualified institutions for business expansion.

Performance of stock index (December 9, 2016 to February 14, 2017)

Sensex Index

108 | Rubber Asia | March - April 2017

Share price on February 14, 2017

Share price on December 9, 2016

Change in share prices

Change in%

28,339.31

26,747.18

1,592.13

5.61

Performance of stock index (December 9, 2016 to February 14, 2017)

reported a fall of 6.51% in the period. JK Tyre too reported a fall in its consolidated net profit by 22% in the October- December 2016 quarter on higher raw materials cost. Its consolidated net profit stood at Rs861.9 million, while total income from operations during the period under review stood at Rs 19.87 billion.

Change in % 5.61% Share price on February 14, 2017

Mumbai-based Ceat’s stocks fell by 15% in the period. After a two-week fall at the start of the period, the company’s stocks spiked up and remained flat throughout the period.

Share price on December 9, 2016

Ceat reported a 25.30 % drop in its consolidated net profit at Rs 838.3 million for the third quarter. The company had posted a net profit of Rs 1.12 billion for the same period of previous fiscal. Its total income from operations rose to Rs 15.57 billion as against Rs 14.84 billion in the

Stocks of MRF fell 4.5% in the period. The Chennai-based company’s stocks fell initially in the period, but picked up from the first week of January and rose till the middle of the month. The stocks however showed a downtrend after mid-January.

Performance of tyre companies’ stocks (December 9, 2016 to February 14, 2017) Share price on February 14,2017

Share price on December 9,2016

Change in share prices

Change in %

Apollo Tyres

175.85

197.3

-21.45

-10.87

MRF

50261.1

52884.45

-2623.35

-5

Balkrishna Industries

1190.3

1,168.8

21.5

1.83

JK Tyre & Ind

113.5

120.95

-7.45

-6.16

TVS Srichakra

3,074.2

3,537.75

-463.55

-13.106

CEAT

1,105.45

1,278.6

-173.15

-15.67

Premier Tyres PTL Ent

140

134.55

5.45

4.05

Goodyear India

717.35

734.35

-17

-2.31

Modi Rubber

43.9

39.35

4.55

11.56

Meanwhile, the company announced a 30% plunge in its standalone net profit in the quarter of October- December 2016. It recorded a standalone net profit of Rs2.88 billion in the quarter as compared to a consolidated net profit of Rs 4.16 billion in the year-ago quarter. Its total income from operations during the quarter under review stood at Rs 35.33 billion as against Rs 35.72 billion in the year-ago quarter, down 1.08 %.

BKT makes gain Like MRF’s stocks, Balkrishna Industries’ stocks too fell at the start of the period. However, from the start of January, it gained momentum and moved up steadily throughout the period and reported an increase of 1.83% in the period. After falling in the end of December, stocks of JK Tyre & Industries rose on the bourses till mid-January. However, in tandem with the movements on the bourses, it fell in the last three weeks of the period. JK Tyre stocks

year-ago period. Stocks of PTL Enterprises and Modi Rubber rose 4.05 % and 11.56% respectively, however, stocks of Goodyear India and TVS Srichakra declined 2.31% and 13.10% respectively.

Decline in auto sales The impact of demonetisation was seen in auto sales across categories for December 2016. Among categories, two-wheeler section was hit the most. Data released by the Society of Indian Automobile Manufacturers (SIAM) shows that sales of two-wheelers plunged 22% to 910,235 units compared with 1,167,621 units in the yearago month. Domestic car sales fell 8.14% to 158,617 units in December 2016 as against 172,671 units in December 2015. Vehicle sales across categories registered a decline of 18.66% last month at 1,221,929 units from 1,502,314 units in December 2015, says SIAM. Rubber Asia | March - April 2017 | 109

An initiative jointly organised by

epic fresh

ASIAN LATEX CONFERENCE 2017 3rd edition of the grand biennial global event

October 3 – 4, 2017 Sime Darby Convention Centre, Kuala Lumpur, Malaysia* Theme:

Green & Lean Strategies for the Natural & Synthetic Latex Industries For more details, contact Antony Powath – +91 9833901586 e-mail : asp@abm.net.in; mail@abm.net.in www.asianlatexconference.com Asian Business Media LLP

Registered /Marketing Office 501/502, Imperial Plaza, Corner of 27th & 30th Rd, Nr. Nilgiri Garden, Bandra (W), Mumbai – 400 050 Ph : +91-22-2640 0829, 2640 0735, Fax : +91-22-2641 1894, E-mail : asp@abm.net.in / pm@abm.net.in Editorial/Marketing Office 39/3993-B7, Ground Floor, Vantage Point, V.R.M. Road, Ravipuram, Kochi – 682 016, INDIA, Ph: +91-484-2356284/ +91-484-4016284, Email: mail@abm.net.in, Website : www.asianlatexconference.com

2017

International

Elastomer Conference International Rubber & Advanced Materials In Healthcare Expo, 192nd Technical Meeting, Educational Symposium & Advanced Materials In Healthcare Conference Rubber Division, ACS is the only organization dedicated to the advanced technologies of the rubber industry. Our International Elastomer Conference is the premier place where customers, suppliers of materials, equipment, tools and services, and educators come together. It provides a forum for the exchange of ideas, observations, regulatory reforms and emerging scientific technologies, as well as learning and networking. 5,000 industry professionals are expected to attend!

October 9-12, 2017 â&#x20AC;˘ Cleveland, OH USA Huntington Convention Center of Cleveland

Interested in Exhibiting or Attending? Visit rubberiec.org for details.

EVENT

Dr K Rajkumar (third from left) and Ravindra S. Reddy exchanging MoU

IRMRA, CFCP deal to

promote rubber research

The joint collaboration programme will facilitate many business opportunities for European and Indian companies active on the General Rubber Goods and Tyres markets

ndian Rubber Manufacturers Research Association (IRMRA) and French Rubber Polymers Centre (CFCP) have entered into an agreement to promote research and eduction in the rubber and tyre sector. The joint collaboration programme between the two institutions will cover the following areas: • Academic sponsored research projects • Simulation of rubber and polymeric composites • Subcontracting of testing activities •Promotion and distribution of online courses (MOOC and SPOC) •Identify the potential opportunity for development of products for Defence and aerospace research application using mutual expertise

112 | Rubber Asia | March-April

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Business opportunities According to Dr Kasilingam Rajkumar, Director of IRMRA, and Christian CALECA, Managing Director of CFCP, this new cooperation will facilitate many business opportunities for European and Indian companies active on the General Rubber Goods and Tyres markets. They expect a significant growth of technical and sales projects during the coming years. IRMRA, located in Mumbai, India, with facilities for testing of Tyre & non Tyre Rubber Products, Product Development, Industrial Consultancy and Man power Training, has an annual turnover exceeding € 2.5 million with 80 employees. IRMRA has started working on expansion of its branches at Chennai (South India) and Kolkata (East India).

CFCP, regrouping SNCP (French Rubber Association), LRCCP (Research Laboratory), IFOCA (Rubber School), TNPF (Tyre standards and test) and FDCA (Rubber Foundation), has an annual turnover of € 8 million with 75 employees in Paris and Nantes (France). For details, contact Director, IRMRA at rk@irmra.org, info@irmra.org

MoU with Sricity IRMRA has signed an MoU with Sricity, Andhra Pradesh, to acquire 4 acres of land for establishing its southern branch. Dr Rajkumar, Director, IRMRA, and Ravindra Sanna Reddy, Managing Director, Sricity, signed the MoU. Vinod Simon, Member, IRMRA Governing Council, and R Nagarajan, CFO, Sricity, were present on the occasion.

for establishing a Rubber Park. Members of AIRIA and IRMRA may utilise this opportunity to be a part of this proposed Rubber Park, adds Dr Rajkumar.

Honour for IRMRA officer

Dr K Rajkumar welcomes Dr Christian CALECA during his visit to IRMRA

Sricity is located along National Highway 5, about 55 Km north of Chennai, having world class integrated Business City spread over 100 Sq. Km and developed with facility of holistic solutions for business and lifestyle needs. IRMRA plans to start its basic testing operations near Sricity until it establishes its own building, says Dr Rajkumar. The proposed southern

According to Rajkumar, the Sricity Managing Director has promised to allot 100 acres of land

Santosh Jagadale did his research under the guidance of Dr K Rajkumar, IRMRA Director, and Dr Ravindra Chavan, HODChemistry Dept., Satish Pradhan Dnyansadhana College, Thane. His project was selected for next level, i.e. Maharashtra State InterUniversity Research festival.

Alliance to reduce road trauma

oad Safety Commissioner Kim Papalia has welcomed the launch of the Great Eastern

Highway Road Safety Alliance in Northam, Australia -- another tool to tackle death and serious injury on Wheatbelt roads.

centre will focus on Tyre Testing and Non-Tyre Testing, Research and Development, Training & Consultancy Services to cater to the needs of automotive OEMs, tyre industry and Defence sectors and its suppliers.

Santosh Chandrakant Jagadale, Jr. Scientific Officer (ICON & PROJECT Dept.) at IRMRA, persuing M.Sc. (Chemistry) from Satish Pradhan Dnyansadhna College, Thane, secured 1st rank in Mumbai University in Research Convention “Avishkar 2016-17”, C3-PG (i.e. Pure Science-Post Graduate ) category for his research work on “Study of Biopolymer as eco-friendly and multi-effective rubber compounding ingredient for greener rubber products.”

Stakeholders including the police, the State and the local government and private industry will take a strategic approach to road safety issues along Great Eastern Highway through implementation of initiatives outlined in the State Government’s Road Safety Strategy

Adam Gosling far right, front row, in jacket. To his right in the suit is the Western Australian Road Safety Commissioner, the woman in the centre is a Minister of the State.

Towards Zero 2008-2020. “We’ve had a tragic year on regional roads in WA, including the Wheatbelt and Great Eastern Highway,” says Papalia. In 2016, 25 people were killed on Wheatbelt roads; three of those deaths occurred along Great Eastern Highway. The objective of the Alliance is to generate and implement road safety initiatives to reduce road trauma in this region,” he explains. The Great Eastern Highway Road Safety Alliance is a recommendation of the Wheatbelt Highway Safety Review. The State Government also allocated $7.8 million in the 201617 budget to carry out road safety improvements in the Wheatbelt. Rubber Asia |March-April 2017 | 113

EVENT

Vinod Simon (right) and Dr Pon Ramalingam exchanging MoU

RSDC ties up with Hindustan University

The collaboration will help RSDC to impart education for rubber sector, rubber skills training and programmes in rubber technology and polymer science to meet the growing demand for rubber industry professionals in the country

he Rubber Skill Development Council (RSDC), the sector skill council for Rubber, has joined hands with Hindustan University, Chennai, for imparting programmes in Rubber Technology. The purpose of the collaboration is to impart education for rubber sector, rubber skills training and programmes in rubber technology and polymer science to meet the growing demand for rubber industry professionals in the country.

Exchange of MoU A Memorandum of Understanding (MoU) to this effect was exchanged between Vinod Simon, Chairman, RSDC, and Dr Pon Ramalingam, Registrar, Hindustan University, Chennai. Dr. Anand Jacob Verghese and Ashok Verghese, representatives of Hindustan University management, Dr. S. Ramachandran, Vice Chancellor, Hindustan University, Dr. V. Ravi Kumar - HOD Chemical and Milton Gerard Huggins – Head Training, were present on the occasion.

114 | Rubber Asia | March-April

2017

“The collaboration between RSDC and Hindustan University represents an important step in advancement of rubber education in the country. It will help impart education in rubber technology courses in accordance with National Occupational Standards (NOS) and help meet the demand for certified manpower by the industry”, said Simon. “The courses and programmes aligned to the cutting edge curricula developed by RSDC would enhance the employability of students of Hindustan University by equipping them with industry/ business relevant skills”, said Ashok Verghese. The MoU also provides for certification and assessment support to the University by RSDC. The university will organize internships and industry placements for students in consultation with RSDC.

Training the trainers On its part, RSDC will facilitate training of trainers and help in

provisioning of Master Trainers from the industry as required. RSDC will also ensure quality of training delivery by adopting a stringent process for accreditation of training providers and assessment and certification of trainees. Rubber industry is manpower intensive and currently two million people are directly employed in the industry, a large percentage of which is unskilled. The industry is dominated by small & medium sector as out of approximately. 6,000 Rubber products manufacturing units, 90% are Micro, Small & Medium Enterprises (MSMEs). Rubber industry fits in perfectly with the Government’s initiatives of Make in India and Skill India as rubber units spread across the country manufacture around 35,000 different rubber products which find usage in auto, defence, healthcare, agriculture and in various other critical sectors.

Inaugural function of AIRIA Gujarat Chapter

AIRIA opens Gujarat Chapter The Gujarat Chapter is the second chapter in the Western Region, after the Pune Chapter which was formed about 20 years ago

he Gujarat Chapter of the All India Rubber Industries Association (AIRIA) Western Region was inaugurated in Ahmedabad, Gujarat, on February 12, 2017. The Gujarat Chapter is the second chapter in the Western Region, after the Pune Chapter which was formed about 20 years ago. Kamal K Chowdhury, President, AIRIA, lighted the ceremonial lamp to mark the inauguration of the Gujarat Chapter. Mahendra Patel, Chairman, Mamata Group, Bipin Patel, President, GCCI, Vinod Bansal, Chairman, AIRIA WR, Vinod Patkotwar, Managing Committee Member of AIRIA & Editor, Rubber India, and Jagdish Patel, Chairman, AIRIA GC, were among the dignitaries present on the occasion. In his inaugural address, Vinod Bansal offered his full support for the programmes and activities of Gujarat chapter. Kamal Chowdhury

congratulated the members of the Gujarat region on taking the initiative for opening the Gujarat Chapter in Ahmedabad.

Call to enhance quality Bipin Patel expressed his happiness over the formation of the Gujarat Chapter and said that Chapter should organise programmes that would impart knowledge to the members and also improve the quality of products manufactured by them. Mahendra Patel called for close cooperation between local Rubber Manufacturersâ&#x20AC;&#x2122; Association and AIRIA to address issues of common concern. On behalf of Kloeckner Desma, a group company of Mamata, Mahendra Patel donated a sum of Rs.150,000 to Gujarat Chapter. Yashodhar Kahate, Chairman, Western Region, stated that the formation of the new Chapter

shows the commitment of AIRIA to decentralize its functioning and thereby fulfill the needs and aspirations of the regional members. He said AIRIA would encourage the members of the Gujarat region to educate, upgrade knowledge and technology, and undertake need-based activities for members. Over 150 delegates from the industry attended the inaugural function. The inaugural function was followed by presentation of Citation and Plaque of Gujarat Chapter to Jagdish Patel and fixation of AIRIA Lapel Pins on the coats of Gujarat Chapter Team. A Souvenir and Members Directory of the Gujarat Chapter were released on the occasion. There were also Technical Presentations by sponsors of the event Lord India Pvt.Ltd., McLube Asia P. Ltd., Kloeckner Desma and Tung Yu Hydraulics. Rubber Asia |March-April 2017 | 115

RUBBER TRENDS

NR output down 2.7% in 2016 A

NRPC member-countries recorded 2.7% fall in NR production to 10.746 million tonnes in 2016, compared to 11.042 million tonnes in the previous year. The production cut is mainly due to floods in southern Thailand which affected the countryâ&#x20AC;&#x2122;s output and also due to the fact that most NR producing countries have entered into an early wintering season, according to latest ANRPC data.

While production grew in Indonesia (0.4%), Vietnam (1.5%), India (7.8%) and Cambodia (17.3%) for the year 2016, it recorded a fall in Thailand (-6.5%), China (-2.5%), Malaysia (-10.0%), Philippines (-0.4%) and Sri Lanka (-10.3%). Production by ANRPC members is expected to grow by 4.4%, amounting to 11.222 million tonnes during 2017, with anticipated

5.3% rise in 2016 NR consumption ANRPC members have consumed 8.042 million tonnes of NR in 2016, up 5.3% against 2015. NR consumption by ANRPC members constituted about 65% of the global demand of NR. NR consumption by China and India, the two major NR consumers, came to 5.911 million tonnes in 2016, an increase of 238,000 tonnes

from previous year. During 2017, ANRPC members are expected to witness a growth of 1.8% in NR consumption, amounting to 8.189 million tonnes against 2016. China is expected to consume 4.890 million tonnes of NR and India 1.060 million tonnes during the year.

Uptrend continues in Indiaâ&#x20AC;&#x2122;s NR output T

he Rubber Board, India, informs that the increasing trend in rubber production in the country continues and the production of natural rubber (NR) during the month of December 2016 shows an increase of 12 % as compared to the production during the same period the year before. Production during December 2016 is 65,000 tonnes whereas it was 58,000 tonnes in December 2015. Total production in the current fiscal up to December is 493,000 tonnes whereas it was 440,000 tonnes in 2015. This also

shows an increase of 12.05 %. There had been a decreasing trend in the production of NR for the last few years owing to suspension of tapping in holdings, climate change and shortage of tappers. The Rubber Board attributes the steady increase in production to the initiatives taken by the Board at field level, including mass contact programmes to improve production and productivity. The Board has also started distributing the arrears of rubber plantation subsidy due to rubber growers.

NR yield: Vietnam remains on top V

ietnam continued to be on top in NR productivity in 2016, by registering an Average Annual Yield of 1,680 kg per hectare of tapped area, according to ANRPC data.

116 | Rubber Asia | March-April

2017

Vietnam was followed by India with an Average Annual Yield of 1,455 kg, Malaysia (1,400 kg), Thailand (1,333 kg), Cambodia (1,122 kg), China (1,075 kg) and Indonesia (1,039 kg).

tapping area rising to 9.116 million hectares. The countries that are expected to see an upsurge in production include Thailand (4.7%), Vietnam (6.7%), China (8.5%), Malaysia (4.5%), India (4.8%), Cambodia (37.2%), Philippines (7.8%) and Sri Lanka (6.9). Indonesia is the only country which forecasts a fall in production from 3.158 million tonnes of NR in 2016 to 3.150 million tonnes during 2017.

3% fall in 2016 NR exports T

otal exports volume of NR registered by ANRPC members declined by 3.0 per cent yearon-year to 8.761 million tonnes during 2016. NR exports by ANRPC members are expected to grow at 8.985 million tonnes, up 2.6% in 2017 compared to a year ago. Positive growth in exports is anticipated in most ANRPC member-countries except Vietnam which may record a fall by 4.3% during 2017.

NR imports up 1.9 % T

otal imports of NR by ANRPC members grew by 1.9% to 6.129 million tonnes during 2016 compared to the previous year. During 2016, Malaysia is the only country which witnessed a fall in imports of NR, down 5.2% to 925,000 tonnes as compared to 2015. China, the world largest importer of NR, imported 4.151 million tonnes of NR in 2016, up 1.2% from the previous year, while India imported 460,000 tonnes of NR, up 2.2% compare to a year ago. However, NR imports by ANRPC members, except China, are forecast to fall to 6.068 million tonnes during 2017. Imports may fall by 7.4% in Malaysia, 8.7% in India, 23.1% in Vietnam and 7.4% in others. China is expected to import 4.304 million tonnes of NR, up 3.7% during 2017 compared to previous year.

The largest international trade exhibition for the automotive service industry in the wider Middle East

7 â&#x20AC;&#x201C; 9 May 2017

Be part of the 15th edition to meet and trade with thousands of manufacturers, distributors and suppliers from across the world. A visit is highly recommended. To be part of this edition, pre-register at www.automechanikaDubai.com/ABM

RUBBER TRENDS

SR share in total rubber use falls T

he share of synthetic rubber in total rubber consumption declined to 53.6 % in the first nine months(Jan-Sept) of 2016, from 54.3 % in the corresponding period of 2015, according to data compiled by

International Rubber Study Group (IRSG). China’s share of SR narrowed down to 46.1 % during the period from 46.8 %, while the share of USA slightly went up from 66.4 % to 66.9%.

Global SR market to grow 5.1 %: Report T

he global synthetic rubber market is projected to expand at a CAGR of 5.1 per cent during the period between 2015 and 2023, according to a recent market research report published by Transparency Market Research. The report states that the rising demand for synthetic rubber from the automotive industry is expected to drive the global synthetic rubber market. Rapidly expanding footwear market

across the globe as well as the emergence of bio-based feedstock are also expected to augment the growth of the synthetic rubber market. However, the report mentions that oversupply of synthetic rubber due to consistent capacity additions will restrain the market during the forecast period. The increasing substitution of synthetic rubber by natural rubber will also hamper the growth of the market, the report adds.

India’s carbon black market set to grow T

he carbon black market in India is anticipated to cross $1.4 billion by the end of 2025, according to a recently released TechSci Research report, “India Carbon Black Market Study, 2011 2025”. Tyre is the largest consumer of carbon black in the country, as it accounts for almost 25% of a single tyre’s weight. The country’s tyre market is forecast to witness a CAGR of over 9% during 2016-2021.

Hence, with increasing production of tyres in the country, the demand for carbon black is expected to grow at a robust pace during forecast period, the report says. Moreover, significant use of carbon black in rubber industrial products, belts & hoses, printing inks, moulding plastics, etc., are expected to positively influence the demand for carbon black in India during 2016 - 2025, the report adds.

5.1% growth forecast in silicone market T

he global silicone market, valued at $15.0 billion in 2015, is expected to reach $20.0 billion in 2021, growing at a CAGR of 5.1 percent between 2016 and 2021, according to a study by

118 | Rubber Asia | March-April

2017

Zion Research. The growing and emerging chemical and automotive industries, especially in Asia Pacific region, is likely to increase the demand for silicone over the years to come.

However, unstable prices of raw materials such as methyl chloride and silicone metal for the production of silicone are expected to impede the growth of the silicone market. The changing dynamics of research and development for product improvement by the major players may open growth opportunities for the market in the near future, the study says.

Rubber molding market to grow 5.20% T

he global automotive rubber molding components market is expected to grow at a CAGR of 5.20% from 2015 to 2020 to hit a market size of $ 40.5 billion by 2020, according to a study conducted by RNR Market Research. According to the study, the market is driven by factors such as technological advancements, rising vehicle production, increasingly stringent emission, safety, and fuel economy norms, the fluctuating prices of crude oil, ecological concerns, and increasing adoption of lightweight materials. The Asia-Oceania market, in terms of volume, is projected to grow at the highest CAGR of 6.14% during the forecast period, as a result of the increased demand for advanced vehicles, especially from countries such as China and India. Additionally, developments in the global automotive market, such as mergers and the relocation of production centres to emerging economies, has increased the market potential of countries such as China and India, the study says.

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NEWS DIGEST

INDIA

Minister launches Rubber Soil Information System U

nion Minister for Commerce and Industry Nirmala Sitharaman launched RubSIS (Rubber Soil Information System), an online system for recommending the mix of fertilizers to specific rubber plantations, at a function held at Udyog Bhavan, New Delhi. RubSIS, developed by Rubber Research Institute of India (RRII) in collaboration with Indian Institute of Information Technology and Management, Kerala; National Bureau of Soil Survey and Land Use Planning; ICAR and National Remote Sensing Centre, ISRO, brings soil data to the fingertips of rubber growers and recommends the optimum mix and quantities of chemical fertilizers that their holdings require. The scientific and user-friendly

overnment of India is conducting anti-dumping probe over illegal dumping of rubber in the country which adversely impacts the domestic industry. Commerce and Industry Minister Nirmala Sitharaman in a written reply in Rajya Sabha said that the Directorate General of AntiDumping and Allied Duties (DGAD) is conducting anti-dumping investigations on the basis of a petition filed by the domestic industry.

Union Minister for Commerce and Industry Nirmala Sitharaman launching Rubber Soil Information System

online fertilizer recommendation system was launched for Kottayam (Kerala), the largest rubber growing district of India which will be extended to the entire traditional

rubber growing regions in Kerala and Tamil Nadu this year. For details, rubber growers can access the site rubsis.rubberboard.org.in.

Probe into illegal dumping of rubber DGAD is conducting investigation over â&#x20AC;&#x153;Polybutadiene Rubber or PBRâ&#x20AC;? originating in or exported from Korea PR, Russia, South Africa, Iran and Singapore, as also Styrene Butadiene Rubber (SBR) of 1500 series and 1700 series , originating in

or exported from European Union, Korea RP and Thailand. DGAD is also probing Rubber Chemicals, namely TDQ & PX-13, originating in or exported from European Union and MOR and MBTS originating in or exported from China.

Rubber skill scheme to continue T

he Ministry of Skill Development and Entrepreneurship (MSDE) has approved the second phase of the project submitted by the Rubber Board for skill development in rubber plantation sector under the Pradhan Mantri Kausal Vikas Yojana (PMKVY). The project proposes to impart

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Recognition of Prior Learning (RPL) training to 22,000 persons in rubber tapping and processing in Kerala, Tripura and Assam. An amount of Rs 61.7 million has been allocated towards this, of which Rs 47.6 million is for Kerala targeting 17,000 persons and Rs 14.1 million for Northeastern States to provide

reskilling of 5,000 persons. About 10,000 persons were imparted training in the first phase of the programme implemented by the Rubber Board in collaboration with National Skill Development Corporation (NSDC) and Rubber Skill Development Council (RSDC) in the coming six months.

IRI signs MoU with ACS Rubber Division I

ndian Rubber Institute (IRI) has entered into an MoU with the Rubber Division of American Chemical Society (ACS) for meeting the educational and training needs of the rubber industry in India and also within the Asia Pacific and South ASEAN Regions. Christie L Robinson, Director Training and Development, ACS, along Nicole Neila Marie, Training & Development Assistant of ACS, were in India recently and attended a one-day Seminar on Rubber Education organised by IRI in Chennai. Professor Bhaskar Ramamurti, Director of Indian Institute of Technology Madras (IIT), inaugurated the seminar. Dr. R Mukhopadhyay, IRI Chairman, gave a brief talk about the IRI activities.

Dr. R Mukhopadhyay(left) welcoming Christie L Robinson

Zachariah George, Past President of IRI, commended the following IRI members for winning various awards: Dr R Mukhopadhyay (IRCO Medal), P K Mohamed (K M Phillip Award 2017) and Dr. Arup K Chandra (ISO –Long Service Award

Rubber Board licences go online R

ubber Board has developed an online system for applying for licences issued to manufacturers, dealers and processors as well as for filing returns. This system, as a part of the ongoing e-governance programme of the Board, was

launched by A. Ajith Kumar IAS, Executive Director, Rubber Board. The solution named ‘RUBIS’ has been deployed at the web address www.rbegp.in. This can also be accessed from the website of the Board.

A Ajith Kumar launching online system for applying for licences

& appreciation). Dr R K Matthan, Governing Council Member, gave the welcome speech and KJ Janakar, Chairman of IRI Chennai Branch, proposed a vote of thanks.

Book on tariff policies T

he Rubber Board has published a book on India’s tariff policies

on rubber and rubber products. The book titled ‘India’s tariff policies on rubber and rubber products under regional trade agreements’ compiled by Joby Joseph, T. Siju and Tharian George K. of Rubber Research Institute of India (RRII) was released by A Ajith Kumar IAS, Executive Director, Rubber Board. India’s external trade policies have undergone important changes during the past two decades after the signing of the WTO Agreement and the regional trade agreements (RTAs) with varied implications on different sectors of the economy. The book is a compendium of product wise classification of tariffs on rubber and rubber products under different regional trade agreements. Rubber Asia | March - April 17 | 121

NEWS DIGEST

INTERNATIONAL

Flooding hits rubber output in Thailand

idespread flooding in southern Thailand since December 2016 has badly hit rubber production in the region and brought rubber tapping to a halt. Nearly two-thirds of Thailand’s rubber growing area is in the south. According to a rough estimate made by Rubber Authority of Thailand, as a result of flooding, about 100,000 ha of mature area was left untapped, which could lead to production cuts by 10% during the flood period. Based on preliminary estimate made by Association of Natural Rubber Producing Countries (ANRPC), production fell by 8.4% to 922,000 tonnes during January 2017 compared to the same period a year ago.

A flooded NR plantation in Thailand

Thailand’s Cabinet has approved measures worth $1 billion to help rubber farmers hit hard by the

floods. Thailand is the world’s biggest rubber producer, accounting for nearly 40 % of the global NR output.

Yokohama joins IRSG’s SNR-i project Y

okohama Rubber Co. Ltd. has joined the Sustainable Natural Rubber Initiative (SNR-i) to make natural rubber a sustainable resource. The initiative is advocated by the International Rubber Study Group (IRSG), an inter-governmental organisation composed of rubber producing and consuming stakeholders. SNR-i has been developed under the framework of the IRSG as a voluntary and collaborative industry project to promote the development of best sustainability practices in the natural rubber sector globally, support the improvement of natural rubber plantations’ productivity, enhance natural rubber quality, support forest sustainability through the protection/conservation of protected areas, promote appropriate water management etc. To date, 37 companies/organisations have

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registered under SNR-i. 100th anniversary logo: Meanwhile, the Yokohama Rubber Co. (YRC) has unveiled its new logo to celebrate the company’s 100th anniversary in 2017. YRC will include the logo on various items throughout 2017 to show the company’s pride in its 100-year

history and appreciation of its customers and business partners around the world, YRC says. Yokohama Rubber Co. was founded in Yokohama, Japan, on October 13, 1917, as a domestic manufacturer of rubber products. YRC officially celebrates 100 years on October 13, 2017.

MARGMA for glove price hike T

he Malaysian Rubber Glove Manufacturers Association (MARGMA) has advised its members to revise their prices of gloves to better reflect the sharp rise in production costs as a result of the almost daily rise of rubber and Butadiene prices. According to MARGMA, natural rubber latex average price has

risen from RM4.56 per wet kilo in September to about RM6.59 per wet kilo in January 2017 (up to Jan 15), representing a serious and sharp rise of about 45% from September to January. Similarly, the prices of Butadiene, the main ingredient or monomer used in the production of nitrile latex, too has gone up in recent times.

MARGMA President Denis Low Jau Foo said in a statement that incessant heavy rains and flooding in some areas have badly affected natural rubber products. With the limited stock of raw materials coupled with the flooding, it is only a matter of time before shortages will be severely felt and if prolonged, may cause natural rubber prices to rise further, he said.

Chemtura to merge TDF cuts CO2e with LANXESS S volume pecialty chemicals company LANXESS has taken a significant step forward in the planned acquisition of US chemical company Chemtura. Chemtura’s shareholders approved the merger at a special meeting in Philadelphia, United States. A Press release issued by LANXESS

states that 99.88 % of the votes cast were in favour of the merger, representing 81.77 % of Chemtura’s outstanding common stock. Under the terms of the merger agreement, Chemtura shareholders will receive USD 33.50 for each outstanding share in cash at closing of the transaction.

ExxonMobil raises Shanghai stake E

xxonMobil has announced the start of construction on a multi-million dollar expansion of its Shanghai Technology Centre, which includes a new, state-of-the-art Research and Development facility to support customer collaboration and growth.

customer support center, housing advanced analytical and testing laboratory equipment, commercialscale product processing equipment for blown film extrusion, injection molding, profile extrusion and compounding, as well as tyre testing capabilities.

The new facility, expected to be completed in early 2018, will include a large, multi-functional auditorium, training rooms and multiple meeting areas. The auditorium will also have its own dedicated reception area showcasing ExxonMobil’s technology capabilities and leadership.

“Having dedicated facilities where we can collaborate with our customers on the next generation of affordable, safe and sustainable performance applications is essential to creating innovations for packaging, automobiles, building and construction, and consumer goods that enhance people’s lives everywhere,” says Cindy Shulman, Vice President of Plastics and Resins at ExxonMobil.

Opened in 2011, the Shanghai Technology Centre is a full-service

new report prepared for the Australian Tyre Recyclers Association (ATRA) reveals that Tyre-derived fuel (TDF), the end-of-life tyre by-product, produces significantly lower volumes of carbon dioxide (CO2e ) than coal. The independent report, Carbon Value Proposition, Resource Recovery using Tyre Derived Fuels, states that replacing one tonne of black coal with one tonne of TDF can save emissions of up to 1.05 tonnes of CO2e into the atmosphere. “This is good news for the environment when you consider the majority of used passenger and truck tyres in Australia are converted into a TDF and exported to high-end industrial facilities such as cement kilns and paper manufacturing plants in Japan and South Korea,” says ATRA Executive Officer Robert Kelman. “The extremely high calorific value of TDF makes it an attractive alternative fuel on an international scale and may ultimately be eligible domestically for energy efficiency or low emission credits,” Kelman adds.

Rubber Asia | March - April 2017 | 123

CORPORATE AFFAIRS Goodyear’s 2016 sales down 8% Goodyear posted 8 per cent fall in sales to $15.2 billion in 2016 compared to last year. The company attributes decreased sales to the deconsolidation of its business in Venezuela and unfavourable foreign currency translation. Full-year adjusted net income was $1.1 billion, up from $906 million in 2015. The company

Apollo posts 12% rise in net sales Apollo Tyres Ltd reported 12% rise in its net sales at Rs 97.94 billion in the last nine months (April-December) of 2016 as against Rs 87.72 billion in the corresponding period of the previous year. Net profit closed at Rs 8.71 billion as against Rs 8.51 billion. EBITDA stood at Rs 15.81 billion in comparison to Rs 15.53 billion. For the third quarter(OctoberDecember) of 2016, net sales was up 17% to close at Rs 34.35 billion, as against 29.38 billion in the year-ago quarter. Net profit was up 6% at Rs 2.96 billion (Rs 2.79 billion), while EBITDA stood at Rs 5.37 billion (Rs 5.19 billion).

reported 2016 segment operating income of $2.0 billion, down 2 per cent from a year ago. Goodyear’s fourth quarter 2016 sales were $3.7 billion, down from $4.1 billion a year ago, while fourth quarter net income amounted to $561 million, compared to a net loss of $380 million in the yearago quarter.

MRF’s Q3 net profit down 30%

India’s leading tyre maker, MRF Ltd announced a 30% plunge in its stand-alone net profit in the quarter ended December 2016. The company’s standalone net profit stood at Rs 2.88 billion in the quarter as compared to Rs 4.16 billion in the yearago quarter. MRF’s total income from operations during the quarter under review stood at Rs 35.33 billion as against Rs 35.72 billion in the year-ago quarter, down 1.08%.

Cooper’s 2016 net income up

Cooper Tire & Rubber Company reported full year 2016 net income of $248 million, compared with $213 million in 2015. The company’s net sales stood at $2.92 billion compared with $2.97 billion in the prior year. Unit volume was up 2.6 per cent, driven by strong domestic volume increases in Asia and Latin America.

124 | Rubber Asia | March - April 2017

Conti’s 2016 sales, income up

Continental has posted an increase in both sales and EBIT margin in the 2016 financial year, according to preliminary data published by the company. Sales rose three per cent year-on-year to around €40.5 billion, while adjusted EBIT margin amounted to some 10.7%. In the Rubber Group, the company sold a record 150 million tyres, despite persistently weak demand in the oil and mining business. For 2017, Continental anticipates an increase in sales of over 6 per cent to more than €43 billion.

22% drop SRI’s in JK Tyre’s operating net profit profit dips JK Tyre reported a fall in its consolidated net profit by 22% in the OctoberDecember 2016 quarter on higher raw materials cost.

The company’s consolidated net profit stood at Rs861.9 million, while total income from operations during the period under review stood at Rs 19.87 billion.

Sumitomo Rubber Industries Ltd (SRI), Japan’s second-largest tyre maker, reported an 18% decline in operating profit to 73.28 billion yen in 2016, weighed down by lower product prices and a higher yen against the US dollar. Due to surging cost of raw materials, SRI expects its full year operating profit in 2017 to fall further by 30%.

Ceat’s Q3 Hankook’s profit 2016 down 25% revenue up 3.1% Ceat reported a 25.30% drop in its consolidated net profit at Rs 838.3 million for the third quarter ended December 2016. The company had posted a net profit of Rs 1.12 billion for the same period of previous fiscal. Its total income from operations rose to Rs 15.57 billion in the third quarter as against Rs 14.84 billion in the year-ago period.

Hankook Tire reported 3.1 per cent increase in total sales revenues to KRW 6.62 trillion (£4.6 billion) in 2016, while the company’s operating profit rose 24.7% to KRW 1.10 trillion (£766.8 million). Hankook Tire achieved consolidated sales of KRW 1.61 trillion (£1.1 billion) and an operating profit of KRW 239.8 billion (£167.2 million) in the fourth quarter of 2016.

ECONOMIC TRENDS

Global growth forecast to rise 2.7% The World Bank expects a 2.7% rise in global economic growth in 2017, after a post-crisis low in 2016. Growth in advanced economies is expected to edge up to 1.8% in 2017, thanks to fiscal stimulus in major economies, particularly the US. Growth in emerging markets and developing economies as a whole should pick up to 4.2% this year from 3.4% last year amidst

modestly rising commodity prices, the Bank says in its latest report on Global Economic Prospects. Among advanced economies, growth in the US is expected to pick up to 2.2%, as manufacturing and investment growth gain traction after a weak 2016. Growth in the East Asia and Pacific region is projected to ease to 6.2%.

US posts lowest growth since 2011

The US economy grew 1.6 per cent in 2016, the lowest reading on record since 2011 and down from an increase of 2.6 per cent the prior year, according to Government data.

For the October-December 2016 quarter, the economy expanded 1.9 per cent capping

off a long period of tepid expansion under the Obama administration. The economists attribute the slow growth last year primarily to lackluster business investment as well as historically low oil prices during most of 2016 which brought expansion in the US energy sector to a halt.

China’s growth slowest in 26 years China, the world’s second largest economy, saw its GDP expand 6.7 per cent in 2016, the lowest since 1990 when the Chinese economy posted 3.9 per cent growth. China’s GDP gained 6.8 per cent in the fourth quarter of 2016 year-on-year, according to China’s National Bureau of Statistics.

According to analysts, China’s 2016 growth was backed by strong fiscal support, loose monetary policy and a booming property market in the first three quarters of last year. In the latest update of the IMF’s World Economic Outlook, China’s GDP is forecasted to grow at 6.5 per cent in 2017 and 6.0 per cent in 2018.

Demonetisation impacts India’s GDP The International Monetary Fund (IMF) and the World Bank have trimmed their GDP growth forecasts for India in 2016-17 citing the impact of demonetisation. In its World Economic Outlook Update, the IMF has pegged India’s growth rate at 6.6 per cent for the 2016-17 fiscal, and 7.2 per cent in 2017-18. It expects GDP growth to rise to 7.7 per cent in 2018-19.

Japan posts 1% growth in 2016

Meanwhile, the World Bank has cut India’s GDP growth for 2016-17 fiscal to 7% from its previous estimate of 7.6% citing the impact of demonetization. The World Bank however forecast that the country would regain momentum in the following years with a growth of 7.6% and 7.8% due to the reform initiatives.

Japan’s economy grew by 1 per cent rate for the calendar year of 2016, despite efforts by the Government and the central bank to boost growth through monetary easing and fiscal stimulus. The country’s economy grew by the same rate of 1 per cent on an annualised basis in the fourth quarter, against 0.2 per cent achieved in the previous quarter.

Rubber Asia | March - April 2017 | 125

COMPANY PROFILE KRISHNA ANTIOXIDANTS PVT LTD (KAPL)

Steady growth in specialty chemicals market K

rishna Antioxidants Pvt. Ltd (KAPL) is one of the leading manufacturers of specialty chemicals in India. Founded by Krishna Gupta and Anil Gupta in 1991, this family-owned company

has successfully formulated, developed and delivered a spectrum of high-performance chemicals under the brand name of CRISTOLâ&#x201E;˘ to diversified markets including oil â&#x20AC;&#x201C; upstream and downstream,

lubricants, polymers, water treatment, paints, pharmaceuticals, textiles, polyols, agrochemicals and personal care. KAPL has manufacturing facilities in four locations in Maharashtra

(From left to right) Anil H. Gupta, Managing Director, Krishna H. Gupta, Director-Technical, Samir K. Gupta, Vice President-Marketing, and Rohit Gupta, Business Head, Polyol, of Krishna Antioxidants Pvt. Ltd. at the 25th Anniversary celebrations of the company

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Anil H. Gupta, Managing Director, KAPL

-- Dombivali, Vasai, Chiplun & Lote. KAPL is preparing for its 5th facility to be commissioned soon at Dahej, Gujarat. KAPL commenced exports in the year 2000 and today more than 70% of its revenue comes from sales to 32 countries across 5 continents.

Business excellence awards KAPL has won Chemexcil awards for outstanding performance in exports for 3 consecutive years. Besides, KAPL has also been recognized for business excellence practices and international sales by Zilla Udyog Kendra, Ratnagiri – Government of India, Dunn & Bradstreet Co., Bloomberg TV etc. KAPL is a GMP, ISO 9001; ISO 14001 & OHSAS 18001 certified company and is also REACH compliant. In addition, the company has received a D&B Certification. “We have a robust EHS policy that is based on global standards and pride ourselves in being responsible and reliable partners to the clients

Krishna H.Gupta, Tecnical Director, KAPL

we serve,” says Anil Gupta.

25th Anniversary fete As part of the cleanliness drive initiated by the company to mark its 25th Anniversary celebrations, KAPL has constructed state-of-theart toilets and has installed clean drinking water facility in Jeevan Beema Nagar Education Society School. “The main objective behind the initiative is to develop appropriate health and hygiene behavior in the children and secure a healthy school environment which is important for both learning and health,” says Krishna Gupta, Technical Director, KAPL. “We carry out manufacturing with respect and care for the environment in which we operate by applying practical means to conserve resources and to prevent pollution and reduce waste. We have mandatory safety related training for all our employees and contract workers,” he adds.

“KAPL, which started off as a modest project way back in 1991, has flourished today into an enterprise that embodies strong values. We believe humility, integrity and transparency are the key traits that have contributed to our growth and will continue to follow our core values even in future. I wish to convey my sincere appreciation to all our members for their relentless efforts and selfless contribution towards our success and look forward to their continued support as we journey forward into the next 25 years,” says Anil H. Gupta, Managing Director, KAPL. For more information, contact: Krishna Antioxidants Pvt Ltd Corporate Office: 107/108, Raheja Plaza, Shah Industrial Estate, Opp. Yashraj Studios, Off Link Road, Andheri (W), Mumbai 400053, India Tel: +91-22-40904100 Fax: +91-22-40904101 Email: sales.export@cristol.co.in sales.domestic@cristol.co.in Website: www.cristol.co.in Rubber Asia |March-April 2017 | 127

K M Mammen lighting a lamp to mark the inauguration of IRE 2017. At right is Vinod Simon, Chief Convenor of IRE 2017

IRE 2017 had many firsts to its credit such as the largest exhibition area covering 25,000 sqmts, a Domestic Reverse Buyer Seller Meet, ASTM certified course on Testing, workshops conducted in association with ACS Akron, US etc.

INDIA RUBBER EXPO (IRE) 2017

ROUSING RESPONSE TO

ASIAâ&#x20AC;&#x2122;S LARGEST RUBBER SHOW T

he global rubber industry stakeholders gave a big thumbs-up to the India Rubber Expo (IRE) 2017 held at the Chennai Trade Centre, Chennai, India, from January 19-21, 2017.

over an area of more than 25,000 Sqmts, accommodating 376 exhibitors. Large Country pavilions from China, USA, Germany and Sri Lanka and exhibitors from over 20 countries participated in the expo.

The 3-day expo, Asiaâ&#x20AC;&#x2122;s largest exclusive Rubber show, was spread

The exhibitor categories consisted of 141 exhibitors in the Raw Materials

128 | Rubber Asia | March-April

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segment, 130 exhibitors in the Machinery and Testing equipment segment , 86 exhibitors in the Rubber product segment and 20 exhibitors in the General Category. IRE 2017 witnessed 14,567 Visitors from over 35 countries with 10,798 domestic visitors and 3,769

K M Mammen (fourth from left) releasing IRE 2017 Exhibition Directory. Others (from left to right) seen are: Vikram Makar, Chairman of IRE 2019 and Senior Vice President of AIRIA, KT Thomas, Chairman, Organising Committe, IRE 2017, Kamal K Chowdhury, President, AIRIA, Ajay Shah, President, Ploymer and Crackers Division of Reliance Industries Ltd, VinodSimon, Chief Convenor, IRE 2017, and VT Chandrasekharan, Vice President, AIRIA.

are not imported at prices lower than the costs of manufacture in India. Mammen said the relationship between rubber and tyre industries was a symbiotic one. â&#x20AC;&#x153;We need to focus on the commonalities and indeed build on it to ensure that the rubber growers and consumers get a healthy return on their businesses.â&#x20AC;? he added.

A view of the audience

international visitors over the 3 days of the expo.

Inaugural function IRE 2017 got off to a vibrant start with a glittering inaugural ceremony. Inaugurating the show, K M Mammen, Chairman, MRF Ltd, and Chairman, Automotive Tyre Manufacturers Association(ATMA), said the Make in India initiative of the Government of India is a powerful incentive for Indian tyre makers not just to expand

in the Indian market, but also manufacture quality tyres locally for exports to other markets. Such expansion by Indian tyre companies will have a cascading effect on rubber growers in the country and even small growers of rubber will also be benefitted, he said. He hoped the Government would be proactive in taking measures to facilitate investments of tyre companies and ensure that products

Mammen also released the IRE 2017 Exhibitor Directory on the occasion. Guest of honor Ajay Shah, President, Polymer and Crackers Division, Reliance Industries Limited, Kamal K. Chowdhury, President, AIRIA, K T Thomas, Chairman, IRE 2017, and Vinod Simon, Chief Convenor, IRE 2017, spoke on the occasion. The coveted K M Philip Award 2017, instituted by AIRIA, was conferred on P K Mohamed, Chief Advisor (Research & Development), Apollo Tyres Ltd, by K M Mammen at the inaugural function. It was announced at the inaugural function that the next edition of IRE 2019 will take place at Mumbai Exhibition Centre, Mumbai, from January 17-19, 2019. Rubber Asia |March-April 2017 | 129

K T Thomas

Vinod Simon

Kamal K. Chowdhury

PKM

KMM

Visitors thronging exhibition stalls

Reverse BuyerSeller Meet

Rishiroop stall

A touch of entertainment was added to the inauguration with a presentation on â&#x20AC;&#x153; Sounds of Rubber,â&#x20AC;? a unique Musical event.

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International Reverse Buyer Seller Meet was organsied by AIRIA on January 19 at the Expo venue and 31 buyers from 14 countries such as Algeria, Australia, Iran, Nairobi, South Africa, Sri Lanka, Tanzania, East Africa, UAE , UK etc. were present at the RBSM. Over 35 registered Sellers participated in this event and over USD 30 million worth of business was discussed during this event.

Domestic RBSM was conducted for the first time at the India Rubber Expo on January 20. 20 Large Buyer companies of Rubber products from India participated in the RBSM.

MESNA

75 Rubber Product Manufacturing Companies had the opportunity to meet these buyers and over USD 50 Million worth of business was discussed during the Domestic RBSM.

Enlightening Workshops ASTM certified course on Testing was held for the first time in India at the IRE 2017. John S Dick and Peter C Surette Sr from the US were the instructors for this training session. All the 25 delegates who attended

'Soun adde funct percu musi rubb

P K Mohamed

Ajay Shah

K M Mammen inaugurating Dawnsun stall

Dr Peter Philip

Domestic Reverse Buyer Seller Meet in progress

Rajiv Budhraja

ASTM certified course on testing in progress

the ASTM workshop were awarded the ASTM certificate. 7 half and full day workshops were organized during the 3 days of the expo and all the workshops were held for the first time in India with 2 of the workshops being conducted in association with ACS Akron, US. Course completion Certificates were given to all the 175 delegates who attended the workshops.

MESNAC stall

'Sounds of Rubber', a unique musical event that added a touch of entertainment to the inaugural function of IRE 2017. In this musical ensemble, percussionists produced a medley of pulsating music on an array of inflated tyre tubes, tyres, rubber chappals and rubber balls.

Asian Business Media stall at IRE 2017

Scintillating performance by singer and actor Andrea Jeremiah

As part of a Corporate Social Responsibility (CSR) initiative, a Tyre Safety Camp was conducted in the parking lot at IRE 2017 in association with ATMA. A Networking Cocktail reception was arranged for all the exhibitors and special guests on the Day 1 evening with a Veena performance by the Music Maestro Rajhesh Vaidhya. Day 2 evening witnessed a â&#x20AC;&#x153;Gala Entertainment and Dinnerâ&#x20AC;?, an evening with an extravagant performance by Singer and actress Andrea Jeremiah and a few scintillating dancers. Rubber Asia |March-April 2017 | 131

2017

THE ASIAN TYRE & RUBBER CONFERENCE (ATRC)

Chennai gearing up for mega tyre event

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Inaugural function of ATRC 2015: (L-R) MP Kanjolia, Senior VP, JK Tyre & Industries Ltd,T. Sarangarajan, VP – Production, Hyundai Motors India, Zachariah George, Conference Chairman, ATRC 2015, John Powath, CEO, ABM LLP, General Bikram Singh (Retd.), former Chief of the Indian Army & Chairman, Chiefs of Staff, Kurian Abraham, Editor-in Chief, AMB LLP, and Harm Voortman, President and CEO of VMI.

Living up to its reputation as a world class conference, ATRC 2017 will have a line-up of renowned speakers from tyre and rubber industry, highly interesting presentations, Technical Sessions chaired by leading industry experts and lively interactions centred around the conference theme: “Breakthrough Technology for Sustainable Future”.

reparations are in full swing for the fourth edition of The Asian Tyre & Rubber Conference (ATRC), Asia’s premier conference on tyres, being held on June 16-17, 2017at Hyatt Regency, Chennai. This biennial event is organised by Tyre Asia, Asia’s largest selling bi-monthly magazine on tyre, published by the Asian Business Media (ABM). “Breakthrough Technology for Sustainable Future” is the theme of ATRC 2017 which reflects the conference’s focus on cutting edge manufacturing technology that

Harm Voortman

sustains the industry as well as environment.

Distinguished speakers ATRC 2017 will have a line-up of renowned speakers from tyre and rubber industry. The choice of papers have been carefully done to follow the theme of the conference. The list of speakers currently includes Harm Voortman, President and CEO of VMI, Holland, Mike Norman, VMI, Holland, Edoardo Salaorni, Director, Marangoni Meccanica, Italy, Dr. Dieter Barz, Altracon, Germany, Colin Clarke, Struktol, Germany, Jan-

Mike Norman

David Stevens

Mar Kop, Inmess, Germany, Azita Eftekhary, Rubber Ind. Eng. & Research Company, Iran, Ajith Kumar, Rubber Board, India, Rajiv Budhraja, ATMA, India, Suvarna, Bainite Machines, India, Peter Haan, Siemens, Germany, and David Stevens, TRIB, USA, Mario Goldmann, Zeiss Group, Germany, Hauke Paul, Electronic Systems, Italy, and Jonathan Darab, Director for the Global Center for Automotive Performance Simulation (GCAPS). The presentations will cover every aspect of tyre manufacturing technology. The emphasis is on green technology that can sustain

Edoardo Salaorni

Rubber Asia |March-April 2017 | 133

Jonathan Darab

Colin Clarke

the industry’s long-term growth. Technical Sessions are being formatted so as to group presentations that deal with a particular segment of manufacturing technology. The Sessions will be chaired by leading industry experts from top tyre companies like MRF, Apollo, Ceat and JK Tyre among others. “As proved in our earlier editions, everything about the conference will be of the highest standards. It will offer the best in both style and substance,” says Zachariah George, Chairman, ATRC.

Mario Goldmann

Rajiv Budhraja

VMI, Holland, is the Corporate Sponsor of the event. Marangoni Meccanica, TRM Tyre Retreading Machinery, Italy, Mesnac, China, HF Tire Tech Group, Germany, BKT, India, and Bainite Machinery, India, are the Co-Sponsors. Inmess, Germany, is the Tea & Coffee Sponsor and Struktol, Germany, is the Lanyard Sponsor. Early bird offer for delegates and corporate groups is open till March

Zachariah George

meaningful international tyre conferences. The conference was inaugurated by General Bikram Singh (Retd.), former Chief of the Indian Army and Chairman, Chiefs of Staff. Speakers included leading experts from Bridgestone, Hyundai, VMI Holland and a range of global companies, tyre industry organisaitons and universities. The theme “Technological & Innovative

“ The selection of the theme, the profile of the speakers and the choice of the papers are the most important areas of ATRC. The lineup is of high standard. The list of speakers include some of the best minds in the industry,” he adds.

Networking opportunity ATRC is for all those who matter to the tyre and rubber industries: Chairman, CEO, MD, COO, Technical Heads, R&D Heads, Key Account Managers, Consultants, Business Directors, Senior Executives Raw Material & Reinforcement, Scientists and Engineers among others. Held every two years, the ATRC is dedicated exclusively to tyre makers and those that serve the industry. Much attention is paid to building an outstanding conference program that provides a real-world experience and solutions. The two-day event combines dedicated special presentations, keynote addresses and panel discussions. The conference presents the most ideal platform to share ideas and engage in networking opportunity unrivalled within the tyre manufacturing sector in Asia.

134 | Rubber Asia | March-April

2017

A view of the audience at ATRC 2015

31, 2017. For more information and registration, visit atrc.in.

Glimpses of ATRC 2015 The third ediction of ATRC 2015 held in Chennai lived up to the reputation ATRC has already created for impeccable organisaiton and the quality of speakers and their papers. A truley global line-up of speakers and participating companies made ATRC 2015 one of the most

Excellence in Green Manufacturing for Sustainable Growth” sparked off highly interesting presentations and interactions that spread across six Technical Sessions. The general feedback of delegates on the success of ATRC 2015 was aptly summed up by Harm Voortman, President & CEO, VMI, who said: “Now ATRC has emerged as a world class conference and the papers were excellent and profile of the delegates outstanding. Well, we just can’t miss this event.”

TIRE TECHNOLOGY EXPO 2017

Big response to Europe's top tyre show W

ith over 270 exhibitors and about 5,000 visitors, Tire Technology Expo 2017 lived up to its reputation as Europe’s biggest tyre industry event. The

part was the Tire Business Strategy Conference, where business and technology issues facing tyre and vehicle manufacturers converged.

from Hankook, Michelin and Yokohama. Bridgestone’s Examation tyre assembly system was given the Tire Manufacturing

A view of exhibition stalls

three-day event held on February 14-16 drew some of the biggest names in the industry to Messe Hanover in Hanover, Germany. The Conference running parallel to the exhibition saw 138 speakers presenting technology-related papers. Organised by UKIP Media Events led by Tony Robinson, Tire Technology Expo 2017 saw exhibitors showcasing latest technology and futuristic innovations that can change the way tyres are manufactured. Growing competitive pressure worldwide is forcing the tyre industry to exploit all opportunities to systematically increase efficiency. Products displayed at the exhibition reflected this focus on efficiency enhancement. A new addition to the conference

Innovation of the Year Award in recognition of scientific and technological excellence in tyre manufacturing. VMI, world’s leading supplier of machinery for tyre manufacturing, received the Tire Industry Supplier of the Year award. The award was received by Harm Voortman, President and CEO of the VMI Group. Sumitomo Rubber’s Advanced 4D Nano Design bagged Tire Technology of the Year Award, while

Harm Voortman with the award

Awards for excellence German tyre giant Continental won Tire Manufacturer of the Year Award, beating off stiff competition

Versalis/Genomatica won the Environmental Achievement of the Year award for its long-term project to create renewable butadiene. Professor Gert Heinrich, Leibniz Institute for Polymer Research, Dresden, was honoured with Lifetime Achievement Award. Rubber Asia |March-April 2017 | 135

INTERNATIONAL ELASTOMER CONFERENCE 2017

Preparations on for ACS Elastomer meet T he International Elastomer Conference organised by Rubber Division, ACS (American Chemical Society), will take place from October 9-12, 2017 at Huntington Convention Center, Cleveland, OH USA.

The Conference is the premier place where customers, suppliers of materials, equipment, tools and services, and educators come together. It provides a forum for the exchange of ideas, observations, regulatory reforms and emerging scientific technologies, as well as learning, networking, seeing current customers and making new ones. This conference takes place every October.

Conference highlights Highlights of this year’s conference include: • International Rubber & Advanced Materials In Healthcare Expo • 192nd Technical Meeting • Educational Symposium • 4th Advanced Materials In Healthcare Conference; International Rubber Conference

• Networking Opportunities.

The Expo is ideal for companies involved with Machinery and Equipment, Chemical Suppliers, Rubber Processing, Natural and Synthetic Rubber, Raw Materials Suppliers, Testing and Research, Mold Release Agents, Molding, Extrusion and Parts Production, Custom Services, Compounding and Mixing Services, Manufacturing or Distribution, Recycling, Advanced Materials in Healthcare, TPEs etc.

Attendees include Chemists, Product Manufacturers, Distributors and Suppliers, Machinery Manufacturers, Machinery and Testing Equipment Users and Manufacturers, Raw Materials Suppliers, Manufacturers Looking For Component Suppliers and Rubber Products, Quality Assurance Specialists, End Users, Technical Service Representatives, Research and Development Engineers, Product Design Engineers, Sales and Marketing Professionals.

192nd Technical Meeting Symposia

• Expo Theater Presentations • Student Colloquium & Poster Session • Experience Elastomers Student Outreach Programme • Career Fair • Rubber Division, ACS Committee Meetings • Special events including a 5K Walk/Run, 25-Year Club

136 | Rubber Asia | March-April

Reception & Luncheon and Business & Awards Meeting

192nd Technical Meeting Symposia will cover the following sectors: Mixing & Processing Technology; Tire Testing and Tire Performance Predictions; Thermoplastics Elastomers; Advances in Material and Processes of Car and Truck Tires; Industrial Rubber Goods: Hose, Belts, Wire & Cable, Auto Parts.

2017

Contributed Session Contributed session includes: Characterization Tools for Elastomers; Civil Engineering with Rubber-Construction, Roofing, Seal Gasket; 4 R’s – Reduce, Reuse, Recycle Renew of Rubber; Heavy Duty Tires – Truck Tires, Off-Road, Agriculture Tires; Elastomers for Extreme Environments; Foam and Adhesive; Functionalized Elastomer and Additives; Rubber Pavement Interactions – Characterization of the Pavement Surface; New Commercial Developments; Regulations for Rubber Industry

Educational Symposium Courses Educational Symposium Courses will cover the following areas: Material Considerations for Medical Devices and Pharmaceutical Products; Essentials of Rubber Technology; Chemistry and Technology of Polymeric Materials Used in Medical Devices; Silicone Rubber Chemistry and Technology; Chemistry & Technology of Polyurethane Elastomers; Compounding Mixing and Consistency; Establishing a Rubber Molding Process; Failure Analysis of Rubber & Plastics by Physical and Chemical Analysis; Chemical Structures and Viscoelasticity of Rubber Those interested to exhibit at the Expo or attend the conference may visit www.rubberiec.org for more information.

ASIAN LATEX CONFERENCE (ALC) 2017

Gearing up for launch

reparations are fast progressing for the launch of the third edition of Asian Latex Conference (ALC), scheduled to take place from October 3-4, 2017, at Sime Darby Convention Centre, Kuala Lumpur, Malaysia. The two editions of this big, biennial global event organized by Rubber Asia, Asia’s premier rubber magazine and flagship publication of Asian Business Media (ABM), were most successfully launched in 2013 and 2015 in Kochi, India. The upcoming ALC 2017, the third edition, is a joint initiative by ABM and EPIC FRESH.

Conference theme

Why the new venue?

ALC 2017 is a major interactive platform for all in the latex & dipped goods industry – processors, manufacturers of gloves, condoms, catheters and balloons, raw material & chemical suppliers, mould & machinery makers, traders, etc. They have the opportunity to freely interact with leaders and experts in the industry.

Says Conference Chairman Dr Jay Nambiar, the world-renowned Consultant and Trainer in the fields of Rubber Processing, Technology

A view of the gathering at ALC 2015

and Factory Management: “There are obvious reasons for the relocation of the venue to Malaysia. A hub of the world latex & dipped goods industry, most of the global industry majors are located in Malaysia. For the industry players in the neighbouring countries like Thailand, Indonesia and Sri Lanka too, it will be an ideal venue for a latex (Natural & Synthetic) conference.

The Conference, themed Green & Lean Strategies for the Natural and Synthetic Latex Industries, will discuss the latest innovations and trends in world latex industry with a view to combating challenges of the ongoing global slowdown and falling prices, and also explore new opportunities in the industry. The Mini-Exhibition, running parallel to the conference at the same venue, will showcase the latest technologies and innovative products and services offered by industry majors across the world.

ALC 2017 is also the most effective platform for companies to gain maximum mileage and exposure by making the best of the opportunities for marketing and sponsorship at competitive rates.

About the past events Kossan Group, Malaysia, and Semperit Group, Austria, were the Corporate Sponsors of ALC 2013 and ALC 2015 respectively. The first two editions of Asian Latex Conference

Dr Jay Nambiar

were graced by the presence of a distinguished gathering of delegates from India and abroad. Experts who presented papers at ALC 2015 included Paul McKavanagh, Managing Director, Aquaspersions (Malaysia) Pte Ltd, Dr Zairossani M S, Director, Technology & Engineering Division, Malaysian Rubber Board, Alexander Weinert, Semperit Investments Asia Pte Ltd, Singapore, Santhosh Kumar, Vice President, Harrisons Malayalam Ltd., Om Garg, Chairman & Managing Director, Cupid Limited, Justin Seneviratne, Director/General Manager—Latex, Lalan Rubber Pte Ltd, Sri Lanka, etc. There was a Product Innovation Workshop conducted by Dr A W Shukri, Head of the Department, WRP Asia Pacific Pvt Ltd, Malaysia. For details of Registration, Sponsorship etc., visit http:// asianlatexconference.com Rubber Asia |March-April 2017 | 137

THE 13TH IRANIAN NATIONAL AND 3RD INTERNATIONAL RUBBER CONFERENCE AND EXPO

Focus on opportunities in resurgent Iran T

he 13th National and 3rd International Rubber Conference and Expo held at Safaiyeh Hotel in Yazd, Iran, from February 21-23, 2017, clearly witnessed a positive impact of the lifting of economic sanctions on Iran.

Dr. Sotoudeh inaugurating the exhibition

As the first rubber and tyre conference expo organised by Rubber Industries Engineering and Research Company (RIERCO) after the termination of the sanctions against Iran, it evoked overwhelming response from global industry leaders who are looking for investment opportunities in Iran. All major Iranian tyre and allied industry majors participated in the expo to showcase their products and find partners for business expansion, while many foreign companies came to judge and explore business chances after sanctions were lifted this early year.

Impressive turnout According to RIERCO, around 650 people participated in the conference and exhibition. “This high level of participation was more than our expectations,” says Azita Eftekhary, International Section Manager of Iranian Rubber

138 | Rubber Asia | March-April

2017

National Conference (IRNC) Organizing Committee.

companies also participated in the expo.

The conference was opened by Hassan Shaebani, the conference secretary and CEO of RIERCO. Dr. Sotoudeh. CEO of Yazd Tire and Head of RIERCO Board, inaugurated the exhibition, Dr. Mohammad Reza Ganji, President of Tire Industry Association, spoke. Speakers from Japan, China, Germany, France and Italy presented their papers.

Foreign participation

The conference discussed the challenges and opportunities in the Iranian tyre industry. The conference covered various topics such as product development, raw materials position, rolling resistance, design and construction, machinery, product tests, leadership, new management system, quality, A view of the audience productivity, standards and regulations, human resources etc. Leading Iranian tyre companies such as Barez TIre, Yazd Tire, Iran Tire and others dominated the expo. Along with tyre companies, raw material suppliers, machinery manufacturers and trading

There were about 25 booths set up by foreign participants. The significant presence of Chinese companies showed their strength in the Iranian tyre market. Many European tyre companies such as HF had booths set up by their local agents. Says Mehrdad Naghdi, Service Engineer at Iranstrick, the agent for HF: “Before the sanctions, HF had 60% market share in the country. We lost it due to the sanctions. However, since the sanctions have been lifted, we are here to re-enter the Iranian market.” HF is already in talks with major tyre companies such as Barez Tire, Yazd Tire, Kavir Tire and Iran Tire.

The Swedish specialty oil company Nynas too participated in the expo to evaluate the market condition for its tyre oil. “We have been supplying industrial oils to tyre makers in Iran, now we are in the process of supplying tyre oils,” says an executive of Nynas.

WORLD RUBBER SUMMIT 2017

IRSG Summit to address key issues

he International Rubber Study Group (IRSG), in partnership with SingEx Exhibitions, will organise the World Rubber Summit (WRS) 2017 at SGX Auditorium, SGX Centre, Singapore, from March 2223, 2017, as a key event of “World Rubber Week”.

The theme for World Rubber Summit 2017 will be Orderly Growth for a Healthy Industry. The conference

programme is designed to address broader, strategic policy-led issues which impacts the rubber industry, and will examine how leaders of the global rubber industry are adjusting to the rapidly changing world economy and new global paradigms which will inadvertently have an impact on the industry. With thought-provoking Keynote topics, targeted panel discussions

led by industry leaders and experts, the Summit aims to provide key insights and valuable takeaways on the outlook and opportunities in the industry’s various market segments. For details about the event, visit www.worldrubberweek. comFor event registration, visit : www.gevme.com/world-rubbersummit-2017.

TYREXPO ASIA 2017 & GARAGEXPO ASIA 2017

Singapore to host twin shows T he 11th edition of Tyrexpo Asia 2017, the most established international tyre trade show in South East Asia, will take place in Singapore EXPO Hall 1 & 2 from March 21-23, 2017. Tyrexpo Asia, organised by SingEx Exhibitions Pte Ltd, will bring close to 5,000 industry players from around Asia Pacific to congregate in Asia’s leading platform for Tyres, Tyre Repair Equipment, Tools and Tyre Accessories, to showcase the latest technology and equipment, discuss best practices and solutions to drive operational efficiencies and profits for businesses. This year, Tyrexpo Asia 2017 will once again partner IE Singapore to be co-located with the World Rubber Week, which also includes the World Rubber Summit and a series of networking events and seminars that are designed to address the needs of the different elements across the entire value chain in the global rubber industry. It is aimed at bringing together leaders, experts and stakeholders for focussed discussions to help shape the future of the industry. The inaugural edition of GarageXpo Asia too will be held at Singapore EXPO Hall 1 on the same dates under the auspices of SingEx Exhibitions Pte Ltd. GarageXpo Asia will feature close to 100 international and local exhibitors. The 3-day tradeshow

brings together Asia’s automotive aftermarket communities with their latest automotive repair & maintenance equipment, technologies, and trends.

buyers and sellers, thus creating greater value for the automotive marketplace,” says Andrew Tan, Deputy Project Director, Automotive & Commodities Cluster, SingEx Exhibitions.

GarageXpo Asia covers a diverse range of exhibits from workshop For more information, visit http:// equipment to bodyworks and www.tyrexpoasia.com, www. collision repair as well as diagnostic garagexpoasia.com equipment. Visitors can Statement about ownership and other particulars look forward of Rubber Asia to event highlights Form IV, See Rules 8 such as the Place of publication : Kochi GarageTalk Periodicity of Seminars publication : Bimonthly and the Printer’s name : Kurian Abraham GarageXpo Nationality : Indian Technical Address : Asian Business Media LLP, Editorial/ Workshops Marketing Office, 39/3993-B7, Ground where Floor, Vantage Point, V.R.M Road, knowledge Ravipuram, Kochi 682 016, India. and best practices are shared. "By combining Tyrexpo Asia and GarageXpo Asia within the same show floor, we strive to harness greater synergy and interactions between the

Editor’s name

: Kurian Abraham

Nationality

: Indian

Address

: Asian Business Media LLP, 39/3993-B7 Ground Floor, Vantage Point, V.R.M Road, Ravipuram, Kochi-682016.

Names and addresses of individuals who own the newspaper and partners or shareholders holding more than one per cent of the total capital: Asian Business Media LLP, Vantage Point, V.R.M Road, Ravipuram, Kochi 682 016 I, Kurian Abraham, hereby declare that the particulars given above are true to the best of my knowledge and belief.

SdKurian Abraham (Publisher) Rubber Asia |March-April 2017 | 139

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PAY JUST RS. 15,000 (US $400) AND GET YEAR-LONG EXPOSURE IN RUBBER ASIA, ASIA’S LARGEST CIRCULATED MAGAZINE ON RUBBER. THIS UNIQUE SCHEME TITLED RUBBER SPECTRUM IS OPEN TO SUBSCRIBERS OF RUBBER ASIA, TO BEING WITH. FOR DETAILS WRITE TO THE ADVERTISING MANAGER, RUBBER ASIA, ASIAN BUSINESS MEDIA LLP, BANDRA WEST, MUMBAI 400 050, EMAIL: MAIL@ABM.NET.IN, TEL NO. +91-22-26400829.

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Metro Trading Syndicate VEMBANADU RUBBERS (P) LTD

Owned by the Rubber Board (Ministry of Commerce & Industry, Govt. of India) & RPS

Flat No A3, Door No 31/986, 1st Floor, Apoorva Apartments, Subhash Chandra Bose Road, Vyttila P.O, Kochi 682019, Phone: 0484 2301018,2301417, M: 94471 68189, 9567867880, 99950 44136 Email:vembanadurubbers@gmail.com www.vembanadurubbers.com TIN: 32150347064, CST 32150347064C,D No. 1414876 CIN: U25191KL1996PTC010104

VEMBANADU RUBBERS PROCURE AND MARKET AMMONIATED LATEX, ALL GRADES OF SHEET RUBBER, FIELD COAGULUM, FERTILIZERS AND ESTATE INPUTS

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CALENDAR OF EVENTS

2017

MARCH

Tyrexpo Asia 2017 Singapore Expo, Singapore. March 21-23, 2017 Contact: Angela Huang Executive (Projects Management) SingEx Exhibitions Pte Ltd Singapore 528729 Tel: (65) 9067 6481 Web: www.tyrexposeries.com

World Rubber Summit 2017 at SGX Auditorium, SGX Centre, Singapore. March 22-23, 2017 For details: visit www. worldrubberweek.com

Automechanika KL Kuala Lumpur Convention Centre Malaysia. March 23-25, 2017 Contact: Erika Kirsch Public Relations Officer Messe Frankfurt (HK) Limited Tel: Main Line +852 2802-7728 Direct +852 2238-9930 Email: erika.kirsch@hongkong. messefrankfurt.com Web: www.messefrankfurt.com

The 6th Indonesia International Tyre & Rubber Exhibition JIExpo Kemayron, Jekarta, Indonesia. March 29 & April 1, 2017 Contact: Tel: 62 21 54358118 Email: info@gem-indonesia.net Web: www.tyre-indonesia.net

2017

APRIL

Advances in Liquid Silicone Rubber 2017 Sheraton Park Hotel, Anaheim, CA. April 23-26, 2017 Contact: Amos Golovoy E-mail: agolovoy@gmail.com

Louisiana, USA. April 25-27, 2017

2017

MAY

Automechanika Dubai

2017

AUGUST

Dubai WTC Dubai, UAE. May 7-9, 2017 Contact: Tel: +971 4 389 45 00 E-mail: automechanika@uae.messe frankfurt.com Web: www.automechanikadubai.com

TRA Dinner Centara Grand at Central World, Bangkok. May 12, 2017 Contact: Ms. Piyaporn SL Email: manager@thainr.com

2017

JUNE

Automechanika & Reifen Birmingham 2017 NTDA at NEC Bermingham. June 6-8, 2017 Contact: Alison Keitch Email: alisonkeitch@ntda.co.uk

Asian Tyre & Rubber Conference (ATRC) 2017 Hyatt Regency, Chennai, India. June 16-17, 2017 Contact: Antony Powath Tel: +91 9833 901 586, Email: antonypowath@rubberasia.com Web: www.atrc.in

2017

JULY

The 5th China International Tire Expo 2017 Organized by Reliable | Topic @Shanghai World Expo Exhibition and Convention Center, China. August 21-23, 2017 Contact: Tel : 86 (0) 10-8589-8181 Email: citexpo@reliable.org.cn Website: citexpo.com.cn

2017

SEPTEMBER

The 17th International Exhibition on Rubber Technology (RubberTech China 2017) Shanghai New International Expo Center, Shanghai, China. September 20-22, 2017 Contact: Ms. Ella Liu (Liu Ting) China United Rubber Corporation Beijing 100101 P.R. China Tel: +86-10-5377 9793, +86-13911580967 E-mail: expo@chrubber.com Web: www.rubbertech-expo.com

2017

OCTOBER

Asian Latex Conference (ALC) 2017

Asia RubTech 2017

Sime Darby Convention Centre, KL, Malaysia.

Kuala Lumpur, Malaysia.

October 3-4, 2017

July 3-5, 2017

Contact: Antony Powath Email: asp@abm.net.in, Mobile: +91 9833 901586 www.asianlatexconference.com

Contact: Jansen Wong Tel : +6012 322 7971 Office: +603 5624 4249 Email: jansen@redmanexhibitions. com

Tyrexpo India 2017

North American Tire & Retread Expo

Chennai Trade Centre, Chennai, India.

Ernest N. Morial, New Orleans,

July 25-27, 2017

142 | Rubber Asia | March - April 2017

Contact: Joan Yu Tel: +65 6403 227 Email: joan.yu@singex.com Web: www.tyrexpo@signex.com

2017 International Elastomer Conference Huntington Convention Center of Cleveland, Cleveland, OH USA . October 9-12, 2017 For details: Visit rubberiec.org

INDEX TO ADVERTISERS Acmechem Limited................................73 ACS - Rubber Division..........................111 ALC 2017..............................................110 Aquaspersions (M) Sdn. Bhd.................33 Associated Rubber Chemicals.............141 ATRC....................................................119 Atul........................................................23 Automechanika Dubai.........................117 Bainite Machines Pvt.Ltd.......................53 Balaji Rubber.........................................24 BBW.......................................................83 BKT..........................................................1 Calcutta Chrome..................................140 Ceebee Chemicals Sdn Bhd...................16 Ceemax Rubber.....................................21 Ceyenar...............................................101 Citexpo................................................143 Cristol....................................................27 D V Deo................................................140 Eastern Threads.....................................22 Eversafe.................................................25 EV Mathai..............................................80 Far East Enterprises...............................65 Fishfa Rubbers Ltd.................................69

Gold Star Rubbers................................141 Goodpack..............................................67 Harrisons Malayalam Ltd. SBU-A...........31 Harrisons Malayalam Ltd. SBU-B...........43 Hansung Sysco (Afache & Areca).............8 H.F (Harburg-Freudenberger)..................4 HPCL ....................................................19 IRMRA..................................................103 J G Chemicals.........................................79 J K Tyres.................................................13 Kurian Abraham Pvt.Ltd.........................11 Kwik Patch ............................................49 Lenora...................................................63 Malaya Trade Impex..............................85 Mardec R K Latex Pvt.Ltd.........................3 Medisafe...................................... B. Cover Metallic Rolls.........................................84 Metro Trading Syndicate.....................140 Njavallil..................................................99 NMCE.....................................................55 NOCIL.....................................................97 Plantation Corporation Kerala...............92 Pukhraj Additives...................................42 Raei Polymers......................................104

Raj Petro................................................61 Ramniklal Sons....................................140 Richter...................................................14 Rishiroop Polymers................................15 Royal Latex............................................81 Rubamine..............................................10 Rubber Linkers.....................................141 Rubber Tech China.................................95 Safe Run...................................................2 Samson Machinery................................12 Sangani Industries...............................140 Schill+Seilacher “Struktol”............F. inside Semperit Technische Produkte ... B. inside St. Mary’s Rubbers................................17 Synthomer.............................................29 Techno Waxchem..................................77 Tianjin Saixiang Technology Co.Ltd......56a Tire Plus.................................................94 Tulsiram Hanumanbags.........................71 Tyre & Rubber Indonesia......................93 Vembanad...........................................140 World Rubber Summit 2017................105 YTY............................Front Double spread

Rubber Asia | March - April 2017 | 143

HAPPENINGS Appointed Julia Krönlein as Head of

Marketing and Torsten Claßen as Director for the Passenger Car Tyre Division of Bridgestone Europe’s Central Region (CER).

Mike Lawton as Head of Communications for Europe North at Michelin.

Development at Nokian Tyres.

Craig Hancock as new

Chief Financial Officer of Tire Group International (TGI).

LeAnn Harley as Director

of Marketing and Communications of The Tire Industry Association (TIA).

President - Original Equipment of Sumitomo Rubber North America.

Jeff Barna as Chief

Operating Officer of Yokohama Rubber’s North American business. Chairman of Alliance Tire Group (ATG) of Yokohama Rubber Co. Ltd.

Seong Hak Hwang as

Managing Director of Hankook Tire Hungary.

Suk-Joon Won as

new Chief Executive Officer of AtlasBX, a subsidiary of Hankook Tire.

John Hagan as Executive Vice President of Sales and Jeffrey Perry as Director of Corporate Accounts of Nexen Tire America Inc.

HPCI Excellent

Achievement Research Project Award to Yokohama Rubber Co.Ltd. for its research on “Highly accurate fluid analysis and data mining for nextgeneration silent tire development.”

The world’s top three

design awards – the Red Dot Award (Germany), iF International Forum Design (Germany),and International Design Excellence Awards (United States) -- to Kumho’s innovative tyres.

David Colletti as Vice

Hikomitsu Noji as

initiatives.

new Vice President of Independent Automotive Aftermarket Federation (IAAF), UK.

Rodney Taylor as Vice

B Predeep

Young Scientist Award 2016 of International Rubber Research and Development Board (IRRDB) to B Predeep

President of Mickey Thompson Tires & Wheels of Max-Trac Tire Co. Inc.

Timo Tervolin

Timo Tervolin as Vice President of Process

Award 2017 instituted by RobecoSAM to Bridgestone for its environmental, social and other sustainability

144 | Rubber Asia | March - April 2017

The State Environmental Service’s (SES) ‘Green Excellence Award’ to Trelleborg Wheels Systems facility in Liepaja, Latvia.

Malaysia, and Trigon Gulf FZCO, Russia, as new Members of the Panel of Associates (POA) of International Rubber Study Group (IRSG).

The Board of Directors

of Titan International as a Full Board Member of the National Association of Corporate Directors (NACD), headquartered in Washington, D.C.

Dominick Wycoff as

Silver Class Sustainability

status for 2017 to Continental Tyres by The Centre for Brand Analysis (TCBA), UK.

MARDEC Berhad,

President, Innovation, at Orion Engineered Carbons, headquartered in Luxembourg.

Awarded

Consumer Superbrands

Admitted

Jared Nelson as Digital

as President and CEO of Santa Fe Rubber Products Inc., USA.

award to Wendy Williamson, Chief Executive of Independent Automotive Aftermarket Federation (IAAF), at the Car & Accessory Trader (CAT) Awards 2017.

Certification to Sumitomo Rubber Industries Ltd for its 31 sites worldwide.

Andy Savva as the

Michael L Peterman

The Lifetime Achievement

Latest ISO14001

Andy Savva

Marketing Executive of Maxxis Tyres.

Scientists at Rubber Research Institute of India (RRII).

Expired Carl N. Caputo, a longBindu Roy

and R.L.Narasimha Swami Memorial Award of Indian Society of Plantation Crops to Dr. C. Bindu Roy, both

time Member of ACS Rubber Division, at the age of 76.

Tom Whittaker, a senior

Executive at Continental Tyre Group, on December 19, 2016.

March-April 2017 Vol.32/Issue No.2 `200 US$ 20

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MARCH-APRIL 2017

R.N. 44527/85