HeveaBrasiliensis

RUBBERINDUSTRY

History

History•Introduced in 1876 by British

•1st to Singapore in South Asia

•Very 1st tree planted in Henarathgoda Botanical Garden, Gampaha.

•Mostly spread in Kagalle, Kalutharaand Rathnapura.

Export Performances

Export Performances

Sri Lanka is globally ranked

• 7th Largest rubber exporter

• 10th Largest NR producer

Most Rubber Consumed Countries• The United States• Germany• Belgium• Italy• The United Kingdom

Major markets for Sri Lankan Rubber• Pakistan• Malaysia• India• Japan• Germany

Trends & Future

Projections

• Natural rubber is of immense socio-economic importance to the producing areas.

• The industry is a substantial source of employment and is basically worked by small businessmen.

• The produce continues to be sold through a commodity market in which producers have very little control on the price.

• The trees in all producing countries generate a single type of cis-polyisoprene.

Biological Innovations• Rubber timber can be used to make furniture,

paneling, flooring and numerous other applications after chemical treatment.

• Traditional immaturity period of five to six years has been significantly reduced to 3-4 years.

• By stimulating rubber trees of 10 years of age or more in tapping, the production of most planting materials can be increased by 60—100 percent.

Local players

Local players• Sri Lanka has number of world class companies in

the field of polymers based product manufacturing.

• Sri Lanka produces natural rubber based products to the world and synthetic rubbers.

• Centrifuged latex manufacturers - Lalan Rubbers (Pvt.) Limited, Ansell Lanka, Glenrose Private Limited.

• Main rubber products of Sri Lanka are tire, glove , mattress, foot ware and adhesives manufacturers .

COMPANY PRODUCTS

Load Star Tires

Richard Pieris Tire Company Tires

Ansell Lanka Gloves and healthy productions

Lalan Rubbers (Pvt.) Limited Gloves

Arpico Natural Foam Mattress (Pvt.) Limited

Mattress

Sinva Holdings Adhesives (eg:Multiborn )

Degree of value addition

Degree of value addition• ‘Value Addition’ simply can be defined as add value to

the raw form of the material in any beneficial way.

• The most premium way of value addition to the natural rubber latex is the manufacturing of RSS, TSR, crepe rubber and centrifuged latex.

Ribbed Smoked Sheets (RSS)

RSS use for make tubes,

solid tires, aero plan tyre

and Pneumatic tyre.

Technically Specified Rubber (TSR)TSR is used for making rubber mats , wheels of wheel chairs and carpets etc.

Centrifuge Latex (CL)CL is used for making glows, mattress and toys.

Crepe rubberCrepe rubber use for making adhesives medical equipment and catheter tubes.

FURTHER…• Some of them are finding new types of fillers such

as Nano fillers and natural fillers, processing aids and use of NR/synthetic rubber blends to manufacture novel products . As a substitution for carbon black.

• Silica filler use for making white rubber, then they can be used to make coloured rubber.

• In value addition, the rubber is blended with many chemicals or natural things. For this blending , the natural oil is used for these mixing. As a substitution of petroleum oil.

Market

Markets

• Growing Market for Rubber industry

Natural Rubber

Synthetic Rubber

Value added Products

• the global industry growth annually at 4-6%.

International Market for Rubber Industry

Total rubber

volume % growth

2006 21,810 4.0

2007 23,045 5.7

2008 22,299 -3.2

2009 20,817 -6.6

2010 21,392 2.8

2011 22,502 5.2

2015 27,118 6.1

2018 27,669 0.7

Global Rubber Market Segmentation

Local Market for Rubber Industry

•Entrepreneurial opportunities

•Companies who do production for local and international markets

Competitive Countries

Competitive Countries

Country Total production

Sri Lanka 1.3%

China 5.6%

Viet Nam 6.6%

India 8.7%

Malaysia 10.7%

Indonesia 27.3%

Thailand 30.6%

Latin America 2.4%

Africa 4.4%

Other Asia 2.5%

Competitive Advantages

Common Competitive Advantages

• Products of policy

• Technology

• Human resources

• Infrastructure

• Management factors

• Research and Development.

Countries would compete by using one or more of the above stated factors.

Porter’s Five Forces Model

• Natural Resources and Human Capital

• Macroeconomic and sector policies

• Infrastructure

• Market Environment

• Micro marketing coordination

• Today every country have stepped forward for exporting processed rubber and rubber items other than just exporting raw rubber. It is the newest trend for developing countries. Sri Lanka also have stepped forward for this strategy.

Current and Future

Challenges

Natural Rubber

• Limited land

• Should find new clones

• Stimulants should be found

• Labor problem

• Difficult to make machines to tapping rubber

• Renewable

Synthetic Rubber

• Limited volume of crude oil is remaining(SR production reduce)

• Need to find new thing for substitute SR

• Plastic will extinct from the world

• Can not take quality of NR

E.g.-: Airplane tire

Possible Strategies to

Face Challenges

Cost Leadership• Construct the most efficient facilities in terms

of scale or technology.

• Cost reduction from experience.

• Obtain the largest share of the market to achieve the lowest cost per unit of production.

• Rapid technology development through R&D.

• Replacement of aging rubber tree stock and factories.

• Investing in agricultural inputs.

Differentiation

• Through technology that would create the desired product, quality, brand image

• Develop a marketing network

• Middle level dealers needs to be replaced by direct marketing and developing customized channels for special market niches overseas.

• Use its cost leadership position to penetrate the market and develop brand loyalty.

• Use the low cost production advantage to keep out competitions.

• Use the low cost strategy to develop strong brand loyalty and long term franchise.

• Segment the market and identify niches for cost focus and focused differentiation.

Thank you