General overview of the Synthetic rubber business
Synthetic rubber (SR) finds usage as an alternative to natural rubber in several cases. Synthetic rubber can be as soft as a sponge, as hard as a bowling ball or as resilient as a rubber band. This entirely depends on the chemicals added to SR and the properties associated with it. Thus, the property makes it useful in various things. Surprisingly, around 70% of all rubber used today is one of many synthetic rubber varieties. The stats indicate the need for a synthetic rubber business in India.
Notably, when improved material characteristics are needed, synthetic rubber is considered. About 75% of the rubber (both synthetic and natural) production worldwide is engaged in the production of tires. Thus, there is a huge demand that the synthetic rubber business can fulfil in India. Also, looking at the surge in rubber consumption, the Ministry of Commerce & Industry, Government of India (GOI), formed the Rubber Board in 1947.
The Rubber Board
The Board was formed to emphasise the growth of the rubber industry by offering regulatory and consultatory services and financial assistance. Thus, to address the external and internal challenges faced by the Indian rubber industry, the Board then introduced the National Rubber Policy in March 2019. All synthetic rubber business owners must adhere to this and other policies framed by the Board.
The National Rubber Policy 2019
According to the National Rubber Policy 2019, the choice and substitution of other forms of rubber-likeSR for end users would depend on technical considerations, availability, product composition, relative prices and technological changes. The share of SR has been rising in India during the recent past primarily because of an increase in the relative share of car tyres. Another reason for the same and leading to the growth of the synthetic rubber business is the switchover to SR in sectors like footwear, foam, etc.
The policy predicts expanding synthetic production and giving enough attention to protection against possible environmental hazards involved in their manufacturing.
Importance of the synthetic rubber business
The synthetic rubber business and the market are expected to see an upward trajectory on the back of rising demand for anti-slip properties across tyre applications, including flooring, window and door profiles, O-rings and gaskets, hoses and belts. The automotive sector is anticipated to exhibit an inclination for synthetic rubber following the need for temperature resistance and abrasion. Notably, synthetic rubber has gained momentum due to its aptness for applications in environments exposed to greases, high temperatures, oxidising and chemical compounds.
Demand for synthetic rubbers is split by the application areas tyres, automotive applications, construction and industry, enhancement of materials (that is, the admixture with other materials), and the group of other applications.
The second largest application domain for rubbers is elastically deformable engineering products with a stable shape, such as conveyor belts, roll covers, hoses, profiles, seals, cables, moulded parts, and roofing films. Ranging from engineering, chemical industry and construction to electrical and electronics, rubber products are needed almost everywhere.The rapidly flourishing footwear market globally is also likely to boost the growth of the synthetic rubber business and market.
Advantages of synthetic rubber
- Used in various market applications
- It is a low-cost alternative to natural rubber
- Superior low-temperature flexibility
- Excellent heat-ageing and heat resistance characteristics
- It Shares similar abrasion resistance as natural rubber
- Temperature range: -50°F to 225°F | -45°C to 107°C
Licenses and documents required for establishing the synthetic rubber business in India
- Self-attested ID/address proof issued by the Government agencies
- Valid Pollution Control Board consent
The documents required for obtaining NOC from the Pollution Control Board are as follows -
- Id and address proof of the authorised person
- Authorisation letter
- PAN card
- Factory license
- Proof of registration of the unit
- Trade license
- CA letter for total project cost
- The layout of the site plan
- Utility and electricity bill
- Completion certificate of Effluent Treatment Plant or add-on Pollution Control
- Compliance report of NOC
- In case of extension or renewal, Environmental Statement is needed
- Satellite imagery of the project/industry site
- Documentary proof to prove the right of possession of the suggested factory premises
- Project report
- Valid Panchayat license
Complete the process to obtain the licence
Applicants seeking to obtain rubber for selling or processing must apply for a licence in form 'B1'. All the applications must be accompanied by the documents m above.
Fee for the licence for synthetic rubber business
A sum of Rs. 1180/- p.a., including (Processor’s licence Fees - 1000/- GST@18% - 180/-) has to be submitted. The fee must be submitted either by money order, demand draft, or as an online transfer. The demand draft must be made in favour of The Deputy Director (L), Rubber Board, payable at Kottayam.
The Rubber Board issues a licence in Form 'C1'. But this is issued only if the Board is satisfied regarding the following matters;
- Suitability of the site selected
- Suitability of the applicant
- Availability of technical know-how
- Availability of raw materials
- Economic feasibility
- Arrangements made for technical specifications
If the processor wants to continue the synthetic rubber business, the licence has to be renewed well in advance before the expiry of its validity. An application in the prescribed form has to be submitted along with the requisite licence fee of Rs.5900/- for five years (Rs.1180/- per annum). Subsequently, the Board renews the licence for five consecutive years.
The detailed process of manufacturing the synthetic rubber
Following is the complete process that is implemented under the synthetic rubber business -
- A mixture of different hydrocarbons is made and refined.
- This is done to obtain one of the by-products, Naphtha. It is a flammable liquid hydrocarbon mixture utilised to manufacture plastics and gasoline.
- Naphtha is then mixed with natural gases to generate monomers. A monomer is utilised to bind molecules together to produce polymers.
- The chemicals will be combined with monomers to generate polymers. Common monomers that are utilised for synthetic rubbers are Nitrile Rubber (NBR), Styrene-Butadiene Rubber (SBR) and Butyl Rubber (IIR).
- Chemical agents are then introduced to form polymer chains to generate rubber substances.
- Rubber substances then undergo vulcanisation to process them into rubber products. For the unversed, vulcanisation is the procedure in which polymers are transformed into a more durable material by adding other accelerators or sulphur.
Market analysis of the synthetic rubber industry
The synthetic rubber market size was esyimated at USD 28.89 billion in 2021. The market is expected to rise from USD 29.86 billion in 2022 to USD 41.73 billion by 2029 showing a CAGR of 4.9% during the forecast period.
How can Enterclimate help you?
Legal consultation for authorisation
Our skilled experts offer assistance and legal consultation to obtain consent certificates needed to establish a synthetic rubber business in one place.
The Enterclimate family values your time. Thus, our environmental consultant team offers quick responses and ensures professional and smooth communication on time.
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Our team strives for perfection in their work. Enterclimate can help you with all the required compliance and procedures. You can be assured that comprehensive guidance and solutions to all your doubts and queries will be delivered to your satisfaction.