Indian companies are investing in synthetic rubber, building on the recently added capacity of about 270,000 tonnes a year, industry officials said here today.
Tyre manufacturers are also calling on them to start producing Solutions Styrene Butadiene Rubber (SSBR) which is required to produce high performance tyre, strong demand for which is projected in the coming years.
At the end of 2016, demand for synthetic rubber (SR) in India was 580,000t/y driven by strong tyre demand from the automobile sector, said Juan Ramon Salinas, managing director and chief executive officer of the International Institute of Synthetic Rubber Producers.
Comparatively, domestic SR production was 480,000t/y.
"Indian would likely become self-sufficient in 2018, reaching around 650,000 t/y," he told the World Rubber Summit 2017 being held here
"New investments inproducts areplanned which will enhance SR product portfolio," added Amardeep Singh, head of Indian Synthetic Rubber Pvt Ltd (ISRPL).
In 2014, ISRPL began a 120,000 t/y Emulsion Styrene Butadiene Rubber (ESBR) which is specifically used for making tires.
In 2015, the Reliance Group started a 150,000 ESBR plant. The combined output from the two companies approximately covers 270,000 t/y ESBR demand. ESBR is mainly used in tires.
Singh estimates strong tire demand growth from the automobile manufacturers is expected in the coming years.
But market sources said more investments are needed in SR capacity as India, backed by the strong economic growth, is set to become the world's largest automobile market in the coming years.
This include SSBR which is among the advanced products in the SR range to compliment Natural Rubber used in making tyres, they said.
Indian oil companies are already investing in downstream products to meet the feedstock requirement. They are adding more butadiene and styrene capacity, the officials said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
