Good times ahead for Lankan rubber manufacturers

Sri Lankan rubber manufacturers are in for good times as several tyre manufacturing plants will be set up in Chennai, the automobile hub in India, said Chairman Indian Rubber Expo 2011 (IRE), R.K. Raman on Tuesday.

He was addressing a seminar on 'Opportunities for Sri Lankan Rubber Products in the Indian market' organised by the Export Development Board (EDB).

"India is an emerging market for quality rubber products which Sri Lanka could explore by showcasing its products at the IRE", Raman said. India will soon be a net importer of rubber due to a sharp decline in land for plantations.

India imports surgical gloves and rubber products from Sri Lanka.

The market for medical devices, threads for the garment industry, balloons, latex products, tyres and tubes is expanding due to the domestic demand in India.

Enhancing cooperation, sharing technology and the promotion of investments are some of the key benefits of the mega exhibition that would showcase the potential of the Indian rubber industry and opportunities for Sri Lankan exporters.

"Sri Lanka is strategically located and is poised to leverage on the Indian rubber market which is growing at a rapid pace", Raman said.

Despite the recession Indian rubber exports recorded a growth of 30 percent last year and the growth momentum is likely to continue.

The IRE had its debut in 2001 and over the years has helped countries to double its rubber exports and generate more revenue to the economy. The biennial event was held last in Mumbai.

India is the second fastest growing rubber economy globally and the third largest producer and consumer of natural rubber. Around 65 percent of natural rubber is used by the automobile industry.

Chennai, the Detroit of South India is the home to major automobile giants such as Ford, Hyundai, Asok Leyland, TVS, Volvo and Toyota.

Conference Convenor, Dr. R.K. Mathan said, Sri Lanka will benefit from the exhibition which will be held in Chennai, a destination closer to the country.

Vice Chairman, Sri Lanka Rubber Products Manufacturers and Exporters Association, Justin Seneviratne said Sri Lanka plans to increase rubber production to 175,000 mt a year and surpass US$ 1 billion export earnings by 2015.

"The Asian Development Bank will fund projects to develop the rubber industry. The support of the EDB is vital to set up plants for sterilisation of surgical gloves", Seneviratne said.

Chief Convenor IRE, Vinod Simon said over 90 percent of the exhibition space has been sold due to the vast potential of the Indian rubber industry.

Exhibitors from China, Japan, Malaysia, Korea, the Netherlands, Germany and the USA are expected to participate in the expo 2011.

Director General EDB Sujatha Weerakoon said the trade exhibition will promote bilateral trade and enhance cooperation between the two countries.

"A delegation from Sri Lanka will participate in the expo 2011", she said.

The IRE 2011 will be held from January 19-22 at the Chennai Trade Centre.

LF