CHAPTER I

COMPANY PROFILE

1.1 GENERAL INTRODUCTION

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This Internship study is being carried out as a part of our study in Master of
Business Administration Degree under Mahatma Gandhi University. This
project is about the organization study of K.P Rubbers , Pooventhuruth ,
Kottayam.

K.P Rubber Industries has emerged as a global leader in manufacturing reclaim

rubber and catering world-renowned companies with its finest products. K.P
Rubber Industries began manufacturing process in its first plant with German
produced machinery. Soon the second and then third manufacturing units
followed, which set new standards by complying with the ISO 9000 & 14000
standards. Today, K.P Rubber Industries holds manufacturing facilities of
18,000 MT per annum and produces an incredible range of Natural & Synthetic
reclaim products, which are renowned as the finest nationwide.
K.P RUBBERS
K.P Rubber Industries has emerged as a global leader in manufacturing
reclaim rubber and catering world-renowned companies with its finest products.
K.P Rubber Industries began manufacturing process in its first plant with
German produced machinery. Soon the second and then third manufacturing
units followed, which set new standards by complying with the ISO 9000 &
14000 standards. Today, K.P Rubber Industries holds manufacturing facilities
of 18,000 MT per annum and produces an incredible range of Natural &
Synthetic reclaim products, which are renowned as the finest nationwide.
K.P Rubber Industries an ISO 9001:2008 certified company always work
towards achieving total customer satisfaction. It is committed to give clients
product and services excellent by providing in time delivery and consistent
product. It has a highly skilled, component, and experienced management team
and manufacturing staff with over 30 years of manufacturing experiences.
Hence , clients are guaranteed that they receive only the best products and
quality service.

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 All products pass through quality testing at every step of the production
process-starting from the selection of raw materials and mixing of rubber
compounds to completion of the final product. Thus ensuring that each and
every unit that goes out of the production is in its best quality.
VISION AND MISSION
“ Our vision is to be recognized as one of the leading manufacturers and
suppliers of molded rubber products. Our mission is to ensure total customer
satisfaction and cost effectiveness by providing quality rubber products and
delivering them to clients promptly.”
OBJECTIVE
The company aims not just to be considered as a leading supplier of quality
materials but also to develop partnership with its clients, suppliers and
manufacturers.

1.2 PRODUCT PROFILE

The Rubberized Poultry Cage Mats

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The rubberized poultry cage mats introduced found and believed to be effective
and useful. They are affordable in prize, let the litter pass easily avoid the
possibility of the presence of microorganism that may cause infection. Again
the rubberized poultry cage mats are eco friendly. All over India, Bangladesh,
Srilanka and Middle East these are used successfully. The wire mesh at the
bottom of the cage covered completely. The mats can be fixed very accurately
to the mesh.
Tile Mats

Tile mats with interlocking system are available mainly in four colors Black,
Blue, Green and Magenta. These can be used to cover a vast area decoratively
for having a smooth surface. The interlocking tile mats can be used to cover a
large area beautifully.
The Rubber Floor Mats
The rubber floor mats keeps the floor neat and clean. They are attractive as well
as affordable and available in very many designs.
Hollow Mats
Hollow mats are mainly in two size. i.e., 600m x 40m and 75m x 45m. Both are
available with 12 mm thickness and 16mm thickness.
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The Honey Comb Mat
The honey comb mat is an exclusive as the hollow mats. Any design prescribed
by the buyer can be excellently manufacture.
Tray Mats
Tray mats-The coir decorated tray mats are extremely attractive . The tips of
coir brush produce an acupuncture effect.
Rubber Stopper

Rubber Belts

These products are available in the market in various sizes and shapes to be
used in various industrial purposes. These are widely recommended by various
clients owing to its finest quality, durable performance and longer functional
efficiency.
Rubber Washers

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These washers are widely appreciated by the clients for their flexibility and
reliability. These rubber washers are made from compression, transfer and
injection rubber moulding processes.

Industrial Rubber Seals

These Industrial Rubber Seals are used extensively in many Industries. Our
Industrial Rubber Seals have flawless designs and accurate dimensions as a
result of the Seals have gained recognition among clients. These Industrial
Rubber Seals have excellent properties and are extremely reliable. The
Industrial Rubber Seals have a long life and they are designed for trouble free
performance.

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DEPARTMENT OF K P RUBBERS
FINANCE DEPARTMENT

Management of funds is a critical aspect of financial management. Management

of funds acts as the foremost concern whether it is in a business undertaking or
in an educational institution.
By Financial management we mean efficient use of economic resource, namely
capital funds. Financial management is concerned with the managerial
decisions that result in the acquisition and financing of short term and long
credits for the firm. Here it deals with the situation that requires selection of
specific asset, or a combination of assets and the selection of specific problem
of size and growth of an enterprise. Here the analysis deals with the expected
inflows and outflows of funds and their effect on managerial objectives.
Financial Management deals with procurement of funds and theirs effective
utilization in the business. So the analysis simply states two main aspects of
financial management like procurement of fund and effective use of funds to
achieve business objectives.
Since the department is directly under managing director, the decision making
responsibility falls to him. Besides the fundamental duty of raising of funds and
allocation of funds, profit planning and understanding capital market are the
responsibility of the department. The main responsibilities of the department are
the following:-
 All financial activity like collection and payment etc.
 Raising of income
 Maintain economic stability in the company
 Entry of all expenses in accounts book
 Maintain all kind of books of accounts
FUNCTIONS
Some of the main functions of finance department are:

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  To manage and account the financial resources of the organization.
 Report the financial performance of the company to Management.
 Payroll preparation.
Attendance and other allowances details will come from office, directly to
finance department. Finance department will prepare payroll with help of
software called PayBiz.
 Preparation of Various books of account.
Various books account are prepared and maintained by finance department
with the help of accounting software Tally. Print out of all books of account
are taken at a particular interval and filed. Various books of accounts
prepared by K.P RUBBERS are as follows.
Cash book
Bank book
Sales day book
Purchase day book
Journal Register
Debtors Ledger
Creditors Ledger
General Ledger
Conversion Register
Fixed asset register
 Banking
 Accounting
In the preparation of the annual accounts, the applicable Mandatory
Accounting Standards are followed. The Company maintains adequate
Accounting Records in accordance with the provisions of the Companies
Act, 1956.
 Budget preparation.
 Auditing.
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The auditing is conducted according to the auditing standards generally
accepted in India. Those standards require planning and performing the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.
 Preparation of financial statements & reports.
Finance department prepares Balance sheet and Profit & Loss account.
Also does financial analysis on this in order to help management to take
proper decision.
 It maintains economic stability without causing any interruptions in the
day to day processing of the company by controlling the inflow and
outflow of funds.
 Billing and payment
All financial activities like billing, collection and payment is done by
finance department. Cash payment is done up to Rs.20, 000 and above
that payment is done through cheque.
PROCUREMENT &UTILIZATION OF FUNDS
As fund can be produced from multiple sources so procurement of funds is
considered an important problem of business concern. Funds obtained from
different sources have different characteristics in terms of potential risk, cost
and control.
Funds issued by the issue of equity shares are the best from risk point of
view for the company as there is no question of equity capital except when
the company is liquidated.
From the cost point of view, equity capital is the most expensive sources
of funds, as divided expectations of shareholders are normally higher than
that of prevailing interest rates.
Financial management constitutes risk, cost and control. The cost of
funds should be at minimum for a proper balancing of risk and control.

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 In the globalized competitive scenario, mobilization of funds plays a very
significant role. Funds can be raised either through the domestic market or
from abroad. Foreign direct investment (FDI) as well as foreign institutional
investors (FII) is two major sources of funds have to be modified in the light
of requirements of foreign investment.
In the company accounting and financing functions are performed by the
accounts manager. Costs records are also maintained by him. The company
follows the double entry system of accounting to maintain the accounts. The
accounting and the financing functions include.
 Maintaining the books as per statutory requirement.
 Recording the transactions.
 Ascertaining profit or loss of the company and knowing the position.
The authorized persons from the group verify all the records and
vouchers. Compulsory audit also take place at the end of the year.
The accounts and books are maintained in a prescribed manner. The
company prepares manufacturing trading profit and loss account and the
balance sheet at the end of every year.
ACCOUNTING POLICIES

 Fixed Assets are carried at Cost, deducting Cenvat credit wherever

available.
 Depreciation is provided for on straight line method at rates prescribed
in schedule XIV of the Companies Act 1956
 All income and expenditure are accounted on accrual basis. However
the following cases are accounted on cash basis: Leave encashment,
insurance claims and medical reimbursements, payment of customs duty
and excise duty, port-dues, investment subsidy, Festival allowance.
 Other income accounted net of sales tax wherever applicable.
 Consumption of all raw materials, stores, spares, etc. valued at cost.

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  Inventory of all input materials, stores, spares, etc valued at cost.
 Finished goods at cost/market price/realizable value whichever is lower.
 Goods in transit at actual cost.
 Capital work in progress at actual cost.
 Loose tools written off in full in the year in which it is purchased.
 Investments are stated at cost.
 Sale within the state includes excise duty but excludes sales tax. Outside
state sales include excise duty and lorry freight but excluded tax, if any
applicable.
 Rupee exchange variation on foreign currency on imports of raw
materials charged to raw material cost.
MARKETING DEPARTMENT
Marketing management is a business discipline focusing on the practical
application of marketing technique and the management of a firm’s
marketing resources and activities.
More than any other business functions, marketing deals with customers.
Creating customer’s value and satisfaction are at energy heat of modern
marketing thinking and practice. The simplest definition of marketing is
“marketing is the delivery of customers satisfaction at a profit” the two field
goal of marketing is to attract new customers by promising superior value
and to keep present customers by delivery satisfaction.
Sound marketing is critical to the business of every organization large or
small, for profit or not for profit, domestic or global. The two major aspects
of marketing are customer acquisition and the retention and expansion of
relation with existing customers.
The primary and secondary process owners of the Marketing Department are
the Senior Manager and staffs respectively. Their role in the process involves
enquiry, customer P O, and customer dispatch schedule and customer

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satisfaction survey which are also the process inputs. Their responsibility is
to identify and register potential customers and to ensure the supply of items
as per the required quality, quantity and delivery schedule.
With the help of subordinates, including market research managers and
engineers, they estimate the demand for products and services offered by the
firm and its competitors. The responsibility of the manager is to develop
pricing strategy to help firm maximize profits and market share while
ensuring that the customers are satisfied. In collaboration with sales, product
development, and other managers, they monitor trends that indicate the need
for new products and services, and they oversee product development.
Marketing managers work with advertising and promotion managers to
promote the firm’s products and services and to attract potential users.
FUNCTIONS
 Enquiry / Order Acceptance
 Customer Satisfaction Survey
 Enquiry / Order Acceptance
Enquiry is received by fax / email / letter & verbal. The enquiry is entered in
the enquiry register. If the enquiry is feasible, technical doubts are clarified
from the customer. The enquiry is reviewed as per the enquiry review
checklist. The quotation is sent to the customer, follow up is made for receipt
of the order. The order is reviewed and is issued to the Production, Planning,
Quality, Materials, Finance, Technical, Stores, Heat Treatment, Special
projects and to Shornur unit if applicable. The order acknowledgement is sent
to the customer.
 Customer Satisfaction Survey
The customer feedback is sent to the customer once in 6 months. Follow up is
made to receive the filled survey form from the customer. The target is as per
the process measurable identified in the procedure for customer related
process
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  On Time Delivery
The information about the availability of finished components is received
from stores. Dispatch details will be informed to Stores. The invoice number
and date will be entered in the customer wise order book. On time delivery
will be monitored through the customer wise order book.
 Handling Customer Complaints
Complaints from the customers are registered. 8D format is generated with
copy of the complaint and forwarded to QC by marketing. QC enters the
containment action and root cause in the 8D format and will further discuss
with the concerned departments in the next day production meeting. The
completed 8d format is forwarded to marketing dept. from where they contact
the customer. Complaints are reviewed on a monthly basis with top
management
SALES PROCESS
 Sales
Sales order are released to Production Planning and Control, Finance,
Material Management, Quality Assurance, Stores, and Technical
department.
 Market research
 Price fixation and preparation of price list
 Preparation of sales report
 Keep different sales registers.

HUMAN RESOURCE DEPARTMENT

The human resource management (HRM) function includes a variety of
activities, and key among them is, deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees ensuring their high performance,

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dealing with performance issues. Activities also include managing your
approach to employee benefits and compensation, employees records and
personnel policies. Usually small business (for profit or non-profit)have to carry
out these activities themselves because they can’t yet afford part orfull-time
help.
Human resource management is one of the most complex and challenging fields
of endeavor. It is considered to be the most expensive and important resource of
every organization. The existence of an organization depends upon the
competent, co-operative and dedicated performance of its personnel. The
personnel department of K.P RUBBERS works efficiently and effectively.
The employees of K.P RUBBERS are classified as follows;
 Managerial staff
 Technical staff and supervisors
 Engineers
 Office staff
 Skilled workers
 Unskilled workers
The service condition of managerial staff is governed by the rules formed by the
Board of Directors. The service conditions of other employees are government
by long term agreement signed between the management and trade union before
the government labour officials.
Their responsibility is to maintain the optimum manpower required to sustain
the growth of Organization and to motivate & manage human resource and train
them to ensure their personal and organizational development.
FUNCTIONS
 Organizational human resource planning & development
 Recruitment and selection
 Retirement

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  Wage & Salary administration
 Employee records maintaining
 Performance appraisal
 Welfare programmed
 Job evaluation
 Handling employee grievances
 Handling the legal issues within & outside the Organization
PAY STRUCTURE
 Basic pay
 Dearness Allowance
 Variable Dearness Allowance
 House Rent allowance (12.5% of Basic pay)
 Work staff allowance (higher for factory staff and lower for managerial
staff)
 In addition to these; the following allowances are also given:
 Stitching charge to eligible works men
 Washing allowance to eligible works men
 Canteen allowance
 Attendance bonus
 Charge man allowance
 Night shift allowance
 Acting allowance
 Over time
MATERIALS DEPARTMENT

Materials input is very important as excess material as inventory causes costs

to the company and shortage of material results into stoppage of conversion
process and subsequently shortage of finished goods leading to customer

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dissatisfaction. Out of 5Ms, that are inputs to a conversion process, material
is substantial in terms of its contribution to product cost, and current assets.
Management of materials is crucial in a Just in Time Company. Production
process needs very strong materials management support to gear up to face
challenges of current market. Materials Management provides information
about availability of new products and services in the market which leads to
cost efficient changes in the process.
Sales, purchase, and stores department are headed by general manager. When
a change is needed to the existing procedure or document like contract or
agreement it shall be communicated to the top level management through a
particular format of amendment. The revised procedure or document revised
from the higher level shall be incorporated in the document in declaration in
this department
FUNCTIONS
 Materials Planning & Control
This is the primary function of Materials Management. The market
forecast is converted into production schedules by production planning
and control. Materials management prepares the materials plan to meet
the production schedule. The plan is then implemented and controlled.
 Procurement
Procurement function begins with sourcing the supply after short
listing suppliers. An effective method is to rate the vendors on the basis
of performance and choose the best. Purchase order is placed on the
source and the material is procured from the source. Procurement activity
includes preparation placement of purchase order, follow up,
transportation and handling.
 Handling
The material which reaches the company premise is to be unloaded,
moved and positioned as per the storage plan.

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 Storage & Preservation
The procured material is to be stored and preserved against internal
and external deterioration and theft. Against the authorized demand the
material from the store is retrieved and issued.
 Inventory control
Inventory control function controls the inventory levels to ensure
shortage free and excess free stock to check the costs and ensure
customer satisfaction
 Vendor development
The company makes the chosen vendors effective and efficient by
providing necessary inputs of training and information. The suppliers
systems are audited to ensure adherence. A good vendor is an asset as he
makes his customer more effective and efficient
 Vendor rating
Vendorrating is used as a tool for narrowing down the supplier base
for productive management of materials function. The same system is
used continuously to assess strengths and weaknesses of short listed
vendors for their effective development.
 Waste control
Procuring standard material and continuously trying to improve yield
is waste reduction and control function. When a product is processed two
types of wastes are generated. One type of waste is called as standard
scrap. This is accepted as unavoidable. Product that is not right first time
is scrap and thereby wastes. Non moving obsolete material is another
waste that cripples organization. Material management should address
these wastes and not only should control but reduce the wastes.
The wastes thus generated are transferred to the Steel Complex for further
processing

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PRODUCTION DEPARTMENT
The production department is responsible for converting inputs into outputs
through the stages of production processes. The Production Manager is
responsible for making sure that raw materials are provided and made into
finished goods effectively. He or she must make sure that work is carried out
smoothly, and must supervise procedures for making work more efficient and
more enjoyable.
There are five production sub-functions
 Production and planning.: They will set the standards and targets at
each stage of the production process. The quantity and quality of products
coming off a production line will be closely monitored.
 Purchasing department: This department will provide the materials,
components and equipment required. An essential part of this
responsibility is to ensure that stocks arrive on time and are of good
quality
 The stores department: The stores department are responsible for
stocking all the necessary tools, , raw materials and equipment required to
service the manufacturing process.
 The design and technical support department: They are responsible
for the design and testing of new product processes and product types,
together with the development of prototypes through to the final product.
 The works department: This department is concerned with the
manufacture of products. This will include the maintenance of the
production line and other necessary repairs. The works department may
also have responsibility for quality control and inspection.
The Production department consists of two divisions, the forge shop and the
Materials Preparation division which is headed by a Senior Manager and an
Asst. Manager. Based on the monthly and weekly plans, jobs are allocated
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and recorded in forge shop. The process owners are the primary head of
production department and a secondary shift in charge. There are 69 skilled
and 15 unskilled labourers.
The Production Manager is responsible for day-to-day production within
the forge shop. He supervises, motivates, and supports the staff daily,
applying a team approach and maintaining open communication. The
Production Manager plans, schedules, strategizes, and oversees all production
activities while continually building sales and maintaining profitability. The
Production Manager performs essential functions to ensure overall customer
satisfaction and quality service, and establishes and maintains effective
communication with employees and clients. The Production Manager is
responsible for the effective and efficient planning and scheduling of
personnel and equipment to reduce bottlenecks and problems.
FUNCTIONS
 Planning daily production according to annual target.
 Monitoring actual production & checking any deviation.
The entire production activities of the company are under this department.
K.P. Rubbers has a well-established production planning and control system.
This section deals with the issue of work order, materials issue from store,
dispatching, loading and scheduling production progress and material
planning. The existing production system in K.P RUBBERS is a better one
as total is concerned.
Monthly and weekly plans are communicated to the production head by
planning. Based on the plans, the production head will communicate to the
shift in-charge about daily plan. Jobs are then allocated and recorded in forge
shop job and cum shift wise production report.
Set up verification is done before starting the work order and is recorded.
After the approval of set up, bulk production is started. Corrective actions are
initiated for process non-conformances. Analysis of set up NCs is done daily
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for implementing corrective actions. Shift in-charge monitors the process and
the inspections are carried out by the QA. Route card cum work order is
issued and it is updated by the shift in-charge for the required process and the
work order is updated and moved along with the material till the completion
of all process, which is referred for traceability.
If any rejection is found in the process, the same will be updated in the NC
register and the route card and the material is identified with rejection tag for
disposition action.
Components are offered to QA for final inspection. After production, die
should be cleaned and handed over to the die shop.
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
Real progress occurs when privileges are balanced with the responsibilities
towards society. The Company has always laid emphasis on progress with a
social commitment. We believe strongly in our core values of empowerment
and betterment of not only the employees but also our communities.
Following this principle, the company has developed a comprehensive
approach towards promoting and facilitating various aspects of our
surrounding communities.
CSR OBJECTIVE:
The objective of the company’s CSR Policy is to frame guiding principles for
identifying, execution and monitoring of CSR activities, its review from time
to time, taking necessary corrective actions and reporting of the CSR
activities to CSR Committee/Board of Directors.
CSR activities may be implemented by the Company:
 on its own and/or
 through a Trust formed by the promoters of the Company and/or
 through an external trust or any another NGO or agency conducting
CSR activities in synchronization with CSR activities of the Company.

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In case of activities implemented through Trust/NGOs or any other similar
agency, it should have track record of three years in undertaking similar
programs or projects.
CSR ACTIVITIES:
The Company’s manufacturing facilities are situated at various locations at
Viramgam and Vatva. However, any other areas may also be covered if the
CSR Committee thinks it appropriate and approves the same.
The CSR activities of the Company will be implemented in accordance with
the following core values:
 Proactively engage with the relevant stakeholders, understand their
concerns and be responsive to their needs
 Use and promote systematic processes to engage with the stakeholders
and endeavor to address their issues in just, fair and equitable manner.
 Channelizing resources and efforts towards making positive and
sustainable contribution in social and economic development
 Aligning CSR practices and programs to complement and support the
developmental priorities at local, state and national levels
The activities to be undertaken by the Company as CSR activities shall be the
projects/programs relating to the activities/subjects specified and enumerated
in Schedule VII of the Companies Act, 2013 or any amendment thereto or
modification thereof. However, at present, it proposes to undertake the
relevant activities on priority basis in following areas.
A. PROMOTING EDUCATION INCLUDING SPECIAL EDUCATION
AND KNOWLEDGE ENHANCEMENT, INCLUDING BUT NOT
LIMITED TO:
 Facilitating enhancement of knowledge and innovation in the
educational Institutes.

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  Providing financial and/or other assistance to the needy and/or deserving
students
 Distributing awards and rewards to encourage innovative thinking
among students at scholastic level and to continue such activities for a
longer period as a part of CSR project instead of being engaged in one-
off events
 Providing financial assistance to any agency involved in education and
knowledge enhancements for improving the infrastructure facilities and
strengthening academic activities
B. PROMOTING HEALTH CARE INCLUDING PREVENTIVE
HEALTH CARE, SANITATION AND HYGIENE, INCLUDING BUT
NOT LIMITED TO:
 Providing financial and/or other assistance to the agencies involved in
exclusive medical research, public health etc.
 Providing financial assistance to deserving people for specialized
medical treatment in any medical institution
 Activities concerning or promoting:
o General healthcare including preventive healthcare
o Health/medical camps
o Distribution of medicines (whether or not manufactured by the
Company) to the needy patients
o Hygiene, cleanliness and sanitation
o Adequate water supply for drinking and other domestic purpose
C. ANY OTHER ACTIVITY WHICH THE COMMITTEE MAY
DEEM APPROPRIATE.
The activities enumerated in Schedule VII of the Companies Act, 2013 or any
amendment thereto or modification thereof as mentioned herein below:

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 Eradicating hunger, poverty and malnutrition, ‘promoting health care
including preventive health care and sanitation including contribution to
the Swach Bharat Kosh set-up by the Central Government for the
promotion of sanitation and making available safe drinking water.
 Promoting education, including special education and employment
enhancing vocation skills especially among children, women, elderly
and the differently abled and livelihood enhancement projects.
 Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans; setting up old age homes, day care
centres and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward
groups.
 Ensuring environmental sustainability, ecological balance, protection of
flora and fauna, animal welfare, agroforestry, conservation of natural
resources and maintaining quality of soil, air and water including
contribution to the Clean Ganga Fund set-up by the Central Government
for rejuvenation of river Ganga.
 protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up
public libraries; promotion and development of traditional art and
handicrafts
 measures for the benefit of armed forces veterans, war widows and their
dependents
 training to promote rural sports, nationally recognised sports,
Paralympic sports and Olympic sports
 contribution to the prime minister's national relief fund or any other
fund set up by the central govt. for socio economic development and

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 relief and welfare of the schedule caste, tribes, other backward classes,
minorities and women
 Contributions or funds provided to technology incubators located within
academic institutions which are approved by the central govt.rural
development projects slum area development.
 Disaster management, including relief, rehabilitation and reconstruction
activities.

EXPORT AND IMPORT

K.P Rubber Industries is based in India and operates three manufacturing
units at different locations to serve the needs and specifications of the clients
promptly. Our extensive distribution network, spread over 22 countries
worldwide, enables us to serve each client with personalized and discreet
attention. We also hold an incredible team of dedicated experts who enable us to
analyze our systems from time to time and initiate new formulae to match client
needs to the fullest.
They proud to reveal that their products are widely distributed in world
class chain stores-Metro Cash & Carry, Auchan, OBI, Real, Leroy Merien,
Castorama, Victoria, Hyperglobus, Carrefour, Home Centre through our buyers.

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 SWOT ANALYSIS

Professional mangers, while resorting to management by objectives, resort to

SWOT Analysis as a tool for assessment. Such an analysis on K.P Rubbers
will mean a study of strength, weakness, opportunity and threat faced by K.P
Rubbers as on today.
STRENGTHS

1. Availability of heavy hammers which are few in the country and hence
comparatively lesser competition in an otherwise very competitive market
for K.P Rubbers.
2. There is sufficient owned land available adjacent to the existing factory
premises for expansion.
3. Skilled and contented workforce committed to quality and timely
delivery.
4. Better employer employee relationship.
5. ISO 9001 certification and facility approved for defense and aerospace
production.
WEAKNESSES
The price of sheet rubber was around Rs 135 per kg last week despite low
availability—the tapping season in Kerala, the largest rubber producing state,
has almost come to an end and it is expected to resume only when the southwest
monsoon begins. “Many rubber growers were not tapping during January and
February as they were yet to get arrears of state incentive scheme. Besides, the
hot weather too affected productivity,”

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High transportation cost of goods and personnel due to the distance from raw
material suppliers and customers which are mostly outside the state.
1. Over consumption of power and fuel.
2. Man power shortage in production area.
3. Unexpected power failure and restrictions in usage Electric Power.
OPPORTUNITIES

1. Liberalization and globalization has opened up new export markets.

2. The demands for forging products are increasing. So there are chances of
getting more orders.
THREATS
1. Unexpected power failure and restrictions in usage of Electric Power.
2. Long distance from the main input sources and major customers causes
increase in the transportation expenses.
3. Financial strain on the company due to fast increasing input costs, and the
necessity felt to organize large stocks of raw materials.
4. Emergence of private companies into this industry.

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 CHAPTER II
AN OVERVIEW OF THE INDUSTRY

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RUBBER INDUSTRY

Brief introduction

Indian rubber industry has been growing in along with the strength and
importance, as a part of India's burgeoning role in the global economy. India is
the world's largest producer and the third largest consumer of natural rubber and
is also one of the fastest growing economies globally. With a stable annual
growth rate of 8-9%, rising foreign exchange serves, rapid expansion in the
capital markets and FDI inflow, India proudly stakes its claim as the second
fastest growing major economy in the world. Such factors combined
with high concentration of automobile production and the presence of large and
medium industries in South India, Chennai has become the perfect place for the
event India Rubber Expo-2011.

Production of rubber in the world was considered to be very unstable during the
last few years. Comparatively, with the world India's production of rubber is
consistent at the rate of 6% per annum. The Indian rubber industry has been
growing tremendously over the years .Indian Rubber Producing Areas divided
into two zones - traditional and non traditional

Traditional Zone Non-Traditional Zone

Kanyakumari in Tamil Nadu Coastal regions of Karnataka
Districts of Kerala Goa Andhra Pradesh
Odisha
Some areas of Maharashtra

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 Northeastern states (mainly Tripura)
Andaman and Nicobar Islands

90% of India's total production of natural rubber is contributed by Kerala.

Kerala and Tamil Nadu together occupy86% of the growing area of natural
rubber.

The Indian Rubber Consumption is as follows

 Automotive tyre sector:50% consumption of all kinds of rubbers
 Bicycles tyres and tubes: 1 5%
 Footwear:1 2%
 Belts and hoses:6%
 Camelback and latex products: 7%
 Other products: 1 0%
Market capitalization India's Rubber production varies between 6 and 7 lakh
tons annually which amounts to Rs. 3000 crores. 70% of the total rubber
production in India is in the form of Ribbed Smoked Sheets (RSS) and is also
imported by India accounting for 45% of the total import of rubber. Today
Indian Rubber Industry consists the turnover of Rs 1 2000 crores. Most of the
rubber is consumed by the tyre industry which is almost 52% of the total
production of India. Kerala is the leading consumer of rubber, followed by
Punjab and Maharashtra. Though, India is one of the leading producers of
rubberit still imports rubber from other countries. At present, India is importing
around 50000 tons of rubber annually.
Size of the industry
The size of the Indian Rubber Industry is, there are about 6000 unit comprising
30 large scale, 300 medium scale and around 5600 small scale and tiny sector
units. Such units are manufacturing more than 35000 rubber products,

29
employing 400 hundred thousand people, which involves22000 technically
qualified support personnel, contributing Rs. 40 billions to the National
Exchequer through taxes, duties and other levies. The Indian Rubber Industry
plays a vital role in the Indian national economy as the rubber plantation sector
in India produces over 630 hundred thousand tonnes of natural rubber and there
is a projected production of more than one million tonnes in near future.
Domestic and Export Share
The export share of Indian natural rubber has increased tremendously over the
years and have reached 76000 tons in 2003-04. India's exports of rubber
products, which include tyres, exceeded Rs.2000 cores according to a recent
estimate. Products exported are as follows:
 Automotive tyres and tubes
 Rubber and canvas footwear
 Cycle tyres
 Pharmaceutical goods
 Rubber hoses, cots and aprons
 Belts and beltings
 Sheeting

Top leading Companies

The All India Rubber Industries Association (AIRIA) is a non-profit making

body serving the rubber industry andtrade with the objectives of safeguarding
and promoting interests of the industry. In the year 1945 the All India Rubber
Industries Association was formed which is an apex body of the Rubber
Industries-both tyre and non-tyre sectors and also of the traders dealing in raw
rubber, chemicals and other raw materials etc. The Association is to protect and
promote the interests. It has around 1200 members affiliated to it spread all over
the country. The Association has its central office at Mumbai with 4 regional

30
offices at New Delhi, Kolkata, Chennai and Mumbai and a Chapter office at
Pune.

Employment Opportunities A person with minimum graduation can have a good

career in this industry but specialization in the subject would give an added
advantage. Sectors covered by Indian Rubber Industry for the employment of
the individuals are :
 Civil
 Aviation
 Aeronautics
 Railways and agriculture transport
 Textile engineering industries
 Pharmaceuticals, mines, steel plants, etc.
Marketing of Natural Rubber in Kerala
Marketing is a very wide subject involving various techniques, methods and
procedures. A suitable marketing strategy is the key for successful marketing.
To involve into marketing strategy, one should essentially possess upto- date
knowledge of this market. This will facilitate the building up of a picture of the
market and would also provide guidelines for making a realistic sales forecast
for future.
For this purpose details on the following aspects are the basic requirements;
1. Size of the market
2. Demand
3. Market structure
4. Buying habits
5. Market share
6. Overseas market
The activities of rubber marketing system connected with the movement of
rubber from the primary producers to the ultimate consumers. There are distinct

31
differences in the primary marketing system in the small holding and the estate
sectors.

Latest developments
 Indian Rubber Industry is expected to grow at over 8% per annum in this
decade and the industry is envisaged to grow at the rate of 8% per annum
and the per capita consumption of rubber is at 0.8 kg against 1 4 kg.
There exists a huge scope for expansion and development and exports in
coming years. In fact, exports of rubber goods was worth Rs. 30 billion in
the year 2005.
 The prospect of growth is further enhanced by a boom in the vehicle
industry, improved living standards of the people and rapid over-all
industrialization. The per capita consumption of rubber in India is only
800 grams compared to 1 2 to 1 4 kilos in Japan, USA and Europe. So far
as consumption of rubber products is concerned, India is far from
attaining any saturation level. It is a factor leading to tremendous growth
prospects of the industry in the years to come.
 India is the third largest producer of rubber in the world and is the fourth
largest consumer of natural rubber.
 India is fifth largest consumer of natural rubber and synthetic rubber
together in the world.
 India and China are the only two countries in the world which have the
capacity to consume the entire indigenous production of natural rubber.

Business process of the Rubber Industry

There are number of rubber manufacturing processes and each

comes with one benefit or another. Understanding the manufacturing product
gives you knowledge of cost and tradeoffs. The rubber industry follows these

32
processes to manufacture different products. Here are some of the most
common rubber manufacturing processes.
In the Extrusion process the unvulcanized compound is fed into
the extruder. Inside the extruder it moves for dying. It is a unique
manufacturing tool used to give shape to the rubber. As soon as the
compound arrives at the dying stage, the right pressure pushes it to the
extruder’s opening. The product will be sent for vulcanizing before it can be
made useable. The rubber compound is cured and blended before the
vulcanization begins. The rubber may contract or expand during the process.
Also note that the length of the rubber is also impacted after vulcanization.
Meanwhile, the extrusion process is suitable for producing rubber in high
volumes and the cost is also affordable. The products produced during the
extrusion process include gaskets, tubing, cord and profiles.
Latex dripping is process when the slim walled molds are soaked
in the latex compound and later is slowly withdrawn. The thickness is
increased by re-dipping it again into the latex compound. Once the dipping is
over, the product is send for vulcanization. Based on the result of the dipped
product different post treatments are given. The advantage of dip modling is
to create complex shapes before it goes for extrusion. The outcome includes
balloons, rubber gloves, tubing, grips and more.
Molding can be divided into three types:
Compression molding: The oldest among the three and is cheaper.
Here the rubber compound is made into a blank and then placed around a
mold cavity to get its shape. Here the time taken for heating is low and it
helps in taking a longer time for curing. The heating time can differ from
three minutes to indefinite hours. This type of process is suitable for making
large surface area compound with poor flow and high viscosity.
Transfer molding is a natural and limits the compression molding.
The process kick starts by loading the chamber and then distributing it into

33
cavities. The pre-heating helps the rubber to flow into the channels. It cuts
down on the curing time. The molds are expensive and complicated.
In Injection molding the press and the injection unit are separate
in terms of controls. The molds can be placed both vertically and
horizontally. The extruder serves a number of presses by moving in a pre-
programmed pattern. It results in a brief injection process using high pre-
heating.
In Calendaring the soft material is forced in the center of the
rotating rollers. Compacting the rollers and the thickness of the product, it
can be determined by the distance between each cylinder, where the thickness
of the product can be adjusted. The material sent through the cooling rollers
is vulcanized. The process is ideal for producing films of rubber. The benefits
include having a check over the thickness and the capability to make wider
and thinner parts in comparison with extrusion. Here the operating cost is
high when compared to others.
Strengths and Challenges of Indian Rubber Sector

The major strengths of the sector include existence of a domestic rubber

products manufacturing industry capable of consuming the entire NR
produced in the country, vast areas in non-traditional regions suitable for
rubber cultivation, strong and systematic rubber research, well-knit extension
network and grower forums comprising Rubber Producers Societies (RPS),
Self Help Groups (SHGs), RPS companies and Cooperatives. The sector also
faces many challenges, some of which are sub-optimal agro-climatic
conditions and adverse impact of climate change, saturation of area for new
planting in traditional regions, agro-climatic, topographic, social, cultural,
institutional and infrastructure constraints in non-traditional regions, global
price volatility and low-price situations, and its repercussions on production,

34
lack of competitiveness, stagnation in the growth of Non-Tyre Rubber
manufacturing sector etc.
WORLD RUBBER SUPPLY
Major producing countries of natural rubber are Malaysia, Indonesia, and
Thailand. This is the reason why many of the large tire companies have vast
holdings in South East Asia. Small producers equally play an important role.
Synthetic rubber is manufactured in various plants to different specifications
around the globe. The division between the two source of rubber is about 40
percent for natural and 60 percent for synthetic on a global basis and it is not
expected to change much in the coming years.
WORLD RUBBER DEMAND
Demand for natural rubber is always greater than synthetic rubber because it
is considered superior to synthetic rubber. As a result of its high quality,
natural rubber is the preferred choice when making surgical gloves and
drapes, contraceptives, shoe soles, nipples on baby bottles, rubber bands,
even carpet backing, in radial tires and in blends with various synthetic
elastomers, where its use improves weathering qualities. The demand for
synthetic rubber is aggravated by increasing growth for non-tire products,
rising motor vehicle production, and stable pricing. Infact, the demand for
non-tire rubber is expected to outpace world economic growth due to growth
in industrialization levels in developing regions of the world. According to a
recent estimate, world tire demand is projected to expand 2.6% every year,
with OEM tire demand growth by strong gains in the global motor vehicle
industry, and this requires a boost in the replacement needs by a steadily
rising global motor vehicle park.
INDUSTRIAL RUBBER PRODUCTS DEMAND
Global demand for industrial rubber products is estimated to rise to 4.3%
annually through 2013 to $97.8 billion. Market advances in developing areas
will further increase due to healthy economic growth, rising personal income

35
levels, ongoing industrialization efforts and also due to growth in
manufacturing output and fixed investment expenditures. The industrial
equipment market, which includes industrial machinery and equipment, off-
road vehicles, will continue to hold the largest share of aggregate demand in
2013.
ADVANTAGES OF INDIAN RUBBER INDUSTRY
An extensive plantation sector.
 Indigenous availability of the basic raw materials, like natural rubber.
 Synthetic rubber, reclaim rubber, carbon black, rubber chemicals, fatty
acids, rayon and nylon yarn are easily available to make various rubber-
based products. There is a large domestic market.
 There is easy availability of cheap labor.
 On-going economic reforms.
 Improved living standards of the masses.
SECTORS COVERED BY INDIAN RUBBER INDUSTRY
Civil, Aviation, Aeronautics, Railways and agriculture transport, Textile
engineering industries, Pharmaceuticals, mines, steel plants etc.
IMPORTANT CHARACTERISTICS OF THE INDIAN RUBBER
INDUSTRY
The following are the special characteristics of the rubber industry in the
country, which make India a little different from many of the other natural
rubber producing countries: India is a major producer and consumer of
natural rubber.
 The rubber products manufacturing industry in India had been mostly
inward oriented, catering to the domestic market.
 In recent years India has entered the global market exporting both raw
natural rubber as well as rubber products.

36
  With its large population base, India is emerging as a large market for
rubber products and with the opening up of the economy, import of
rubber products has also been increasing in recent years.
 The rubber product mix in India is based mostly on dry forms of
rubber, dictated by the requirements of the domestic market.
 The natural rubber / synthetic rubber consumption ratio in the country
is presently 75:25.
 While the Indian tyre companies have been performing well,
multinational tyre manufacturers are establishing production facilities
in India. Manufacture of non-tyre products particularly high-value
technical goods needs further investments
MARKET DEMAND AND SUPPLY
The global industrial products market is expected to progress at a satisfactory
pace during the following decade, majorly owing to growing demand of
rubber products from automotive OEM manufacturers, construction industry
and growing application areas of industrial rubber in commercial,
construction and infrastructure sectors. However, fluctuations in prices of raw
material used in manufacturing of industrial rubber products may have a
restraining effect on the overall market growth.
The demand for mechanical rubber goods products is anticipated to be the
highest through the forecast period. Heavy deployments of mechanical goods
in manufacturing industry and automotives are the major contributor to the
dominance of mechanical rubber products segment. In terms of application
areas, rising demand for automotives, and gradual expansion of automotive
manufacturers in emerging nations of Middle East and Africa and Asia
Pacific will contribute to dominance of automotives as the largest application
area for industrial rubber products. The demand for these products across
both OEMs and aftermarket solutions is anticipated to remain strong through
the forecast period.
37
In terms of geographical distribution, the global industrial rubber products
market is anticipated to be dominated by Asia Pacific. Domicile of several
large rubber manufacturing zones and prevalence of several large consumer
companies scattered across the region, make Asia Pacific the largest market
for industrial rubber products on the global front. On the other hand, heavy
infrastructural development in Middle East and Africa especially in
commercial, and construction sectors makes the region to present lucrative
opportunities for industrial rubber products manufacturers in the region.
CHALLENGING PROSPECTS FOR RUBBER INDUSTRY

The market conditions seem to be challenging for the natural rubber (NR)
industry, as demand is caught up in the prevailing disarray in global trade and
investments, geopolitics and slowing economy.
As China accounts for a staggering 40 per cent of the global consumption of
rubber, its trade war with the US and slowing economic activities have
greater implications for the NR economy, said a report prepared by the
Association of Natural Rubber Producing Countries (ANRPC).
India, the second largest NR consuming country, has scaled down the
consumption outlook to 1.136 million tonnes from 1.250 mt anticipated until
a month ago. The downward revision goes in line with the poor performance
of the country’s automobile sector and the slowing economy.
The revised outlook is down 6.9 per cent from last year. The consumption in
India had seen 4.7 per cent growth in 2017 and 12.7 per cent growth in 2018.
What’s hitting output Based on the revised outlook, the world consumption is
anticipated at 13.699 mt, down 1.1 per cent from 2018.
The report cited several factors affecting global production, which include
unattractive prices that have dissuaded farmers from proper maintenance of
rubber holdings or harvesting of trees. Poor demand from China and other

38
major consuming regions also compelled the primary processors to reduce
the purchase of cup-lump and field latex from the farmers.
Fungal disease
The outbreak of a new leaf fungal disease (Pestalotiopsis leaf fall) in North
Sumatra and its alarming spread into a staggering 400,000 ha of rubber area
in Indonesia have affected the yield from the trees. According to the
estimates made by the Rubber Research Institutes in the respective countries,
the disease has affected 387,000 ha of rubber trees in Indonesia, 16,000 ha in
Thailand, 2,700 ha in Malaysia and 1,000 ha in Sri Lanka. Unfavourable
weather conditions such as heat waves, unusually higher temperature, excess
rains and typhoons were experienced across the major producing countries
during the year.
In Thailand, the largest producing country that accounts for around 35 per
cent of the global production, the output is anticipated to fall 1 per cent to
4.923 mt. The production is anticipated to increase 2 per cent to 1.160 mt in
Vietnam, 2.2 per cent to 836,000 tonnes in China and 6.4 per cent to 702,000
tonnes in India. India’s output as anticipated until a month ago was 750,000
tonnes, the ANRPC report said.
INTERNATIONAL COMMITMENTS AND COOPERATION
India is a member of World Trade Organisation (WTO) and a signatory to
several trade and economic cooperation agreements with other countries.
Present economic and trade policies for the sector are in consonance with the
commitments made under such Agreements.
India is also a member of intergovernmental commodity organisations, the
Association of Natural Rubber Producing Countries (ANRPC), International
Rubber Study Group (IRSG) and the International Rubber Research and
Development Board (IRRDB). ANRPC coordinate NR related issues, IRSG
generate statistics on production and consumption of NR & SR and IRRDB
coordinate research on NR and SR. These organizations generate statistics

39
and other relevant information on rubber sectors for member countries and
facilitate networking and research on rubber. The rubber sector in the country
benefits from India’s association with these organizations by participating
with specific agenda, focusing on technology sharing and coordinated
research. There is a need for Rubber Board and Associations in the private
sector to influence such intergovernmental organisations to pro-actively take
up issues of (a) Impact of climate change and mitigation measures, (b) Ways
of balancing the demand and supply and projections for the future, (c)
Promote the ways in which NR could be used in diverse set of industries, (d)
Challenges faced by the small growers and possible roadmap for sustainable
rubber production.
STRENGTHS AND CHALLENGES OF INDIAN RUBBER SECTOR
The major strengths of the sector include existence of a domestic rubber
products manufacturing industry capable of consuming the entire NR
produced in the country, vast areas in non-traditional regions suitable for
rubber cultivation, strong and systematic rubber research, well-knit extension
network and grower forums comprising Rubber Producers Societies (RPS),
Self Help Groups (SHGs), RPS companies and Cooperatives.
The sector also faces many challenges, some of which are sub-optimal agro-
climatic conditions and adverse impact of climate change, saturation of area
for new planting in traditional regions, agro-climatic, topographic, social,
cultural, institutional and infrastructure constraints in non-traditional regions,
global price volatility and low-price situations, and its repercussions on
production, lack of competitiveness, stagnation in the growth of Non-Tyre
Rubber manufacturing sector etc.
IMPORT- EXPORT POLICY
Due to deficit in the domestic market, low prices for some forms of rubber in
the international market, price fluctuations and quality/technical
considerations, NR import has seen a significant rise over the years.

40
Recognizing the sensitiveness of NR import in terms of its impact on
domestic price and raw material supply for end user industries, import policy
on NR should accord protection to rubber growers against unwarranted
imports adversely influencing domestic prices, and at the same time ensure
availability of the raw material for consumers at affordable prices.
Elimination of inversion in tariffs may be important for increasing global
competitiveness of Indian rubber products manufacturing sector but parity in
tariff with other comparable commodities, implications on production and
future availability of NR, livelihood concerns of small and marginal farmers
etc., will also have to be taken into consideration.
NR is not a traditional export oriented commodity and export may be
promoted only to adjust temporary demand-supply imbalances in the
domestic market, reflected in lower domestic prices. The brand “Indian
Natural Rubber” distinguishing Indian rubber in the international market with
its assured and consistent quality parameters may also be promoted.
KER DRIVERS OF RUBBER INDUSTRY

Some of the leading players in the India Industrial Rubber Market are

Lanxess, TSRC Corporation, The Goodyear Tire and Rubber Company,
Sinopec, Zeon Corporation, Nizhnekamskneftekhim, Kumho Petrochemical,
JSR Corporation, Versalis S.P.A., LG Chem etc
The key players involved in the global industrial rubber market are Sinopec
Corporation, LG Chem Ltd., The Goodyear Tire & Rubber Company, Toyo
Tire & Rubber Co., Ltd., Bridgestone Corporation, Lotte Chemical
Corporation, Arkema S.A., Braskem S.A., Celanese Corporation, and United
Rubber Industries India private Limited. Among these Sinopec Corporation,
LG Chem Ltd., The Goodyear Tire & Rubber Company, Toyo Tire & Rubber
Co., Ltd., Bridgestone Corporation are the key players and are contributing
significantly in the industrial rubber market share. The market dominance of

41
these companies is characterized by their vast product portfolio of industrial
rubber products, and high investment in R&D activities for rubber, revenue,
capital expenditure, employee strength, and geographical presence of
companies.
In an instance, Bridgestone Corporation manufactures tires & rubber products
and chemical & industrial products. It provides tires, tire tubes, and tubeless
passenger & commercial tires for buses, trucks, cars, mining vehicles, and
motorcycles. It also offers automotive maintenance and repair services &
other tire-related products and sporting goods such as golf balls, golf clubs,
bicycles, and other bicycle goods, as well as finance & other services.
REVAMPING INSTITUTIONAL FRAMEWORK
With a view to streamline the objectives envisaged in the Rubber Policy and
also to promote “Ease of Doing Business”, the functioning of the Rubber
Board would be aligned with the policy requirements. It is desirable that the
role of the Government is more of facilitation and promotion rather than
control and regulation, enabling relevant industries to grow and function in a
competitive environment based on market forces. Harmonization with other
relevant policies and laws would also be facilitated to address the concerns in
the rubber sector on issues such as security of land and assets owned by
rubber plantation companies, restrictions on felling rubber trees, transit rules,
etc.
LIVELIHOOD ISSUES OF SMALL AND MARGINAL GROWERS
The price volatility in rubber crop directly impacts livelihood of lakhs of
small and marginal growers involved in the sector. Efforts would be made to
ensure the livelihood protection of rubber growers by way of insurance/price
support in consonance with the prevailing norms and policies.
INTEGRATING CLIMATE CHANGE CONCERNS
Climate Change with its three major dimensions of global warming,
increasing seasonal weather variability and higher incidence of

42
 extreme/unusual weather events will have impact on rubber plantations in the
future. Rubber Research Institute of India (RRII) has reported that if the
present warming trend continues, NR productivity in Kerala could be reduced
by 4% to 7% and that in North East could go up by as much as 11% in the
next decade. The change in climate also has its effects on incidence of
diseases in rubber plantations. Focused research on Climate Change on
assessing climate risk vulnerability and developing climate resilient
technologies for adaptation and mitigation protocols would be taken up to
address the challenges.
KEY BENEFITS FOR STAKEHOLDERS
 Porter’s five forces analysis helps to analyze the potential of buyers &
suppliers and the competitive scenario of the industry for strategy
building.
 It outlines the current Industrial rubber market trends and future
scenario of the Industrial rubber market size from 2019 to 2026 to
understand the prevailing opportunities and potential investment
pockets.
 Major countries in the region have been mapped according to their
individual revenue contribution in the industrial rubber market analysis
at the regional and country-level market.
 The key drivers, restraints, and industrial rubber market opportunities
and their detailed impact analyses are elucidated in the study.
 The profiles of key players along with their key strategic developments
in the industrial rubber market growth are enlisted in the report.
OPERATIONAL INTERVENTIONS
The operational interventions would be based on the basic strategy to ensure at
least 75% of NR supply from domestic sources. This is important in view of the
rapidly increasing domestic consumption in major NR exporting countries and
growing dominance of some countries over production of NR globally.

43
Area expansion
Plantation of Rubber in traditional rubber growing regions comprising Kerala
and Tamil Nadu has reached near saturation. However, in the non-traditional
rubber growing regions, especially in the North Eastern States there is ample
scope for increase in area under rubber cultivation. As per the present estimates,
more than 500,000 ha. of area is available for plantation in non-traditional areas.
However, food security, forest and biodiversity conservation, edaphic & climate
conditions and other socio-economic factors will have to be given due
consideration for identifying suitable areas for rubber cultivation.
Extension services coupled with financial assistance is vital in motivating
growers to take up rubber cultivation. Adequate planting subsidy would be
given for incentivizing rubber plantation. Priority would be given to marginal
and small growers belonging to the resource poor communities.
Use of modern technology in planning and implementation in areas such as
assessment of potentially suitable areas for cultivation, advisories to rubber
growers and provision of extension services, etc. would be promoted.
Monitoring and outcome assessment would be regularly carried out using
Information & Communication Technology (ICT) enabled tools.
Another very important aspect is the institutional makeover, including
infrastructure support of the Rubber Board in the non-traditional regions, to
evolve an integrated approach towards development of rubber along with
promotion of other farm livelihood and rubber integrated agro-forestry systems.
Rubber based integrated farming systems would be developed taking into
consideration location-specific factors. Such trials have been taken up in major
rubber producing countries including Thailand and Malaysia, though adoption
rate is not considerable. Efforts would be made for better networking and
collaborations between the various line departments of the State and the Central
government to make rubber plantations successful in the non-traditional areas.
Replanting of senile rubber areas

44
The share of rubber plantations in the highest age group of above 20 years is
around 20% in the country based on historical planting trends, extending to
around 1,60,000 ha. Out of this, around 30,000 ha needs to be replanted
immediately to maintain age composition due to delay in replanting. The
remaining rubber plantations will have to be replanted during the next decade.
Apart from age of the trees, realised yield, tapping intensity followed and prices
of rubber and rubber wood influence replanting.
The focus in traditional regions would therefore be on systematic replanting of
senile plantations with high yielding and disease resistant varieties. The extent
of replanting would be increased in non-traditional regions in future. The annual
replanting would be more than10,000 ha in a long term perspective. In order to
promote plantation and replantation, the pattern of assistance provided by the
existing schemes would be reviewed from time to time.
Productivity enhancement
Productivity of rubber plantations in India is one of the highest globally.
However, growing market uncertainties and high labour costs have a direct
correlation with productivity of Rubber plantations with people resorting to
abandoning mature productive rubber areas. Formulation and adoption of
appropriate agronomic practices and concerted extension strategies are required
to be resorted to enhance productivity of rubber plantations.
One of the key factors determining productivity is quality of planting materials.
Capacity of existing departmental nurseries under Rubber Board would be fully
utilised for propagation of genetically superior and quality planting materials
and budwood of clones developed by RRII and supplied to growers. RPS and
SHGs may be provided financial and technical assistance for setting up
nurseries. Certification of private nurseries for propagation of high yielding
cultivars should be promoted.
Tackling labour shortage

45
The emergent labour shortage, characterized by the paucity of skilled rubber
tappers in both the smallholding as well as the organised plantation sectors is
one of the issues of immediate concern in raising productivity in rubber
plantations. This shortage is being temporarily met by migrant tappers in the
traditional areas. However, this will not be a complete solution in the long run
in view of the area expansion in non-traditional regions.
Cluster formation of tappers can achieve the twin objectives of providing
regular employment to tappers and availability of skilled tappers to growers.
Setting up of Tappers Banks as SHGs attached to RPS would be formalized and
continued. Tapping by small and marginal growers who do not have any other
engagement would be promoted as this can in turn enhance the viability of
rubber cultivation, more so in the non-traditional areas. Unlike the
dominant presence of women in the production and processing activities in the
tea, coffee and cardamom plantations, active participation of women in the
rubber smallholdings has been negligible. Efforts towards gender
mainstreaming are likely to help in solving the problem of labour shortage to a
large extent.
Welfare of labourers in rubber plantation and processing sectors, especially
those in the unorganised sector, will be ensured through adequate measures.
Rubber Processing
Ribbed Smoked Sheets (RSS) has been the strength of Indian NR sector and is
largely preferred by rubber growers due to the relatively high farm gate price it
fetches. However, the quality of sheet rubber, processed by around a million
small and marginal farmers is often inconsistent.
Global composition of processed forms of NR is dominated by block rubber on
account of its consistency in properties and low cost of production. In the Indian
context, in view of the labour shortage in traditional rubber growing regions
leading to escalation in production cost of sheet rubber and block rubber being
preferred by the consumers/manufacturers leading to 80% of import being block

46
rubber at present, there is a need for a shift in approaching rubber processing
from predominately sheet rubber and promoting block rubber in the country.
However, in view of the existing huge processing infrastructure of sheet rubber
with smallholders at farm level comprising rubber rollers and smokehouses
which has been established over decades for processing sheet rubber, this
transition/shiftin processing should be gradual and systematic.
The existing practice of visual grading of rubber sheets would be replaced with
more scientific and automated systems of grading. This will enable the rubber
growers to get the maximum price by way of avoiding the discrepancies in
terms of ‘downgrading’ of rubber sheets in the present visual grading system.
Further, in order to ensure quality and standardisation of sheets, Group
Processing Centres (GPC)/Community processing centres would be promoted
with facilities for processing latex, effluent treatment, biogas, etc.
Latex/sheet/scrap collection through RPS/SHGs would be supported technically
and financially. This will facilitate fetching of better price by avoiding
intermediaries. Proper awareness among growers and skill development for
processing is also the need of the hour. Processing block rubber from latex
coagulum would also be promoted simultaneously.
Participatory Extension strategy
Extension Action Plan would be formulated to update the knowledge of the
rubber growers in matters relating to planting, harvesting, processing and
marketing with special reference to cost reduction and increase in net farm
income. Participatory extension with focus on group approach has proved to be
an ideal channel of extension in rubber sector in the country and Rubber Board
has been instrumental in promoting voluntary forums of smallholders of rubber
viz., Rubber Producers Societies (RPS) at village level, private limited
companies and Self Help Groups (SHGs). These grower forums would be
revived and actively involved for implementation of the action plan and Farmer
Producer Companies (FPCs) should be promoted.

47
Generally, extension services are focused towards relatively more enterprising
growers across crops. Special strategies would be devised to reach the
unreached so that there can be a marked improvement in adoption of Good
Agricultural Practices (GAPs). Extension strategies in traditional and non-
traditional regions would be different and need to account for the levels of
literacy, socio-economic context, experience in rubber cultivation, possibilities
of digitised/ modern communication tools etc. In traditional regions, advisory
services would be mainly using Information and Communication Technologies
(ICT) and online services. Personal advisory services would be continued with
more presence of extension staff in non-traditional regions. Use of digital
technology, remote sensing and pest and disease advisory services by using ICT
would get more attention. Similarly, initiatives on providing market prices,
market intelligence and movement towards an e-auction system would be the
priorities.
Market Interventions
Rubber Board has promoted formation of cooperative rubber marketing
societies and they have been active in rubber processing and marketing since
1980s. The share of cooperatives and RPS sector together in rubber trading is
around 12% at present. Efforts would be made to increase the share of grower
forums in rubber trading.
Integration among grower forums involved in rubber processing and rubber
trading would be promoted by involving major rubber growing states /by
formation of trading companies for integrating the efforts of cooperatives, RPS,
RPS companies etc. on PPP model with a view to manage a substantial portion
of rubber processed and traded.
The possibility of extending exclusive financial assistance schemes for grower
forums for processing and trading in rubber would be explored in consultation
with NABARD.

48
Futures trading is a competitive tool of marketing and regulated futures trading
can contribute to price discovery and facilitate hedging to reduce risk.NR is
traded in auction only in Central Rubber Market of Thailand and by Colombo
Rubber Traders Association and the traded volume is minimal. However, the
auction prices have seen to have indicative influence in both markets. Hence,
introducing auction for rubber trading in the country would be attempted for fair
price discovery.
Price Safety mechanism in Rubber Sector
Sustainability of Rubber development, especially with grower having
smallholding predominantly, would face a perilous situation, if market
uncertainties as caused by drastic price fall persist for long. In perennial crops
like NR, phases of low prices and volatility in prices have serious implications
as a planting decision cannot be reversed in the short run. Further, the very
small size of holding in traditional regions and majority of resource poor
farmers in non-traditional regions intensify the need for safety nets for growers.
Efforts would be made to address these issues by suitable programmes.
Rubber consumption and Export of Rubber Products
Rubber consumption is the direct indicator of rubber based industrialisation.
Though India is the second largest consumer of NR in the world, per capita
consumption of rubber as a whole is just around 1.2 kg as compared to 6.5 kg in
China and the global average rubber consumption of 3.6 kg. End product range
of rubber covers more than 50,000 items, which are used far and wide in various
industries like transport, health, households, sports, entertainment etc.
Consumption of rubber shall be promoted for the overall development of the
rubber industry value chain.
Demand for tyres originates from the vehicle/automobile manufacturers for
fitment on new vehicles (OEM supplies), vehicle population which is already on
the road (replacement or aftermarket) as well as export. In some categories like
passenger cars, motorcycle tyres, etc. the share of OEMs is more than 50% of

49
total supplies. The future potential can be gauged from the present low
automobile penetration in India. Growth in production and fitment of tyres is
directly linked to the growth in GDP, particularly growth in infrastructure (for
commercial tyres) and income levels (for passenger tyres). Tyre sector is poised
to record notable growth in near future contributed by increase in GDP and
export prospects.
General rubber goods sector is dominated by Micro Small and Medium
Enterprises (MSME). However, the versatility of these products, their potential
in terms of huge domestic and external markets and relatively high employment
potential are to be considered in according high policy priorities to the sector.
General rubber goods sector also requires special attention with regard to
research and development activities, technology upgradation and transfer,
machinery import, export promotion, branding, quality enhancement, skill
development etc.
Promotional activities in rubber product manufacturing are mainly undertaken
by Ministry of MSME, Department for Promotion of Industry and Internal
Trade (DPIIT) and Industries Departments of state governments. There is no
designated national level agency to assist rubber products manufacturing sector.
A Rubber Industry Development Plan may be formulated in consultation with
other relevant Ministries/Departments and Rubber Board. Initiatives of grower
forums in manufacturing value added rubber products will be supported.
Rubber Parks are areas publicly procured, zoned and planned for the purpose of
rubber based industrial development wherein infrastructure and common
facilities are provided and single windows for clearances are established.
Development of Rubber Parks as processing hubs would be promoted in the
private sector or under PPP mode.
Several studies have highlighted significant advantages of rubberised roads over
normal roads and it is inferred that though there is a marginal increase in the
initial cost, periodic maintenance of these roads can be reduced by 35%

50
compared to that of the bituminous roads. NR latex and crumb powder made
from end–of-life tyres can be used for modification of asphalt for road
rubberisation. Promotion of Road Rubberisation would have twin advantages of
boosting rubber consumption and infrastructure durability in the long run.
An independent Rubber Products Export Promotion Council could be
considered to be constituted in order to address the export related issues of the
Rubber Products Sector (both tyres and General rubber goods) and also to
specifically handhold the manufacturers belonging to MSME sector which is
highly essential in the present scenario. Further, export oriented clusters would
be identified and specific strategies would be framed for giving the focussed
boost in exports.
Commercial Utilisation of Rubber Wood
Increasing demand for timber and timber products, declining supply of timber
from conventional sources and growing concern for environmental conservation
etc. has propelled the search for alternative sources of timber. In this context,
rubber wood can emerge as a potential alternative because of its distinct
advantages of being a sustainable and renewable source and its amenability to
versatile industrial applications. Specific action plan for promotion of
commercial utilisation of Rubber wood as an alternative source of timber would
be prepared with due importance for small dimension technology. However,
harmonisation with relevant legal provisions under Forest Acts and Rules has to
be done to prevent legal hitches in harvesting, transit and marketing of rubber
wood.

51
 CHAPTER III
INDUSTRY ANALYSIS

52
PESTLE Analysis of India
In business Pestle analysis role is very important. Originally designed as a
business environmental scan, the PESTLE analysis of the external macro
environment in which a business operator. These are factors which are beyond
the control or influence of a business, however are important to be aware of
when doing product development, business or strategy planning.
PESTLE means:
P- Political
E-Economical
S-Social
T-Technological
L-Legal
E-Environmental
The PESTLE subject should be a clear definition of the market being addressed;
these are followings:
 A company looking at its market
 A product looking at its market
 A brand in relation to its market
 A local business unit or function in a business
 A strategic option , such as entering a new market
 A potential acquisition
 A Potential partnership

53
  An investment opportunity
PESTLE FACTORS AND IMPACT
These refer to government policy such as the degree of intervention in the
economy.

POLITICAL
These refer to government policy such as the degree of intervention in the
economy. What goods and services does a government want to provide? To
what extent does it believe in subsidising firms? What are its priorities in terms
of business support? Political decisions can impact on many vital areas for
business such as the education of the workforce, the health of the nation and the
quality of the infrastructure of the economy such as the road and rail system.
India is the biggest democracy in the world. The government type is federal
republic. Based on English common law, judicial review of legislative acts,
accepts compulsory ICJ jurisdiction with reservations, separate personal law
codes apply to Muslims, Christians and Hindus. The political situation in the
India is more or less stable. Most of its democratic history, the federal
Government of india has been led by the (INC) Indian National Congress. State
politics dominated by several national parties including the INC. the Bharatiya
Janatha Party, the Communist Party of India (CPI), and various regional parties.
In the 2009 Indian elections, the INC won the biggest number of Lok Sabha
seats and formed a government with a alliance called the United Progressive
Alliance (UPA), supported by various left-leaning parties and members opposed
to the BJP. Overall India currently has a coalition led government and both
major political parties the UPA and BJP, which ever comes in power.

54
These are the major factors those effect on political environment

Taxation Policy General

Initiatives

Privatisation Government
Stability

Deregulation International
Stability

International trade
Regulations

Economical
It includes interest rates, taxation changes, economic growth, inflation and
exchange rates. As you will see throughout the “Foundations of Economics”
book economic change can have a major impact on a firm’s behaviour, for
example:
 Higher interest rates may deter investment because it costs more to
borrow.
 A strong currency may make exporting more difficult because it may
raise the price in terms of foreign currency.

55
  Inflation may provoke higher wage demands from employees and raise
costs.
 Higher national income growth may boost demand for a firms products.
As a part of economic reforms the Government of India announved a new
industrial policy in July 1991.
The broad features of this policy as follows:
 The Government reduced the number of industries under compulsory
licensing to six.
 Disinvestment was carried out in case of many public sector industrial
enterprises.
 Policy towards foreign capital was liberalized. The share of foreign
equity participation was increased and in many activities 100 percent
Foreign Direct Investment (FDI) was permitted.
 Automatic permission was now granted for technology agreements with
foreign companies.
 Foreign Investment Promotion Board (FIFB) was set up to promote and
channelise foreign investment in India.
In Indian economy is strong. We see in recession our economy is less affect
from recession compression to western countries. These following factors:

56
 Interest rates Financial markets

Money Supply Inflation

Credit Control Competitors

pricing

Globalization

SOCIAL
Changes in social trends can impact on the demand for a firm’s products and the
availability and willingness of individuals to work. In the India, for example,
the population has been ageing. This has increased the costs for firms who are
committed to pension payments for their employees because their staff are
living longer. It also means some firms have started to recruit older employees
to tap into this growing labour pool.
It describes the characteristics of the society in which the organization exists.
Literacy rate, customs, values, beliefs lifestyle demographic features and
mobility of population are part to the social environment. It is important for
managers to notice the direction in which the society is moving and formulate
progressive policies according to the changing social scenario.
India is the second most populous nation in the world with an approximate
population of over billion people. This population is divided in the following
age structure 0-14 years -31.8%, 15-64 years – 63.1% and 65 years and above –
5.1%.
TECHNOLOGICAL

57
New technologies create new products and new processes. MP3 players,
computer games, online gambling and high definition TVs are all new markets
created by technological advances. Online shopping, bar coding and computer
aided design are all improvements to the way we do business as a result of
better technology. Technology can reduce costs, improve quality and lead to
innovation. These developments can benefit consumers as well as the
organisaions providing the products. Today in India 3G technology starts. A
heavy infrastructure for bandwidth. BSNL and Reliance have more covered
city by optical fibre. India has many technological projects. Good Service
provider in IT sector ex TCS, Infosys and many more Today India is a big
market sector here 5-6 player operations and new operators launch their services
soon.
 IT Development
 New Materials and processes
 Government technology funding
 Speed of technology transfer
 Software upgrades.
LEGAL
These are related to the legal environment in which firms operate. In recent
years in the India. There have been many significant legal changes that have
affected firms’ behaviour. The introduction of discrimination and disability
discrimination legislation, an increase in the minimum wage and greater
requirements for firms to recycle are examples of relatively recent laws that
affect organisations actions. Legal changes can affect a firm’s costs and
demand.
This consists of legislation that is passed by the parliament and state
legislatures. Examples of such legislation specifically aimed at business
operations include the Trade mark Act 1969, Essential Commodities Act 1955,

58
standards of Weights and Measures Act 1969 and Consumer Protection Act
196.
In India take many type of permission to the state govt or central govt.
In India many type of act like license permission, copy right permission and
many types of other permission.
 Employment law
 Trade and product restrictions
 Health and safety regulations
 EU and International laws
 Monopolies commission.
ENVIRONMENTAL
Environmental factors include the weather and climate change. Changes in
temperature can impact on many industries including faming, tourism and
insurance.

59
 CHAPTER IV
DISCUSSION

OBJECTIVE ASSESSMENT

India is the fourth largest producer of natural rubber in the world. Kerala is the
largest producer of natural rubber in India. Kerala accounts for 78% of the area
and 90% of total rubber produced in the country. The marketing system
commonly adopted by the small holders is that they sell sheet rubber and latex
through village level dealers or merchants. These village level dealers include
co-operative societies and rubber producer s societies. The rubber producer s
societies provide different services such as collection of latex, sheets and scrap
from the members and selling them at remunerative prices to the processors.
The Rubber Board supplies the necessary equipment such as platform balance
to weigh latex, sheet and scrap. These services are crucial as they constitute the

60
income base of small rubber growers. The estates market their produce more
efficiently. They have an improved marketing system which assures better price
realization. Big plantation companies have centralized marketing set up
enabling them to make direct sales to consumers. By adopting this way they are
avoiding margins taken by intermediaries. Such companies generally follow a
system of direct sales, tender or auction. The leading export markets of Indian
natural rubber are China, Malaysia, Indonesia, Turkey, Srilanka, Spain and
Nepal. China was the leading export market of Indian natural rubber till 2007-
08, but China was put to third spot with a fall in share of 10.6% share in 2011-
12 as compared to 28.30% in 2010-11. Srilanka is the leading export of Indian
natural rubber in2011-12 with a share of 24.4% and Malaysia continued to
remain the second largest export destination for India with a share of 15.7%.

SPECIFIC LEARNING OUTCOME

Observe the safety rules in the shop floor and carry out the firefighting
equipment during emergencies.
Identify the rubber plantation to understand the process of Sheet making,
Testing of Field Latex for Dry rubber content and total solids.
Explain the basic principal of centrifuging and centrifuging, Creaming of
Field Latex by addition of creaming agents and DRC determination of
Cream latex.
Apply method of preparation of Sheet Rubber from various collection of
Latex, Dilution, Coagulation, Sheeting and Drying, Grading of Sheet
Rubber.
Explain the process testing of TSR for the specification parameters like
Dirt content, volatile matter, ash, nitrogen, plasticity (P0), Plasticity
Retention Index (PRI).
Care and maintenance of tools equipments and machines observing safety
precautions.

61
Identify, operate, troubleshoot & maintain of different equipment used in
rubber industry.
Identify the manufactures of Synthetic rubbers/special rubber in India and
overseas.
Plan and execute mixing techniques including sequence of mixing and
observe he changes and find out the plasticity of this samples and prepare
of rubber filler mix.
Identify collect different types of reclaimed rubber and method to reclaim
waste rubber products by powdering and heating.
Familiar with Mix full rubber compounding Ingredients. Determine the
cure time of different rubber compounds containing different cure
systems on a Rheometer and cure behaviour of the compound from the
Rheograph.
Prepare of Blends of rubbers like NR/SBR, NR/PB etc.
Identify, operate, troubleshoot & maintain of different equipment used in
rubber industry.
Prepare coagulants. Dipping the former in the latex compound for the
required thickness. Drying.
Prepare various dipped product by using Typical Compound formulation
for important dipped goods.
Prepare moulds using plaster of Paris. Compounding and molding
process, finishing.
Prepare Latex foam compounding, frothing on the Hobart Mixer, transfer
into the heated moulds, vulcanization, Washing and drying.
Prepare maintenance protocol for the product manufacturing machines
observing safety aspect.
Prepare Tyre tread compounds using the blends.

62
Mix proper compounds and prepare the products viz. Micro cellular
rubber, Mat, extruded beading, handmade hoses, paper weight, washers
and Injection bottle caps, Gaskets and seals.
Prepare various gloves and test its properties and quality.
Carry out testing for Abrasion resistance, Hardness, Swelling index,
Compression resistance. Heat build up and flexing.

63
 CHAPTER V
FINDINGS

FINDINGS

 The financial position of the company is good.

 Company maintains good employee relationship.
 K.P rubbers has an efficient management system.
 The company promotes team activities.
 The co ordination between various department is excellent.
 Most of the employees frequently thinks their jobs as challenging and
exciting.

64
  Most of the employees are frequently feel proud to work in K.P
RUBBERS.
OBSERVATION

An organization that wants to increase engagement levels will attempt to

foster the factors which have a positive effect of engagement through every
business activity they perform. Organizations, as well as practitioner
researchers, are attempting to develop a metric in order to input employee
engagement as a figure on the balance sheet, however the problem arises as
labor in many instances is seen as a cost rather than an asset to the organization.
 Supervisors and Managers should meet at regular intervals with the
employees to discuss about the improvement in the company, at work
place and in their living of standard, family problems etc.
 Gap between managers and the employees should be reduced by raising
the level of engagement. For example: by conducting extra co-curricular
activities like social and cultural programs.
 Very least employees feel that their ideas or work can’t be recognized/
appreciated. So encourage them by making them feel that their ideas as
well as they are important for the company.
 Create good and healthy environment at work place and increase the
environment.
 Some of the employees find their job boring and monotonous. Encourage
them to take part in extra co curricular activities.

65
BIBLIOGRAPHY

1. Rubber Board of India, Indian Rubber Statistics, Vol.31, 2009

2. S.Mohankumar and Tharian George.K. Indian Rubber Products
Manufacturing Industry- Evolutionary Dynamics and Structural Dimensions,
Rubber Research Institute of India, 1999.
3. http://www.ijcrar.com/vol-2-8/Joe%20Gigy%20George%20and %20H.M.
Chandrashekar.pdf
4. http://www.rubberboard.org.in/menuview
66
5. https://commerce.gov.in/writereaddata/uploadedfile/MOC_63687112349037
3426_National%20Rubber%20Policy%202019.pdf

67