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According to the tyre industry officials, Indian companies are investing in synthetic rubber. The tyre manufacturers also want them to invest and start producing Solutions Styrene Butadiene Rubber (SSBR) as its demand will soar in the coming years because of the fact that it is used in the production of high performance tyres.
Juan Ramon Salinas, Managing Director and Chief Executive Officer of the International Institute of Synthetic Rubber Producers said, driven by the strong tyre demand from the automobile sector, the demand for synthetic rubber (SR) in India was 5,80,000 tonnes/year by the end of 2016. While the domestic SR production was only 4, 80,000 t/y. “India would likely become self-sufficient in 2018, by reaching 6, 50,000 t/y. Juan was addressing the audience during the recently concluded World Rubber Summit 2017 held at Singapore.
The Reliance Group and Indian Synthetic Rubber Private Limited started a 1, 50,000 t/y & 120,000 t/y ESBR plant in 2015 and 2014 respectively. The combined output from the two companies approximately covers 2, 70,000 t/y ESBR demand. As per Amardeep Singh, head of Indian Synthetic Rubber Pvt Ltd (ISRPL), “New investments in products are planned which will enhance SR product portfolio”. According to him, a strong rise in tyre demand from automobile makers is expected in near future.
But according to the market sources more investments are required in SR capacity as India is set to become one of the world’s largest automobile market in the future. According to officials, Indian oil companies have already started investing in downstream products to meet the feedstock requirement. They are adding more butadiene and styrene capacity.
