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Synthetic Rubber Business Setup - An Overview
Do you have a strong desire to start your synthetic rubber business? If yes, Fastzeal is here to guide you through the process.
A Synthetic Rubber Business Setup holds vast potential in today's market, as synthetic rubber is increasingly being used as a superior alternative to natural rubber due to its excellent properties. It is durable, abrasion-resistant, fireproof, flexible, and possesses high mechanical strength. Moreover, synthetic rubber is environmentally friendly and less toxic, making it a preferred choice across multiple industries.
In India, the demand for synthetic rubber stood at 671 thousand tonnes in FY2021 and is projected to grow to 1055 thousand tonnes by FY2030. This growth is fueled by rising demand in the automotive industry, expansion in the construction sector, and an increasing need for durable consumer goods.
Setting up a synthetic rubber business in this expanding market can ensure significant growth and long-term success. Contact our experts at Fastzeal for professional guidance on establishing your synthetic rubber factory.
What is a Synthetic Rubber Business?
Synthetic rubber is an artificially produced elastomer, a type of polymer synthesized from petroleum byproducts. Elastomers possess remarkable mechanical properties, enabling them to undergo significant elastic deformation under stress and return to their original shape without damage.
Due to its enhanced durability and versatility, synthetic rubber is often chosen over natural rubber for specific applications, particularly when the cost difference is negligible. This makes investing in a synthetic rubber business a smart decision.
Types of
Synthetic Rubber Business Setup
Synthetic
rubber is manufactured using various chemicals, resulting in different types of
rubber with unique properties for specific applications. The most common types
of synthetic rubber include:
1. Acrylic Rubber (ACM)
2. Butadiene Rubber (BR)
3. Butyl Rubber (IIR)
4. Chlorosulfonated Polyethylene (CSM)/ Hypalon
5. Ethylene Propylene Diene Monomer (EPDM)
6. Fluoroelastomers (FKM)/ Viton
7. Isoprene Rubber (IR)
8. Nitrile Rubber (NBR)
9. Perfluoroelastomer (FFKM)
10. Polychloroprene (CR)/ Neoprene
11. Polysulfide Rubber (PSR)
12. Silicone Rubber (SiR)
13. Styrene Butadiene Rubber (SBR)
Benefits
of Synthetic Rubber Business Setup in India
Some of
the significant benefits of setting up a synthetic rubber business in India
include:
1. Growing Demand: The demand for synthetic rubber is rising across various industries such as automotive, construction, electronics, footwear, and consumer goods. Establishing a synthetic rubber plant in India allows businesses to capitalize on this growing market.
2. Strategic Location: India’s geographical location is advantageous for exporting products to neighboring countries, ensuring seamless access to domestic and international markets.
3. Government Support: The Indian government supports industrial development through policies, incentives, tax benefits, and initiatives like "Make in India," which promotes domestic manufacturing, including synthetic rubber plants.
4. Cost Efficiency: India offers cost-effective labor, raw materials, and operational expenses, making it more affordable to establish a synthetic rubber plant compared to other countries.
5. Skilled Workforce: India has a highly skilled workforce, including engineers, chemists, and manufacturing experts, ensuring smooth operations of synthetic rubber factories.
6. Infrastructure Growth: India continues to invest in infrastructure development, improving transportation networks, ports, and logistics, thus optimizing supply chain management and reducing operational costs.
7. Sustainability: As industries focus on eco-friendly solutions, synthetic rubber plays a vital role in sustainable development and environmental conservation.
Manufacturing
Process of Synthetic Rubber Business
The
production of synthetic rubber involves several crucial steps:
1. Mixing of Hydrocarbons: Petroleum byproducts such as oil and coal are processed to obtain intermediate materials used in rubber production.
2. Monomer Production: Refining hydrocarbons yields naphtha, which is then mixed with natural gases to create monomers.
3. Polymerization: Monomers like styrene-butadiene rubber and nitrile rubber undergo chemical reactions to form polymers.
4. Rubber Compound Production: The polymerized materials are processed into rubber compounds and refined to achieve the desired properties.
5. Vulcanization: The final step involves adding sulfur or other accelerators to improve the elasticity, durability, and resistance of the rubber compounds.
Documents
Required for Synthetic Rubber Manufacturing License
To obtain
a synthetic rubber manufacturing license in India, the following documents are
necessary:
1. Certificate of Incorporation
2. Photo ID Proof of Business Owners
3. PAN Card and Aadhaar Card of the Firm
4. Investment Details (Own Funds or Bank Loan)
5. IEC Code (for Export Activities)
6. Detailed Project Report
7. Trade License
8. Utility and Electricity Bills
9. Pollution NOC (No Objection Certificate)
10. Compliance Report for Pollution NOC
11. Satellite Imagery of Project Site
12. Effluent Treatment Certificate
13. Authorization Letter for Representative
Process
for Synthetic Rubber Business Setup
1. Application Filing: Submit Form D to the Rubber Board of India.
2. Providing Details: Fill in business details such as company name, address, and type of manufacturing activities.
3. Document Submission: Attach necessary documents like incorporation certificate, PAN, Aadhaar, IEC code, trade license, pollution NOC, and project details.
4. Fee Payment: Pay the applicable license fee to the Rubber Board.
5. License Issuance: Upon verification, the license is granted, allowing legal commencement of operations.
Rubber Board Guidelines for Synthetic Rubber Business Setup
Manufacturers must adhere to the standards and guidelines established by the Rubber Board of India. Compliance ensures smooth business operations and avoids legal complications. The Rubber Board was founded on April 18, 1947, following the enactment of the Rubber (Production and Marketing) Act.
In March 2019, the National Rubber Policy was introduced to tackle industry challenges and promote growth.
Penalties for Non-Compliance with the Rubber Board
Failure to comply with the Rubber Board’s regulations, including obtaining a license through fraudulent means, may result in penalties and license cancellation.
Cost and
Timeline for Synthetic Rubber Business Setup
License
Fees:
1. For anticipated rubber requirements up to 4 MT per year: 590rs (500rs + 18% GST)
2. For anticipated rubber requirements exceeding 4 MT per year: 1,180rs (1,000rs + 18% GST)
License
fees are payable via demand draft, money order, or online transfer to the
Deputy Director, Rubber Board, Kottayam, Kerala. The license requires periodic
renewal for uninterrupted operations.
Timeline: Setting up a synthetic rubber
plant in India can take 8 months to 2 years, depending on regulatory approvals,
project scale, equipment installation, and workforce recruitment.
Why
Choose Fastzeal for Synthetic Rubber Business Setup?
1. Over 10 years of experience in consulting for synthetic rubber business setup.
2. 99% success rate in securing synthetic rubber manufacturing licenses.
3. Assistance in obtaining environmental clearances.
4. Complete documentation support for factory setup.
5. End-to-end guidance for establishing synthetic rubber plants.
6. Smart cost management to maintain profitability.
7. 24/7 support for smooth business setup.
8. Liaison with authorities for regulatory approvals.
Frequently Asked Questions:
Synthetic rubber is a polymer designed to replicate the properties of natural rubber. It is created by polymerizing petroleum-based monomers such as butadiene and styrene. Unlike natural rubber, derived from the sap of rubber trees, synthetic rubber is manufactured on a large scale and offers greater consistency in quality and performance.
The demand for synthetic rubber in India is on the rise, fueled by the growing needs of industries like automobiles, tyres, and construction. With these sectors expanding, the Indian synthetic rubber market is projected to experience steady growth in the coming years.
Synthetic rubber is used in everyday products such as tyres, engine bearings, conveyor belts, clutches, and industrial goods, and its high-temperature resistance makes it suitable for firefighting equipment.
Synthetic rubber is often considered superior to natural rubber due to its consistent quality and properties. It offers greater resistance to heat, ozone, and chemicals, making it ideal for applications exposed to harsh conditions.
Additionally, synthetic rubber is more durable and has better abrasion resistance, making it well-suited for high-wear environments. Unlike natural rubber, which can have variations in quality, synthetic rubber is produced in a controlled environment, ensuring uniformity and reliability.
The raw materials for ammonia are nitrogen and hydrogen gas. Hydrogen is obtained by reacting natural gas with steam. On the other hand, nitrogen is extracted from the atmosphere through air separation.
India is one of the leading exporters of rubber products. Some of the top rubber products exported from India are automotive tyres and tubes, cabin mounts, rubber and canvas footwear, etc.
Rubber production has a substantial effect on boosting the economy of India. Farmers reap a healthy profit from rubber cultivation, too.
Some of the prominent industries in which synthetic rubber is used are construction, transportation, medical, and consumer products.
Styrene Butadiene Rubber (SBR) has become the most popular and widely used synthetic rubber. It has gained the attention of the masses due to its good abrasion, excellent ageing resistance, and amazing processability.
Julius Arthur Nieuwland was the inventor of the first synthetic rubber, Neoprene.
Some of the list of major advantages of synthetic rubber are as follows:
1. Durability: Synthetic rubber offers exceptional durability and resistance to wear and tear, making it ideal for high-stress applications such as tyres, hoses, and gaskets.
2. Chemical Resistance: It resists a wide range of chemicals, making it suitable for applications involving exposure to harsh substances.
3. Extreme Temperature Resistance: Synthetic rubber withstands both hot and cold temperatures, making it essential for applications that experience temperature fluctuations.
4. Elasticity: Its high elasticity makes it perfect for flexible components like seals and gaskets, where flexibility is crucial.
5. Versatility: Synthetic rubber can be customized to meet specific performance requirements, making it a versatile material for various industries.
6. Cost-Effectiveness: Often less expensive than natural rubber, synthetic rubber can be mass-produced, providing a cost-effective solution for many applications.
7. Availability: Unlike natural rubber, which depends on rubber trees, synthetic rubber is derived from petroleum-based monomers, ensuring a consistent and abundant supply.
