Date:06/12/2005 URL: http://www.thehindubusinessline.com/2005/12/06/stories/2005120601531700.htm

Back `Large investments needed to make rubber park project click'

Our Bureau

The plan was to organise and relocate the existing rubber units in the State inside the park for development as an industrial cluster.

Kolkata , Dec. 5

THE Minister of Commerce and Industry of West Bengal, Mr Nirupam Sen, has urged entrepreneurs in the rubber goods sector to tap the emerging opportunities in the State following the setting up of the proposed rubber park, coming up soon at a 171-acre plot at Domjur.

The park is being set up by the All India Rubber Industries Association (AIRIA) in collaboration with the West Bengal Industrial Development Corporation, and a special purpose vehicle is being set up for the purpose.

Mr Sen said that land acquisition for the project is on.

The park has been sanctioned a Central grant of Rs 15.7 crore, to be spent under the industry upgradation scheme of the State Government.

The Minister said that the plan was to organise and relocate the existing rubber units in the state inside the park for development as an industrial cluster. The park would also have a full-fledged testing facility.

There are about 600 small-scale rubber units in the State, most of them in the unorganised sector, and, therefore, subject to unplanned growth, making various items like slippers, hoses, belts, etc. He said large investments are needed to make the park a successful venture.

Delivering the keynote address at the inaugural session, Mr R.P. Singhania, Vice-Chairman and Managing Director, JK Industries Ltd, said that globalisation was bound to throw up major challenges before the Indian rubber industry, which must use its low-cost advantage to develop competitiveness, and also go for brand-building in a big way.

New opportunities will call for enhanced thrust in the international markets, he added.

According to Mr Singhania, India is poised to emerge as a major servicing hub for the auto sector, with projected investments of around $3 billion by end-2006.

He urged the rubber industry (non-tyre sector) to put together major R&D efforts to creating new products for meeting the emerging challenges.

He, however, cautioned that the high prices of natural rubber coupled with rising crude oil prices would lead to higher production costs.

Commenting on China, which is expected to the fully dominate the world rubber industry by 2020, he said that this would push up that country's requirement of natural rubber in a massive manner, adding a whole new dimension to rubber goods production.