Miracle rubber
When PP Ahmedkutty invested in a unit to manufacture reclaimed rubber, he was just following his instinct. For he knew that a substitute for natural rubber would fetch a good price when rubber prices go up
By TNN |
KOCHI: When PP Ahmedkutty invested in a unit to manufacture reclaimed rubber, he was just following his instinct. For he knew that a substitute for natural rubber would fetch a good price when rubber prices go up. Mr Ahmedkutty was ready with the unit by the time prices started rising once again.
His units, Miracle Rubber and Miracle Elastomer India in Perinthalmanna in Malappuram district in the state, manufacture reclaimed rubber or recycled rubber from waste tyres and many other used rubber-based products. "With the ongoing rally in rubber prices, the product is moving well," he said.
The scope for substitution in car and truck tyre sector is only 5-10%. But in three-wheeler tyres, mobike and cycle tyres sector the scope for substitution is nearly 15-20%.
The percentage goes up to 80-100% in the case of products like door mats, battery containers, rubber tiles, beadings etc. "Reclaimed rubber can be used for any black rubber products," he said. He added that the rubber reclaimed from rejected products like gloves and condoms can be used in white rubber products also.
Meanwhile, Mr Ahmedkutty has started two more units in Coimbatore. The 250-tonne Miracle Polymers India and the Miracle Reclaimed Rubber Coimbatore. By the time the two units become operational, the Miracle Group will become the number one in the country as far as reclaimed rubber is concerned.
Production has started in Miracle Polymers, while the second unit is expected to start production by June 15. "The total production from the Miracle Group will touch 1,000 tonnes soon," he said.
Miracle's fortunes improved with the increase in demand for reclaimed rubber. Despite hiking the price by Rs 4 per kg the demand is increasing. Mr Ahmedkutty is now planning to set up his next unit in Hyderabad or Vijayawada.
Plans are also on to start a unit in a West Asian country, most probably in Dubai. The turnover, which is around Rs 8-10 crore in the current year, is expected to grow to Rs 20 crore by next year.
He points out that the government should allow import of raw materials for the industry. At present, import of used tyres attract a 30% duty. "Our raw material is cut rubber, which also attracts the same level of import duty," he said. He said the government should reduce the duty to help out the industry.
His units, Miracle Rubber and Miracle Elastomer India in Perinthalmanna in Malappuram district in the state, manufacture reclaimed rubber or recycled rubber from waste tyres and many other used rubber-based products. "With the ongoing rally in rubber prices, the product is moving well," he said.
The scope for substitution in car and truck tyre sector is only 5-10%. But in three-wheeler tyres, mobike and cycle tyres sector the scope for substitution is nearly 15-20%.
The percentage goes up to 80-100% in the case of products like door mats, battery containers, rubber tiles, beadings etc. "Reclaimed rubber can be used for any black rubber products," he said. He added that the rubber reclaimed from rejected products like gloves and condoms can be used in white rubber products also.
Meanwhile, Mr Ahmedkutty has started two more units in Coimbatore. The 250-tonne Miracle Polymers India and the Miracle Reclaimed Rubber Coimbatore. By the time the two units become operational, the Miracle Group will become the number one in the country as far as reclaimed rubber is concerned.
Production has started in Miracle Polymers, while the second unit is expected to start production by June 15. "The total production from the Miracle Group will touch 1,000 tonnes soon," he said.
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Miracle's fortunes improved with the increase in demand for reclaimed rubber. Despite hiking the price by Rs 4 per kg the demand is increasing. Mr Ahmedkutty is now planning to set up his next unit in Hyderabad or Vijayawada.
Plans are also on to start a unit in a West Asian country, most probably in Dubai. The turnover, which is around Rs 8-10 crore in the current year, is expected to grow to Rs 20 crore by next year.
He points out that the government should allow import of raw materials for the industry. At present, import of used tyres attract a 30% duty. "Our raw material is cut rubber, which also attracts the same level of import duty," he said. He said the government should reduce the duty to help out the industry.
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