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Synthetic Rubber Business Setup

Are you passionate about your synthetic rubber business setup? Get Canjain support to rule the Indian synthetic rubber market worth US$ 2.02 Billion.

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Synthetic Rubber Business Setup- An Overview
Do you have a deep desire to proceed with your synthetic rubber business setup? If yes, you are at the right place. A Synthetic Rubber Business Setup offers immense potential in today’s market, as synthetic rubber is becoming a popular alternative to natural rubber due to its superior properties. It is long-lasting, abrasion-resistant, fireproof, flexible, and possesses high mechanical strength. Additionally, synthetic rubber is less toxic and environmentally friendly, making it an ideal choice for various industries. In India, the demand for synthetic rubber was 671 thousand tonnes in FY2021 and is expected to grow to 1055 thousand tonnes by FY2030. This rise is driven by increasing demand in the automotive sector, growth in the construction industry, and the rising need for durable consumer goods. Establishing a synthetic rubber business in this thriving market can lead to substantial growth and sustainable success. Talk to our consultants for synthetic rubber factory setup.
What is a Synthetic Rubber Business?
Synthetic rubber is an artificial elastomer, a type of polymer synthesized from petroleum byproducts. Elastomers are materials known for their remarkable mechanical properties, allowing them to undergo significant elastic deformation under stress and return to their original shape without permanent damage. Synthetic rubber is often preferred over natural rubber for specific applications, particularly when the price difference is minimal, owing to its durability and versatility. Therefore, choosing a synthetic rubber business setup is an ideal decision.
Types of Synthetic Rubber Business Setup

Synthetic rubber is produced using various chemicals, creating a range of rubber types with unique properties suited for specific applications. The most common types of synthetic rubber business setup include:

  • Acrylic Rubber (ACM)
  • Butadiene Rubber (BR)
  • Butyl Rubber (IIR)
  • Chlorosulfonated Polyethylene (CSM)/ Hypalon
  • Ethylene Propylene Diene Monomer (EPDM)
  • Fluoroelastomers (FKM)/ Viton
  • Isoprene Rubber (IR)
  • Nitrile Rubber (NBR)
  • Perfluoroelastomer (FFKM)
  • Polychloroprene (CR)/ Neoprene
  • Polysulfide Rubber (PSR)
  • Silicone Rubber (SiR)
  • Styrene Butadiene Rubber (SBR)
 

Benefits of Synthetic Rubber Business Setup in India

Some of the most common benefits of setting up a synthetic rubber business setup in India are as follows:

  • Growing Demand: With the growing demand for synthetic rubber from several industries such as automotive construction, electronics, footwear, and consumer goods. By establishing a synthetic rubber plant in India can meet this increasing demand and become the reliable supplier.
  • Strategic Location: India’s strategic geographical location makes it ideal for exporting products to neighbouring countries, facilitating access to both domestic and international markets.
  • Government Support: The Indian government has launched several policies and initiatives to promote manufacturing and industrial development. This includes incentives, tax benefits, and streamlined procedures for setting up industries in India. The very famous “Make in India” campaign focuses on encouraging domestic manufacturing such as synthetic rubber plant setup in India.
  • Cost Advantage: India offers cost-effective operational expenses, including labour and raw materials. As a result, setting up a synthetic rubber plant in India is more affordable compared to other countries, allowing for greater profitability and competitiveness. It is one of the significant benefits of synthetic rubber business setup.
  • Skilled Labor Force: India is well-equipped with a skilled and educated workforce, including experts in fields like engineering, chemistry, and manufacturing. This access to a talented labour force makes it easier to implement and operate a synthetic rubber plant setup effectively. It is one of the core benefits of a synthetic rubber business setup.
  • Infrastructure Development: India has been investing in infrastructure development, including transportation networks, ports, and logistics facilities. This facilitates efficient transportation of raw materials and finished products thus minimising the operational costs and improving supply chain management.
  • Sustainable Growth: As the world is going green, the synthetic rubber industry plays a very important role in sustainability and environmental considerations. Thus, synthetic rubber business setup has contributed to the country’s commitment to sustainable development and a greener environment.

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Manufacturing Process of Synthetic Rubber Business

The production of synthetic rubber involves several key steps:

  • Mixing of Hydrocarbons: Hydrocarbons like oil and coal are mixed and refined to create intermediate products used for producing plastics and gasoline.
  • Creating Monomers: The refined hydrocarbons yield naphtha, which is then blended with various natural gases to produce monomers. These monomers serve as the building blocks for polymers.
  • Creating Polymers: The monomers, such as styrene-butadiene rubber and nitrile rubber, are combined with chemical agents to form polymers through a chemical bonding process.
  • Producing Rubber Substances: The production plant processes these polymers into rubber compounds, which are further refined to create synthetic rubber.
  • Vulcanisation: In the final stage, the rubber compounds undergo vulcanisation. During this process, accelerators like sulfur are added to improve durability, elasticity, and resistance to wear.

Pre-Condition for Synthetic Rubber Manufacturing License

The list of pre-conditions required for the grant of a synthetic rubber manufacturing license is as follows:

  • Appropriate site selection for the business
  • The applicant must be suitable for the business
  • Ownership of technology and the necessary expertise
  • Availability and continuous supply of raw materials
  • Economic feasibility of the project

Documents Needed for Synthetic Rubber Manufacturing License

The list of documents required for a synthetic rubber manufacturing license in India is as follows-

  • Copy of the Certificate of Incorporation of the Company
  • Photo ID Proof of the Owner(s)
  • Self-attested Aadhaar Card and PAN Card of the Firm
  • Details of the Investment (Either by the Firm or through a Bank Loan)
  • IEC Code (Required for Exports)
  • Detailed Project Report
  • Trade License
  • Utility and Electricity Bills
  • Pollution NOC (No Objection Certificate)
  • Compliance Report for the Pollution NOC
  • Satellite Imagery of the Project Site
  • Effluent Treatment Certificate
  • Authorization Letter for the Authorized Representative

Process for Synthetic Rubber Business Setup

The process for synthetic rubber business setup in India is as follows:

  • Filing of an Application: The first step is to file an application in form D to the Rubber Board of India.
  • Filling Details: Next, fill in the required details in the said application form, such as name, address, and type of rubber manufacturing activities.
  • Submission of Documents: To obtain a synthetic rubber manufacturing license, documents including a company incorporation certificate, PAN Card, Aadhar card, IEC code, trade license, pollution NOC, project report details, etc.
  • License fee: After document submission along with documents, the applicant shall make the required government fees for the license as per the Rubber Board.
  • Granting of License: It is the stage when the concerned officer shall grant the synthetic rubber manufacturing license; thus, accordingly, the applicant can legally start a synthetic rubber business setup in India.
Rubber Board Guidelines for Synthetic Rubber Business Setup
All the manufacturers and processors of synthetic rubber-based products must follow the standards and guidelines laid down by the Rubber Board. The Rubber Board guidelines must be followed in order to avoid legal disputes in the synthetic rubber business setup. The Rubber Board has developed certain guidelines to empower synthetic rubber business owners in India. The Indian Rubber Board was established on April 18, 1947. It came into existence after the government passed the Rubber (Production and Marketing) Act. The Rubber Board came into light to focus mainly on the growth of the rubber industry by extending financial and regulatory support. In March 2019, the National Rubber Policy was introduced to address the internal as well as external challenges encountered by the Indian rubber industry.

List of Licenses for Synthetic Rubber Factory Setup in India

In addition to the manufacturing license, synthetic rubber factory setup in India requires the following list of licenses or approvals or registrations:
  • Consent NOC (categorized under Orange Category)
  • Environmental Clearance
  • MSME Registration
  • Fire NOC
  • Factory License
  • CGWA NOC (Central Ground Water Authority)
Adhering to these regulatory requirements ensures a smooth synthetic rubber business setup in India, paving the way for successful operations.

Penalties for Non-Compliance with Rubber Board

Failure to comply with the terms and conditions set by the Rubber Board of India, such as obtaining the synthetic rubber manufacturing license illegally or fraudulently through misrepresentation of facts, will result in the cancellation of the license.

Cost for Synthetic Rubber Manufacturing License

To establish a Synthetic Rubber Factory Setup in India, obtaining a manufacturing license is a vital step. Applicants must pay a fixed annual fee, which can be submitted to the Rubber Board via demand draft (DD), money order, or online transfer. Payments should be made in favour of the Deputy Director of the Rubber Board, Kottayam, Kerala. To ensure uninterrupted operations, the license must be renewed periodically before its expiry. The annual license fee for synthetic rubber manufacturing license is structured as follows:
  • If the anticipated rubber requirement is up to 4 MT per year, the fee is ₹590 (₹500 + 18% GST).
  • If the anticipated rubber requirement exceeds 4 MT per year, the fee is ₹1,180 (₹1,000 + 18% GST).
Adhering to these guidelines is essential for the smooth operation of a synthetic rubber factory in India. Besides this above-mentioned annual license fee, there are consulting charges as well that may vary between lakhs and crores.

Timeline for Establishing a Synthetic Rubber Business Plant

The timeline for establishing a synthetic rubber plant in India depends on several factors, such as regulatory clearance, size of the project, equipment installation, construction, and recruitment. Setting up a synthetic rubber plant takes around 8 months to 2 years and can extend in some cases.

Why Opt for Canjain  for Synthetic Rubber Business Setup?

Synthetic rubber business setup in India can be complex—but with Canjain , it’s an effortless and smooth journey. Given below are the reasons why we are the most preferred choice for obtaining a synthetic rubber manufacturing license in India-

  • More than 10 Years of Experience in Consulting for Synthetic Rubber Business Setup
  • 99% Success Rate in Securing Synthetic Rubber Manufacturing License
  • Accomplishing Environmental Clearance for your Synthetic Rubber Business Setup
  • Documentation Support for your Synthetic Rubber Factory Setup
  • End-to-end Assistance in Synthetic Rubber Plant Setup
  • Smart Cost Management to Ensure Your Synthetic Rubber Plant Stays Profitable
  • Round-the-clock Support to Streamline the Process of Synthetic Rubber Business Setup
  • Comprehensive Aid with Authority Follow-ups

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