The overall sluggishness in the industrial
sector persists in spite of the slight upwardness in IIP growth in May. Domestic
rubber markets turned weak and prices failed to sustain at the early levels
following another weak closing on the National Multi Commodity Exchange (NMCE).
The sentiments were also hit by unfavourable reports and the absence of major buying.
RSS4 grade rubber closed at `.186
a kg at Kottayam and Kochi. At NMCE, RSS 4 July series closed at `.182.50,
August at `.182.82, September at `.181.60, October at `.181.50
and November at `.180.50 a kg. RSS 3 closed weak at `.172.95
a kg at Bangkok. The July futures slipped to ¥238.5 from ¥240.5 during the day
session and then to ¥236.8 in the night session on the Tokyo Commodity
Exchange.
According to ICRA report, Indian tyre
industry grew by 5.3% in terms of volumes despite economic slowdown in 2011-12.
Revenues of the tyre companies recorded a robust 28% growth largely on account
of over 20% hike in realisations and the sharp depreciation in rupee which
drove export revenues by 46%.
Govind Rubber Ltd. engaged in auto tyres, tubes
and high-end bicycle tyres manufacturing, is setting up a greenfield project
near Dahej in Gujarat with a capital outlay of Rs 750 crore. The plant will
have a production capacity of 225 tonnes per day. The company aims to sell its
products in Europe, Korea, Indonesia, Vietnam, China and India. In the domestic
market, company has decided to expand into manufacturing of 2 and 3 wheeler
tyres at the current location in Ludhiana.
Read
lot more in Rubber4U – 15th July 2012 issue
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