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Tyre industry to face rubber shortage after Kerala floods
Kolkata, Sep 6 (IANS) The Indian tyre industry is expected to be adversely hit due to estimated lower rubber output by 18-20 per cent following the Kerala floods, a report said on Thursday.
According to rating agency Icra’s report, the natural rubber which accounts for 35 per cent of the overall input costs in values for manufacture of tyres, is expected to witness considerable shortage due to the inundation resulting in pressure on operating margins for tyre manufacturers.
Natural rubber accounts for over 20 per cent of Kerala’s total area under cultivation and the southern state contributes the largest share of 84 per cent of output in the country followed by Karnataka, Tamil Nadu and North-Eastern states like Assam, Tripura, Meghalaya etc.
“We expect the natural rubber output to decline by 1.2-1.4 lakhs MT (or) 18-20 per cent fall during FY2019. With the natural rubber being a critical raw material, the sharp fall in output will have consequent impact on the Indian tyre industry. It accounts for 32 per cent and 35 per cent of total inputs, in volume and value terms, respectively,” agency’s Vice President (Corporate ratings) K. Srikumar said.
India is the second largest consumer, consuming 8 per cent of global natural rubber output, after China.
Despite India also being one of the key producers contributing to over 5 per cent of global output, it remains a net importer.
“During FY2018, India produced 6.9 lakh MT of natural rubber but consumed 11.1 MT, with the supply gap being fully met through imports from Indonesia, Thailand, Vietnam, etc, the agency said.
Imports have accounted for 40 per cent of consumption in the last five years and the same is expected to reach 50 per cent during the current fiscal with the shortfall envisaged in output.
With demand exceeding supply, domestic natural rubber prices have increased by over 10 per cent during the period April-August 2018, including an increase of over 5 per cent in the last one month.
“As the domestic prices continue to increase due to supply shortage concerns, domestic tyre makers continue to import with the current landed costs lower than domestic prices. However, with the expected rise in both domestic and global prices, exacerbated by the depreciating rupee, the tyre manufacturers are likely to witness pressure on margins. We expect a 100-bps contraction in operating profit margins for FY2019,” Srikumar said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.