The Hindu Business Line : 'BPO bug biting rubber industry too'

FIRST it was the information technology sector followed by the pharmaceutical sector. And now it appears that the Indian rubber industry is waiting to hitch a ride on the gravy train of business process outsourcing (BPO).

With India being the third largest grower of natural rubber and fifth largest user of all rubber products, rubber majors in the US, Singapore, Malaysia, Thailand and other countries are now eying India as a potential destination for BPO.

``Companies such as Panstone Hydraulic of Taiwan, Shimadzu Asia Pacific of Singapore and LoadStar and FlexFeb of the US have begun to show interest in India for BPO,'' says Mr Anil Sampat, former president of the All-India Rubber Industries Association (AIRIA).

In the light of this, the domestic rubber industry is eagerly awaiting the India Rubber Expo (IRE) 2005, the world's second largest trade show and the Asia's largest, which is slated in Mumbai from February 23 next year.

Mr Sampat, who is the Chairman of the IRE-2005, said the global rubber products business is worth $100 billion, out of which the US alone accounts for $60 billion, while India's total export of rubber products (tyres and non-tyre) is just $0.5 billion.

``The focus of outsourcing from the US also extends to rubber products as US-based companies are increasingly resorting to cost cutting measures to remain competitive. Thus, moving production to India is on the top of the agenda of the US companies,'' he pointed out.

IRE 205 will be showcasing India's above strengths and achievements in the rubber sector to facilitate the country's rubber export to touch the $1-billion mark by 2006 and $4 billion by 2010.

IRE-2003 had generated a total turnover of Rs 250 crore and had set the foundation for positioning India as the BPO for rubber manufacturers and producers.

The conference will have more than 70 delegates, 300 participants, 6 country pavilions and 4 panel discussions with simultaneous technical and commercial conferences covering more than 50 papers.