The Hindu Business Line : Pala Marketing Society to expand block rubber capacity

PALA Marketing Co-Operative Society, one of the largest co-operatives in South India, has embarked upon a project to expand its block rubber manufacturing facility for nearly tripling its output.

"We now have an annual capacity to produce 4,500 tonnes of block rubber. We are increasing this to 12,000 tonnes," said Prof K.K. Abraham, President of the society.

Prof Abraham said the society was investing Rs 4.5 crore in augmenting the block rubber production. "Construction work has started and we are now in the process of importing some of the machinery," he said.

Block rubber, or Technically Specified Rubber (TSR), is processed in conformity with specifications laid down by the Bureau of Indian Standards.

In India, block rubber is made mainly using scrap rubber.

Though India is the fourth largest producer of natural rubber in the world, block rubber production is a mere 13 per cent of the total output by the country.

Usage, quality, price and availability of raw material are factors that affect block rubber production in India.

Prof Abraham said the Society aims to pare costs of block rubber production by going in for automation.

Average cost of producing one kg of block rubber by the society is now around Rs 6, while some of the private block rubber makers are able to do it at half the cost.

Prof Abraham said the society will focus on the US and European markets to export the block rubber once the production goes on steam in fiscal 2006-07.

"We now export mainly to China, Australia and a couple of European countries," he said, adding that the quality conscious US and Europe are ready to offer better prices than the Chinese market.

Meantime, the society is leasing one block rubber producing unit at Thodupuzha, which has a production capacity of 4,000 tonnes annually, Prof Abraham said.

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