# Plastic and rubber products: Follow one offering through the chain Converters moulding resins and rubber into packaging, pipes, films, tyres and seals Source page: https://www.materialinsights.org/industries/plastic_rubber/story/ #### Follow one offering through the chain **1** Example story · 6 steps · India ### A car tyre made in India Follow latex from a rubber tree and oil-derived black powder into a cured tyre, and on to recycling. 1 / 6 · Polymer and rubber feedstocks #### Latex from smallholdings **62%**of rubber use grown at home (calculated) A car tyre relies on natural rubber, tapped as latex from trees grown on smallholdings in Kerala and, increasingly, the north-east, then dried into sheets or blocks. India produced 8.75 lakh tonnes in 2024-25 but consumed 14.10 lakh tonnes, so tyre makers import the balance; India uses about 9% of the world's natural rubber (2024).^[1](https://eparlib.sansad.in/bitstream/123456789/2994395/1/AU2649_SW0uyn.pdf)^,^[4](https://www.european-rubber-journal.com/article/2096778/natural-rubber-demand-grows-in-2024-signalling-potential-market-recovery) **Constraint** Supply gap: a 5.35 lakh tonne shortfall in 2024-25 (calculated) means about 38% of the natural rubber India uses must be imported. [Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[NH3 Ammonia](https://www.materialinsights.org/chemicals/ammonia/)[AcOH Acetic acid](https://www.materialinsights.org/chemicals/acetic_acid/)[Fng Fungicides](https://www.materialinsights.org/chemicals/fungicides/) 2 / 6 · Polymer and rubber feedstocks #### Carbon black and synthetic rubber **900 kt**PCBL carbon black capacity a year Natural rubber is blended with oil-based styrene-butadiene and polybutadiene rubbers and reinforced with carbon black, which gives a tyre its colour and resistance to wear. PCBL, which calls itself India's largest carbon black maker, has 900,000 tonnes a year of capacity and runs 122 MW of co-generation on its process gases (2026).^[2](https://nsearchives.nseindia.com/corporate/PCBL_29072026160559_Intimationofinvestorupdate.pdf)^,^[5](https://www.icra.in/Rating/DownloadResearchSummaryReport?id=6873) **Constraint** Oil link: carbon black feedstock and synthetic rubber come from crude, and ICRA expects the 2026 crude spike to squeeze FY2027 tyre margins. [CB Carbon black](https://www.materialinsights.org/chemicals/carbon_black/)[SBR Styrene-butadiene rubber](https://www.materialinsights.org/chemicals/sbr/)[BR Polybutadiene rubber](https://www.materialinsights.org/chemicals/polybutadiene/)[RC Rubber chemicals](https://www.materialinsights.org/chemicals/rubber_chemicals/)[Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/) 3 / 6 · Conversion into products #### Mixed, built and cured **₹25k cr**tyre exports in FY25 Tyre makers such as MRF, Apollo and JK Tyre mix these compounds with sulphur and zinc oxide, build them around steel bead wire and nylon or polyester cord, and cure each green tyre under heat and pressure in a mould. The industry turns over about ₹1 lakh crore a year and exported ₹25,051 crore of tyres in FY25.^[3](https://www.outlookbusiness.com/economy-and-policy/indias-tyre-export-rises-9-to-rs-25051-crore-in-fy25) **Constraint** Input costs: natural rubber, synthetic rubber and carbon black dominate raw materials, so rubber and crude prices move margins within quarters. [Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[St Steel](https://www.materialinsights.org/commodities/steel/)[S Sulfur](https://www.materialinsights.org/commodities/sulfur/)[Zn Zinc](https://www.materialinsights.org/commodities/zinc/)[PA Nylon (PA6, PA66)](https://www.materialinsights.org/chemicals/nylon/)[Textiles and leather](https://www.materialinsights.org/industries/textiles/)[Metal products](https://www.materialinsights.org/industries/metal_products/) 4 / 6 · Machinery and tooling #### Presses and moulds as capital goods **7-10%**tyre capex as share of revenue Behind every tyre plant sit internal mixers, tyre-building machines, curing presses and engraved steel moulds, bought as capital goods and replaced as designs change. ICRA expects the tyre industry to keep capex at 7-10% of revenue in FY2027, sustaining orders for machine and mould makers even as margins tighten.^[5](https://www.icra.in/Rating/DownloadResearchSummaryReport?id=6873) **Constraint** Margins: the 2026 crude price spike threatens FY2027 tyre margins, which could slow discretionary machinery orders. [St Steel](https://www.materialinsights.org/commodities/steel/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Metal products](https://www.materialinsights.org/industries/metal_products/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/) 5 / 6 · Distribution and end of life #### Fitted at the neighbourhood tyre shop **<5%**imports' share of Indian tyre demand Most car owners meet the chain at a dealer who sells and fits replacement tyres and aligns the wheels. ICRA expects replacement demand to grow 5-7% in FY2027, at least as fast as sales to carmakers at 4-6%, and imports are under 5% of Indian demand, so shelves hold mostly locally made brands.^[5](https://www.icra.in/Rating/DownloadResearchSummaryReport?id=6873) **Constraint** Imports fell 10% in FY2025 and 5% in 10M FY2026, so the replacement shelf depends on domestic makers' capacity and pricing. [Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[CB Carbon black](https://www.materialinsights.org/chemicals/carbon_black/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/) 6 / 6 · Distribution and end of life #### A worn tyre becomes the maker's problem **100%**EPR target for tyre makers, 2024-25 Rules notified on 21 July 2022 made tyre makers responsible for their tyres' end of life: from 2024-25 they must buy recycling certificates equal to 100%, by weight, of the new tyres they made or imported two years earlier. Recyclers earn those certificates by turning scrap tyres into reclaimed rubber, crumb rubber, recovered carbon black or pyrolysis oil.^[6](https://cpcb.nic.in/uploads/Projects/Waste-Tyre/FAQ_Waste_Tyre.pdf) **Constraint** Importing waste tyres for pyrolysis is now banned, so recyclers must compete for domestic scrap tyres to earn certificates. [Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[CB Carbon black](https://www.materialinsights.org/chemicals/carbon_black/)[Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/) #### What the chain shows India makes tyres for the world but grows only about 62% of the natural rubber it uses (calculated); rubber and oil-derived inputs are the chokepoint. Sources 1. [Lok Sabha unstarred question no. 2649: natural rubber production and consumption](https://eparlib.sansad.in/bitstream/123456789/2994395/1/AU2649_SW0uyn.pdf) Ministry of Commerce and Industry, Lok Sabha, 2025 2. [Investor update Q1 FY27](https://nsearchives.nseindia.com/corporate/PCBL_29072026160559_Intimationofinvestorupdate.pdf) PCBL Chemical Ltd, 2026 3. [India's tyre export rises 9% to Rs 25,051 crore in FY25 (ATMA)](https://www.outlookbusiness.com/economy-and-policy/indias-tyre-export-rises-9-to-rs-25051-crore-in-fy25) Outlook Business, 2025 4. [Natural rubber demand grows in 2024, signalling potential market recovery (ANRPC)](https://www.european-rubber-journal.com/article/2096778/natural-rubber-demand-grows-in-2024-signalling-potential-market-recovery) European Rubber Journal, 2025 5. [Indian tyre industry: sharp spike in crude prices to exert pressure on margins in FY2027](https://www.icra.in/Rating/DownloadResearchSummaryReport?id=6873) ICRA, 2026 6. [FAQs on extended producer responsibility for waste tyres under the Hazardous and Other Wastes Amendment Rules, 2022 (G.S.R. 593(E), 21 July 2022; FAQ undated)](https://cpcb.nic.in/uploads/Projects/Waste-Tyre/FAQ_Waste_Tyre.pdf) Central Pollution Control Board, 2022 #### Sells directly into [Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)[Furniture](https://www.materialinsights.org/industries/furniture/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)[Apparel and footwear](https://www.materialinsights.org/industries/apparel/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Medical devices](https://www.materialinsights.org/industries/medical_devices/) ## Other sections - [Overview](https://www.materialinsights.org/industries/plastic_rubber/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/plastic_rubber/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/plastic_rubber/price-links/index.md) - [Value chain](https://www.materialinsights.org/industries/plastic_rubber/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/plastic_rubber/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/plastic_rubber/risks/index.md) - [Sources](https://www.materialinsights.org/industries/plastic_rubber/sources/index.md)