Opportunities in the Industry of Rubber Band

Opportunities in the Industry of Rubber Band

The rubber band is one of the most consumable items of everyday use. One can initiate the rubber band making project by installing some very simple machinery. The potential of the market of the rubber band is huge and the industry will grow at over 8% per year this decade. Even, you can establish the manufacturing unit at home too.

Rubber Band Making Market Potential

The rubber bands are one of the most convenient products. Moreover, it is majorly used in agriculture, automobile, packaging industry, newspaper industry. It is also widely used as a household consumer durable item. The product manufacturing of rubber band contains a big number of small operators that typically focus on one particular product segment or market sector.

Additionally, The IBIS world estimates the three biggest industry players to hold for just user 11.0% of the industry’s revenue in the year 2015. The market is big and there is an immense opportunity in building a rubber band manufacturing plant. The future for natural rubber looks bright. At 5.92 million tons per annum, natural rubber has 39 % of the world rubber consumption of 15.14 million tons per annum. The industry of rubber is expected to grow at over 8 % per annum this decade.

The primary reason is due to the per capita consumption of rubber is 0.8kg against 14kg in the developed world. India is most likely to become the world’s 3rd biggest producer of natural rubber after Thailand and Indonesia.

Rubber Band Making Business Registration

In starting a rubber band making manufacturing business the first step is to register the business, Initially, you will need to get a Trade License and GST Registration. You will also have to apply for permission from the pollution control board according to your manufacturing setup and establishment.

Unit Setup & Machinery

Generally, the rubber band making machines are two types. One is hand-operated and the other is motor operated. One can build a rubber band making unit in two ways. The first is by using the rubber role as raw material and the second is by preparing the rubber role in your own unit. The project cost will be higher in the second option and you can earn a better margin too.

Whereas, for the first option, one has to buy machines such as weighing machine, cutting machine and packaging machine. Basically, the manufacturing process is not tricky. Moreover, you can use the readymade rubber band role in the process. Cutting machines work automatically. Generally, it cuts the rubber bands of a definite size.

For the second option one will need to buy machinery. The list includes Cutting machines, Stirrer, Drying Stand, Grinder, Moulds, Dip-in Tanks, Vulcanizing tanks, buckets, cups, etc. However, the major raw materials are latex, whitener, chalk powder, titanium, rubber chemicals, and packing materials.

Quality Control for Rubber Band Making

The sample rubber bands from each batch are subjected to a variety of quality tests. One of the tests measures modulus, or how hard a band snaps back is, a tight should snap back forcefully when pulled whereas a band made to secure fragile objects should snap back more gently.

Forecasted Market of Rubber Band

The global rubber market is expected to grow at a CAGR of 4.66% in the forecasted period of 2017-2021. Expanding vehicle fleet, surging new vehicle sales and increasing construction industry are the important factors that are expected to drive demand for tires across the globe. India in the upcoming years and the growing tire industry will further boost the demand for industrial rubber. The vital factors contributing to the growth of the market are growing automotive production and sales, the growing construction sector in the country, and growing urbanization.

Related Project: - Rubber Band Manufacturing Business

Conclusion

The project report of NPCS on “Rubber band manufacturing business” covers all the aspects of business, from analyzing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The reports are written in a much planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet, etc.

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