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Usage Limits:A tyre is made of natural rubber (also called virgin rubber), Styrene-Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Carbon black, Nylon tyre cord, rubber chemicals, steel tyre cord and Butyl rubber.
Various Uses of Old TyresExcluding the use of whole tyres, we can categorize the uses of tyres in the following way: 1. Rubber Crumb - floor mats, belts, gaskets, shoe soles, dock bumpers, seals, muffler hangers, shims, and washers2. Reclaimed Rubber in Vehicles: A) Automotive Industry - Crumb (three to five percent) and Reclaimed rubber (up to ten percent) is particularly used in automobile tyres. However, since the volume of tyres is very high, the quantity of these rubbers used also goes up. New tyre industry uses approximately 58 percent of the natural rubber of India, including imports of more than 80000 tonnes (according to ATMA figures)B) In tyre carcasses in substantial volume and other automotive partsC) Bicycle tyre industry produces a massive 6-7 lakh tyres/day, out of which more than 80 percent are produced in Ludhiana. Ralson is the major company here with a production of one lakh bicycle tyres a day and 1.5 lakh tubes a day. 3. Molded products These include mats, hose pipes, conveyor belts, v-belts, footwear, tiles, adhesives, sound dampers, rubber sheets, battery containers and other rubber molded goods4. Footwear industry - Shoe soles5. Whole tyres are used as highway crash barriers, furniture, boat bumpers on marine docks, etc but it is a negligible amount. Land filling or burning tyres for energy has limited prospects as environmental authorities are acknowledging the need for its greener alternatives. On the other hand, mass-market end products like continuous rolls of cost-effective recycled rubber used for noise insulation now complete the 'big picture' for investors to consider recycling tyres commercially.
Stages in Recycling: 1 Crumb: Rubber Crumb is the material resulting from granulating scrap tyres into uniform rubber granules. It can be mixed with asphalt for road surfacing and making children's playgrounds2 Reclaimed Rubber: Reclaimed Rubber is the recycled old tyre rubber. It can be used as a substitute of natural & synthetic rubber. It is mixed with virgin rubber to further make new tyres of automobiles, bicycles and other low-cost products like footwear and mats. Virgin rubber, 90 percent of which is produced in Kerala is sold for as high Rs 140-150 per kg. Reclaimed rubber is sold for Rs 25-30 per kg and India being one of the voluminous reclaim rubber producers, the production is growing by ten percent per year.Size of the business opportunityA typical passenger car tyre contains 24-28 percent of Carbon black, 40-48 percent of natural rubber (NR) and 36-24 percent of synthetic rubber including Styrene Butadiene Rubbers (SBR) and Butyl Rubber (BR). These need to be recovered back from tyres lest they are wasted away. Currently, India produces 90, 000 metric tonnes (MT) of reclaimed rubber, which is sold at Rs 25-30/kg but does not produce Carbon black, Butyl Rubber and oil from used tyres. Current tyre production stands at 11.75 lakh MT for the year 2008-09. With the projected growth of 50 percent, you can easily estimate the potential of the opportunity.
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