Calcutta, Dec. 27: A rubber complex, mainly to make car components, is slated to come up within 30 km from Singur, the proposed site of Tata Motors’ small car project.

About 200 small manufacturers, under All India Rubber Industries Association, have pooled funds to acquire 100 acres at Domjur in Howrah for the complex.

Sawar Dhanania, the eastern regional chairman of the association, who is spearheading the project, was non-commital on whether the complex will be an ancillary to the Tata project, due to the impasse surrounding the land acquisition for the project.

Experts, however, said the prospect of good returns may prompt the rubber units to align themselves with the Tatas.

They projected rubber sales of Rs 4,000 per small car. If the Tatas make one-lakh cars and subsequently two lakh, then the earnings for the complex will be Rs 80 crore.

Dhanania said construction at Domjur site is expected to start in April 2007, while the rubber units are likely to begin production from early 2008.

Other than tyres, an automobile uses rubber-based components in channels, wipers, door biddings, mountings and under the hood parts.

Dhanania said the state was a pioneer in rubber. Sixty of the 600 rubber units in the state are in car components business. There will be 200 units at Domjur.

Chennai expo

The rubber industry needs to globalise to meet its input needs, according to the All India Rubber Industries Association.

Rubber mills should leverage their strengths to buy plantations abroad and procure natural rubber for sale at competitive prices, the association said.

The rapid growth in the domestic automobile industry is expected to boost rubber sales by eight to ten per cent.

However, shortages or glut are unlikely as the output of 8.2 lakh tonnes matches supply with demand.

The industry, however, is affected by global price movements.

“Whenever international prices go up the growers tend to export causing a supply crunch,” according to Anil Sampat, chairman of India Rubber Expo. Sampat, along with other representatives of the industry, were in the city to promote Rubber Expo, an international exhibition and conference in Chennai from January 17 to 20. “It is time for the plantation sector to have a committed view of the global market, not only as a customer but also as a supplier,” Sampat said.

Sampat said over 250 exhibitors from rubber machinery, automotive component and plantation sectors will showcase their products at the expo. About 40 technical papers will be presented in the seminars at the four-day event.