For decades, China has stood as the world’s dominant supplier of raw materials across industries, making it a significant player in the global supply chain. However, Gujarat-based Lead Reclaimed Rubber, an Indian MSME, has achieved a remarkable feat by exporting reclaimed rubber crumb to Chinese manufacturers. The company capitalised on India’s abundant scrap tyre supply and favourable policies, tapping into China’s massive demand for reclaimed rubber. As Lead Reclaimed Rubber continues to expand its production capacity and export markets, the company also faces challenges such as labour shortages, supply delays and regulatory concerns. Despite these obstacles, it remains optimistic about its growth prospects.

China has been the largest supplier of raw material for every industry known to man since decades. While there are many companies in different markets trying to sell back to China, an Indian MSME has unachieved the feat of selling to the ‘seller’.

Gujarat-based end-of-life tyre (ELT) recycler Lead Reclaimed Rubber has been exporting its reclaimed rubber crumb to Chinese manufactures. Commenting on how the company achieved this feat, Chief Executive Officer Jayeshh Patel told Tyre Trends in an exclusive interview, “China is the largest importer of reclaimed rubber, sourcing the material not only from India but also from countries like Vietnam and Sri Lanka. This demand is driven by a vast domestic market for tyres and inner tubes, with numerous brands operating in the aftermarket segment as well as in OEM manufacturing. As a result, the growth potential is significant.”

“While China has its own reclaim rubber plants, it faces limitations due to inadequate scrap tyre availability. In contrast, India has an abundant supply of scrap tyres supported by both domestic generation and strong import volumes. Additionally, India’s favourable government policies and the availability of skilled labour further enhance its position as a competitive and reliable supplier of reclaimed rubber to China. Hence, our company capitalised on the situation and started exporting,” he added.

Lead Reclaim Rubber was established in 2012 and is an NSE-listed company. It operates both in domestic and export markets with plans to grow its current production capacity as the reclaimed rubber market unfolds its potential.

Moreover, Patel noted that the Extended Producer Responsibility (EPR) framework by the Indian Government is playing a crucial role for the recycling industry for reaching greater heights.

EPR IMPACT

According to Patel, EPR has emerged as a transformative force in the recycling industry. Given the industry’s dynamic nature and its drive to adopt advanced technologies, EPR presents a timely and impactful mechanism to support growth particularly for micro, small and medium enterprises (MSMEs).

“While the recycling sector is evolving, recyclers often operate on thin profit margins, which limits investment in new technologies and process upgrades. EPR has helped bridge this gap. Under the scheme, we are awarded green credits for every kilogramme of end-of-life tyres we recycle. These credits are a compliance requirement for tyre manufacturers, who purchase them from registered recyclers like us. For every 100 kilogrammes of tyre recycled, we receive approximately 130 green credits, each valued at INR 2.5, resulting in a direct financial incentive. This additional income strengthens our balance sheet and can be reinvested in research and development, capacity expansion and technology upgrades. In this way, EPR indirectly fosters innovation and scaling in the recycling ecosystem,” said Patel.

To maintain accountability and transparency, the Central Pollution Control Board (CPCB) has developed a digital portal where all stakeholders must report data.

“We record our incoming feedstock (purchase data) and outgoing materials (sales invoices) on the CPCB portal. This data forms the basis for calculating green credit eligibility. Our operations are routinely audited by both government agencies and the tyre industry. These audits verify that we meet all technical and environmental standards before credits are approved. The government has also established baseline electricity usage norms for tyre recycling. We are required to submit our electricity bills to demonstrate compliance. If our energy consumption does not meet the defined threshold, we are ineligible for green credits, preventing fraudulent claims,” he Patel.

He optimistically contented that EPR is rapidly becoming the backbone of the tyre recycling industry. For over a decade, recyclers have struggled with limited access to capital. EPR is now enabling financial stability, paving the way for recyclers to professionalise operations, scale sustainably and drive forward-looking initiatives. This policy is not just a support mechanism but a growth enabler.

AN OVERVIEW

The recycling company focuses on sustainable practices and high-quality output. “Our core operation involves sourcing EOL tyres and tubes from various states across India for recycling into value-added rubber products. Our recycling process begins with a proprietary feedstock checking system to ensure quality. The tyres are then sorted, cut and processed into crumb rubber powder. Currently, we produce crumb in 30–40 mesh sizes with plans to expand into finer 80 and 120 mesh grades in the near future,” explained Patel.

For the domestic industry, crumb rubber serves a wide range of applications. Finer meshes (80 and 120) are used in various rubber and dye industries, while 30–40 mesh is commonly used in bitumen modification for road construction, in line with the Central Government’s CRMB 30 guidelines.

Furthermore, the company employs a green devulcanisation system that utilises steam, oil and pressure to break down and re-bond the rubber polymers from EOL tyres. This method is 100 percent sustainable, producing zero discharge and zero wastage. Even the steam generated during the process is condensed and reused. “We are in the process of acquiring a Z-Certificate for our zero-waste operations,” divulged Patel.

Post-devulcanisation, the rubber material becomes soft and slightly sticky due to the restructured cross-linking. It then undergoes further processing in the reclaim section, which includes refiners, mixing mills and a cleaning stage.

During cleaning, all metallic and non-rubber impurities are extracted using strainers with 60-millimetre wire mesh. The purified compound is extruded into noodle form and sent to the refiners to produce the final reclaimed rubber product, typically in seed form.

“We tailor our reclaimed rubber to meet the specific requirements of our customers including thickness, size and performance properties. Each product is made to specification. The reclaimed rubber is used across various industries including tyre and tube manufacturing, conveyor belts, packaging and other rubber-based products. As industries increasingly shift from virgin to reclaimed rubber, we position ourselves as a reliable and environmentally responsible supplier,” noted Patel.

PRODUCTION AND SUPPLY

According to Patel, virgin rubber contains about 90–100 percent RSPL, while reclaimed rubber has around 50–52 percent. It’s more affordable than virgin rubber, but the use of 100 percent reclaimed rubber in tyre manufacturing is still a distant thought.

However, it’s widely used in rubber mats. Tyre manufacturers are gradually increasing reclaimed rubber usage, encouraged by government directives to reduce dependence on natural resources and imports. Since local virgin rubber production is insufficient, it’s being imported from countries like Vietnam.

Currently, large tyre manufacturers in India use only a small percentage of reclaimed rubber, around two to three parts per hundred

rubber (PHR). For cycle and three-wheeler tyres, it goes up to 20 PHR. Conveyor belts use up to 30 percent, and in non-critical applications with almost no performance impact, reclaimed rubber can be used up to 95 percent.

The company’s plant is located in Katlal, Kheda, near Ahmedabad, and it uses Indian machinery sourced from Punjab. “We started production at 250 metric tonnes per month. After Covid, we scaled up to 490 metric tonnes and recently reached 960 metric tonnes per month. Within the next year, we plan to expand further to 2,000 metric tonnes per month,” said Patel.

He added, “We run our plant with TBR tyres both nylon and radial. We’re centrally located in Ahmedabad and as Gujarat shares borders with Rajasthan, Madhya Pradesh, Maharashtra, and the southern states, it helps us with tyre sourcing. We collect tyres through a three-layer supply chain consisting puncture shops, rag pickers and aggregators. The aggregators sort the tyres as per our requirements.”

For nylon tyres, the company only uses the centre portion, specifically from 1020 tyres and discards the sidewalls. For radial tyres, it recycles the entire tyre. The recycling technology is the same for both, but the processing recipe differs. Radial tyres have cords in the centre, so the devulcanisation process is slightly modified to handle the added strength. Its research and development facility are located inside the plant.

Commenting on what sets the company apart from competitors, Patel explained, “Our focus on consistency and timely delivery sets us apart from competitors. We maintain a 95 percent consistency ratio. From raw material to the final product, everything is monitored and controlled by our control plant, which is also a key differentiator. We also have an in-house development department that not only ensures quality consistency but also works on improving the benefits for our customers. On top of that, we conduct awareness programmes to educate our customers on which materials are best suited for different use cases. That’s something others in the industry usually don’t do.”

MARKET SPREAD

Lead Reclaim Rubber serves both domestic and international markets. Among the industries it caters to, conveyor belts account for 30 percent of its business, tyres for 20 percent and the remainder comes from rubber products and packaging. Although the tyre and tube segments currently represent a smaller share of revenue, Patel anticipates significant growth in these areas. Over the next five years, it expects tyres and tubes to become its largest consumer segment followed by conveyor belts.

The company attributes this projected growth to the government’s strong emphasis on the circular economy and the rapid expansion of the automobile industry, both of which are likely to increase demand for reclaimed rubber.

The company exports to several countries including Sri Lanka, China, Bangladesh, Turkey and Philippines. China is currently the largest consumer in its export portfolio, followed by Sri Lanka. According to the Patel, export markets generally use more reclaimed rubber due to their larger production capacities.

The export market continues to show strong demand and the company currently has pending orders from China.

However, as European nations vie for restricted EOL tyre exports to India, the scenario for indigenous recyclers can be precarious. Commenting on the potential impact of such restriction, Patel highlighted, “India recycles a significant portion of the scrap tyres it generates. However, unregulated and illegal pyrolysis operations remain a critical concern. These units often operate without environmental compliance, posing risks to public health and the environment. Stronger government intervention and regulatory enforcement are urgently needed to eliminate such practices and ensure sustainable recycling.”

“India’s tyre recycling ecosystem is diverse and imbalanced. While there are numerous recyclers, the segment is dominated by pyrolysis players (approximately 70 percent), with reclaim rubber manufacturers constituting only around 30 percent. This heavy skew towards pyrolysis is problematic, especially since many of these players depend on imported scrap tyres for feedstock. If the import of scrap tyres into India is disrupted, it will create a significant supply shortage, driving up the price of ELTs. Currently, the price of scrap tyres ranges between INR 18–21 per kilogramme, but a halt in imports could potentially increase this to INR 40 per kilogramme, a nearly 50 percent spike, which would severely impact the entire recycling value chain,” cautioned Patel.

Besides this looming issue, Patel highlighted several pending challenges for the industry. One of the primary issues is a shortage of skilled labour. Interestingly, even as the industry moves towards greater automation, the demand for labour continues to rise.

Another challenge is supply delays caused by aggregators, who often fall behind on delivery timelines due to their own labour shortages. Additionally, maintaining quality consistency is difficult as scrap tyres vary in composition from batch to batch. As a result, the company must closely monitor and control its processes.

A significant concern affecting future growth is the regulatory environment. The company remains cautious about expanding production because of the current ban on scrap tyres.

Although the business is regulated, there’s an underlying fear that stricter government action could further limit the supply of scrap tyres. Such restrictions could leave newly built expansion units underutilised.

Patel believes that unless government policies become more supportive, major investments and expansions will remain risky.

Looking ahead, Lead Reclaim Rubber is planning both forward and backward integration. On the forward side, the company aims to start manufacturing rubber tiles made entirely from rubber granules, a by-product of its current process. It also plans to enter the cycle tyre industry.

As part of its backward integration strategy, the company intends to set up more tyre collection centres both internationally and within various Indian states to secure a more consistent supply chain.

Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, is joining forces with the Indian Carbon Society (ICS), the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) and Birla Institute of Technology and Science (BITS) to host the Conference on Advanced Carbon Materials (CACM) 2026. Scheduled to take place from 18 to 20 February 2026 at the BITS Pilani, Hyderabad Campus, this event underscores Birla Carbon's deep expertise and ongoing dedication to progress in the carbon materials sector. The company’s commitment is evident through its evolving portfolio, which features industry-leading carbon black, carbon nanotubes and sustainable carbon innovations.

During the conference, Birla Carbon will showcase how its engineered carbon solutions are driving next-generation energy systems and advancing nanotube-enhanced materials. Presentations will highlight developments in customised carbon black architectures designed to improve durability and performance in tyres, rubber products and specialised applications. Additionally, the company will share progress on low-carbon materials derived from bio-based and circular feedstocks, contributing to a wider transition towards sustainable manufacturing practices.

CACM 2026 aims to unite leading scientists, technologists and industry professionals in the field of carbon science and engineering. The event seeks to encourage collaboration among academic, industrial and research sectors, highlight groundbreaking innovations and address key strategic and national priorities in the development of advanced carbon materials.

Dr Ann Schoeb, Chief R&D Officer and Energy Systems, Business Head, Birla Carbon, said, “Innovation in carbon materials is at the core of Birla Carbon’s DNA. Our commitment to advancing material science drives us to collaborate with leading academic and research institutions that share our vision for the future. Carbon materials will play an increasingly critical role in enabling high-performance and next-generation applications across industries. At the same time, they are instrumental in enhancing sustainability and circularity, supporting the transition towards a lower-carbon economy and improving quality of life globally.”

Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, is set to take part in PaintIndia 2026, scheduled from 19 to 21 February 2026 at the Bombay Exhibition Centre in Mumbai. The company will be located at Booth L3 in Hall 4. At the exhibition, Birla Carbon will highlight its dedication to innovation tailored to specific applications, alongside its strengths in localised production and dependable supply chains, all aimed at supporting the paints and coatings sector with an extensive lineup of advanced carbon-based products.

A key focus will be the Raven line of speciality carbon blacks, engineered to address the shifting needs of modern coatings and inks in terms of performance, appearance and manufacturing efficiency. Visitors will encounter a variety of Raven grades designed to deliver exceptional blackness, precise tonal qualities and consistent results across multiple formulation types. Among these are solutions optimised for waterborne, solvent-based and powder coatings, such as the Raven 5000 Ultra, Raven 5100 Ultra and Raven 3500, which are known for their deep blue shades and reliable colour output.

The company will also present specialised grades developed for powder coatings and inks, including the Raven 1035 Powder, Raven 1185 Ultra Powder and Raven 1255 Powder. These products are part of a globally recognised portfolio of treated blacks now manufactured in India, offering reduced delivery times and greater supply stability along with superior performance characteristics. In addition, Birla Carbon will feature its broader range of advanced materials, which includes Nanocyl carbon nanotubes like the NC7000, Aquacyl and Epocyl, prized for their high electrical conductivity in various coating applications.

Conductex carbon blacks, noted for their ease of dispersion and strong conductive properties, will be presented as ideal for flooring coatings and primers. The Continua SCM line, a sustainable carbonaceous material, will also be on display, distinguished by its uniform quality, lower carbon footprint and elevated purity that meets food-contact standards and other rigorous requirements. Overall, Birla Carbon’s presence at PaintIndia 2026 will underscore its ongoing commitment to developing high-performance materials and solutions shaped by customer needs.

John Davidson, Chief Sales, Marketing & Sustainability Officer, Birla Carbon, said, “PaintIndia 2026 provides an important platform to exchange ideas, showcase innovation and collaborate on the next phase of coatings development in India and globally. Birla Carbon formulations are being improved in multiple dimensions today. The focus is on helping formulators with new materials science solutions that deliver both performance and predictability, with higher purity levels suitable for food-contact compliance. We continue to advance responsible innovation through solutions such as Continua SCM, our sustainable carbonaceous material designed to support mitigated CO₂ emissions with consistent quality and supply security. And of course, we are delighted to offer a range of ‘Made in India’ high-performance grades fresh from our new facility in India.”

Liberty Tire Recycling, a prominent player in North America's tyre recycling sector, has received a Bronze sustainability medal from EcoVadis. This recognition places the company within the top 35 percent of over 150,000 businesses evaluated globally by the rating agency. The achievement underscores Liberty's ongoing dedication to fostering a resilient and transparent operational model, which in turn supports its clients in mitigating environmental and supply chain vulnerabilities.

As a dedicated partner in sustainability, Liberty manages nationwide collections of end-of-life tyres and employs advanced processing techniques. These processes convert scrap tyres into valuable raw materials, including recycled rubber and steel. Through its family of companies, Liberty transforms these materials into a diverse array of high-value products. These range from landscaping mulch and moulded rubber goods to specialised surfaces for sports and recreation, as well as advanced materials for construction and industrial use, all designed to assist customers in reaching their own sustainability targets.

In its second year of assessment, Liberty significantly enhanced its overall EcoVadis score to 66 out of 100, securing a position in the 73rd percentile. The company surpassed the average scores for the Waste Recovery industry across all four evaluation categories. Specifically, Liberty achieved scores of 76 in Environment, 65 in Labor and Human Rights, 62 in Ethics and 50 in Sustainable Procurement, compared to industry averages of 56, 54, 46, and 39, respectively. EcoVadis, a globally trusted provider of business sustainability ratings, bases its evaluations on documented policies, concrete actions and performance data, with regular reassessments to encourage continuous improvement.

This latest rating acknowledges Liberty's extensive efforts to sustainably manage more than 215 million scrap tyres each year. Looking ahead, the company has established an ambitious target of achieving zero-waste operations by 2030. Concurrently, it is expanding its range of sustainable product solutions, effectively channelling recycled materials back into both consumer and industrial markets.

Amy Brackin, Senior Vice President – Sustainability, Liberty Tire Recycling, said, “This recognition affirms that our sustainability strategy is ambitious, measurable and credible. Earning a Bronze medal in our second year demonstrates that Liberty is a partner our customers can rely on to help meet their own circularity and responsible sourcing goals.”

Zeon Corporation and Visolis Inc. have formalised their partnership by signing a binding term sheet, marking a pivotal advancement in the commercialisation of bio-based isoprene monomer and sustainable aviation fuel (SAF).

This collaboration, which now moves from technology verification towards project implementation, is built upon the progress made since their initial memorandum of understanding in March 2024 and the subsequent joint feasibility study announced in April 2025. Bio-based isoprene monomer serves as an essential component in the production of synthetic rubbers and various other materials, while SAF is increasingly recognised as a critical next-generation fuel for reducing carbon emissions within the aviation industry.

The newly established term sheet outlines a foundational agreement on the key elements required for a final investment decision. These include defining the business structure and the respective roles of each company, establishing technology and development strategies and advancing detailed engineering for the proposed production facility. Furthermore, the agreement covers the evaluation of potential sites, the process for engaging with suppliers, securing necessary regulatory approvals and planning the financing pathway.

The envisioned facility is set to commence commercial-scale output after successfully demonstrating mass production capabilities for biomass-based isoprene and SAF, utilising Visolis’ proprietary technology. Both companies are now committed to expediting the path to full-scale production and ensuring a steady supply of these sustainable products to the global market.