The Rubber, Chemical & Petrochemical Skill Development Council (RCPSDC), under the aegis of the Ministry of Skill Development and Entrepreneurship, set up by the National Skill Development Corporation (NSDC), aims to nurture young talent in the country to improve livelihood opportunities.

The rubber industry in India is facing huge challenges and disruptions, not least due to the shortage of rubber, skilled workforce or the lack of interest among the younger generation in following the footsteps of their predecessors in the natural rubber tapping profession.

But as the proverb goes, ‘every opportunity is a blessing in disguise’, there are stakeholders who are working tirelessly to improve the situation. Among them, Saif Mohammad, CEO of the Rubber, Chemical & Petrochemical Skill Development Council, is optimistic about his organisation’s role in acting as a bridge between the government and the industry.

“A lot of efforts have already been made, and a lot more are ongoing as we speak. We engage with the industry to educate them and actively, proactively seek their feedback on how and what they need, which can be incorporated into our training programmes,” he shared.

As the head of RCPSDC, Mohammad is tasked with driving skill training in the rubber sector by largely complementing the development of qualifications spanning rubber (natural and synthetic) production, rubber product/tyre manufacturing and tyre services and maintenance.

LABOUR SHORTAGE

The development of tyres and other rubber materials is predominantly dependent on rubber tapping, wherein workers make an incision on the tree with a sharp knife, place the collecting cup and repeat the process with subsequent trees. It is estimated that workers carry out this process for hundreds of trees and wait for the cups to be filled with latex. Tapping requires efficient skills to ensure proper incision, so that it does not damage the tree and enables higher extraction of latex.

It may not seem like a very exciting job, given the slow process and subsequently dwindling earnings, which have made it a less lucrative career.

Kerala, once home to the largest rubber tappers in the country, is now facing an acute shortage of skilled workers to continue the profession. Farmers who were earlier involved in the trade are finding it difficult to convince the younger generation to follow in their footsteps.

 “A good percentage of the current workforce working as rubber tappers are trained by their predecessors and have no formal training. I believe formal technical training is required alongside training on new technologies, which not only helps them increase their yield but also enables alternative revenue streams,” explained Mohammad.

He elaborated that it is not just about rubber tapping; farmers also need to see the business potential in their profession. They could look at intercropping, beekeeping and other revenue streams.

“India is facing a significant crunch in terms of feed on plantations. Workers are migrating for better opportunities and leaving the rubber industry. Many of them, for example in Kerala, are going abroad for better earning prospects,” added Mohammad.

On one hand, there is labour shortage and drop in yield of natural rubber, but on the other hand, the demand for natural rubber globally, including in India, is scaling new heights. This raises the question: if there is high demand, why are rubber tappers not reaping the benefits?

Climate change, natural disasters and the average price of natural rubber being below expectations have been hurting farmers. For instance, the peak price of natural rubber was INR 20,805 per 100 kg in 2011-12; at present, it is INR 18,800 per 100 kg (as of 26 December 2024). This means that farmers’ incomes have not kept up with inflation, pushing them to explore other revenue streams.

Mechanised solutions do exist, but the high acquisition costs, as well as an ageing population hesitant to continue the profession, have resulted in rubber tapping remaining heavily dependent on skilled workers.

RCPSDC’S ROLE

“The Government of India is doing its part. The Rubber Board, for instance, is working in tappable areas, and several programmes are run with RCPSDC for training people who can work on plantations. However, there is also a transition towards synthetic rubber in India,” he shared.

Mohammad explained that the import of synthetic rubber is increasing. Manufacturers in the MSME space are actively forging or finding new technologies to switch from natural rubber to synthetic rubber.

“The government is working to protect and enrich the workforce and natural rubber in the country and would definitely want India to continue with it and ensure it does not fall below a certain threshold. However, a significant influx of synthetic rubber is also happening. There has to be a balance, and there’s no immediate answer or figure to it. In the last five years alone, we might have trained more than 25,000 to 30,000 workers in Tamil Nadu alone,” he elaborated.

Regional training is also being conducted across the country by the association based on curricula aligned with the National Occupational Standards (NOS). The curricula ensure that students acquire specific skills required for a particular job role as per the guidelines laid down by the industry; in this case, rubber.

He believes that in addition to skilling/upskilling talents, a lot of vocational training is being conducted through educational institutions such as polytechnics.

“Skill councils like RCPSDC also have courses targeted at people who have not even cleared their secondary education. I think one area we should strengthen our focus on is counselling. It is very important for parents as well as students. Candidates and students are under pressure; they are young and usually opt for things that their parents suggest or that they see happening around them (peer pressure),” said Mohammad.

According to him, while there is a lot of glamour around electronics and engineering, proper education and awareness about career progression opportunities in the rubber, polymer or chemical industries should be prioritised.

“Counselling is very important. This is what needs to be addressed by everyone, including industry mentorship programmes. We need to have alumni from these training programmes who can share success stories with newcomers,” Mohammad added.

 The executive believes that people are not recognising the immense opportunity to upscale, increase productivity and enhance efficiency because, in the end, everything boils down to the workforce.

An organisation is only as strong as its weakest link. For instance, on the shop floor, if a person is not trained, that is how strong a company is, he stated. And in the global competitive environment, it is very important to acknowledge that people need training and upskilling to ensure they can contribute not only efficiently but also improve their productivity over time.

“If you are planning to take on these futuristic or emerging roles around sustainability and security, then you need to have trained people, right from the ground level upwards,” concluded Mohammad.

JK Tyre & Industries is aiming for double-digit revenue growth in FY2026, outpacing its forecast for single-digit expansion across the broader tyre industry. Managing Director Anshuman Singhania outlined the company’s ambitions during a post-earnings media call, underscoring confidence in demand recovery and strategic market positioning.

Q1 Performance Overview

For the first quarter of FY2026, JK Tyre reported revenue of INR 38.91 billion, with EBITDA at INR 4.24 billion, translating to a margin of 10 percent. Net profit stood at ₹1.55 billion — up 51 percent compared with the previous quarter, but down 21 percent YoY.

Singhania attributed the annual decline to muted original equipment (OE) demand, particularly in truck and bus radial (TBR) volumes, alongside higher raw material costs compared to the same period last year. He also highlighted an adverse impact from the company’s Tornel business in Mexico, which faced uncertainty due to tariffs on exports from Mexico to the United States, dampening volumes.

Resilience in Domestic and Export Markets

Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said, “The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11 percent YoY, as contributed by a steady demand for our products in both replacement as well as OE segments, underscoring JK Tyre’s continued focus on core growth drivers and strengthening market presence.”

“Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed a strong traction both on QoQ and YoY basis, signifying pull for our products and enhanced brand perception in the global markets,” said Dr Singhania.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Regarding trade tensions between India and the US, Anshuman Singhania noted that exports from India to the US account for only around 3 percent of JK Tyre’s revenue and could be redirected to markets such as Mexico, Latin America, Brazil and the UAE if required. With zero tariffs in Mexico, JK Tyre can utilise its production base there to meet demand for both passenger and truck radials. The EU and UK, where JK Tyre holds a strong position in the TBR segment, also remain tariff-free.

Capacity expansion

The company’s INR 14 billion capital expenditure plan is progressing on schedule, covering passenger car radial (PCR), TBR and all-steel truck radial projects. For the year, investment is expected to total INR 9-10 billion, aimed at boosting production capacity by 30-40 percent.

A key driver for future profitability is the shift towards premium products. The share of 16-inch and above passenger car tyres in JK Tyre’s portfolio has grown from 18 percent in FY2020 to 25 percent in FY2025, with a target of 40-45 percent over the next two to three years. This change is being fuelled by rising SUV sales, larger rim sizes in entry-level cars and strong export demand.

The company has also developed a complete range of tyres for electric vehicles, spanning commercial truck radials, bus tyres, passenger radials and two/three-wheeler tyres  Major OEMs such as Ashok Leyland’s Switch Mobility and Tata Motors are sourcing these products, including for last-mile connectivity vehicles and newly launched EV buses.

Market Outlook

The replacement market has been a bright spot, with passenger radial volumes up 32 percent year-on-year and truck radial volumes growing in the high single digits. JK Tyre expects demand to strengthen in the second half of FY2026, supported by infrastructure development, a favourable monsoon, potential interest rate cuts, and improved consumer liquidity.

Anshuman Singhania stressed that the worst of raw material price pressures appear to be over, paving the way for margin improvement as the product mix shifts and capacity utilisation rises. With the small car segment’s gradual decline offset by growth in premium categories, JK Tyre remains confident in sustaining momentum.

“Overall, India is poised for growth,” Singhania concluded. “We see positives across the board — from infrastructure push to evolving consumer preferences — and we are well-positioned to capitalise on these trends.”

Yokohama Rubber has begun supplying its ADVAN V61 tyres as original equipment for BYD’s new SEALION 6 DM-i SUV, marking the Japanese manufacturer’s first OE partnership with the Chinese carmaker.

The SEALION 6 DM-i, a plug-in hybrid SUV launched by BYD Company Ltd. this July, is being factory-fitted with 235/50R19 103V size ADVAN V61 tyres. The announcement comes as Yokohama seeks to grow its footprint in China’s fast-evolving electric and hybrid vehicle market.

The ADVAN V61 is part of Yokohama’s global flagship ADVAN range and is positioned as a premium SUV tyre. The company said the tyre “offers ADVAN’s hallmark premium-grade driving performance, along with a high-level balance of fuel and energy efficiency, handling stability, and quietness, achieving both comfortable city driving and long-distance touring for heavyweight SUVs.”

The SEALION 6 DM-i combines a 1.5-litre naturally aspirated petrol engine producing up to 74kW with an electric motor generating 160kW. Buyers can choose between 18.3 kWh and 26.6 kWh blade battery options, offering electric driving ranges of 93km and 130km, respectively. All models come equipped with advanced driver assistance systems as standard, and the exterior design draws inspiration from the concept of “ocean aesthetics.”

Sumitomo Rubber Industries Ltd said its subsidiary Dunlop Tyre Japan Ltd has completed a Japan Fair Trade Commission investigation into automotive all-season tyre sales after the regulator approved a commitment plan submitted by the unit.

The probe, which examined the subsidiary’s sales practices, concluded without the commission identifying any violation of Japan’s Antimonopoly Act, Sumitomo Rubber said in a statement.

Under Japan’s commitment procedures, companies can submit plans to address potential competition concerns without admitting wrongdoing, allowing them to resolve investigations while avoiding formal sanctions.

"We deeply apologise for the great trouble and anxiety that we have caused to all concerned, including our clients and business partners,” the tyre maker said.

Belgian steel wire maker Bekaert reported resilient first-half 2025 earnings as strong cash generation and cost control offset softer sales, but warned that tariffs and currency pressures are weighing on demand.

The company posted consolidated sales of €1.9 billion, down 5.2 percent year-on-year, with volumes declining 2.6 percent and price/mix effects stripping out a further 2.2 percent. Underlying EBIT slipped 16.2 percent to €171 million, delivering a margin of 8.8 percent compared with 9.9 percent a year earlier.

Free cash flow surged to €123 million from €43 million in the prior-year period, driven by a €135 million reduction in working capital and €21 million in cost savings as the company continued to streamline operations and rein in capex. Net debt fell to €327 million from €399 million despite a continuing €200 million share buyback programme, €74 million of which has been completed.

“We have continued to focus on what we can control best – cash flow and costs - and have significantly reduced overheads and working capital in H1 2025,” chief executive Yves Kerstens said. “Equally, I am very pleased with the hard work of our teams fighting for volumes in the current challenging markets.”

He added: “We are also taking further steps to make our business units more autonomous and agile. Therefore, I am very confident that we will come out of the current business environment stronger and more cost competitive than ever before.”

Bekaert said volumes were particularly strong in its Steel Wire Solutions and Rubber Reinforcement divisions in the United States and China, while European and Latin American demand lagged. Its Brazilian joint ventures delivered €24 million in net profit share, up from €20 million a year ago.

However, the group cautioned that growing trade tensions – including a rise in US steel tariffs from 25 percent to 50 percent – and the weakening of the US dollar and Chinese yuan against the euro were eroding pricing power and softening orders.

“Following a period of resilience in Q2, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” Bekaert said.

The company now expects slightly lower full-year 2025 sales on a like-for-like basis, with an underlying EBIT margin of between 8.0 percent and 8.5 percent, down from 8.8 percent in the first half.