In an exclusive interaction with SupportBiz, Niraj Thakkar, Director of Precision Rubber Industries shared an overview on the country’s rubber products industry.
Being the second generation in the business, he also spoke about his plans and directions for next level growth.
The edited excerpts:
How is the rubber industry in India evolving?
There are several trends that are influencing the market. Primarily, the advent of international business opportunity is driven purely by quality. So there is a great opportunity in this market if the organization offers best quality.
What is the key vertical of Precision Rubber?
We have expertise in making rubber components, which are used in garment and textile manufacturing. It is a very niche market. But over a period of couple of decades, we have developed credibility for our products both nationally and internationally.
Which are the international markets you cater to? How is your experience while facing the Chinese competition?
We are doing business with some of the most advanced companies in Germany and other countries in Europe and the US. We do not face any competition from the Chinese companies because our customers understand the quality of our products.
Being the second generation entrepreneur, what is your plan for achieving next level growth for your business?
We are growing decently with a double digit growth rate. We are focusing on the domestic market, as well as the exports; hence business is coming from both sides. However, in terms of next level growth, we are heavily investing in research and development. We also have testing facility for our products. Before sending our products to the customers, we ensure proper testing. We are also adding our capacities for additional production. We will be adding value of 20 per cent year on year.
What are the key challenges that this industry is facing in India?
Rubber products manufacturers in India are facing huge challenge in controlling the cost of production. The raw material cost has increased many-folds and it becomes very difficult to ensure best quality while producing the end product. The inflated cost of raw material is mainly because of the dependence on imports. Secondly, accessing capital is a common challenge which our industry is also facing.