2.1 INDUSTRY PROFILE

Rubberized coir mattress segment is a high competitive. This segment is having more

than 50 % of the market share in the mattress industry. Rubberized coir mattress industry

has more than 45 odd brands and over 200 different models. The major players in the

industry are Kurl – on, Duroflex, Sulfex, Rubco and Sunidra.

The birth of rubberized Coir Industry is quite amusing and interesting. Prior to the year

1960 people hardly had any idea of this novel and high utility product. In those days the

world famous car manufactures, M.S. Volks Wagon of Germany, were using horse hair

as cushion filling material for their car seats. As their production increased from 100 cars

per day to 300 cars per day, there was dearth of this raw material. This necessitated a

suitable alternative product for rubberization and which would suit to their specifications,

after various alternative tried like sisal fiber, jute fiber, the coir fiber was decidedly found

to be the best. This was the beginning of Rubberized coir industry. The Indian rubberized

Coir Industry is nearly five decades old. It was in 1964 that M/s/ Bharat Motors of

Chennai established its manufacturing unit. Many other units came up during sixties

itself. After nearly one decade of its introduction. Government of India recognized

Rubberized coir mattress as a healthy and hygienic product. Slowly many state

Governments recognized rubberized coir as “Wealth from waste” and advocated the use

of rubberized coir mattress in various hospitals, health clinics etc.

Other types of Mattress Are

Cotton Mattress

Form Mattress

Spring Mattress

Cotton Mattress

The cotton mattress mainly targets lower income group. This mattress is priced very low.

The cotton mattress industry has a market share of 50%.

Form Mattress

Form mattress segment comes at next place after rubberized coir mattress industry. This

industry having a market share of 9 to 10% this industry mainly target consumer

belonging to upper income and upper middle income group. The major players in form

industry are MM form, sleep well.

Spring MATTRESS

The industry target consumers belonging to the upper income group. The major players in

spring industry are spring well, Rubco, Kurl – on etc.

Growth During Last 4 Decades

From a handful of manufactures, during early 60s this product got some market

recognition in early 70s. In the next 3 decades over one hundred manufactures have

entered rubberized coir field. Today rubberized coir products are increasingly used in

many industries notably in transport industry like railways and buses, packaging industry

(Pharmaceuticals, heavy engineering, electronic etc), hospitals theatres and auditorium.

The basic raw material for Rubberized Coir Industry is the brown coir fiber and the

natural latex rubber. Over the last decade, the brown coir sector has registered a

tremendous growth.

WORLD SCENARIO

There are mainly three major players in the industry and are as follows

Sealy Corporation

Sealy Corporation is the major mattress manufacturer and it got the name from the place

it started, Sealy, Texas.

King Coil

Founded in 1988, Koil has over a century of experience crafting high – quality,

affordable bedding both in United States and throughout the world.

Simmons Bedding Company

Simmon Bedding Company is a major manufacture of mattress and is one of the oldest

companies in the United States, for over 152 years.

INDIAN SCENARIO

The rubberized coir mattress market of India is estimated to be highly fragmented with

little brand loyalty. The major players in the rubberized coir mattress industry in India

are:

Kurlon Limited

Kurlon Limited, a Manipal group company came into existence in 1962. Kurlon

Limited is the brand leader in the mattress industry and has acquired major market share

in the branded mattress segment.

Duroflex

Duroflex is the largest exporter of sleep and comfort products from India started its

operations in 1963. Now the company has got three manufacturing units for rubberized

coir mattress.

Century Mattress

Century fiber plates Pvt. Ltd. Started its rubberized coir plant at Hyderabad in 1988 under

the brand name “Century”. Century is the first mattress manufacturer with ISO – 9001 -

2000 series and ISI Certification.

STATE SCENARIO

In India, the coir industry has developed very well especially in Kerala where they

produce ‘Retted Fiber’. Green husks of coconut are immersed in the salty back waters for

10 to 12 months. The main players in rubberized coir mattress industry are:

Duroflex

Duroflex is the leading mattress manufacturer in India which started its operations in

1963. Duroflex is the largest exporter of sleep and comfort products from India

Eastern Sunidra

Eastern sunidra Mattresses pvt. Ltd.. Is a part of Kerala’s renowned business

conglomerate, the Eastern Group of Companies.

Rubco

Kerala State Rubber Co-operative Limited (Rubco) was set up in the year 1997. Rubco

was incepted with prime objective of effectively utilizing the abundant rubber resource of

Kerala.

The Indian coir industry has a diversified structure, reflective of the board ranges of raw

materials and value – added products involved. The industry provides at least part – time

employment to an estimated 40,000 persons. At the beginning of the value chain are

approximately 300 fibers milers with usually less than 10 employees and an estimated

500 supplies of coir pith, or dust. Their output is either purchased for direct export or

undergoes manufacturing for twine, mats and brushes, rubberized coir mattresses and

pots, geo textiles and pith products. Products, which are technically more demanding or

better, suited for mass production, such as high – end twine, brushes, rubberized coir and

erosion control blankets are predominantly produced in larger facilities, employing more

persons. Now in rubberized coir mattress industry the competition is more and more, the

demand of the product is in growth stage. So only the quality mattress industry can

survive in the competitive world.

2.2 COMPANY PROFILE

Kerala state rubber Co-operative limited (RUBCO), is situated in Kannur; Kerala

State, India, is promoted by the provisional Government of Kerala to promote Rubber

based industries in this part of the country.

Today India enjoys 4th position in the production of natural Rubber (NR) in the

world. Among the total production, small state of Kerala contributes 92%. So rubber has

become the backbone of our economy. Due to the bad impact of globalization the overall

market of rubber fell down Kerala, that time instability in price of rubber was one of the

major problem that farmers facing in the market. The farmers were no getting fair price

for their effort. But this problem has come to an end since 1997, because The Kerala

State Rubber Co-operative Ltd. (RUBCO) came into existence in this year on the purpose

of exploring the infinite possibilities of rubber. Since its inception in 1997, RUBCO has

traveled long. It has entered into various Rubber and Rubber wood based industries like

Hawai Chappel with reputed Malaysian Technology, Cycle Tyres and Tubes, Rubberized

Coir Mattress, conventional and procured tread rubber, block Rubber (SMR), Pale Latex

Crepe (PLC), casual shoes etc.

VISION AND MISSION

For last half decade with a vision to become a global leader in the production of Natural

rubber products and innovative product development, RUBCO adopts the best and latest

process in the production.

“RUBCO means Rubber and Rubber means RUBCO”

Today, from a single unit company, RUBCO has grown into a Rs. 280 Crore

Conglomerate with well diversified operations. Divisions operating under Rubco Group

are involved in a wide range of business such as footwear, furniture, cycle Tyre and

Tube, Rubberized Coir Mattress and Natural Rubber. Rubco is the largest Exporter of

Natural Rubber to all leading Rubber based companies in India. Rubco is led by a

professional management team and supported by a committed workforce. Rubco is now

poised to enter a high growth phase with several initiatives that will take the Group on

path Expansion and Diversification.

OBJECTIVE SOCIAL

To ensure a steady market with remunerative price to rubber growers for their

natural rubber

Welfare of rubber grower particularly of small and marginal segment

OBJECTIVE COMMERCIAL

To Promote, establish, maintain and manage the business related to manufacture

and sale of tyres, both radial and bias for Heavy Vehicles, LCV, Passenger Cars and other

four wheelers.

Tyres for three wheelers and two wheelers

Purchase and sale of rubber in any form such as Latex, Sheets, Crumbs and Laces

Manufacturing of Rubber Wood based on products

GROWTH AND DEVELOPMENT OF ORGANIZATION

Kerala State Rubber Co-operative Ltd (RUBCO) has in a short span, redefined the way

the cooperative sector functions and set the pace for the co-operative Movement in

Kerala today. Rubco was set up in the year 1997 with the objective of effectively utilizing

the abundantly available rubber resources of Kerala. Today, from a single unit company,

Rubco has grown in top an Rs.280 crore conglomerate with well diversified operations

and market presence extending beyond the boundaries of Kerala. Rubco manufactures

and markets variety of products from footwear to furniture, from Cycle tyre tube and

tyres to mattress. Rubco has also entered into technological alliances with world leader in

the respective field; sourcing from them state –of –art technology. Substantial

investments in modern manufacturing facilities, coupled with well organized marketing

activities, have seen Rubco’s products earn a reputation for quality and significant market

shares.

Rubco is largest exporter of natural rubber in the country today. Even in the

domestic market, Rubco is a major supplier of natural rubber to all leading Tyre

combines in India. Rubco is also a Government intervention agency towards market

stabilization and has been serving the farming community directly and indirectly to get

reasonable price, arresting drastic fall in price during peak production periods; natural

rubber trading has being a blend of social obligation and commercial practicability led by

a professional management team and ably supported by a committed workforce, Rubco is

now poised to enter a high growth phase, with several new initiatives that will take the

group on a path of expansion and diversification rubber holds immense potential, Rubco

hopes to create opportunities and bring Industrial progress to a land that accounts for

92% of the country’s natural rubber production.

ADMINISTRATION AND MANAGEMENT

The Administration and management of RUBCo vests in the Board of Directors

consisting of fifteen members as follows:

Nine directors elected by ‘A’ class shareholders from among themselves

Two directors elected by ‘B’ class shareholders from among themselves.

Four ex – officio directors viz

Register of cooperative societies, Kerala

Chairman of the Indian Rubber Board

President, Kerala State Cooperative Bank Ltd.

Managing Director, Rubco

CHAIRMAN : VASAVAN V.N

He is a veteran Co-operator and is holding various positions as Chairman in Central and

state level cooperative organization.

MANAGING DIRECTOR : Mr. Jacob D. Mathew

He has more than 25 years of experience as CEO in corporate sector.

OTHER DIRECTORS

1. Sri. M.V. Koman Nambiar

2. Sri. Panneri Mukundan

3. Sri George Mathew

4. Sri U. Azzez

5. Sri N. Chandran

6. Sri K. Manoharan

7. Sri V.P. Saseendran

8. Sri K.S. Gopi

9. Smt Satyabhama K.N.

10. Smi Jacob D. Mathew

11. The Chairman Rubber Board, Kottayam

12. The Registrar of Cooperative societies, TVM

13. The President, Kerala State Cooperative Bank, Trivandrum

PROMOTERS

Government of Kerala along with Indian Rubber Board and some district and primary

Cooperative Banks in Kerala are the promoters of RUBCO. Government of Kerala holds

the majority of the shares. The top share holder are Government of Kerala, Rubber

Board, Kottayam District Cooperative Bank,Ernakulam District Cooperative Bank,

Palakkad District Cooperative Bank, Kannur District Cooperative Bank, Thrissur District

Cooperative Bank, Trivandrum District Cooperative Bank and Kollam District

Cooperative Bank.

MILTESTIONS OF RUBCO

9th June 1997 Registered RUBCO, Commenced

operations in October in the year same year

15th October 1997 Commenced procurement of rubber

17th February 1998 Commenced procurement of rubber from

farmers through depots

28th May 1998 Foundation stone laid for foot wear

manufacturing factory and thread rubber

manufacturing unit at Koothparambu,

Vaiuavelicham Industrial Centre.

June 1998 Exported rubber to Singapore & Nepal

July 1998 RUBCo takes over the reins of

Sreekandapuram Latex (Pvt). Ltd

11th February 1999 Entred in to an important agreement on

technological collaboration for

manufactures of ultra light weight footwear

with H-tech sectors

2nd March 1999 Foundation stone laid for P.L.C. factory in

Sreekandapuram

23rd June 1999 Signed significant technical collaboration

agreement with long

Huat Berhad of Malaysia for the

processing of wood and furniture that

13th August 1999 Rubco Footwear hit the market

19th October 1999 Foundation Stone laid for the rubber wood

processing and furnituring unit

30th October 1999 Foundation stone laid for Rubberized coir

foam Factory at Pampady , Kottayam

9th December 1999 Entered into an agreement with M/s Tog

Teik (Pvt) Ltd of Singapore to Export

15000 Metric tons of rubber first time from

India.

8th March 2000 Entered in to a technical collaboration with

Pancarwarna management and Consulting

service. Malaysia for Manufacture of casual

of shoes.

6th May 2000 Foundation stone laid for casual shoe

project

1st January 2001 Rubco huat wood furniture factory

commenced commercial production

16th June 2001 Incorporation of RUBCO tire India Pvt. Ltd

20th April 2002 Started activities of coconut complex for

the production of virgin coconut oil and

ancillary products

6th December 2002 Started RUBCO RUFAS Scheme

(collection of natural rubber latex from

farmers)

20th December 2002 Expression of interest submitted to the

government of Kerala for setting unit for

the production of rubber components for

automobiles and with a capital. Outlay of

20 million USD

23rd January 2003 Signed MOU with Coconut Pacific Pvt. Ltd

of Australia for the production of Coconut

Virgin oil

PRESENT STATUS OF THE ORGANIZATION

Rubco is a well diversified industrial conglomerate with a strong presence in the rubber

based industrial segment. Rubco was formed with the prime objective of utilizing

abundantly available rubber resources of Kerala. In a short span of time Rubco has

successfully introduced a wide range of fast moving rubber based products. Today Rubco

group of companies has established new factories of Rubber Footwear, Cycle Tyres &

Tubes, Rubberized coir mattress, processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION-Making Impressive Strided

Rubco’s footwear division manufactures a range of quality casual rubber Footwear. The

plant employs sophisticated machinery and has production capacity of 3.6 million pair’s

annum. The product range includes sturdy regular and comfy ultra-light (manufactured

under the renewed Malaysian technology), perfect blend, quality raw material and

superior manufacturing methods make the Rubco range second to none. In the short span,

Rubco has made its presence felt in fiercely competitive markets on account of the

excellent quality of its products. This division also manufactures honey comb rubber

mats in fascinating colors.

Rubco’s footwear range presently comprises of three leading brands Rubco Hawaii,

Rubco Rainbow and Rubco Classic, Rubco Hawaii has durable flexi strap, soft insoles

and power grip technology, offering true value for money, Rubco Rainbow is a colorful

range of ultra light casual footwear with cushioned insoles and extra soft straps. Rubco

classic is a top quality Hawaii that provides excellent wearing comfort and durability.

RUBCO CYCLE TYPES& TUBE DIVISION- On the Fast Track

Rubco Cycle Types & Tube division has already gone on stream manufacturing a range

of sturdy, technologically superior cycle tyres and tubes suitable for rough terrains and

track. The production facility spread over 25000 sq.ft. Is equipped with modern imported

machinery including Taiwan made CNC mould which imparts better finish to the tyre.

The plant has an annual installed capacity of 3 million tyre and tube. Rubco’s range of

cycle tyres and tubes has advanced features such as high non skid depth improved wet-

skid resistance. High tensile copper coated steel bead wires add durability and rim

holding capacity. The entire range of cycle tyres is being exported to the U.K.

RUBCO HUAT WOODS PVT.LTD- Design on the Future.

A joint venture with Long Huat Group Berhard of Malaysia, a world leader in rubber

wood furniture, this division manufactures a range of elegant furniture and quality edge-

geld panels using the eco-friendly rubber wood. Rubber wood properly treated and

processed, is emerging as the deal substitute to rain forest wood, as it offers the same

strength, durability and finish as the latter, and also helps preserve the environment. The

furniture manufacturing plant has a processing capacity of 40.000 metric tons per year.

The products are being exported to UK, USA, Japan and many other countries across the

globe. Rub wood, the furniture range, comprise of dining tables and chairs, designer

wardrobes, futons kitchen cabinets and computer and office furniture and is available in

the choice of designs and finish. The edge-geld panels manufactured using sophisticated

finger jointing technology, are easy to saw, drill, bore on stain and have excellent nail-

holding capacity.

RUBCO SREEKANDAPURAM LATEX PVT. LTD- Tapping new opportunities.

Rubco Sreekandapuram Latex Pvt. Ltd became a part of the Rubco group when a loss-

making unit was taken over by Rubco by acquiring 65% of its shares. In a short span of

time, by sound backroom operations unit was turned around and is today posting profits.

The company manufactures Block Rubber ( ISNR) and pale Latex Crepe( PLC).Rubco is

in the process of expanding the scope of operations of this unit in line with market trends.

RUBCO SALES INTERNATIONAL LTD- Crafting Winning strategies

Rubco Sales International (RSIL) is a public Ltd. Company promoted by Rubco to

spearhead the sales and the marketing activities for Rubco’s entire range of product in the

domestic and international markets. Within a short span of its inception, RSIL could

effectively develop a deft, competent network domestically as well as globally and

undertaken the successful launch of Rubco’s product. Apart from gathering market

information and monitoring the supply chain system, this division is also responsible for

nurturing and sustaining excellent customer relations.

VIRGIN COCONUT OIL

The project envisages establishment of 100 co- operative coconuts processing units in

kerala. To start with, this will be increased to 200 units subsequently for the production

of coconut oil directly from green coconut nuts without going through conventional

copra or milk route. The process methodology is commonly known as Direct Micro

Expelling (DME) Technology. The centralized packing unit is at Thalassery in Kannur

District. The place is accessible by road and rail from all other parts of the country. The

place is blessed with all infrastructure facilities for setting of such a project.

Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling Technology is

of very high quality and commands a premium price because of its use as a health

product. This is a highly sought after item as a health product and is used as massage oil

and also as baby oil for massaging small kids. Coconut oil is a much sought after product

for edible use in the households and non-edible use as hair oil and as cosmetic and

industrial oil.

The project also proposed to set up a centralized packing cum marketing unit for Virgin

coconut oil manufacturing the cooperative processing units.

FUTURE OF THE ORGANIZATION:

The main future plans and the progressing proposals of Rubco group are:

RUBCO TYRES INDIA(PVT) LIMITED

Rubco is in the process of setting up a project for the manufacture of tyres and tubes for

two and three wheelers, passenger cars, heavy duty trucks and light commercial vehicles.

The ground work is underway and the division will be launched in the near future. It will

have a production capacity of 6 million tyres and tubes annually.

Location:

The project will be located in the proposed industrial growth centre being developed at

Valiyavelicham, about 35 Kms from Kannur city.

Capacity and Product Mix:

The plant will have a 2.33 million numbers of radial and bias tyres per annum

which 75 million would be utilized for the truck drivers, 1.5 million for light type

passenger’s tyre and balance would be for two or three wheelers.

RUBCO CASUAL SHOE PROJECT

Investment: 96 million

Employment:600 persons

Location :Thalassery, Kannur district, Kerala

Capacity:1.5 million pair per annum. 75% of the production is earmarked for export.

RUBCO MATTRESS DIVISION

Rubco’s rubberized coir mattress division, at Poothakuzhy near Pampady, Kottayam

which started its operation in 2001, is an ambitious project realized with an investment of

260 million. The manufacturing plants among the very few in the country to employ

advanced Austrian machinery, sourced from DOA-Austria a technology leader in

rubberizes mattress.

Rubco’s rubberized coir mattress division is an ambitious project realized with an

investment of Rs. 280 Millions. The manufacturing plant is among very few in the

country to employ advanced Austrian machinery, sourced from DOA, Austria.

Rubco rubberized coir mattresses are scientifically designed to provide proper back

support without compromising on comfort. By virtue of their ingenious design and

constructing and the unique 3-D technology, Rubco rubberized mattresses are very

comfortable and ensure a healthy and restful sleep. Rubco rubberized coir mattresses are

crafted from the finest materials and finished to perfection in one of India’s most modern

manufacturing plants.

The furnishing section is equipped with most modern computer controlled machines

imported from U.K and U.S.A. Strict quality control is observed at every stage of

production to ensure that Rubco rubberized coir mattress always measure to the highest

quality.

A unique of the main sheeting plant is that it facilities Vertical fiber Orientation, a

proceed that result in a deeper penetration of latex in to the sheet, making it very elastic.

This provides the mattress with uniform density throughout and an extra cushioning

effect.

The plant has an annual installed capacity of 4.8 million units, consisting of mattress and

other rubberized coir products.

THE UNIQUE VFO ADVANTAGE

Rubco rubberized coir mattresses are manufactured using the machinery as well as

technology from DOA sheet forming machine has the unique advantage of producing

uniform density vertical oriented fiber sheets. Vertical Fiber Orientation (VFO) ensures

extra cushioning effect and high durability in the mattresses. Further, considerable sheet

thickness and densities varying from 80kgs to 250kgs can be obtained.

2.3 PRODUCT PROFILE OF RUBCO RCM DIVISION

Rubco manufactures a wide range of mattresses catering to diverse segments of the

market. The range consists of:

a) HEAVEN

Premium model that provides unmatched sleeping comfort is available in 3 inch and

4inch thickness. Also available in customized dimensions and thickness for large

quantities (100 and above)

b) HEAVEN PLUS

A luxury model that is elegant as well as comfortable, which is available in 5 inch

thickness.

c) HI-TECH

A hi- end model with an accent on finish and luxury available in 5 inch thickness.

d) HITECH PILLOW TOP

Superior quality mattresses finished to world class standard is available in 7 inch

thickness.

e) DOSTH

An economy model that offers true value for money is available in 2 and 3 inches.

f) SAFAL

A regular mattress that combines comfort and durability is available in 3 and 4 inches

(g) YATHRI

An elegant mattress meant for hotels, Tourist resorts etc. Yathri combines superior

sleeping comforts with perfect back support, enabling a relaxed healthy sleep. Layer upon

layer of rubberized coir and latex enhance the comfort while soft and elegant quilting

adds a luxurious feel for use in hospitals is available in 3 & 4 inch thickness.

h) HEAL

A quality product suitable for use in hospitals. Available in 3 inch and 4 inch thickness.

i) RELIEF

A special mattress scientifically designed for orthopedic patients. Available in 5 inch

thickness.

(J) 9.30 PM

Economy model. Available in 3 inch and 4 inch thickness.

OTHER PRODUCTS FROM FACTORY

i. Rubberized coir block

ii. Coir block

iii. Cushions

iv. Soft touch pillows

ORGANIZATIONAL GOALS AND OBJECTIVES

GOALS

The organizational goal of Rubco –RCM division is to make Rubco a leader in the

market of rubberized coir mattress.

OBJECTIVES

1. Maximize the capacity utilization of the existing plant

2. To increase the profitability of the company and to maximize generation of

surplus to enable Rubco to finance its diversified projects.

3. To execute production on time, in accordance with the market demand of the

product and to make them available to the distributors.

4. To maintain and improve the existing cordial relationship between employees

and management by mutual interactions levels and further improve efficiency of

executives, supervisors to meet future challenges.

5. To ensure strict quality control and ISI standards of the product to compete in the

global market.

6. To maximize the cost reduction.

7. To introduce new varieties of mattress so as to increase the range of mattress

catering to the diverse segment of the market.

PRESENT STATUS OF THE ORGANISATION

RUBCO is a well diversified industrial conglomerate with a strong presence in the rubber

based industrial segment. Rubco was formed with a prime objective of utilizing

abundantly available rubber resource of Kerala. In a short span of time Rubco has

successfully introduced a wide range of fast moving rubber based products. Today rubco

group has factories of rubber footwear, cycle tyre and tube, rubberized coir mattress,

processed rubber and rubber coir mats.