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MARKET SURVEY ON RUBBER PRODUCTS

(HS NO.40)

Product Description:

Ethiopian imports include products falling under Chapter (HS No.40:1 to 40:17): Natural rubber, Balata, Gutta-percha guayule, chicle, Synthetic rubber and factice derived forms of oils, Latex, Reclaimed rubber in primary forms or in plates, sheets or strip, Scrap of rubber, Compounded rubber, unvulcanised in primary forms, Vulcanised rubber thread and cord, Tubes, Pipes and hoses, Conveyor or transmission belts or belting, New pneumatic tyres, Retreaded tyres, Used pneumatic tyres, Inner tubes, Gloves, Floor coverings and mats, erasers, Gaskets, washers and other seals, auto parts, Hard rubber, etc.

Production:

The domestic production of rubber products is limited to tyres, shoes and rubber products for industrial purpose.  Currently there are about four medium sized manufacturing units.  The only tyre factory in Ethiopia, Matador Addis Tyre S.Co., has completed a US$13.8 million expansion which includes the launch of Radial brand tyres on February 20, 2006.  Formerly Addis Tyre, the company 90 per cent owned by Government, was established in 1972, it merged with the Slovak Multi National Tyre in April 2004, which now owns 61 percent of the shares in the company.  The company used to produce 230,000 tyres annually but the expansion has raised the no to 370,000 a year.  The company also has a 20 ht rubber plantation in Bebeka in the Southern Nations and Nationalities People’s Regional State.

Most major Indian companies have representation in Ethiopian market. These include MRF, JK Tyres, Apollo Tyres, Vikrant Tyres, Birla Tyres, Ceat, Super King Tyre, etc.  Major international tyre companies also have a presence in Ethiopia.

Ethiopian Import’s:

In the last three years, Ethiopian imports of rubber products are increasing.  While in 2004, Ethiopian import was US$58.5 million; it increased to US$74.1 million in 2005 showing an increase of 26.6% and in 2006, it increased by 27.4% over 2005.

Details of Ethiopian imports during the last five years are given below:-

Major Exporting Countries to Ethiopia (CIF Value)

China, Japan and India are the major exporting countries supplying rubber goods to Ethiopia.  Their market share in Ethiopian imports was 46% (China: 26.2%, Japan: 10.5% and India: 9.3%).  The other major exporting countries with their share area: Korea, Republic (6.5%), Indonesia (5.8%), UAE (5.3%), Italy (3.5%), Thailand (2.8%), USA (2.6%), Russia (2.2%), Germany (2%) and Belgium (1.9%) in that order.

Market Share in Ethiopian Imports: (Year 2005)

India’s export:

India’s export in this sector cover Natural rubber in primary forms, or in plates, Rubber solutions, Vulcanized rubber thread and cord, Tubes, Pipes and Hoses of vulcanized rubber with fittings, Conveyor belts, V-belts, Fan-belts, Timing belt, Transmission belts, Rubber Band, Eraser, Oil ring and oil seal, Rubber profile, New Pneumatic Tyres, Retreaded tyres, Bicycle tyre, Tractor Tyre, Interchangeable tyre treads and flaps, Butyl Automotive Inner tubes with valve, Gloves, Auto parts, Floor coverings and mats, hard rubber, etc.

Source: Ethiopian Central Statistics Authority

There is a continuing increasing trend in Indian export of Rubber products to Ethiopia.  While in 2004, Indian export was US$5.3 million, it increased to US$6.9 million in 2005 showing an increase of 30.2%.  The year 2006 has shown a further increase of 30.2% over 2005 and accounted 12.2% of the total rubber products into the country.

The graph below would show the continuous increasing trend of India’s export of rubber products for the period 2002-2006.

According to the information obtained from the Directorate General of Commercial Intelligence and Statistics, following are the figures of Indian exports of Rubber products to Ethiopia.         

FOB VALUE IN LAKH RUPEES

Source: Directorate General of Commercial Intelligence & Statistics, Kolkata

Analyzing the above figures, it is noted that Indian exports of Rubber products to Ethiopia have an increasing trend for the last five years. In 2006-07, Rubber products are the 8^th largest export item from India to Ethiopia.

Custom Duties:

Industrial Association:

The name, address with other details of the Industrial Association dealing with Rubber products is given below:-

1. Mr. Mohammed Nursaney, President,

Ethiopian Manufacturing Industries Association,

P.O.BOX 2218, Addis Ababa(ETHIOPIA)

E-mail: glc@ethionet.et

Telephone No.00 251-11-5531894

Fax No.00251-11-5518841

2. Mr. Teshome Beyene, Secretary General,

Addis Ababa Chamber of Commerce and Sectorial Associations,

P.O. Box 2458, Addis Ababa (Ethiopia)

Telephone No.00251-11-5518055/513814       

Fax No.00251-11-5511479

E-mail: aachamber1@ethionet.et

Website: www.addischamber.com

(This is the most important and active chamber of commerce in Ethiopia)

Comments and Market Situation

• Ethiopian imports of Rubber products have an increasing trend.  While in 2004, Ethiopian import was US$58.5 million; it increased to US$74 million showing an increase of 26.5% and in 2006, it increased by 27.6% over 2004.

• Rubber products are India’s major export sector and the 8^th largest export item from India to Ethiopia.

• India’s market share in the Ethiopian imports is 12.2 per cent.

• India’s major competitors in this sector are China with market share of 26.2% and Japan with 10.5%.

• Scope for export of tyres, Inner Tubes and other rubber auto products to Ethiopia is more.  In this connection, Ethiopia can be a source of increased Indian exports if Indian companies could offer competitive prices, keep the quality and delivery schedules. 

• Participation of the Indian companies in Ethiopia trade fairs will be useful to create awareness of the Indian Rubber products in the Ethiopian market.

• There are some investment opportunities in manufacture of rubber products in Ethiopia.

ADDIS ABABA (Ethiopia): February, 2008

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