Kerala-based Toyo Rubbers aims to tap into the rubber moulding industry

After working for eight years in rubber manufacturing companies in India and the Middle East, Jayakrishnan decided to put his extensive knowledge and industry experience into use and start a company. He says it was from his experience in these different companies that he understood the vast scope for the rubber products in the industrial sector.

With an initial investment of around Rs 40 lakh, Jayakrishnan B (52) established Toyo Rubbers in 1998 in Thodupuzha, Kerala.

The company initially started manufacturing automobile rubber components, and in 2003 diversified and started manufacturing rubber moulds and other engineering parts. Today, it is involved in the manufacturing of different types of bushes, engine mountings, rubber boots, rubber flaps, metal bonded rubber bushes, oil seals, washers, resting pads, etc., for all vehicles.

Jayakrishnan says the company aims to become the market leader in the rubber moulding industry in India by offering stringent quality maintenance. The company strives to create a long-lasting association with its customers, which according to its founder, serves as the backbone to the success of the company.

Jayakrishnan has till date invested nearly Rs 1 crore into the company, for which he had to take loans. He says, the company reported an annual turnover of Rs 2 crore in the previous financial year.

The beginnings

An electrical engineer by profession, Jayakrishnan has worked with many export-import companies like Al Hasabi and MNC Al Hashim in Sharjah.

“I figured that no matter how dynamic the market becomes, whatever technological changes may be there, the demand for rubber products will always be high in the developing nations. Therefore, I thought of exploring business opportunities in this sector,” he says.

The company, which is a well-established unit today, is spread over a 6,000 sq ft. area and manufactures different types of moulded items - from simple washers to most-sophisticated moulded rubber goods - for the aerospace industry.

While the company mostly sells its products in Kerala and other southern states, it also exports its products to few African countries.

A key milestone, Jayakrishnan says, in his business journey was when he won the Best Entrepreneur Award from the Government of Kerala in the Business-to-Business meet in 2004.

Dedicated R&D wing

Toyo has a group of highly qualified professionals and technicians who are looking to produce quality-based products and there has employed about 35 employees.

Jayakrishnan says, most of the company’s key operations such as product designing and raw material selection are done in-house to ensure there is no compromise of the quality of the products. He adds,

“Our quality concept begins right from the designing and the selection of raw materials and we have a dedicated advanced R&D wing for new products."

“The company also ensures it takes care of the function, performance, safety, reliability, aesthetics and service of its products for the customers. These enable us to remain at the technical fore-front of rubber moulding industry,” he says.

Jayakrishnan says, “Studying the local and overseas market is very important in addition to the basic technical know-how. Innovation, creativity and the execution of new ideas are also essential to make a business diversify and grow.”

Industry challenges

While setting up the company, Jayakrishnan had to go through red-tapism from the government authorities in order to get approvals for his land and to set up the factory. He says, “Getting the licence has never been easy and it takes a lot of time and effort to get everything done in a short period of time, as the procedures are complex.”

Speaking more about the challenges, he says: “In the initial days, the main challenge for us was the high interest rate in the banks. The competition is manifold worldwide and multiple players have emerged in the sector. We have begun cost-cutting and are forced to reduce the manufacturing cost in order to survive.”

He says, shortage of manpower and strict labour laws is also a challenge in the industry. There are also facing delay in approvals from the local authorities. As strikes and bandhs are common in Kerala, it affects the company's production, which leads to loss.

“The government should try to put a check on the bandhs so they do not pose a threat to the business,” he adds.

“Even though the central and state governments have started a lot of new programmes, policies and schemes for the rubber industry, nothing seems to be actually working in reality, and the schemes are also ineffective. The banks should be instructed to prioritise the MSME sector. The new hazardous labour laws implemented by the central government should also be removed at the earliest,” he says.

Talking about the company’s future, Jayakrishnan says, “The per capita consumption of rubber products in India is very less compared to other developed nations like the USA, the UK and the Middle East. Hence, the company is trying to focus more on its exports. With countries like Sri Lanka, Thailand and Maldives also getting into the same sector, the competition is also very high.”

(This story is published in partnership with the MSMEs Ministry to showcase success stories of SMEs)