Alpharub Trading & Manufacturing P Ltd

The company has been formed as a whole sale distributor/dealer which is engaged in the marketing and distribution of Natural rubber of varying grades or its variants, which include sheet rubber RSS3 & RSS4 and block rubber ISNR-10 and ISNR-20 as well as related grades including latex.

Alpharub Trading and Manufacturing Pvt. Ltd was incorporated on January 10th in the year 2012, as a Domestic Private Limited company, with its registered Office situated at 2nd Floor, Maliakkal Plaza, Temple Road, Bank Jn., Aluva, Kerala PIN 683101. Nature of business & Objective The company has been formed as a whole sale distributor/dealer which is engaged in the marketing and distribution of Natural rubber of varying grades or its variants, which include sheet rubber RSS3 & RSS4 and block rubber ISNR-10 and ISNR-20 as well as related grades including latex.. Though initially registered as a domestic company with a small capital, the real intention/objective behind its incorporation was to provide a platform to its real stakeholder M/s Alpha Commodities Pte Ltd., to bring in the much needed foreign exchange required for this country in the form of FDI. It perceived India to be one among the most vibrant and potentially rewarding investment destinations as thus to further the rubber distribution and processing business as part of its scheme to spread its reach and in the process give India and their customers here the much needed focus and increased thrust which it warranted as being a fast emerging economy. The Company sell its materials, to its clients who include both tyre, and non-Tyre companies, firms and other whole sale buyers, big and small and our market consists of both domestic as well as international. The Company sources its supplies of material, here natural rubber either Sheet rubber or Block Rubber or both mainly from local whole sale dealers. If opportunity exists or contexts warrants ie when prices of natural rubber globally becomes much cheaper when compared to domestic market prices, import definitely is an option for meeting our sale commitments. About our Promoters The Company was primarily incorporated with the objective of serving as a constructive arm of M/s Southland Group, Thailand/Singapore. On Southland group, it is a highly acclaimed name in the rubber world and is also one of the largest processor dealers of natural rubber, contributing to a sizable portion of the rubber being consumed by rubber based industry both tyre and non-tyre globally. The group having seen immense potential in India decided to invest here with Alpharub as its subsidiary and the investment was routed through one of their wholly owned subsidiaries M/s Alpha Commodities Pte. Ltd., Singapore, also a fast emerging dealer giant in natural rubber through subscribing to 98% of the equity stake in Alpharub Trading & Manufacturing P Ltd. The group, Southland Rubbers has four subsidiaries in Thailand, 5 associated companies and two joint ventures spread across Malaysia, Indonesia, China with Singapore being and acting as its hub. Our promoter group as a whole though deal in all grades of rubber, block rubber, chiefly STR ( Standard Thai Rubber), SMR and SIR are its forte. In Thailand alone the group has 6 big sized Block rubber factories having an average monthly production capacity of 4000 MT/factory. Just to give a brief idea of its size and scale of operations, in 2015 our group’s entire processing and dealing volume was 1.02 million MT (including 5 dealing firms in Singapore) which represents 8 % of the entire global trade volume in Natural Rubber. Our group is continually looking to spread in to newer markets wherever able to spot new opportunities in Natural Rubber. In 2016 the group has started 2 new factories in Indonesia. Share Capital The present Authorized capital of the Company is Rs 16,00,00,000/-(Rupees Sixteen crore) and with the paid up share capital as on 31st Oct2015 capped at Rs15, 73, 68000/- (Fifteen Crore Seventy Three lakh Sixty Eight Thousand only). This was invested by our promoter company in two tranches, during the fin year 2012-13., Rs 4.50 Crore in the first quarter and balance sum in the last quarter of the same Fin year. Have a wholly owned subsidiary ISNR Factory, Alpharub Crumb Rubber P Ltd. Consistent with the promoter group objective of focusing more on block rubber processing, in the Fin.year 2013-14 Alpharub Trading Ltd has acquired an ISNR Factory which is located in the industrial heartland of Ernakulum, Kerala, Southern India, covering an area of 2 acres. The present capacity of the factory is 25 MT ISNR a day. It has got a fully equipped laboratory, qualified personnel and the right infrastructure to ensure quality ISNR products both ISNR -10 and ISNR -20. Alpharub Trading & Mfg P Ltd., holds 100% Equity stake in the above company. Business Model and Risk mitigation The prices being hugely volatile, rubber as commodity is exposed to high risk. Thus inevitably this risk factor we need to somehow manage in a careful manner so that its impact/risk on account of any huge price variations in rubber prices is kept minimal. We do have three packing/warehouses two in the north and other in the central part of the state. Now plan is afoot to open our fourth godown also in the central Kerala. which we expect to operationalize in the coming year . Stocking model is indispensable for any dealing concern. We have always made it a point to have our godowns very near to rubber supply sources. This evidently shall contribute to availability of good quality material, just in time at a very competitive rates, avoiding all unnecessary overheads. Back to back model is another trading strategy wherein we do enter into contracts with sellers and who will supply the material to our buyers as per the terms agreed. This is self hedging model as it hardly requires carrying of any inventory and also against matched contracts the price risk element is minimal. About our Market &Client As about the Market we can cater to, apart from domestic/local markets we are also equally equipped to deal in foreign markets both as Supplier as well as buyer. After seeing recent recovery in the prices of rubber globally as well as locally for the first time after 5 years the price of rubber in Indian have become cheaper to international prices. This has widened market space as unlike in the past where our focus was only on domestic sales, exports markets will add to our portfolio during the year in big way and will certainly be on the rise. Chinese economy recovery, global prices of rubber to sustain at this level at least in the near term, domestic industrial growth to pick up consequent to demonetisation and the resulting low interest regime and more importantly, now the new indirect tax reform, GST which has been made effective from 1st July 2017, are all positive factors which will take the demand for rubber to a new high. Our Clients At present Alpharub Trading & Manufacturing commands a good number of credible and respectable clients and in the list of clientele have the country‘s top tyre manufacturers as its buyers. The company also has in its portfolio non tyre companies as well and have thus now established a country wide presence. Quality Maintenance We do have strict quality control mechanisms both for sheet rubber as well as for ISNR, and for sheets we have specialized and experienced graders who can assess the quality of the material being sourced and with regard to ISNR, a fully equipped lab ensuring that the produce obtained are well within the set parameters. Our graders are trained on the specific quality requirements of our clients and the benchmarks for evaluating standards for each grade. Since commencement of business in the year 2012-13, the low /nil material rejection rate stand testimony to our uncompromising stand on quality of material that we supply. Aluva