Compounding, a term that has evolved within the tire and rubber industry, is the materials science of modifying a rubber or elastomeric or a blend of polymers and other materials to optimize properties to meet a given service application or set of performance parameters. Compounding is therefore a complex multidisciplinary science necessitating knowledge of materials physics, organic and polymer chemistry, inorganic chemistry, and chemical reaction kinetics. compounding consists of specifying the type and amount of the various ingredients in a mixture, the manner of mixing processing of the finished mix and the method of vulcanization and the requirement of end product. The primary requirement of adding different compounding ingredients to develop a technical rubber compound is to meet different service needs at an economic price and to provide certain desired physical properties. Uses and Applications Rubber Compounding for automobile is used for making Tyres for Aircrafts, Buses, cars, bicycles etc. Rubber compounds are use in car industry for manufacturing various items such as seals, diaphragms, sleeves, bellows, grommets, sealing profiles, pedals, hoses, transmission belts, etc. Beside its use in automobile industry other uses of Rubber Compounds include: in manufacturing of tubes, in oil resistance, used in house hold appliances. Some examples of rubber products are seals, diaphragms, grommets, shock absorbers, sleeves, hoses, outlets, in offering resistance against abrasion and toughness etc. Market Survey Following the liberalisation of the Indian economy in early 1990s and particularly after the opening up of the auto sector to the global players, the end of the decade presented a vastly transformed scenario for the industry. The industry has witnessed technology and product upgradation to world-class standards accompanied by intensive competition. India is striving to emerge as a substantial exporter of vehicles. Currently, exports make up for 10% of overall sales. With the waning of interest by industrial countries in auto industry, conditions are propitious for the shift of production bases to countries like India. It is believed that for all auto majors, India is ideally positioned to become a major production base for the ASEAN region. Present Manufacturers Andhra Polymers Pvt. Ltd. Elgi Rubber Co. Ltd. Magnus Rubber Inds. Ltd. Precision Seals Mfg. Ltd. Sundaram Industries Ltd. Swastik Rubber Products Ltd. Thejo Engineering Ltd.