The Indian dyestuff industry plays a vital role in the economic development of the country. This sector is divided into the organized and the unorganized zones. The organized industry consists of 1000 small units, while the unorganized consists of 50 large units.
The Indian dyestuff sector, which previously used to cater to the needs of domestic textile industry, now has not only enhanced its reach in the domestic market itself but has gradually made a dent in the global zone.
Today, India exports dyes and dye intermediates to those countries, on which it was once dependent for imports. All types of dyes, reactive, acid, inkjet, disperse, leather dyes are produced in India and are exported globally.
USA, China, Russia, Brazil and Indonesia are few of the major countries where dyes and pigments are supplied. Reactive and disperse dyes hold a dominant share in all the regions worldwide. 25%, 20% is the percentage owned respectively by each of them. On the other hand the market for direct vat dyes and several others has remained stagnant.
The development of dyestuff in India is basically a post independence phenomenon. With the availability of basic raw materials and self-reliance in intermediates for over five decades, the industry has been able to stay independent. This industry being fragmented into two sectors, has witnessed a major growth in the small scale units. Introduction of concessions during the 1978 budget was the reason for this growth.
The future of the dyes sector, totally depends on the performance of end users i.e industries like paints, textiles, printing inks, paper, plastics and foodstuffs.
Trending customer choices, extension of the infrastructure facilities in certain parts of the world, creates growth opportunities for the dyestuff industry. This industry will certainly see new dyeing technologies coming into the market because of technological advancements and increased research and development.
Banned Vat and azo dyes in few countries and a high usage of cotton and polyester has made way for disperse and reactive dyes to enter the market. It is anticipated that these dyes may lead the market later on.
In order to reach international standards here are some changes the government needs to implement to witness growth.
- Implement power industry reforms, ensure lesser cost and improved quality of energy to all units by encouraging captive power plants through various subsidies from state governments.
- To encourage Research & Development with the help of Research & Development hubs of the state-of-art testing with internationally recognized accreditation.
- Price of finance in India is higher as compared to other countries. Finance for this industry should be available at a lower rate of interest.
- Many of the Dyes & Dye intermediates plants are operating with obsolete technologies and low economic scale of operations. Technological advancements and development funds need to be established for the up-gradation of such plants.
Enactment of a few policies can lead to great developments in the dyes and pigments sector. Though, the statistics do anticipate a bright future for this sector!