Dyestuff industry is a multi billion industry and comprises of products
including Dyes, Pigments and Intermediates. Having seen an impressive growth
in the past few years, the three sub-segments or dye intermediates are
essential derivatives of petroleum products that after further processing
get changed into finished dyes and pigments. Presently, the dye and dye
intermediaries industry has grown as an integral part of many industries
operating in the market including:
- Printing inks
Comparing with the growth chart of the industry a half a decade or more
back, today, the market size for dyes, pigments and intermediaries has grown
many folds. With the global dyestuff production estimated to be around 34
million tons (with annual global sales of textile dyestuff alone aggregating
$ 6 billion), it would not be wrong to say that the industry is rising to
its potential. The shift of the industrys major production centers
from west to east to Asia over past 20 years or so has been made possible
because of primarily two reasons:
- The lower costs of production in Asia region
- Growing prominence as hub for global textile industry
Today, the markets for dyes are predominantly dominated by reactive as well
as disperse dyes and in future also these two types of dyes are expected to
grow further. With nations like China, South Korea and Taiwan emerging as
strong players in field of disperse dyes, India has taken lead in production
of reactive dyes as the availability of an intermediate called vinyl
sulphone in the country.
Major market Players:
Today, China's share in world market is estimated to be around 25%.
Further, the complete group of China, Taiwan, India, Japan and Pakistan are
among major dyestuff producing countries in the world. But, when it comes to
volumes of market share, Europe is the leader. This has been possible due to
its alliance towards specialty products.
Industrys Major Challenges:
With global market share of Indian dyes industry lying between 5 - 7%
(continuously increasing year by year), some of the major challenges that
are faced by the Global Dyestuff Industry include:
Today, the thrust has shifted towards using environment friendly natural
dyes. With many countries laying curbs against harmful dyes, the industry
can prosper only if dyes are not hazardous and are environment friendly in
nature. A welcome step taken in this direction is banning of Azo dyes in
Europe along with closure of units.
Support of the Government and Trade Association:
It is well understood that any industry that moves ahead requires back-end
support of government as well as trade associations. This aids in promoting
the industry in other countries in terms of allocation of investments as
well as other supports. Hence, these associations should be active
participants in promoting technology institutes that are engaged in research
activities so that better range of products can be made available in the
Problem of Over Capacity But Falling Margins:
With both China and India having high potential in terms of dye production
capacity, the shifting of manufacturing bases from Europe and other
industrialized nations to this new market is the cause for volatility in
market that in turn is affecting prices.
Because of shift of companies from West to East, it has resulted in
concentration of all companies in Asian region that has created intense
competition in global market.
Research & Development:
These has been a regular market demand of going for a higher spending for
bringing much needed and desired innovation in products like natural dyes.
Product quality vs competitive prices:
Manufacturers need to focus on quality of products as well as its
availability at competitive prices. Here, with the production share of
developed countries in market going down from 65% to around 50% is further
expected to reduce in future.
Classification of products and services:
Decline in growth for products has also prompted manufacturers to move to
specialty product sector.
High cost of energy and interest:
The high cost of interest can lower investment in R&D that acts as the
core of product development. With desired work yet to be done in the areas
of service innovation, the high energy cost has indeed adversely impacted
Availability of World Class Infrastructure:
As ports and roads are primary sources of transport, Governments require
improving clearances of goods at quicker rate so as to facilitate trade