For the complete report, get in touch with us at : info@netscribes.com India is considered to be ranked 6th globally in terms of chemical industry volumes. Dyestuff market is under strict environmental regulations which are stricter in developed nations than in India. Such stringent regulations have forced many players to close production units in the West. This has created strong opportunities for Indian dyestuff industry. Furthermore, India being a major textile manufacturer has created major demand for dyestuff as textile forms the most important sector for this product. Growth in the Indian economy driven by a growing manufacturing industry has led to demand as for dyestuff as colorants. Aided with Government initiatives to bolster export and investments, the dyestuff industry is poised for further growth. The report begins with an overview of the chemical industry in India providing the market size and growth as well as the production volume in the sector. This is followed by a primary segmentation of the industry. An overview of dyestuff industry provides an introduction to the sector and covers the market size and growth along with production volume of dyestuff units in India. This is followed by a brief on the major segments in the dyestuff market as well as an analysis of the value chain. Information regarding chief raw materials used for the products as well as classification of dyes is also given. The section also renders information about the distribution model prevalent in the sector along with an EXIM trend over a period of five years. Porter’s Five Forces analysis concludes this section. An analysis of the drivers explains the factors for growth of the market and includes demand from textile sector, growth in associated manufacturing sectors, low per capita consumption of dyestuff and low operating costs. Textile industry requires dyestuff as its colorants and is considered to form the chief demand puller for dyestuff. Certain varieties of dyes are banned in western countries and a strict legal system which forces units to comply with various laws and regulations has resulted in closure of such manufacturing units. Such players have now focused on Asian countries since they have certain advantages with regards to raw material availability as well as less stringent environmental regulations. India has surfaced as a textile major along with growth in related sectors such as paints, paper and leather. This has provided major growth impetus to this sector. Further, low per capita consumption of dyestuff in India is laden with latent opportunity for development. Finally, increase in exports due to cheap price of Indian products owing to low operating cost also indicates that growth opportunity is only on an upward swing. However, the sector is also facing certain challenges. Factors such as rise in crude oil prices and stringent environmental concerns pose as impediments for this sector. The major trends indentified in the

1. Dyestuff Market – India
Dyestuff Market India
November 2011

2. Executive Summary
 Indian Chemical industry is considered to be the r1 largest in the world
 India accounts for r2% of total production of dyestuff globally
Market
 The dyestuffs market can be segmented into dyes, dye intermediates and pigments
 It is the r3 highest export revenue generator for India
Drivers Challenges
– Demand from textile sector – Rise in crude oil prices
Drivers & – Growth in associated manufacturing – Stringent environmental
sectors considerations
Challenges
– Low per capita consumption of
dyestuff
– Low operating cost adds
Low operating cost adds
 New applications of dyestuff
Trends  Shifting of manufacturing units to Asia
 Shift towards reactive and disperse dyes
Shift towards reactive and disperse dyes
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
DYESTUFF MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
DYESTUFF MARKET IN INDIA 2011.PPT 3

4. Dyestuff market in India has been growing steadily with
strong demand from the export market
Dyestuff Industry – Overview Market Size and Growth
• India accounts for a% of the global production of INR bn
dyes and dyestuff z1
400 A3
• Dyestuff industry in India is slated to increase at a A2
300 A1
rate of ~b% annually
200
• It is a key segment of chemical industry with direct
100
associations with a number of segments in the likes
g
of s1, s2, s3, s4, s5 and s6 0
20-- 20-- 20--
 Largest consumption comes from the s7 segment
• Is highly fragmented and is composed of ‐‐ small
Production: Dyestuff
scale units in unorganized sector and ‐‐ large units in
g g
the organised sector
• Gujarat accounts for ~c% of total dyestuff production
MT
in India z2
60,000 A6
• Around d% of total dyes produced in the country is
Around d% of total dyes produced in the country is A7
exported 40,000 A5
A4
 D1 dyes constitute the largest share for exports of dyes
across the international arena 20,000
0
20----- 20----- 20----- 20-----
Source:
DYESTUFF MARKET IN INDIA 2011.PPT 4

5. China has emerged as a major supplier of dyestuff as the
hub of production shifts to Asian countries
Imports Imports (Value and Volume)
• Y1, y2, y3 and y4 form the chief products imported Value
INR mn Volume ‘000 kg
•H
Has a Cenvat duty of p1% with an excise cess of p2%
C t d t f 1% ith i f 2% 10,000 D 30,000
A C
• China has particularly been a major supplier of B
20,000
5,000
dyestuff products with countries like Switzerland, 10,000
Germany and USA increasing in import volumes
y g p
0 0
20----- 20----- 20----- 20-----
Segmentation – Value (2010‐11) Segmentation – Volume (2010‐11)
Country 1 b6 Country 7
a6
Country 2 Country 8
a5 Country 3 b4 b5 Country 9
a4 b3
a1 Country 4 b2 Country 10
a3
Country 5 Country 11
b1
Country 6 Country 12
a2
Source:
DYESTUFF MARKET IN INDIA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers
Challenges
Demand from textile sector
Rise in crude oil prices
Growth in associated manufacturing
Growth in associated manufacturing
sectors Stringent environmental concerns
Low per capita consumption of
dyestuff
Low operating cost
DYESTUFF MARKET IN INDIA 2011.PPT 6

7. Trends – Summary
New applications of
dyestuff
Key
Trends
d
Shift towards reactive and Shifting of manufacturing
disperse dyes
di d units to Asia
i A i
DYESTUFF MARKET IN INDIA 2011.PPT 7

8. Domestic Players in the Market (1/11)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters Place 1, Country 1
Profit / Loss
INR bn INR bn
Founded 19‐‐ T
20 1.0
15 R S
Products Product 1, Product 2, Product 3 P Q
10 0.5
Key People Person 1 – Position 1 5
0 0.0
20-- 20-- 20-- 20-- 20--
Business Highlights
Business Highlights
• Operates in m1,m2,m3,m4,m5 and m6
• 2010‐11 witnessed increase in sales of dye products by x1% and sales figure touched INR ‐‐ bn
• Exports accounted for x2% of total sales of the company
• Made an investment of x3% in company 2 to form a partnership with this dye manufacturing concern which has
manufacturing facilities in country 2, country 3 and country 4
• Focusing on tapping growth opportunity by debottlenecking capacities, introducing new pigments and dyes and
improving efficiencies
improving efficiencies
• Has plans to invest further and form alliances with companies in country 5
Source:
DYESTUFF MARKET IN INDIA 2011.PPT 8

9. Thank you for the attention
The Dyestuff Market‐ India report is part of Manufacturing Industry Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar Gagan Uppal
l
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DYESTUFF MARKET IN INDIA 2011.PPT 9