Dyestuff Market in India 2011

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.

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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.Industry Analysis

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Dyestuff Market in India 2011

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