The chemicals sector in India is showing signs of recovery, particularly across various segments, with enhanced demand and increased exports noted in November. After the festive season, the industry has experienced a noticeable surge in demand, and export requirements have remained consistent. Notably, numerous dye and dye intermediate factories, which operated at reduced capacity for more than six months, are currently functioning at approximately 60 percent capacity.
According to data released by the Chemicals Export Promotion Council (CEPC), there has been a substantial thirty-eight percent increase in the export volume of dye intermediates, inorganic chemicals, and organic chemicals. Gujarat, a pivotal hub for the chemicals industry, accommodates over 5,000 plants in dyes, dye intermediates, organic and inorganic chemicals, with more than eighty percent falling under the MSME category. Industry estimates suggest that the state holds approximately a sixty-five percent share in the country’s manufacturing of dyes and dye intermediates.
Nilesh Damani, Secretary, Gujarat Dyestuffs Manufacturers’ Association (GDMA), highlighted the challenging phase the industry underwent before Diwali, with many factories operating at less than forty percent capacity due to a lack of orders. However, an upswing in export demand preceding the Christmas season has significantly improved manufacturers’ capacity utilisation.
Bhupendra Patel, Chairman, Chemexcil (Gujarat), emphasised the importance of price stability for effective business operations. He stated that a reduction in inventory levels is anticipated to enhance both domestic and international demand. As reported by Knowledge and News Network, despite certain categories experiencing volume growth, maintaining price stability will be crucial to sustaining the positive momentum in the chemical industry.
