Dyes and Pigments- The Indian Market Summary


Colour adds life to all the objects that surround us. None of us can imagine a dull colourless life. Can we? Colours make any season joyful. They are the reason, you look at something and are unable to take your eyes off it. Dyes and pigments are substances that are used to fulfill this need. Both of them have the same purpose, but contain certain properties that set them apart. Dyes being soluble in nature have an affinity to the substrate of the material. They are used for colouring, textiles, paper, adhesives, leather, construction and ceramics. On the other hand, pigments are insoluble in nature and predominantly find application in cosmetics, paints, inks, plastic, rubber etc. They are available in the powdered or the granular form and they imprint colour by reflecting only certain light rays.
The major difference between dyes and pigments is their size solubility. These unique factors, is the major cause there is a difference in the application and the process of application.

Indian Dyes and Pigments Market Scenario
Dyes and pigments market has grown at a CAGR of 9.7% in the past few years from 2009- 2015. This is fair enough, but not exceptional as compared to the Indian manufacturing standards. Dyes and pigment  manufacturers in India have a significant overcapacity. The western players have been known for producing almost thrice as much as the dyes and pigments manufactured in India. Although, environmental regulations have made it mandatory for them to settle down. Indian manufacturers have the opportunity in hand, to  apture this shift in demand. Products produced by them can be exported globally.
However, this is not beneficial for all the manufacturers. The necessity to be regulatory compliant is a barrier  or several sub scaled Indian players. The top Indian manufacturers are the real winners here.
The total available capacity for dyes manufacturers in India is over 3,00,000 MT from which 1,80,000 MT was produced from 2014-15. This accounts for 60% of the capacity utilization. The first amongst these are reactive dyes followed by acid and disperse dyes.

Reactive dyes holds a large market share in India and has also seen rapid growth. On the other hand the growth of AZO and Ingrain dyes has been dying because of their pollution effect.
The installed capacity for pigment manufacturers in India is about 1,20,000 MT and the amount utilized from this is 89,000 MT, which is higher as compared to the utilization of dyes. Organic and inorganic pigments are leading the race with a capacity utilization of 74% and 67% respectively.
Over 80% of the dyes and pigment manufacturers in India are located in Maharashtra and Gujarat. This is because of a variety of reasons such as proximity to feedstock (Petrochemicals), presence of user industries such as, textiles and paints and the availability of ports for easy and convenient exports.
Alliance Organics LLP is one amongst the leading dyes and pigments manufacturers of India. They export their products to a range of international countries. USA, China, Russia, Brazil and Indonesia are few of their major trade partners.