Manufacturers of dyes and intermediate chemicals in Gujarat anticipate improvement in demand after a dull financial year 2022-2023, since there seems to be a revival in the textile sector. For more than six months, many plants making intermediates in the state had been shut.
As prices have risen and their products have become more viable than Chinese manufacturers, manufacturing has been restarted in most factories.
“The demand for dyes is growing slowly and prices have firmed up. Most dyes units are now running at about 60 per cent capacity, compared to 35 per cent earlier. Over the past six months, most intermediates plants, making H acid and vinyl sulphone, have also started production. The revival is slow, but we expect bigger orders from April onwards and the next financial year will be better as inventory across the world is low and the textile sector is reviving.” said Yogesh Parikh, former president of Gujarat Dyestuffs Manufacturers Association.
Plants of H acid, vinyl sulphone and MPDSA had to close due to high raw material prices, added cost pressures, stiff competition from Chinese companies and slow demand.
According to industry estimates, prolonged low demand for dyes and intermediates had hurt the chemicals sector in Gujarat and around 5,000 people were laid off.
Manish Kiri, MD of Kiri Industries Ltd, said, “We have restarted production of H acid and vinyl sulphone at our Padra plant. We are running both plants at 50 per cent capacity as of now. Prices of Chinese products have risen. We are now able to compete and production is viable. Demand is still low so we are unable to run at full capacity but if demand remains firm, capacity utilisation will increase.”
Bharat Tex Special Report 2026 
