The dyestuff sector is one of the important segments of the chemicals industry in the country, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. Dyes are colouring pigments that find application in a variety of industries. The origin of the Indian dyestuff industry can be traced to the fifties when most dyes and intermediaries were totally imported in the country. Thereafter, gradually manufacturing of dyestuffs picked up in the country and in the early eighties this industry started export in good quantity.

Indian dyestuff industry is today totally self-sufficient with majority of inputs manufactured locally. India is currently producing all varieties of synthetic dyestuffs and intermediates and has a small presence in the natural dyestuff. India has emerged as a global supplier of dyestuffs and dye intermediates, particularly for reactive, acid, vat and direct dyes. India accounts for approximately 6% of the world production of the sector of the industry.

This industry is basically consists of about 50 large scale manufacturers and the balance small and medium scale units. The small scale units account for majority of dyestuff production while large units dominate manufacturing of dyestuff intermediates. The installed capacity of the dyestuff and intermediates industry for selected group is estimated at about 55,000 MT per year as detailed in the following table.

Disperse and Reactive dyes constitute the largest product segments in the country constituting nearly 45% of dyestuff consumption. In future both this segments will dominate the dyestuff market with Disperse dyes likely to have the largest share followed by reactive dyes. This two segments will have the largest share on account of dominance of textile and synthetic fibers in dyestuff consumption. Vat segment is also expected to record positive growth in future

India dyestuff industry is exporting nearly 50% of the domestic production and from simply importers and distributors in the 1950’s, it has now emerged as a very strong industry and a major foreign exchange earner. Exports of dyestuffs in the year 2000-01 amounted to about Rs. 2365 crores and accounted for nearly 5% of the total world trade of dyestuffs.The major markets for Indian dyestuffs are the European Union, U.S.A., Indonesia, Hong Kong, South Korea and Egypt.

The following table gives export and import of dyestuff during last few years.

The dyestuff industry in Gujarat comprises of more than 1200 small scale industrial and factory sector units. There are about 158 large scale projects involving an investment of Rs 1406 crores which have been commissioned/concluded. The dyestuff industry of state substantially contributes in production as well as domestic consumption and export basket of the country’s target. The proven capability of chemical process development, large installed production capacity, technical manpower, infrastructure, testing facility, export-import contribution and other competitive edge factors have been demonstrated and are the major strength of the dyestuff and allied sectors in the state.

The Dyestuff sector of the country in general and the Gujarat State in particular has a competitive edge of requisite infrastructure and testing facilities, motivated entrepreneurs with lower over head costs, availability of major raw materials, pool of technical manpower and flexibility to change the production set up. In view of these inputs the dyestuff industry in Gujarat/India will rise to all opportunities for development and growth in investment. The dyestuff industry needs to engage in strategic partnerships to realize and capitalize the latent potential. The dyestuff industry in Gujarat provides large opportunities of collaboration in the areas including process development, joint research & development, waste water and solid management, cleaner technology, and technical expertise, buy back arrangement and market access.