Gujarati producers of intermediate chemicals and dyes predict an increase in demand following a weak fiscal year 2022–2023 because there appears to be a resurgence in the textile industry. Several intermediate-producing facilities in the state had been closed for more than six months.Manufacturing has resumed in the majority of factories as prices have increased and their products have become more profitable than those made by Chinese producers.
“Prices have firmed up while demand for dyes is very slowly increasing. Currently, the majority of dyes units are operating at roughly 60% of their initial capacity, up from 35% before. Most intermediary factories that produce H acid and vinyl sulfone have also begun production over the previous six months. Although the recovery is modest, larger orders are anticipated starting in April.
Yogesh Parikh, a former leader of the Gujarat Dyestuffs Manufacturers Association, predicted that the coming fiscal year would be better because global inventory levels are low and the textile industry is rebounding.
Because of high costs for raw materials, increased cost pressures, fierce competition from Chinese firms, and poor demand, plants for H acid, vinyl sulphone, and MPDSA had to close. Industry estimates indicate that the Gujarati chemicals industry suffered due to the long-term low demand for dyes and intermediates, which resulted in the layoffs of almost 5,000 workers. At our Padra factory, we have resumed production of H acid and vinyl sulphone, according to Manish Kiri, MD of Kiri Industries Ltd. Right now, both plants are operating at 50% of their potential. The cost of Chinese goods has increased. We can now compete, and production is profitable. We can’t operate at full capacity because demand is still low, but if it holds steady, capacity utilisation will rise.
