Revival of demand in Textile sector gives boost to Gujarat dye industry

Ahmedabad, Feb 24 (KNN) Manufacturers of dyes and intermediate chemicals in Gujarat are anticipating an upswing in demand, with signs of a resurgence in the textile sector becoming evident, reported TOI.

"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,” said Yogesh Parikh, former president of Gujarat Dyestuffs Manufacturers Association.

Most intermediates plants, making H acid and vinyl sulphone in the state had been shut for over a period of six months.

As per reports, majority of them have now restarted the manufacturing as the prices has increased and their products have become viable against Chinese manufacturers.

Parikh pointed out that the revival has been slow, but the Industry expects 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.

As per the Industry estimates, around 5,000 people lost their jobs dues to low demand for dyes and intermediates.

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 also risen.”

“We are now able to compete and the production is viable. Demand is still low, so we are unable to run at full capacity but if demand remains firm, capacity utilization will increase,” he said  (KNN Bureau)