Indian Chemical Sector Witnesses Initial Growth

ENA Sectors 2024-01-17 16:50:13 Ahemdabad, Jan 17 (KNN) The chemicals industry in India is showing signs of recovery, particularly in various segments, with improved demand and exports observed in November. Post-Diwali, the sector has witnessed a notable uptick in demand, and export demand has remained steady. Notably, many dye and dye intermediate factories, which operated at reduced capacity for over six months, are now running at approximately 60 per cent capacity. According to data released by the Chemicals Export Promotion Council, there has been a significant rise of 38 per cent in the volume of exports for dye intermediates, inorganic chemicals, and organic chemicals. Gujarat, a key hub for the chemicals industry, houses over 5,000 plants in dyes, dye intermediates, organic, inorganic, and specialty chemicals, with more than 80 per cent falling under the MSME category. Industry estimates suggest that the state holds around a 65 per cent share in the countrys dyes and dye intermediate manufacturing. Nilesh Damani, the secretary of the Gujarat Dyestuffs Manufacturers Association (GDMA), highlighted the challenging phase the industry faced before Diwali, with many factories operating below 40 per cent capacity due to a lack of orders. However, an increase in export demand before the Christmas season has contributed to a significant improvement in manufacturers' capacity utilisation. Bhupendra Patel, Chemexcil chairman (Gujarat), emphasised the need for price stability for proper business operations. He stated that a reduction in inventory levels is expected to boost both domestic and international demand. While certain categories have witnessed volume growth, maintaining price stability will be crucial for sustaining the positive momentum in the chemical industry. (KNN Bureau) 36323 https://knnindia.co.in/news/newsdetails/sectors/indian-chemical-sector-witnesses-initial-growth 2024-01-17 16:50:13 knnindia.co.in Indian Chemical Sector Witnesses Initial Growth