Home / Knowledge / News / Textiles / Dyes & chemical companies in deep trouble
Dyes & chemical companies in deep trouble
02
Dec '08
Chemicals and auxiliaries manufacturers of India are in trouble due to the sharp drop in prices of final products. These products have been manufactured from high priced raw materials, and now since prices have bottomed out, they are facing prospects of huge losses on the stocks. In Gujarat alone, around 2,500-3,000 chemical companies are on the verge of closure due to critical situation of the market.

The prices of major dyes and other key chemicals in China, Korea, Japan, Taiwan, Hong Kong, Malaysia, and other countries have gone down sharply and suddenly. The effects of this development has also been felt in India, due to which, textile auxiliaries' manufacturers in India are bearing huge losses on carried forward inventory of final products. Prices of major key chemicals and intermediates have gone down by as much as 40–50 percent.

US is the largest consumer of Dyes and Textile chemicals; however they have started outsourcing processed fabrics itself, due to which demand for dyes and chemicals in the markets of the US has gone down drastically. Indian dyes and textile chemicals industry is no more insulated from the global meltdown. Industry sources say, that the exports of Indian dyestuff is expected to go down sharply in the second half as compared to the first half of this year due to tough competition from China and also because of slowdown in demand.

Indian dyestuff industry faced less competition during the pre-Olympics period, because some of the Chinese companies were shutdown temporarily due to the environmental laws introduced by Chinese Government. However the Chinese companies are back in business now, which is believed to have affected the Indian exports to a great extent.

It is believed that, 2009 will be a far more worse year for the industry than what it cumulatively faced in 2008.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 22nd Feb 2017

India to produce 341 lakh bales cotton in 2016-17: CAI

The Cotton Association of India (CAI) has maintained in its January...

Apparel/Garments | On 22nd Feb 2017

Amazon UK to create 5,000 full time jobs this year

Amazon UK said it will create more than 5,000 full time jobs this...

Courtesy: London Fashion Week

Fashion | On 22nd Feb 2017

India bags best country award at London Fashion Week

The International Fashion Showcase (IFS) Country Award was given to...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search