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

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Judy Frater
Somaiya Kala Vidya

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

Ritu Kumar
Label Ritu Kumar

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search