Interview with Jaimin Vasa

Jaimin Vasa
Jaimin Vasa
Managing Director
Vasa Pharmachem
Vasa Pharmachem

The need is to improve productivity and not scale up production
The textile chemicals industry holds a huge potential in the country owing to a growing textiles industry. If the opportunities are grabbed, this industry can work wonders for the Indian economy. Jaimin Vasa, Managing Director of Vasa Pharmachem elaborates on the pitfalls facing the industry, and remedial measures to counter them in an interview with Fibre2Fashion.com

What is the size of the Indian textile chemicals industry?

Textile chemicals are specialty chemicals used by the textile processing industry for dyeing and processing of textiles in order to get the end product with required characteristics. The size of the Indian textile chemicals industry is $1.4 billion, and is expected to cross $1.7 billion by 2017.

What is the percentage pie claimed by Gujarat state in India?

Textile chemicals industry contributes around 55 per cent of Gujarat's economy. Gujarat has achieved an annual growth rate of approximately 10 per cent per annum in the past five years, and contributes approximately 17 per cent to the industrial production of the country. Gujarat contributes significantly to the country's petrochemicals production (62 per cent), chemicals production (51 per cent) and pharmaceuticals production (35 per cent). It produces about 91 per cent of India's required amount of soda ash, and gives the country about 66 per cent of its national requirement of salt. The state produces around 6,600 types of chemical products and accounts for 18 per cent share in India's chemical exports. It also produces 80 per cent of dyes and intermediates, which are also textile chemicals.

What has been the growth percentage of the Indian textile chemicals industry?

The growing demand for textile and apparel will drive the demand for textile chemicals in India. A range of processing aids, dyes and pigments will cater to this segment. With increasing demand from both domestic as well as export markets, the demand for textile chemicals is expected to rise. By 2018, auxiliaries are expected to hold a major market share in the Indian textile chemicals market because of growing domestic and international demand for quality textiles and technical textiles. The market for auxiliaries will also grow with rising textile exports to markets such as the US and Western Europe which demand high quality products. Textile chemicals’ application segments are classified into apparels, home furnishings or textiles and industrial textiles. Of these, the apparel segment is projected to account for the largest market share by 2018. This can be attributed to the increasing demand for fashionable and eco-compatible products. With the growth in demand in both domestic and export market of textiles, textile chemicals like dyes and pigments offer never-reducing requirements.

Which government policies can further boost the growth of this industry?

The government of India has extended a host of policies and incentives to textile industries to encourage growth in the sector. These incentives are provided by the central government as well as by some progressive states anchoring the textiles sector. These government policies have also improved the competitiveness of the textile chemical sector. The government is continuously reducing the list of reserved chemical items for production in the small-scale sector, thereby assisting greater investments in technology upgrading and modernisation. Further, government should focus more on internal drivers of growth to increase economic recovery. Compared to China and other emerging markets, India is not a low-cost outsourcing option in spite of ample labour force. This needs to change. The government should also channel available resources and explore bio-based fuels for the textile chemicals industry.

What are the challenges facing the Indian textile chemicals industry?

The deteriorating global economic growth outlook and rising volatility in currency markets have dampened exports in the Indian textile chemicals industry. The government of the People's Republic of China has lowered import and export taxes to boost the ailing Chinese chemicals sector. Besides, due to low import duty structures prevailing in India, Chinese textile chemicals manufacturers are easily exporting textile chemical products to India below their normal value, which affected the domestic chemicals industry in Gujarat very badly.
Published on: 12/02/2016

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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