Rising prices in China hit dye makers' profits

The increasing crude oil prices have begun taking a toll on the Indian dye manufacturers. With prices of dye intermediates in China shooting up by 25 to 50 per cent, its importers in India have been running their units without any profits.

According to Janak Mehta, president of Dye Manufacturers' Association of India (DMAI), the industry has been struggling to cope with a sharp dip in its margins.

"Although margins have dipped sharply, manufacturers are coping with the rise in import prices of these Chinese dye intermediates like beta naphthol, sulpho tobias acid and phenyl j-acid. However, the industry will be passing on the effect to end users in the next quarter," said Mehta.

Comprising around 325 members engaged in making dyes for various purposes like textile, leather, paper, plastics, inks, paints, food and cosmetics as well as soaps and detergents, DMAI controls around 7.5 per cent of the $25-billion global market.

"Currently, some of these dye intermediates are hardly available in India. Till an alternative is found, 5-10 per cent of the effect will be transferred to the end users by dye manufacturers," said Jaimin Vasa, president of Gujarat Chemical Association, on the sidelines of a press conference on the upcoming Asian Chemical Leaders Summit "� 2008, being held in Ahmedabad on March 8 and 9, 2008.