Dye exports set to touch Rs 12,000 cr by 2011

Riding high on the growing global market for dye, The Dye Manufacturers Association of India (DMAI) is hoping to touch an exports target of Rs 12,000 crore by March 2011.

Comprised of around 325 organised members engaged in manufacturing of 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.

According to Janak Mehta, President, DMAI, presently the total exports of these organised players comes to around Rs 7,000 crore.

"Our industry is mostly export-oriented. Over 50 per cent of our turnover is exported to major countries like US, EU and Australia. Moreover, the dye industry is growing annually at 20 per cent. We are, therefore, hoping to touch an export target of Rs 12,000 crore by March 2011," said Mehta.

Among all the users of dye as raw materials, the biggest consumer of dyes is textile, followed by inks, paints and other products.

Mehta added the association is also looking to raise its domestic sales for textile industry.

"The global textile market is slowly shifting from China to India. With the textile quota abolishment this January, the textile market will be in good shape in India in the next five years. We don't want to miss out on the growth in this sector. Therefore, we are also hoping to raise our domestic sales, especially in the textile industry," said Mehta.

The capacity of dye manufacturers across the country would be roughly around 150,000 tonnes per annum. The manufacturers are also looking for capacity expansion in near future, added Mehta.