Gujarat's dyes, intermediates units look to work around input cost hike

They plan to shorten contract cycles, hedge as rupee declines vs dollar; industry's exports stands at $18 bn a year, of which Gujarat's share is almost 80%

From shortening contract cycles to hedging amid depreciating rupee against dollar, the dyes, intermediates, organic and inorganic chemicals industry of Gujarat is taking multiple steps to mitigate impact of crude oil price hike and slackening export demand.

Along with agro chemicals, cosmetics and essential oils, the industry's annual exports stands at roughly $18 billion according to Chemexcil data, of which Gujarat contributes almost 80 per cent.

In a normal year, the dyes, intermediates and chemical industry enjoys an average earnings before interest, taxes, depreciation, and amortization (ebitda) of anywhere between 12 per cent and 18 per cent, depending on product mix and