Low demand from the textiles sector is hurting the dyes and intermediates industry. Due to this, the Gujarat-based chemicals industry is facing an unprecedented situation and few companies have stopped manufacturing some of the products.
Few of the plants are also running at 50 per cent capacity.
Bhupendra Patel, Chairman, The Gujarat region chapter of Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL), says, “Export orders are low and buyers are negotiating while the rupee depreciates. European demand has reduced greatly. We need improvement in the textile industry and a resolution to the Russia- Ukraine war for sentiment to improve in the chemicals industry.”
Most intermediate manufacturers face tough competition from China with smaller players finding it difficult to sustain operations.
“Low demand from the textiles sector is hurting the dyes and intermediates industry. We used to produce various intermediates for captive use and sale in the market. However, for the past few months, demand has been sluggish and we have reduced our intermediates production. We have stopped production, especially of H-acid,” said Manish Kiri, MD of Kiri Industries Ltd.
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