Business

'By 2020, Indian dyestuffs exports are targeted to reach US$ 11 bln, & a global market share of 30%'

Chemicals and dyestuffs manufacturers the world over, are improving chemistries and product performance, to move towards greener production. In an interview with Reena Mital, Janak Mehta, President, Dyestuffs Manufacturers Association of India (DMAI), speaks at length about the association's initiatives to improve the performance of the Indian industry.

How has the dollar appreciation affected the Indian dyestuffs industry?

The Indian dyestuffs industry imports a lot of intermediates from China, specifically naphthalene based. The dollar appreciation has wiped out the advantage we had in importing at international prices. The situation is quite alarming on the intermediate front, & business is difficult at present. The silver lining is the export business, which is doing quite well. The industry is export-oriented, with 2/3rd of the production going into the international markets. Currently, the industry's exports are to the tune of Rs 16000 crore. We enjoy 15% of the global market share. The main markets today are Indonesia, Bangladesh, Pakistan. Traditional markets of Western Europe & USA continue to remain important.

Pollution control norms are becoming stringent across industry. Greenpeace's Detox Campaign, Roadmap to ZDHC, and at home shutting down of the Tirupur dyeing and processing industry, are some examples. To what extent is the Indian dyestuffs industry geared to meet the challenges?

Dyestuffs per se are not harmful. Dyestuffs are used in pharmaceuticals, food, cosmetics, and the harmful products have already been banned. Coming to pollution in water, as was seen in Tirupur and in other regions and countries, this is visible on account of the dyestuffs. The dyes do not have high COD content as compared to say agro chemicals or bulk drugs. Unfortunately, visibility becomes more important than the actual toxicity. Having said that, one cannot shrug away the responsibility. DMAI supports the ZDHC campaign. In fact, our members are beginning to work closely with their end users to address pollution & effluent management problems. Manufacturers are putting out products that have better exhaustion, low salt content, low temperature dyeing options, etc, which in turn, reduces the burden on effluent. In November this year, we are organizing a conference in Coimbatore, targeting the industry there, and in nearby areas of Tirupur, Erode, Salem, etc. The objective is to educate and interact with the user industry about the new generation products that will help it move towards greener production, and also to learn about other challenges that the users face in use of dyestuffs, and work towards solutions.

Is the industry aware about ZDHC? Do you think the 2020 deadline to achieve zero discharge across the value chain is feasible?

We certainly support this movement. This is a new concept, and we are in the process of creating awareness amongst our members. In the November conference, ZDHC could be one of the topics of discussion. It is still early to comment on whether the deadline can be met. The groundwork is being done by the Roadmap group. The movement requires an initial push, and will then gather momentum on its own.

Going forward, where do you see the Indian dyestuffs industry?

DMAI prepares 10-year action plans, setting out strict targets and standards. I am happy to say that we have always achieved our targets. This decade, due to the current economic scenario, looks a little difficult. Our target is to gain a 30% global market share, which should take our exports to around US$ 11 billion by 2020.

Is the Indian industry able to cater to the local dyestuffs requirement?

In disperse dyes, the end user industry imports from China. But in all other categories, the Indian manufacturers have been able to cater to the local demand.

What is the level of technology used in the industry?

Technology has evolved over time, improving productivity & efficiency of the industry. It has resulted in better conversion from raw material to finished goods, & thus less pollution. The industry is optimizing operations, with use of technology. Green chemistry is being adopted widely. This has certainly helped the industry to bridge the technology and chemistry gap vis-à-vis international standards. I also see an opportunity for India and China to play an important role in R&D. R&D has been driven largely by the West, but is slowing down there, due to absence of an end-user industry. It is heartening to see that some proactive companies have already started doing this.

What obstacles does the dyestuffs industry face today?

If you look at our 10-year action plans of 1991 & 2011, you will notice that 80% of our demands to the government still remain. Fiscal rationalization has happened. But infrastructure is still a problem, water, power is still a problem. Utility, logistics costs continue to rise. Manpower is also an obstacle.