Feasibility Study Services to Start a Dye & Pigment Factory in India

Feasibility Study Services to Start a Dye & Pigment Factory in India 

The Indian dye & pigment industry has an enormous impact on both domestic and foreign markets. India is a key node in the global dye & pigment supply chain. India's strong manufacturing capabilities and diverse reach have allowed it to successfully establish itself as the world's second-largest supplier of dyes. 

Dyes are also crucial to many other industries, such as textile, printing, paper, leather etc. This broad usage, coupled with the rising demand for coloured goods across the globe, serves as a strong driver for the industry's rapid expansion. As a result, the Indian dyes and pigments market is expected to grow significantly at a CAGR of 4.5% between 2025 to 2034.

This dynamic sector's production is mostly centred in areas like Gujarat and Maharashtra. The two states provide quick availability of raw materials and have a well-established textile industry, which acts as a significant customer base. 

Prominent brands like Atul Ltd., Kiri Industries Ltd., Bodal Chemicals Ltd., Clariant Chemicals India Ltd., and AksharChem India Ltd. are among the top companies in the Indian dyes and pigments sector. The industry's competitive advantage and continuous success in the global marketplace are further supported by the strong ecosystem of manufacturers and advantageous geographic circumstances.

The Role of Dye in the Textile & Fashion Industry:

Colour is more than just an accessory in the ever-evolving world of fashion and textiles. It is an essential component that gives textiles life and turns them from monotonous raw materials into compelling works of art. Hence, dyes are a significant component that serves both fundamental aesthetic and utility functions. 

It determines everything from a garment's initial appeal to its long-term performance. Since colour and aesthetic appeal have a significant influence on consumer choices, dyes are crucial for attracting customers. Additionally, sophisticated dye formulas can provide specific properties like water resistance, antibacterial properties and UV resistance, which further improve a garment's usefulness and durability.

To provide flexibility in manufacturing operations, dyeing can be applied to woven/knitted textiles, spun yarns, raw fibres and finished clothing as well. An array of advanced dyeing processes is used to reach the desired result. 

For instance, exhaust dyeing is a popular technique in which fabrics are submerged in specially designed dye baths to allow the colour to be absorbed into the fibres. Additionally, continuous dyeing is a simplified process that enables high-volume manufacturing by quickly passing fabric through dye solutions. Overall, dyes are vital for creating beautiful, high-performing fabrics that define today's fashion and lifestyle.

Types of Dyes in India:

India's dye & pigment sector is a critical component of its chemical industry with the country ranking second in global dye exports. This dynamism results from the wide variety of dye types, which may be generally divided into natural and synthetic categories and are essential to many different sectors. 

Natural dyes that originate from plants (including madder, turmeric, and indigo) and minerals have made a significant comeback. Growing environmental consciousness and customer desire for eco-friendly, sustainable products are the main drivers of this emerging interest. As per media reports, the global market for natural dyes is expected to reach USD 8.95 billion by 2034. This growth is reflected across a rising niche in the food, cosmetics and textile industries. 

It is noteworthy that the market is still dominated by synthetic dyes because of their affordability, adaptability and superior performance qualities. 

Reactive dyes, the most profitable category in India, are used extensively for cellulose fibres like cotton because of their strong bonding. Additionally, disperse dyes are essential for synthetic fibres like polyester. The category is expected to grow significantly because of its use in construction, automotive and textiles. 

India’s Dominant Position in the Global Dye & Pigments Market:

India commands a very significant and crucial position in the global dyes and pigments sector. The country is a major powerhouse, especially in the field of reactive dye manufacturing and accounts for a sizable share of global production.

This domination reflects India's excellent skills and knowledge in an important sector of the chemical industry. Additionally, India is a significant exporter of dyes and colour intermediates worldwide. The country accounts for a sizeable 25–30% of the overall dye exports internationally. Major destinations include textile-producing countries like Bangladesh, China, USA and Turkey. This enormous export network emphasises India's critical role in sustaining the global textile supply chain.

India has also witnessed an upward trend towards technological improvements in dyeing techniques. However, the sector faces significant hurdles, including the consequences of varied raw material prices. Furthermore, stricter environmental laws demand ongoing investments in green technology and environmentally friendly production methods. Also, rigorous technical development is essential to guarantee the production of dyes that are even more sustainable. 

India’s Dyes & Pigments Sector - Navigating Policies, Labour Charges and Innovation

The surge in India's dyes and pigments landscape is driven by increased demand from key end-use sectors such as textiles, construction, plastics and packaging. India's substantial labour cost advantages, which are usually 70% lower when compared to those in China, make it a desirable location for manufacturing. Additionally, an economical supply chain is ensured by regional access to necessary raw materials like benzene and naphthalene. The sector is spending heavily on R&D to make eco-friendly pigments, in line with global sustainability trends. 

Automation and cutting-edge technology are also essential for the landscape to improve its competitiveness on a global level. To increase production efficiency and product quality, the industry is gradually incorporating Industry 4.0 technologies, such as robotics, AI-based process control, and the Internet of Things (IoT). 

This includes AI-driven colour matching solutions, where neural networks can accurately forecast wet-to-dry colour changes. 

There is a rising popularity for automated dispensing systems that increase colour precision and cut waste by 15%. AI and machine learning are also transforming textile flaw identification by providing faster and more reliable results than manual techniques. 

Moving forward, below are the insights discussing how the GOI supports the dyes and pigments landscape of the country:

l Production Linked Incentive (PLI) Scheme: An allocation of ₹18,000 crore intends to increase local chemical and pharmaceutical manufacturing. This encourages investments in specialised chemicals including  pigments and dyes, which reduces dependency on imports.
l PM MITRA Parks Scheme: This plan will include the establishment of seven integrated textile parks with "plug-and-play" amenities, such as shared sewage treatment facilities. These parks aim to reduce environmental effects and logistical costs by creating 2 million jobs.
l Environmental Regulations & ZLD: Under the Environment Protection Act. There is a need for Zero Liquid Discharge (ZLD) systems. This encourages wastewater treatment innovation and pushes enterprises to use sustainable pollution control methods.
l Technological Advancements in ZLD: New systems based on Mechanical Vapour Recompression (MVR) have emerged. These greatly lower operating expenses and energy usage, increasing firms' efficiency in complying with environmental regulations.

 

The Growing Importance of the Circular Economy in Dye & Pigment Production:

India's dye manufacturing sector is undergoing a significant transformation due to the growing importance of the circular economy (CE). The basic principles of the CE centre focus on maintaining resources and goods in constant circulation to reduce waste and maximise resource efficiency. 

This change is crucial because conventional dyeing methods use a lot of water (an estimated 5 trillion litres a year) and produce hazardous effluents that contribute to 20% of water pollution worldwide. 

By implementing ZLD systems widely for complete water recovery to reuse and by coming up with creative ways to use waste products, such as recovering salt from ZLD processes for dyeing, India is actively adopting CE practices. 

Additionally, there is an increased need to produce eco-friendly & bio-based dyes generated from renewable sources. This shift is further supported by government incentives and international partnerships, that can help Indian further consolidate its position. 

How can The India Watch Help?

With the assistance of The India Watch, your enterprise can thrive in India's vibrant and rapidly evolving dyes and pigments industry. 

We offer thorough feasibility studies, techno feasibility studies, industrial market research studies and strategic advisory attuned to India’s growing chemical industry. 

Our comprehensive insights are specifically crafted to empower you with the informed decision making necessary to achieve unparalleled, long-term success. Our bespoke feasibility studies and robust market insights deliver critical data, including:

l Market Sizing & Future Projections
l Detailed Competitive Landscape Analysis
l Recent Investments & Key Industry Developments
l Technology Landscape & Trends
l Customer Segmentation & Behaviour
l Distribution Channel & Supply Chain Optimisation Analysis
l Go-to-Market Strategies
l In-depth Regulatory & Policy Insights
l Location Suitability Analysis
l Financial Projections & Risk Assessment
l Addressable Market Size Estimation
l Future Growth Roadmap

To explore how our expertise can empower your venture in the Indian dye & pigmentation sector, reach out to us at info@theindiawatch.com