India has become a significant player in the global pigments and dyes industry. Some of the leading industries in India are focusing on producing eco-friendly pigments and adhering to stringent environmental regulations. Thereby enhancing their reputation in the international markets. The leading sectors are bringing up innovative approaches and committed to sustainability and therefore positioning themselves as predominant suppliers for several global companies in the coatings, plastics, and cosmetic industries. Since there is a growing number of primary consumers of the dyes and pigments industry, their growing demand for their products has increased the need for high-performance pigments and driving the overall pigments and dyes market.

Indian Dyes and Pigments Industry Outlook:

Indian Dyes and Pigments industry has attained a value of USD 65.70 billion in 2023 and is expected to reach USD 97.64 billion by 2032 with a CAGR of 4.5% during the period. The tremendous growth of the pigment market is due to the cosmetic industry. Global industrialization and urbanization have encouraged major sectors of the public to improve their lifestyles, living standards, and evolving lifestyles. These factors have increased the demand for cosmetic products, skincare, haircare, perfume, and personal hygiene products, thereby giving a big boost to the overall growth of the pigment industry.

Similarly, Indian dyes and pigments are exported to various countries such as the USA, Europe, and other Asian countries while providing them at very competitive production costs and at high-quality standards that make Indian products attractive in the global market.

The significant technological advancements and increasing investments in research and developments to innovate and produce eco-friendly and sustainable dyes and pigments are also impacting the overall growth of the dyes and pigments industry.

Prominent categories of dyes and pigments in India: Organic and inorganic pigments:

Organic pigments are gaining dominance in the pigments sector that is being produced in India, which accounts for about 58% of the overall pigment production in India. Meanwhile, the environmental crackdowns in countries like China have resulted in the shutdown of several domestic dye industries. India presents itself as a better place due to the availability of a better ecosystem, feedstock, technology and other factors such as compliance. Therefore, the consumer base in China is expected to shift to India in the future, thereby presenting great opportunities for the Indian dyes and pigments industry.

Current trends show that the demand and sales of organic pigments could outpace inorganic pigments because of the rising awareness about the benefits of natural pigments. Meanwhile, consumers are more aware of the health risks associated with synthetic pigments and therefore choosing natural alternatives for both their health and the environmental benefits. These factors have gained more traction on the concept of producing sustainable and eco-friendly products.

Since organic pigments are naturally sourced, the food industry intensively chooses these organic pigments although they are expensive. The organic pigments are safer and offer better vividness, superior colour quality and compatibility when combined with other food ingredients. Potential customers are willing to spend more when they are offered quality, safer and sustainable products. Therefore organic pigments are likely to gain more popularity in the upcoming years. It is expected that organic pigments are expected to surpass the market value of USD 6.5 billion by 2033 with a CAGR of 4.0%.

Investments paving the way to opportunities:

Indian pigments and dyes industries are spending on multiple aspects that are leading to overall growth.

Clariant Chemicals Ltd. are investing in developing non-toxic, bio-degradable pigments and sustainable technologies, they are also focusing on environmentally friendly dyes and pigments that comply with international standards. They have invested about USD 12 million in sustainable production practices and innovation and about USD 18 million in capacity expansion.

Atul Ltd. has invested about 12 million for the infrastructural developments, USD 24 million for the diversification and focusing on strategic alliances and joint ventures to expand their product offerings. They also form a joint venture with American Firm, Ciba specialty chemicals, thereby enhancing their capability to produce high-performance pigments.

Textile industries are creating ample opportunities:

The textile industry in China holds prominence due to its ancient roots, historical practices and contemporary strategies. Although both India and China have leveraged their resources and labour forces in the growth of textile industries, China has incredible expertise in silk production and modern textile trends. For instance, Shenzhou International Group Holdings Limited, a major manufacturer and supplier to brands like Nike and Adidas have begun to incorporate advanced production techniques and strategic partnerships. Additionally, they have also developed a strong focus on R&D. Post the economic reforms in China, there has been an increase in foreign investments and technological advancements in every sector. These factors have impacted the dyes and pigments industry in India. Since India has a well-established dyes and pigments industry coupled with a strong manufacturing base, it serves China with an abundant supply of raw materials required for textile production.

Some of the leading companies in India include:

Atul Ltd. Atul Ltd is considered as one of the leading companies in Indian Dyes and Pigments industry as they manufacture wide range of dyes that are utilized in textile industries. The dyes types include reactive, vat, and dispersed dyes. The company exports a substantial portion of their production to China.

Kiri Industries: Kiri Industries manufactures an extensive range of reactive and disperse dyes and the company also has established a strong presence in the market.

Heubach Color Pvt Ltd. Heubach ColorPvt. Ltd. is a prominent player in the pigments industry as they specialize in the production of both organic and high-performance pigments. The company has established a strong presence in their exports to China. Their specialization includes:
 

The market presence of Heubach ColorPvt. Ltd is strategically positioned and it possesses the potential to serve the growing demand for high-quality pigments in China. The company owns a strong and stable distribution network and has established a robust distribution network in the country and all over the world. They have also established strong relationships with local distributors and partners, thereby enhancing their market reach. They are further strengthened by the localized support. The industry complies with international standards and Chinese regulations that ensure the stability and suitability of the Chinese market.

Countries benefited from Indian pigment production and advancements:

The booming economy and large population of China have created an attractive market for pigment manufacturers. China has grown in GDP by 8.1% in 2021 and the demand for a specific range of products such as pigments, paints, coatings, plastics, textile products and printing inks is further amplifying the growth.

China is known as the center of pigment production and consumption:

China's booming economy and large population make it an extremely attractive market for pigment manufacturers. China’s GDP grew by 8.1% in 2021 and is forecast to continue growing, driving increased demand for a range of products that require pigments, including paints and coatings, plastics, textile products, and printing inks. The National Bureau of statistics of China stated that the Chinese pigment industry is witnessing significant growth and has reached a growth percentage of 18.6% in 2021. Their total sales revenue has grown over 23.5 billion yuan with an increase in growth percentage of 22.9% in 2022.

Brazil is showing growing demand in the pigments industry:

Brazil has a significant demand for pigments due to a large and diverse economy that encompasses a wide range of industries that require pigments. For instance, the country has a diverse industrial sector such as automotive, textile, construction and other industries that rely on pigments to produce their products.

Brazil is known for their agricultural products and they highly rely on pigments that are involved in the production of colour fertilizers, pesticides, and animal feed.

Sudharshan Chemical Industries is one of the prominent exporters of pigments to Brazil as they provide a wide range of pigments such as high-performance pigments for coatings, plastics, and inks, which are some of the widely used products in Brazil. The company is committed to quality and compliance with the international standards that are preferred by the Brazilian industries. The company also produces high-performance coatings which provide essential properties such as UV resistance, and colour durability and the plastics and packaging industries of the country are also gaining a huge benefit from the consistent quality and vibrant colours of Sudarshan’s pigments, which help in enhancing the appeal of their products.

Case studies:

Heubach industries – trade dynamics:

Heubach industries have gained substantial impact as their partnership with major Chinese automotive manufacturers. The automotive coatings requirements in China are rising due to construction and automotive manufacturers and there have been significant requirements for the automotive coatings, therefore Heubach has contributed to the requirement to a greater degree to enhance the quality and durability of the vehicles that are produced in China.

Heubach’s impact due to the partnership with the majority of Chinese automotive manufacturers has been well-established in terms of high-performance pigments. Overall the company has established itself as a leading supplier of organic and high-performance pigments with a significant presence in the market. They also continue to meet the demands of varied industries in China thereby reinforcing their position in the global pigments industry.

Atul Ltd. – trade dynamics:

Atul Ltd. is a prominent chemical company in India that exhibits a diverse portfolio, spanning multiple industries. They operate in varied segments that include life science chemicals, performance and other chemicals. The company has a significant focus on dyes and pigments and they are known for their robust infrastructure, innovative capabilities, and strong market presence which makes them a key player in the global chemical industry.

Their diverse portfolio of dyes includes reactive, acid and direct dyes that cater well enough to the textile industry.  They also manufacture dye intermediates that are crucial for producing dyes.

The company produces organic pigments that are used in inks, paints, coatings, plastics and other substrates due to their quality, consistency and performance.

They are also involved in herbicides, insecticides and fungicides that serve significant sectors such as agricultural sectors. However they stand as a significant exporter to China and the textile industries of China, and the country heavily relies on imports to maintain their production capabilities.

The company is known for their sustainable practices such as green chemistry and environmentally friendly processes and also has collaborations with international distributors and agents that help the company to expand its market reach and improve the service delivery.

Atul Ltd. is known for its dyes that exhibit superior fixation properties, vibrant colours and environmental compliance that have made significant inroads into the Chinese textile market. They have also altered some of their properties according to the rapidly changing environmental regulations in China. Especially, their eco-friendly dues and intermediates help the Chinese manufacturers maintain their high production standards.

In summation:

Indian pigments industry is showcasing robust growth in organic and inorganic pigments as well as other types of dyes, thereby underscoring its dynamic and resilient nature. Indian manufacturers have navigated the complexities of the global market that delivering products catering to the needs of diverse sectors. Indian pigments and dyes industries are evolving and growing due to strategic investments in research and development. Environmental concerns are becoming very prominent and therefore Indian pigments and dyes industries are focusing on sustainable practices and international collaborations.