Growth and regulatory environment of dyes and pigments industry

20TH-Nov-2017 – Mumbai - The Indian dyestuffs and pigments space has become a multi-billion revolutionary industry in the overall growth of the economy of our country. Paintindia Magazine reports that the industry has transformed from being import dependent to becoming an export-focused industry in modern times. Developed nations are focusing on importing dyestuff and pigments from competitively priced countries that have a flexible business model and have long-life span in the world. One of the many leaders in the space, India, has been growing year over year, despite import duty, import tariffs, and export regulations and taxation rules levied. Tacking these issues has been a challenge for many in the industry, but growth is imminent. Coatings World Magazine reports that the Indian dye and pigments industry has been growing double digits for many years prior and continues to show promise in the years to come.
Demand Pillars
Owing to the large demand for paints and coatings, dyes, pigments, dye-stuff and dye-products via printing, leather; construction and automobile sectors, the dyes and pigments industry has been a hallmark in the Indian economy, and has shown growth not only in the textile space but in orthogonal, as well as complete new industries as well.
Communications, HRM, training, development and taxation regulations are some of the key factors associated with the industry and the development of the industry lies heavily on demand via exports of WIP or finished products. Industry leaders effected by leading marquee publications such as Paintindia Magazine, Coatings World Magazine and others have an edge to innovate and keep up with changes. Several corporations have established top-of-the-world technologies that tap into growth markets and aid in innovation as well.
Taxation, Import-export, and logistics
By taxation principles, 18% of GST isn’t different from existing rates, however the players in the industry who are focusing heavily on margins will have to innovate further. Documentation, processing, logistics and adherence to all import duty, export tariffs, and export regulations may become costlier and companies will have to change strategies accordingly. These are especially true for paints, coatings, dyes, pigments and dye-stuff related goods and technologies. Also, tax claims, export tariffs, custom duties and inventory management will have to be organized across the country and industry participants will have to align with the government policies applicable. Unorganized sector will see problems related to the new tax environment, but international players may see a benefit owing to greater management. Chinese industries will prefer working in a regulated environment, which will open doors to business development and industry-wide acknowledgement.
Business development and growth
There may be supply-chain slowdowns, however, there is a wider scope in business development and portfolio enhancement. New markets lead to new demand cycles, which can create innovation in the economy in general. Labour cost arbitrage may present new challenges, but these are driven away by organizations focused on customer-service and growth. As Chinese workers may underperform under poor regulations, Indian workers may flourish. With structure, guidance and training, the import-export, tariffs, and tax environment can be a boon to the Indian dyes and pigments industry.

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