‘Despite challenges, Indian colorant industry can grow rapidly’ declares Dr. Deepak Parikh in the 64th Annual General Meeting & Awards Presentation Function of DMAI
The 64th Annual General Meeting of the Dyestuffs Manufacturers Association of India (DMAI) and Awards Presentation function was held on Monday, the 4th August 2014 at Hotel Sea Princess, Juhu Tara Road, Santacruz(W), Mumbai.
Dr. Deepak Parikh, Vice Chairman & Managing Director, Clariant Chemicals (India) Ltd., was the Chief Guest. More than 100 members of the Association with their spouses, special invitees, guests & other dignitaries and Press attended the meeting.
In his brief address, President Shri Janak Mehta welcomed the members. While presenting the Annual Report for the year 2013-2014, Hon.Secretary, Shri Jitendra Patel highlighted the various activities of the Association as under:
- Representations to Govt. and other agencies on various issues concerning the colorant industry like continuance of GSP Scheme to colorant industry beyond 2014, revised guidelines on Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of SSI unit etc.
- Conducted 63rd Annual General Meeting and Awards presentation function on 22nd June 2013 at Hotel Sea Princess, Juhu, Mumbai
- Organised Seminar on ‘Application of Green Chemistry in the Colorant Industry’ on 20th September 2013 at Hotel Sea Princess, Juhu, Mumbai at the instance of the Dept. of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, GOI
- Conducted two days Conference on ‘Textiles : Business & Environment Sustainability – Challenges for the Colorant Industry’ in Coimbatore on 29-30 November 2013 very successfully.
- Attended meeting on 23-9-2013 on ‘Voluntary Certification Scheme for Lead Limit Controlled Decorative Paints’.
- Attended meeting with Dept. of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India regarding India Chem 2014 on 20-11-2013 and pollution related matters on 30-9-2013.
- Half Yearly meeting held at Hampi on 8-12 January 2014.
- Attended meeting of Central Pollution Control Board Peer & Core Expert Committee on CETP matters on 4-3-2014.
- Participated in China Interdye 2014 Exhibition on 16-18 April 2014 in Shanghai and made a presentation on ‘The Development Situation of Indian Dyestuff Industry in 2013 and Future Trend’.
- Interactive meeting with the visiting Chinese delegation on 25th June 2014 in Mumbai.
- Constitution of various Sub-Committees for Website, Technical, Membership Drive, Environment related issues etc.
- Submitted proposal for Union Budget for 2014-2015
- Recommendation for setting up of Sector Skill Council in Chemical and Petrochemicals to FICCI
- Dealt with Anti Dumping Duty related issues on Aniline, MPDA and DASDA through Solicitors M/S. M.S. Pothal & Associates in Delhi
- Regular publication of DMAI NEWSLETTER on quarterly intervals
- Publication of DMAI Page regularly in Colourage of Colour Publication
Shri C.K. Singhania , 1st Vice President thereafter presented the Audited Income & Expenditure A/C for the year ended 31-3-2014 and Balance Sheet as on 31-3-2014.
Shri Kamal Kapoor, Jt. Hon.Secretary declared the names of the 7 Office Bearers and 7 Members of the Managing Committee for the years 2014-2015 & 2015-2016, who were elected unopposed.
In the lively question-answer session that followed, the President Shri Janak Mehta clarified the various queries raised by members on issues like signing of MOU with the Landlords by the Tenants of our Samuel Street office for redevelopment, strong objection lodged against draft Rules to Maharashtra Value Added Tax Act 2002 (VAT) & the proposed draft Rules regarding Poison Act 1999, working closely with other sister organizations like Chemexcil for speedy redressal of the Industry related issues etc.
Shri Pritesh Shah of Prima Equipments thereafter made a power point presentation on “Continuous Emission & Effluent Monitoring System”. Shri Prasad Pant of NimkarTek Technical Services Pvt.Ltd also made a presentation on “Ecological Services for Textiles & Chemicals”.
Shri Ram Ajekar, Imm. Past President anchored the proceedings.
President Shri Janak Mehta, in his address, welcomed the gathering. He thanked Dr. Deepak Parikh, Vice Chairman & Managing Director, Clariant Chemical (India) Ltd for his participation as the Chief Guest, despite his busy schedule.
While dwelling upon the problems faced by the colorant industry, Shri Mehta mentioned that the past year was significantly marked by high prices of intermediates, which have dented the operations of the dyestuffs manufacturers very adversely. Manufacture of intermediates in India is very much limited. Situation in China is also not different as far as intermediates are concerned due to pollution related issues. This has affected imports of intermediates very significantly. He appealed to the Indian manufacturers of intermediates to endeavour to reduce the cost, which will be indeed a boon to dyestuffs manufacturers.
Shri Mehta complimented the Central Govt. for reducing the Customs Duty on many building blocks from 10% to 2.5% in the recently presented Union Budget for 2014-2015. Hon.Finance Minister, Shri Arun Jaitely had also reduced Custom Duty on Crude Naphthalene from 10% to 5%. This was one of our long pleaded demands from the industry. DMAI has thanked our parent Ministry for their positive efforts for rationalization of the duty and eliminate inverse duty structure. The Govt’s emphasis on development of infrastructure and manufacturing sector is also quite appreciable, Shri Mehta added. All these measures contemplated by the pro-active Govt. will undoubtedly ease doing business in a more congenial environment in our country and generate more employment opportunities.
Shri Mehta further stated that DMAI had received a message from Shri Ananth Kumar, Hon. Minister for Chemicals & Fertilizers, GOI for the successful conduct of our AGM in response to our invitation. The same has been printed in the NEWSLETTER released today.
In a forthright and candid analysis of the present situation, Shri Mehta cautioned that pollution control norms would be made very stringent in the days to come. Industry has also an onerous responsibility to protect the environment and future generation from the ill effects of pollution. Shri Mehta, however, lamented about the stringent and impractical norms for pollution control imposed by the authorities for our industry. Before fixing norms, he suggested proper study on EIA being carried out for compliance. DMAI had also suggested that proper BOD/COD norms should be prescribed for different CETP’s depending upon their medium of discharge in to land, inland water bodies and deep sea based on the past results. In the meantime, Shri Mehta advocated for removal of the moratorium on expansion, change of products etc in the established industrial estates in Gujarat like Vapi, Ankleshwar and Ahmedabad and the status of critical zone there from.
Shri Mehta further mentioned that DMAI has recently lodged strong objection against draft Rules to Maharashtra Value Added Tax Act 2002 (VAT) and proposed draft Rules regarding Poison Act 1999 for sale of acids and ethanol. It is incorrect to stop usage of scissors by barbers in case of any misdeed by unscrupulous elements, he averred. What is the need of the hour is legislation for governance for industrial application rather than misuse.
Shri Mehta concluded that DMAI has established better and cordial relations with our counterparts in China during the last many years. In 2011, DMAI organized Interdye Asia Exhibition in Ahmedabad jointly with China Dyestuffs Industry Association. Also, we had a meeting with the visiting Chinese delegation recently in DMAI office, when issues concerning both the parties were discussed in a more friendly and congenial atmosphere. Shri Mehta wished all success to the large contingent of participants during the current fiscal.
Dr.Deepak Parikh then presented the Annual Awards to the recipients from the industry for the year 2013-2014 for excellence in several fields like Performance in the exports of Dyestuffs, Dye Intermediates, Optical Whitening Agents, Domestic Market, Merchant Exporter, Pollution and Safety and Hazards Control Management under various categories. Dr.S.K. Bhumgara, member of the Awards Committee declared the award winners under each category. Citation was also conferred on the technical awardees. Cash prize of Rs.7500/- each with a trophy sponsored by our member units and certificate were also presented to the students of ICT, Mumbai, who had topped their respective classes for 2012-2013. Certificates were also presented to members having obtained ISO 9001 & 14001 accreditation during the year.
Shri Virendra Widge, Managing Committee member thereafter introduced the Chief Guest Dr. Deepak Parikh to the audience.
At the outset, Dr. Parikh thanked DMAI for inviting him to participate in the AGM as the Chief Guest. He congratulated the award winners from the industry and the vibrant and dynamic toppers from ICT, in particular, who would be taking the industry forward in the days to come. After the recent segregation of dye manufacturing activity to Archroma from the parent company of Clariants, both the entities are now working side by side towards progress.
Dr. Parikh elucidated three important concepts, which, according to him, are very challenging for the sustainability of the colorant industry. Firstly, the cost of raw materials has gone up substantially during the last 2-3 decades. There was a time, when crude was priced at US$ 20 in the 80’s, which has now gone up to US$ 145, making imports very prohibitive. Currency exchange, which fluctuates quite off and on, is also not in our favour. Whereas gas units have made aromatic products from ethylene, propylene and butane quite cheaper, the oil based derivatives there from have become costly. On an average, the cost of raw material is shooting up by 12% to 15% annually. While world economy appears to be quite soft, it pinches Indian economy very drastically, Dr. Parikh stated.
Another impediment is limitation for the producers to pass on the cost escalation to end-user, affecting the supply chain very drastically. The industry is at the mercy of supplier of raw materials affecting supply. In this context, both upward and downward vertical integration is very vital for the survival of the industry.
Secondly, profitability is another concept, which was dealt with at length by Dr. Parikh. A few major players in the industry have tried to bring down the economy of scale, which was eventually not succeeded. Many worldwide units like Nova Chemicals have turned into bankrupt in the recent past. To overcome this unfavourable situation, power of unity among the manufacturers and consolidation process thereof will be a welcome step towards recovery, Dr. Parikh stressed.
An imminent and foremost step to be taken by the industry is protection of environment, Dr. Parikh pointed out. We have an added responsibility to protect the future generation from possible ill effects of polluting the environment. He lamented that there are many units in Gujarat, who have not taken adequate steps for pollution control and are confining to the age old practice of manufacturing products without adoption of any technology leading to more pollution. It is the prime responsibility of the industry to save our mother earth from pollution. Dr. Parikh complimented many Roha based units like Clariant and Sudarshan, which have done a great job in pollution control. Here COD/BOD has been brought under control to a great extent. Other units should also fall in line.
Dr. Parikh further narrated about an incidence in RCF, when leakage of ammonia gas was the real cause in the past for the eyes-burning sensation to the affected general public. Competent authorities would be implementing stringent regulatory norms in this situation to overcome the unforeseen catastrophes. Older assets will have to be shut down. Dr. Parikh categorically cautioned that polluting units will not survive in this changed environment.
While elucidating about the positives, Dr. Parikh stated that population in South Asian countries like Bangladesh, Vietnam, Philippines, India etc. is growing steadily. It would be to our advantage that our products could be sold in these markets, where increased demand of about 3% annual growth for clothing and textiles will be felt in future. Trade barriers should be eliminated with proper regulatory measures for better exchange of markets with these countries. Focus on production of PET, viscose etc locally will also be an added advantage for the textile manufacturers in our country from profitability angle.
Innovation is another key word for development, Dr. Parikh mentioned. It was unfortunate that in India there are no specific avenues for development of new molecules, nor chemistry for application despite abundant availability of brilliant technical hands. In this context, educational institutions like ICT, IITs etc can play an important role. Green chemistry will be another ingredient, which will have to be strictly adhered to by the colorant industry in the near future.
Dr. Parikh suggested that Indian manufacturers should work closely with Japanese enterprises, which will be more enterprising and rewarding. Indo-Japanese partnership in trade should be multiplied manifold for mutual benefits, instead of solely depending upon Chinese markets. He concluded his inspiring and well researched address foreseeing that India has an upper advantage in the global market with speciality chemicals forming the spectrum in the nearest future. He wished all success for the industry for its long lasting and sustainability.
Hon. Secretary Shri Jitendra Patel, proposed a vote of thanks.
The meeting was followed by the traditional cocktails and dinner.