Vipul Organics Limited, the BSE listed leading Specialty Chemicals company in the pigments and dyes segment, has ventured into the Paper segment in the domestic market.
Vipul Organics worked closely on its product innovation and over a period of 12-18 months created product lines completely focused on the segment, before launching them into the market. This innovation in product lines with Paper focused Dispersions and Dyes has been appreciated by the industry and the initial client wins include leading players like Tamil Nadu Paper Limited, Andhra Paper, etc.
Paper dyes are dyes used to change or add to the colour of paper. Paper dyes are coloured matter soluble in the medium of application. The global Paper Dyes market size was at USD 1.03 billion in 2022 and is expected to grow till USD 1.47 billion by 2029, at a Compounded annual growth rate (CAGR) of 4.20%. (1). Paper dyes market is going to be the fastest growing amongst Dyes and Pigments. It is expected that almost 43% of it will be dominated by the Asia Pacific region (2).
“With so much excitement in the category, it was obvious that we had to seriously look at the Paper business. We were gratified by client response and are already working with the leading players in the segment. This also forced us to go back to the drawing board to create a strong R&D lab which looks at customer requirements and create solutions to their pain points. A state-of-the-art lab is being set up and will be fully functional shortly”, says Mr. Vipul P Shah, Chairman and Managing Director, Vipul Organics Limited.
“We wish to be the largest suppliers of colorants to the paper industry and this will significantly add to our bottom line. This year, we expect 5-8% of our revenues to come from Paper segment. In addition, we expect Paper Dispersions and Dyes to contribute around 50 crore to our topline in the next 3-4 years”, he adds.
Vipul Organics has already launched its complete range of products under two categories:
- SunPulp® Dispersions: This range of pigment dispersions is developed exclusively for the paper application.
- SunDirect® Dyes: This range of Direct Dyes is for paper coating application.
According to Invest India, one of the primary growth drivers for the paper dyes market is the increasing packaging market. The packaging paper and cardboard segment is expected to account for 35.7 percent of the total packaging industry, which is expected to reach USD$ 1.05 trillion in 2024. The market for paper dyes is expected to expand primarily due to the rising demand for cardboard from various sectors for packing reasons. In addition, the booming e-commerce sector and meal delivery services will support the expansion of this market. It is anticipated that in the near future, the rising demand for paper dye in writing, printing for periodicals, and newspapers will further contribute to boosting the market’s sales forecasts.