Vipul Organics Limited, a listed specialty chemicals company, has launched a new innovative paper-focused dispersions and dyes product line. The product launch marks its venture into the paper segment and is targeting a turnover of INR 50 crore in the next 3 years.
Aug 21, 2023
Vipul Organics Limited, a specialty chemicals company, has launched a paper-focused dispersions and dyes range to venture into the paper segment. The company expects a turnover of INR 50 crore in the next 3 years. The company will be setting up a state-of-the-art R&D lab for the paper category at its Ambernath plant. Its initial clientele includes Tamil Nadu Paper Limited (TNPL), and Andhra Paper Limited among others.
Paper dyes are colored matter soluble in the medium of application used to change or add to the color of paper. The company has worked closely on its product innovation and over a period of 12-18 months has created product lines completely focused on the paper segment, before launching them into the market. The new product range can be divided into two categories – SunPulp®Dispersions, pigment dispersions developed exclusively for paper application; and SunDirect®Dyes, direct dyes for paper coating application.
Vipul Organics Limited is a BSE-listed leading specialty chemicals company offering pigments and dyes to varied sectors and industries. It is amongst the foremost manufacturers of pigments, dyestuff, lake colors, and pigment intermediaries / fast salts in the country. It has 3 manufacturing facilities spread across Maharashtra and has a global footprint in over 50 countries. Vipul Organics ended the FY 2022-23 with a consolidated revenue of INR 134 Crore.
Mr. Vipul P. Shah, Chairman and Managing Director of Vipul Organics Limited, stated, “With so much excitement in the category, it was obvious that we had to seriously look at the Paper business. We were gratified by the client’s 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 that looks at customer requirements and creates solutions to their pain points. A state-of-the-art lab is being set up and will be fully functional shortly. We wish to be the largest supplier of colorants to the paper industry and this will significantly add to our bottom line. This year, we expect 5-8 percent of our revenues to come from the paper segment. In addition, we expect paper dispersions and dyes to contribute around 50 crore to our topline in the next 3-4 years.”
According to reputed research papers, the global paper dyes market size was at USD 1.03 billion in 2022 and is expected to grow to USD 1.47 billion by 2029, at a CAGR of 4.20 percent. The paper dyes market is going to be the fastest growing among dyes and pigments, with almost 43 percent market dominated by the Asia Pacific region.
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.