H-Acid demand on growth trajectory after China crackdown

H-acid is an important dye Intermediate extracted from naphthalene. It is used in manufacturing of large number of black dyes, Azo dyes and pigments which are then used to dye paper, textiles etc. It major applications are industrial, food, cosmetic, pharmaceutical. 

H-acid is the most polluting industrial effluent that generates 50 kg of waste for every one kg of usable material. It is toxic and non-biodegradable causing severe land, air and water pollution. Having considered the ill-effects of H-acid manufacturing process, most developed countries of the world gradually have phased it out already. 

However, the demand for H-acid continues as there is no other alternative to its uses. For this reason, the manufacturing was outsourced to countries like China and India where environmental norms are not as strict. India is the second largest manufacturer of H-acid globally after China with majority of production being done in Gujarat & Maharashtra by SMEs. 

This industry is witnessing a good time, following China's crackdown on local industry to lower pollution, which has resulted in irregular supply and thus doubling of prices of H-acid. Sensing this opportunity, Indian manufacturers including Aksharchem, SPCL have expanded capacities. 

Some Indian manufacturers of H-acid are Bodal Chemicals, Aksharchem, Shree Hari Chemicals, Kiri Industries, Bhageria Industries, Ishan Dyes and Chemicals, Vipul Dyechem, Shree Pushkar Chemicals.