Company Reports - DyStar LP
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http://www.dystarlp.com/
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DyStar LP
DyStar Dyes Color the Global Textile Supply Chain
Written by John T. Connelly & Produced by Sean Bakke
Just like colors in the spectrum, DyStar L.P. (DyStar) in Charlotte, N.C. is a swirling mix of experience and innovation. A leading manufacturer and supplier of dye, chemical auxiliaries, specialty chemicals and services to the textile, leather and chemical industries throughout North America, DyStar as it’s constituted today, is the result of several mergers and acquisitions.
Recently acquired by Kiri Holdings Singapore Pvt. Ltd, DyStar originally started as a joint venture of Hoechst Celanese Textile Dyes and Bayer Textile dyes in 1995. DyStar diversified the business in 2002 with the acquisition of Color Solutions and further with the acquisition of Yorkshire Americas in 2004. DyStar’s made it most recent step from textile dye services to full solution provider with the acquisition of Boehme Filatex in 2007.
FACE-TO-FACE
The Company operates out of two production sites and three warehouses, located in North Carolina, California, and the Dominican Republic. Both production sites are in Reidsville, NC and are ISO 9001:2000 certified.
As a result of those numerous acquisitions and mergers, DyStar operates through three divisions: Textile Dyes, Chemicals, and Color Communication Services. The products on the Dyes side of the business are purchased for resale by the Company. The Company manufactures about 90% of the finished goods used to generate its chemical revenues.
The growing face of DyStar LP, The CSI business uses DyStar dyes to create CSI formulas for fabric that is manufactured across the globe. In this segment of the business, the Company offers its customers a choice of over 3,500 colors developed by the Company through face-to-face contact with designers and color managers who have a specific color in mind.
“We are using the dyes that we’ve invented and still manufacture today, looking at all the companies combined going back 50 years,” says Ron Pedemonte, CEO.
“All these companies started with textile dyes. We are taking that product and now dyeing fabric ourselves. We are establishing color standards for brands like Old Navy, Gap, Wal-Mart and Nike.”
Undergoing constant improvement and innovation, the key product offering to retailers consists of a certified standard (including dye recipe with DyStar dyes) that is sold to global textile mills and vendors via the Color Solutions International web-site . The customer then uses this formulation to produce its fabric samples and production using dyes purchased directly from the Company.
CUSTOMER VALUE
DyStar LP is acutely aware of the limitless applications for its products. As such, DyStar serves seven key markets including apparel, automotive, carpet, specialty chemical, denim, military/workwear and retailer/brand.
DyStar is always looking for new opportunities while maintaining strong, long-lasting relationships. Of the top 50 customers, 15 have been with the Company for at least ten years.
The Company protects itself from market fluctuations by selling to a diversified and well-balanced customer base made up of leading companies across a broad range of industries. DyStar sells to hundreds of major and mid-sized customers, including industry leaders whose names are immediately recognizable such as Hanes Brand Inc., Fruit of the Loom, Shaw, Mohawk and Guilford Performance Textiles.
“The rules are always changing; customer needs are always changing,” says Pedemonte.
“Even on the manufacturing site, things change. We have to produce different chemicals and constantly improve our processes. In order to focus our employees, we have developed a method called the ‘Roadmap to Success’. Each department is responsible to annually generate new innovation and process improvement projects that will streamline the workflow in their areas. The projects are then reviewed, ranked and tracked until completion.”
HAND-IN-HAND APPROACH
Like its continually growing customer base, DyStar is always looking to add product and innovations. The Company sales team doubles as a product development arm, listening and responding to customer feedback.
“A retailer comes to us with a color palette for the season, whether it is spring or summer, fall or winter, holiday or back to school. They ask us to replicate the color in such a way that it can be communicated to their supply base,” says Pedemonte. “We are smack in the middle of the textile supply chain, supplying color standards.”
Currently, the Company has in development over 25 products with an annual sales potential in excess of $5 million. These new products span all three of the Company’s product sectors, and include offerings for each of the Company’s market business segments.
Even after products leave the pipeline and enter the market, the product development team focuses considerable efforts on finding ways to improve the performance of the customer’s existing products.
In order to achieve the potential improvements identified by the field representatives, the Company deploys this hand-in-hand approach to improving its customers’ products. DyStar has developed a strong reputation in the industry for technical expertise and dedicated customer service.
COMPETITIVE EDGE
DyStar markets its strengths to stand out from competitors. Competing primarily on price, quality and technical service capability, DyStar also separates itself from the pack by touting its unique products, breadth of the offerings, speed of delivery and the quality of its sales staff.
DyStar prides itself on delivering superior service and utilizes e-commerce website integration software. The program allows for seamless integration of retailers and vendors needs, streamlining the supply chain and making life easier for valued partners.
“We take retailer’s inspirational color pieces and make it into a standard format that can be communicated to a global supplier base,” says Pedemonte. “Not only are we providing a service, but we are producing a color standard that is produced with dyes found in other countries; we lend technical support.”
With such a trusted name and constant innovation, DyStar is well served to sustain its strong market share. The Company has a never ending source of applications for its products and, as such, will target new industries.
DyStar can compete in any industry based on its ability to maintain a lean organizational structure with “Best in Class” service, deliver shorter lead times than anyone else and draw upon global suppliers for raw materials.
DyStar’s most vibrant days are still ahead.



