BASF to invest €3 bn in Asia-Pacific

Multinational chemicals manufacturing major BASF Group is planning to invest around Euro 3 billion in Asia-Pacific countries between 2017 to 2021 and a share of it will be invested in India, said Sanjeev Gandhi, member of the Board of Executive Directors, BASF SE. India contributes around 12 per cent of the company’s Euro 12 billion sales in Asia-Pacific and is the third largest market in the region.

“The investment is aimed at building new capacities in Asia Pacific. India being one of our key markets will have its fair share in the planned investments. We are keen on expanding our presence in India,” said Gandhi.

The Group has invested around Euro 300 million (around R2,000 crore), over the past four years, in manufacturing and research and development activities in India. He further added that the quantum of investment in India depends on how competitive the plans submitted by the Indian arm turn out to be.

With more than 50 per cent of the global chemical demand generated in the region, Asia is the biggest chemical market in the world at present. Countries like China, India and Vietnam are the other fast emerging companies witnessing high demand for chemicals.

The company’s target in the mid-term and long-term is to grow above the chemical market growth in Asia. The global chemical market will be growing at around 3.4 per cent next year as per the firm’s estimates and a majority of that growth is expected to come from Asia. BASF operates in 17 countries in Asia.

India is the third largest market for the company in Asia, with 12 per cent of Euro 12 billion sales. Almost 50 per cent of the Asian business comes from China and Taiwan. With sales of 1.6 billion Euro, Japan is the second largest market, and with the sales of 1.2 billion Euro, India is the company’s third largest market.

According to Raman Ramachandran, chairman and managing director, of BASF India Limited, the growth of the industry is dependent upon the growth of the country's economy and of all the countries, India currently presents a better opportunity for the company. BASF Catalysts India Private Limited, a part of the Group, launched its new mobile emissions catalysts manufacturing site in Chennai, to meet the stricter emission norms in the country.