BASF is evaluating a potential investment in India to meet growing customer demand across the region. The company has reached an advanced stage of its feasibility study for a potential MDI (methylene diphenyl diisocyanate) production complex in Gujarat. As part of the evaluation, BASF has secured an industrial land parcel in Dahej, Gujarat, through its Indian subsidiary, BASF India Polyurethanes Private Limited. MDI is a key raw material for polyurethane products, which are widely used in building insulation, refrigeration, automotive components, furniture and consumer goods.
BASF Targets Growing Indian Market
India remains an important growth market for BASF, with demand expected to increase across several industrial sectors. “India is among the most attractive growth markets globally, with strong demand expected across a wide range of industries,” said Dr. Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer of BASF SE. According to Kothrade, the potential investment aligns with BASF’s “Winning Ways” strategy, which focuses on strengthening the company’s core businesses and creating long-term value. Furthermore, local MDI production could expand BASF’s manufacturing footprint in India and support its local-for-local approach. It would also enable the company to supply customers in India and neighboring markets with locally produced MDI.
Investment Decision Pending Feasibility Study
BASF has not yet taken a final investment decision. The company will base its decision on the outcome of the ongoing feasibility study. In addition, the proposed project would require all necessary regulatory and other approvals. The potential investment would represent another step in BASF’s efforts to strengthen its global MDI production network and improve supply reliability in key markets.
India Could Strengthen BASF’s Global MDI Network
BASF is also evaluating the next phase of its global MDI expansion. The company is currently entering the final phase of commissioning its $1 billion MDI expansion project in Geismar, United States. “BASF continues to invest in its global MDI production network to support customer growth and ensure reliable supply across key markets,” said Dr. Ramkumar Dhruva, President of BASF’s Monomers division. A potential MDI project in India would complement BASF’s existing production network and further strengthen supply capabilities for customers in the region. Besides Geismar, BASF operates MDI production facilities in Antwerp, Belgium; Chongqing and Caojing (Shanghai), China; and Yeosu, South Korea.
Dahej Provides Existing Manufacturing Base
BASF has operated in India for more than 130 years and currently runs multiple production sites across the country. Importantly, the company already has an established manufacturing presence in Dahej. At its integrated chemical complex, BASF India Limited operates an MDI splitter and polyurethane production facilities. This existing infrastructure could provide a strong foundation for potential expansion of MDI manufacturing capacity in the country.
Rising Demand for High-Performance Materials
India’s accelerating urbanisation, infrastructure development and manufacturing activity are supporting demand for high-performance materials. Consequently, BASF expects opportunities to grow across industries that use polyurethane and related materials. A potential MDI production complex in Dahej could therefore help the company serve this expanding market while strengthening its local manufacturing capabilities. As per the press release, BASF’s final decision will depend on the feasibility study and the completion of the required approval processes.
