BASF India: New Plant boosts valuation

MUMBAI: The share price of BASF gained over 30% in last 15 trading sessions taking its market capitalisation near Rs 5500 crore, as it announced commissioning of its largest construction chemicals plant at Nellore in Andhra Pradesh on 15th April 2015. The company is steadily increasing its investments in India to capture bigger share in domestic market and also support its global sourcing needs.

In December last year BASF in India broke ground for the Innovation Campus to be built in Mumbai, which will host global Research and regional / local Development activities. In October 2014, BASF India inaugurated a new chemical production site at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Gujarat, an investment of Rs 1000 crores. “The Dahej investment is a platform for expansion of BASF's current manufacturing activities in India to cater to the growing market demand,” said the company in reply to ET’s query.

The new Nellore plant, for which BASF shared neither the quantum of investment nor the annual production capacity although specifically querried, will be its fifth plant in India manufacturing specialised construction chemicals. Replying to ET’s queries the company noted that the plant is strategically located and connected to key road networks and Krishnapatnam port. It has proximity to key markets like Chennai, Hyderabad, Vijaywada and can cater to Bangladesh as well. "A key feature of the site is the availability of a well-equipped concrete lab that can be used by sales or technical teams to establish products for the local market," it added.