BASF and Adani signed a memorandum of understanding owing to the joint venture investment in the acrylics value chain. The investment is around $2.3 billion. The feasibility study is in progress and is estimated to be completed by end of 2019. This investment is the highest investment made by BASF in India. The location site for the business is at the port of Mundra in Gujarat State, India.
In the coming joint venture, BASF is expected to hold the larger share. The new business entity will include units producing butanol’s and 2-ethylhexanol, oxo alcohols, glacial acrylic acid, butyl acrylate, propane dehydrogenation (PDH) plant and potentially other derivative products. The products produced will serve the Indian market and cater the needs and decrease the imports of various domestic industries such as automotive, construction, and coatings.
As per Gautam Adani, who is the chairman of the Adani group, India is one of the largest importers of petrochemicals owing to the rapid change in lifestyle and increased economic growth. Due to this joint venture with BASF, India will also domestically produce various chemicals which were imported before. Also, the C3 chemical value chain that we are currently importing. This joint venture will also support the ‘make in India’ programme. The location chosen in the port of Mudra is apt for chemical production.
As per Martin Brudermüller, chairman of BASF, the intention of the huge investment in the new site in India is to show case the strong and long-term commitment to the Indian customers and also as the production is led by renewable energy, it would lead to no negative impact to the environment.
Owing to the Carbon-neutral growth strategy by BASF, the coming up site in Mudra will be the first CO2-neutral production site of the firm. The partners have strategized an overall plan including 100% renewable energy supply of the site and also the new technologies. Additionally, BASF plans to co-invest as a minority share partner in wind and solar park.
— Vasundhra Singh,
Assistant Research Executive,