In what would be its largest investment in India till date, BASF SE, headquartered in Ludwigshafen, Germany, today signed a memorandum of understanding (MoU) with the Ahmedabad-based Adani group to evaluate a major joint investment in the acrylics value chain, according to a joint media statement issued by the companies. According to the pact, BASF and Adani want to establish a joint venture with an investment of about €2 billion (approximately Rs 16,000 crore), in which BASF will hold the majority stake, according to the press statement.
The designated site would be located at Mundra port in Gujarat. A feasibility study will be completed by the end of 2019, it said. The potential investment comprises the development, construction and operation of production plants, including propane dehydrogenation (PDH), oxo C4 complex (butanols and 2-ethylhexanol), glacial acrylic acid (GAA), butyl acrylate (BA) and potentially other downstream products. The products are predominantly for the Indian market to serve a wide range of local industries, including construction, automotive and coatings, whose growing demand is currently supplied via imports.