BASF and the Adani Group have signed a Memorandum of Understanding (MoU) on the eve of the Vibrant Gujarat Global Summit to evaluate a major joint investment in the acrylics value chain. This project would become BASF’s largest investment in India to date. The designated project site is located at Mundra Port in Gujarat, and a comprehensive feasibility study is scheduled for completion by the end of 2019.
Under the MoU, the two companies plan to establish a joint venture with a total investment of approximately €2 billion (around INR 16,000 crore), in which BASF will hold a majority stake. The proposed project includes the development, construction, and operation of multiple production plants such as:
- Propane Dehydrogenation (PDH)
- Oxo C4 complex (butanols and 2-ethylhexanol)
- Glacial Acrylic Acid (GAA)
- Butyl Acrylate (BA)
- Potential downstream acrylic products
The products will be primarily supplied to the Indian market, serving key industries including construction, automotive, and coatings, which currently depend heavily on imports—thus supporting the ‘Make in India’ initiative.
CO₂-Neutral Chemical Site and Renewable Energy Strategy
Gautam Adani, Chairman of the Adani Group, said that India remains a large importer of petrochemicals due to rapid middle-class expansion, resulting in substantial foreign exchange outflow. He emphasized that the partnership with BASF would allow India to locally produce key chemicals currently imported, using Mundra’s strong infrastructure and Adani’s renewable power capabilities.
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Dr. Martin Brudermüller, Chairman of BASF’s Board of Executive Directors, stated that the investment reflects BASF’s long-term commitment to Indian customers and will enable the company to deliver high-quality chemicals while minimizing environmental impact.
In line with BASF’s carbon-neutral growth strategy, the planned Mundra site will be BASF’s first CO₂-neutral production facility worldwide. The companies have developed a plan to power the site with 100 percent renewable energy, supported by new technologies and co-investment in wind and solar power generation, where BASF will participate as a minority partner.
