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In what marks the foray of Adani Group in the petrochemicals sector, the company has signed a memorandum of understanding (MoU) with German chemicals major, BASF SE, to evaluate joint investment in the acrylics value chain.
The joint venture is pegged at an approximate investment of euro 2 billion (approx Rs 16,000 crore), in which BASF will hold the majority stake, making it the German player's largest investment in India to date.
The proposed site for the facility is at Mundra port in Gujarat and a feasibility study will be completed by the end of 2019.
“Our partnership with BASF is a big step forward in enabling our country’s ‘Make in India’ programme, as this partnership will allow us to produce several chemicals in Mundra, along with the C3 chemical value chain that we currently import. Mundra's infrastructure is ideally suited to enable chemicals production, and our ability to deliver renewable power makes this a unique partnership on several fronts,” Gautam Adani, Chairman of Adani Group, said in an announcement on the eve of the inauguration of the Vibrant Gujarat Global Summit (VGGS).
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 range of local industries, including construction, automotive and coatings, whose growing demand is currently met through imports, thus supporting the ‘Make in India’ initiative, an Adani statement said.
"BASF’s intention to invest in a major new site for the acrylics value chain in India clearly demonstrates our strong and long-term commitment to our Indian customers. Together with the Adani Group, we would have the opportunity to provide our customers high-quality chemicals and support them in growing their business. With our production powered by renewable energy, we would be able to minimise our impact on the environment," said Martin Brudermüller, Chairman of the Board of Executive Directors, BASF SE.
The chemical site in Mundra would be the company’s first CO2-neutral production site.
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