BASF, which supplies plastics and lubricants to automobiles, is not worried about the slowdown in the vehicle industry. The company’s auto division hopes to beat the industry’s growth this year.

The German chemicals company supplies to several industrial clusters such as leather, textile, personal care and automobile.

Automobile is an important industrial cluster for the company contributing 15 per cent of BASF India’s turnover, said Prasad Chandran, Chairman and Managing Director, BASF India.

Products, customers

BASF supplies car-makers with brake fluids, coolants, catalysts for emission control, special chemicals for seating, paints, pigments and engineered plastics. These are manufactured at its plants in Thane, Mumbai and Mangalore. Its customers in India include Maruti, Tata, Mahindra and Hyundai.

The auto industry body SIAM has projected a growth of 9-11 per cent for car makers this year. “We have always grown at least 2 per cent above industry average. This year, too, our auto business will be much more than industry growth,” said Chandran.

The company is not looking at the short-term blips. The long-term growth story is intact as “more people look to move from no-vehicle to a cycle to a two-wheeler to a small car to a sedan,” said Chandran.

The confidence also stems from the fact that auto OEMs are continuously investing in newer cars and technologies, said Chandran.

Car makers are also conscious of sustainability issues. “For instance, engineering plastics are slowly replacing aluminium in the air-intake manifold that goes into the engine. This reduces the weight of the car considerably. Lighter cars are less polluting. Our engineered plastics are being used in the Nano,” explained Chandran.

BASF’s plant in Maraimalainagar, Chennai, makes catalysts that clean up exhaust gases. BASF India’s revenues are Rs 7,500 crore.

Related Topics
comment COMMENT NOW