BASF, the multinational chemical company, sees significant growth for India operations with the opening up of exports to Pakistan. BASF India which reported sales of over Rs 7,500 crore in 2011, has a 200-acre manufacturing facility in Mangalore.
The opening up of export opportunities to Pakistan strengthens its export opportunity in South Asia, according to Prasad Chandran, Chairman and Managing Director. The German multinational, with global sales of over €73.4 billion last year, sees significant growth opportunity for its performance chemicals business, which contributes €15.7 billion.
Leather industry
This range includes products catering to leather and textiles. While not sharing specific numbers, the company is a major player in the leather industry, he said.
Alexander Wartini, Vice-President, Global Business Management, Leather Chemicals, said with the trend of manufacturing shifting to Asia from Europe firmly entrenched, India has carved for itself a niche as an exporter of value-added leather products, as compared with China, which targets volumes.
Exports of leather and leather products from India crossed Rs 20,000 crore and BASF sees the opportunities increasing further as policy-makers have identified leather as a focus sector for its employment generating capacity.
The India business has been growing at a compounded annual growth rate of about 18-22 per cent over the last several years.
Evolving technology
The BASF India last month announced a Rs 1,000-crore greenfield investment in a production facility at Dahej. This facility will be ready in 2014 and contribute to sustaining the growth.
BASF company officials, who were in Chennai to participate in the Indo-German Urban Mela, highlighted the company’s technology innovation in water-repellent leather, a continuously evolving technology that finds wide application in leather footwear.
Andrea Ceretta, Business Director, Leather Chemicals – South Asia, said the company has shifted its spray dye plant from Germany to India to better cater to the growing industry in the region.