BASF to increase focus on India; may sell leather chemicals business

05 February 2009

Chemicals giant BASF plans to increase focus on the Indian market and cash in on the demand for innovative solutions as the global economic crisis dampens demand for its products worldwide.

BASF is currently reviewing future strategic options, including the formation of a joint venture or the complete sale of its leather chemicals businesses.

"We see the crisis an opportunity, which will provide a competitive atmosphere engineering plastics and through our research and development we aim to provide innovative solutions which will be cost efficient for the manufacturing sector," group vice president Hermann Althoff said.

While the company's market share is not that big, in terms of size, it is one of the fastest in terms of growth, Althoff said on the sidelines of the Plastindia 2009 summit.

BASF, which is reviewing strategic options, will sharpen its focus on performance products segment and customer industries. As part of the strategy, the company set up a new operating division, paper chemicals, and started preparations to integrate Ciba businesses.

The company is developing its performance products segment further. The initial organisational changes will be effective as of 1 April 2009.