BASF India Limited has announced the Board of Directors’ approval to close specific sulfation & low temperature reactor plants under its Care Chemicals Business at the Dahej manufacturing site. This decision, effective by the end of calendar year 2026, is attributed to changing competitive dynamics, overcapacities, high costs, and margin pressure in the Indian market. The affected operations contributed approximately 4% of the company’s total revenue in FY 2025-26.
BASF India Approves Plant Closure at Dahej
BASF India Limited announced that its Board of Directors has approved the closure of sulfation and low temperature reactor plants associated with its Care Chemicals Business at the Dahej manufacturing site. This strategic decision is slated for implementation by the end of calendar year 2026, subject to necessary approvals.
Rationale Behind the Closure
The company cited evolving competitive conditions within India, leading to extensive overcapacities, elevated costs, and significant margin pressures, as the primary reasons for this move. The closure aims to address these market challenges impacting the Care Chemicals segment at Dahej.
Financial Impact and Business Continuity
In the financial year 2025-26, the manufacturing operations pertaining to the Care Chemicals Business at Dahej, which are part of the Nutrition & Care Segment, generated revenues of Rs. 542 crore. This represented approximately 4% of BASF India’s total revenues. The company has emphasized that the Care Chemicals business will continue to operate by manufacturing, importing, and selling its other chemical products to meet customer requirements in India.
Source: BSE
