Investing to Make in India, sustainably
When Indian Prime Minister Narendra Modi launched the “Make In India” investment program in 2016, he stipulated that the manufacturing sector should aspire to be “zero defect” and “zero effect.” In other words, companies should aim to produce products that are perfectly formulated, so as not to require reprocessing; and efficiently manufactured, so as to have no negative effect on the environment. This is a hefty goal -- especially for India’s chemical industry, which is the sixth largest globally and growing quickly.
BASF, a leading global chemical company, and Adani, a global infrastructure business, have taken up the challenge. In January 2019 they announced a partnership to investigate a major investment to help catapult India’s chemical industry into its next stage of growth. They are proposing a joint facility in Mundra port, Gujarat, to manufacture an array of basic and advanced chemical products. The size and composition of the portfolio will enable India to start reducing its reliance on imported chemicals, in line with the Make In India objectives. And the chemicals chosen will provide the basis for a wide variety of products, serving industries as diverse as construction, architectural paint and coatings, packaging, personal hygiene, agriculture and pharmaceuticals.
For BASF, the complex will be its largest investment in India to date. It will also be the company's first carbon-neutral production site globally. This befits the company's new corporate commitment to grow faster than the global chemical market from 2018 until 2030 – while keeping its carbon footprint flat. Plans call for the proposed site to be powered by 100% renewable energy, with a joint investment in a wind and solar park.
“BASF, together with our joint venture partner, would have the opportunity to provide our customers with high-quality chemicals and help them grow their business. With our site powered by renewable energy, we would be able to minimize our impact on the environment,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, BASF SE.
A feasibility study will be completed by the end of 2019.