UAE, German cos may back BASF-Adani JV
With Abu Dhabi and Borealis coming into the BASF-Adani proposed venture - this would further bolster the overall product portfolio as the investment has already shot up by 75% to Rs 28,000 crore. This will also be BASF’s biggest investment in India.
With Abu Dhabi and Borealis coming into the venture and the project looking at widening its product portfolio, the investment has shot up by 75% to Rs 28,000 crore. BASF will be the majority shareholder in the fourway partnership, paying the maximum amount of the investment bill. This will also be BASF’s biggest investment in Asia’s thirdlargest economy till date.
“BASF remains committed to investing in India’s growth. We will play a key role in driving this joint collaboration which is also pioneering in terms of sustainability,” said Martin Brudermüller, chairman of the 63-billion-euro company.
There is no clarity on the exact shareholding structure of the four parties in the project, which would be the world’s first to be fully powered by renewable energy. With the inclusion of Abu Dhabi and Borealis as partners, the parties are examining “various structuring options” for the chemical site that will “leverage the technical, financial and operational strengths of each company,’’ the quartet said in a joint release.
The Mundra plant will produce propylene from propane gas to be supplied by Abu Dhabi. Some of the propylene production will be supplied to Abu Dhabi and Borealis’ joint venture and the balance will be used by BASF and Adani. BASF and Adani, which also have a separate partnership, will use propylene to make enhanced chemical products for use in construction, automotive and coatings industries.