Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

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.

Updated: Oct 18, 2019, 11.43 AM IST
Representative Image
(This story originally appeared in on Oct 18, 2019)
MUMBAI: Abu Dhabi National Oil Company (ADNOC) and Germany’s Borealis may acquire stakes in the BASF-Adani proposed petrochemicals venture in India. In January this year, BASF and Adani announced a petrochemicals project in Mundra, Gujarat, entailing an investment of Rs 16,000 crore.

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.
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service