German multinational chemicals company BASF has announced it is in the advanced stages of a feasibility study for the construction of a methylene diphenyl diisocyanate (MDI) production complex in Gujarat. According to reports from Business Standard, the company has secured an industrial land parcel in Dahej for the potential investment through its Indian subsidiary, BASF India Polyurethanes Private Limited. The final investment decision will be based on the outcome of the feasibility study and will remain subject to all necessary approvals. As reported by Business Upturn, this decision is part of BASF's ongoing commitment to address increasing customer demand in the region. The latest exchange filing dated 21 September 2026 confirms that while land has been secured and the feasibility study is at an advanced stage, the final investment decision remains conditional on completion of the study and receipt of all necessary regulatory approvals.
MDI is a key building block for polyurethane products used in building insulation, refrigeration, automotive components, furniture and consumer goods. As reported by Business Standard, Stephan Kothrade, member of the Board of Executive Directors and Chief Technology Officer of BASF SE, stated that India is among the most attractive growth markets globally, with strong demand expected across a wide range of industries. He emphasized that the company is focusing on investments that strengthen its core businesses and create long-term value, noting that a potential investment in India would further expand their manufacturing footprint in a key growth market. According to Business Upturn, this development aligns with BASF's strategic vision to bolster its production capabilities in response to the dynamic needs of these sectors. The investment represents a pre-investment disclosure, not a confirmed capital commitment, with the financial quantum and balance sheet impact remaining undisclosed until the feasibility study concludes and approvals are obtained.
According to Business Standard, BASF currently operates MDI production facilities in Geismar, United States; Antwerp, Belgium; Chongqing and Caojing (Shanghai), China; and Yeosu, South Korea. BASF India Ltd operates multiple production sites in India, including an MDI splitter and polyurethane production facilities at its integrated chemical complex in Dahej. The company noted that as India's urbanization, infrastructure development and manufacturing activities continue to accelerate, demand for high-performance materials is expected to grow. As reported by Business Upturn, the investment, if approved, would not only support BASF's growth ambitions but also contribute to the technological and industrial advancement of the Indian chemical sector. India's specialty chemicals sector has attracted significant foreign direct investment in recent years, supported by the government's push for domestic manufacturing and import substitution in core industrial chemicals.
