Chemical MNC sees India as key to export growth in South Asia
- Arup Chanda
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E-mail Xinhua, September 10, 2012
Chemical MNC sees India as key to export growth in South Asia
KOLKATA, India, Sept. 10 (Xinhua)-- BASF, the multinational chemical company, sees significant growth for India operations with the opening up of exports to Pakistan, a top company official said Monday.
BASF India which reported sales of over 75 billion rupees (1364 million U.S. dollars) in 2011 has a 200-acre manufacturing facility in Mangalore in India's southern state of Karnataka.
According to Prasad Chandran, chairman and managing director of BASF India, the opening up of export opportunities to Pakistan strengthens its export opportunity in entire South Asia. The German multinational, with global sales of over 73.4 billion Euros last year, sees significant growth opportunity for its performance chemicals business, which contributes 15.7 billion euros.
This range includes products catering to leather and textiles. While not sharing specific numbers, the company is a major player in the leather industry, he said.
Alexander Wartini, vice-president of Global Business Management of Leather Chemicals, said with the trend of manufacturing shifting to Asia from Europe firmly entrenched, India has carved for itself a niche as an exporter of value-added leather products, as compared with China, which targets volumes.
Exports of leather and leather products from India crossed 200 billion rupees (3,636 million U.S. dollars) and BASF sees the opportunities increasing further as policy-makers have identified leather as a focus sector for its employment generating capacity.
The India business has been growing at a compounded annual growth rate of about 18 to 22 percent over the last several years.
The BASF India last month announced a 10 billion rupees (182 million U.S. dollars) greenfield investment in a production facility at Dahej in India's western state of Gujarat. This facility will be ready in 2014 and contribute to sustaining the growth.
Andrea Ceretta, business director of Leather Chemicals, South Asia, said the company has shifted its spray dye plant from Germany to India to better cater to the growing industry in the region. Enditem
