Adani and BASF to explore petrochem business

Global chemicals major BASF and Adani Group are exploring acrylics value chain business opportunities out of Mundra, Gujarat. The two companies are planning to jointly produce several chemicals for the domestic industry. 

BASF and Adani signed a Memorandum of Understanding (MoU) ahead of the Vibrant Gujarat Summit 2019. The two companies are planning a joint venture with an investment of approximately Rs. 16,000 crore. BASF will hold majority stakes in the JV which will focus on downstream petrochemical products. The JV will build a plants for production of butyl acrylate (BA), glacial acrylic acid (GAA), oxo C4 complex (butanols and 2-ethylhexanol), propane dehydrogenation (PDH) and other products will be predominantly sold in the domestic market. BASF also plans to co-invest in solar and wind park near the site.

The proposed plant will help develop the Mundra region as a chemical industry cluster. This MoU marks the Adani Group's foray into the petrochemical sector.

Meanwhile, the stock of Adani Group companies, Adani Enterprise and Adani Port were trading mixed. The stock of Adani Enterprise was quoting Rs. 146.65 per share, down by 1.64 per cent, Adani Ports & SEZ was at Rs. 397.00 per share, up by 0.58 per cent on BSE during lunch hours.