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BASF forms new company for polystyrene

Our Bureau

MUMBAI, Nov. 22

BASF today announced the launch of a new company -- BASF Styrenics Pvt Ltd.

BASF had formed a strategic alliance with Chatterjee group, New York, from whom it acquired Pushpa Polymers, which is now named as BASF Styrenics. The alliance was formed for the manufacturing and sales of polystyrene in India.

BASF holds a majority stake in this alliance and assumes operational as well as management control of Pushpa Polymers.

According to Dr Werner Praetorius, head of BASF's Styrenic Polymers division, ``In the next 10 years, we expect the polystyrene market in India to grow at a rate of well over 10 per cent.''

BASF Styrenics is also in the process of restarting operations in its Dahej plant, which it acquired with Pushpa Polymers. ``We expect to have quality products from Dahej that will be available in the market within the next four weeks. We also plan to ex port polystyrene to customers in ASEAN countries and the neighbouring countries of India from Dahej,'' said Dr Werner Praetorius.

The company has just completed expansion of its annual capacity at its Thane plant to 15,000 tonnes from the existing 7,000 tonnes.

The company expects to garner a sales of 60,000 tonnes by December 2001, Dr Praetorius said. The major demand areas for the polystyrene market in India are Mumbai (40 per cent), Delhi (40 per cent), Chennai (15 per cent) and Calcutta (five per cent).

Mr Prasad Chandran, Chairman and Managing Director, BASF India Ltd, said that the company planned to grow aggressively through large investments, mergers and acquisitions.

BASF India has reported sales of Rs 1,058 crore in 1999, up by 14 per cent from Rs 927 crore in 1998, Mr. Chandran said. ``The fastest growing areas in the forthcoming years will be packaging, consumer durables and automobile industries. Plastics are one of the major inputs to these industries and with this acquisition, we will be able to tap this considerably,'' he added.

Pic.: Mr Prasad Chandran, Chairman and Managing Director, BASF India Ltd, and Dr Werner Praetorius, Styrenic Polymers BASF AG, at a press conference to announce the launch of a new company in Mumbai on Wednesday.

Picture by Paul Noronha