BASF Evaluates MDI Production Complex in Gujarat Amid Rising India Demand
Company advances feasibility study for potential Dahej facility to serve Indian and neighbouring markets
German chemicals company BASF is evaluating a potential investment to establish a methylene diphenyl diisocyanate (MDI) production complex at Dahej, Gujarat, as it assesses future capacity requirements driven by demand in India and neighbouring markets.
BASF said on September 21, 2026, that it is in the advanced stages of a feasibility study for the proposed project and has secured an industrial land parcel in Dahej through its Indian subsidiary, BASF India Polyurethanes.
Investment Decision Depends on Feasibility Study
MDI is a key building block for polyurethane products, which are used in applications including building insulation, refrigeration, automotive components, furniture and consumer goods.
The company has not yet taken a final investment decision. Any decision to proceed with the proposed facility will depend on the outcome of the feasibility study and will be subject to the necessary approvals.
Commenting on the potential investment, Stephan Kothrade, member of the Board of Executive Directors and Chief Technology Officer of BASF SE, said:
“India is among the most attractive growth markets globally, with strong demand expected across a wide range of industries.”
He added:
“A potential investment in India would further expand our manufacturing footprint in a key growth market and, consistent with our local-for-local approach, enable us to serve customers in India and neighbouring markets with locally produced MDI.”
BASF has not disclosed the potential investment amount or the proposed production capacity for the project.
Proposed Dahej Facility Could Expand BASF’s MDI Network
The proposed investment is being evaluated as part of BASF’s broader global MDI production network.
Ramkumar Dhruva, President of BASF’s Monomers division, said:
“While the commissioning of our $1 billion MDI expansion project in Geismar is entering its final phase, we are evaluating the next potential step in strengthening our global MDI footprint,” Dhruva said.
He added:
“A project in India would complement our existing production network and further enhance supply reliability for our customers,”
BASF currently operates MDI production facilities in Geismar in the United States, Antwerp in Belgium, Chongqing and Caojing in China, and Yeosu in South Korea.
The company already has an MDI splitter and polyurethane production facilities at its integrated chemical complex in Dahej. According to BASF, the existing site would provide a base for the potential investment.
BASF’s Existing Operations in India
BASF has been operating in India for more than 130 years. At the end of 2025, the company had 2,435 employees, eight production sites and more than 40 offices in the country.
BASF reported sales of approximately €2.3 billion to customers in India in 2025.