BASF India has begun demerging its agricultural solutions enterprise, a course of it expects to take 18-24 months after which current shareholders can be obtain shares in the ratio of 1:1 in the new entity.
The demerger can be in line with German industrial chemical dad or mum BASF’s September 2024 announcement to separate core companies, which have vital edge over opponents, and standalone companies similar to agricultural solutions to sharpen the latter’s focus as they compete with pure play friends. It intends to listing the resultant agricultural resolution entity, globally, by an Initial Public Offering.
The new firm, following the demerger in India, will unlock worth for the shareholders, a management crew led by Member of the Board of Executive Directors of BASF SE Mike Heinz and comprising Senior VP – Global Strategic Marketing, Agricultural Solutions Marco Grozdanovic and BASF India Managing Director Alexander Gerding amongst others informed media on the launch of insecticide Valexio and fungicide Mibelya for rice crop.
Mr. Heinz mentioned for the dad or mum entity demerger of the agricultural solutions enterprise in addition to implementation of new ERP was anticipated to occur by the second-half of 2027 on the earliest. The IPO thus is unlikely earlier than first half of 2028 and the timing would nonetheless hinge on different elements similar to market situations, he mentioned. In 2024, the agricultural division generated world gross sales of Euro 9.8 billion.
Last yr, BASF registered gross sales of roughly Euro 2.4 billion to prospects in India. BASF had greater than 2,400 workers and eight manufacturing websites in addition to 42 places of work in the nation. Over the final 10 years, it has invested Euro 310 million to develop its operations in India.
To queries round plans for additional funding, Mr. Heinz mentioned, “I would very surprised if going forward for the next 10 years, the [investment] number would be lower than what we have invested in the last 10 years.”
Mr. Grozdanovic mentioned the corporate is exploring all alternatives in India, together with acquisitions, particularly seed corporations for sure crops. In doing so, it could not be taking a look at giant entities.
On the 2 new merchandise, senior V-P-Agricultural Solutions of BASF Asia Pacific Simone Barg mentioned rice is a precedence in the area from a meals safety perspective. Valexio and Mibelya will assist enhance rice yields as they assist handle rice hoppers, a key rice pest, and management ailments similar to sheath blight management.
Business Director-Agricultural Solutions at BASF India Giridhar Ranuva mentioned the corporate plans to launch 10-12 new merchandise up to 2028. It had launched 10 in the final 4 years.
Published – May 28, 2025 10:34 pm IST
