BASF India to divest 100% stake in coatings subsidiary for USD 27.6M
Closing is expected in Q2 2026, after which the subsidiary will no longer be part of BASF India.
INDIA – BASF India Limited’s board has approved the sale of its entire 100% stake in its wholly-owned subsidiary, BASF India Coatings Private Limited.
The deal values the subsidiary at INR 230.16 crore (USD 27.6 million), as determined by an independent valuer and subject to closing adjustments.
Buyers are Bond German BidCo 2 GmbH and Bond France BidCo SAS, entities of the Carlyle Group, which are unrelated to BASF India’s promoters.
In FY 2024-25 (ended March 31, 2025), BASF India Coatings generated turnover of INR 479.64 crore (USD 57.6 million), or 3.1% of BASF India’s total revenue.
Its net worth stood at INR 199.74 crore (USD 24 million), representing 5.5% of the parent company’s net worth, but it was not deemed a material subsidiary.
This divestment aligns with BASF SE’s global agreement to sell its coatings business to a Carlyle Group and Qatar Investment Authority partnership for €7.7 billion (USD 8.4 billion), retaining a 40% stake in the new standalone entity.
For BASF India, it streamlines operations, frees capital, and sharpens focus on core segments by offloading a non-core unit.
The move follows prior internal transfers, like the 2023-2024 slump sale of coatings assets to the subsidiary for INR 1,820 million (USD 21.8 million).
In addition, BASF India is set to shut down its Metal Complex Dyes (MCD) line at the Mangalore manufacturing facility by the end of 2026, as part of a strategic portfolio rationalization rather than a broad retreat from the dyes or colorants space.
The move is being executed in phases, with existing customer orders largely fulfilled before the dedicated MCD‑focused assets at the site are fully decommissioned.
The line’s economic contribution has been minimal, around ₹15 crore (USD 1.8 million), or roughly 0.1% of the company’s FY2024–25 revenue, making it a low‑value, highly commoditized segment that does not align with BASF India’s long‑term growth priorities.
The closure is driven by the segment’s low strategic relevance, intense price pressure, and limited scope for differentiation, which constrain margins and capital efficiency.
By exiting the MCD line, BASF India can redeploy capital, manpower, and technical resources toward higher‑growth, technology‑intensive segments such as dispersions, agricultural solutions, construction chemicals, and surface technologies, where India’s domestic demand is expanding, and the company can leverage its global technology platform.
The shutdown affects only the MCD‑specific production infrastructure within the larger Mangalore plant; other production lines, including the recently expanded dispersions line, remain fully operational and are being reinforced as part of BASF’s India‑localization strategy.
The closure will be implemented with an emphasis on orderly transition, including inventory management and technical support to existing customers, in order to minimize disruption to downstream buyers while signalling BASF India’s intent to focus on higher‑value, less commoditized chemical businesses in the market.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
