BASF India parent firm to sell flocculants biz to Solenis, stock down 3%

BASF India share falls: Shares of BASF India slipped as much as 2.69 per cent to Rs 5,487.80 per share on Thursday. 

The decline in stock price occurred following the announcement that BASF SE, the parent company, would sell its flocculants business for mining applications to Solenis. Additionally, broader market selling likely weighed in on the sentiment.

In an exchange filing, BASF India said, “We have been informed by BASF SE, Germany (Ultimate Holding Company of BASF India Ltd) that globally BASF has signed an agreement on July 17, 2024 with Solenis, a global producer of specialty chemicals headquartered in Wilmington, Delaware, to sell BASF’s flocculants business for mining applications.

The divestment of its flocculants business to Solenis is part of its ongoing global portfolio optimisation strategy, which focuses on core strategic areas, the company said. 

The transaction is anticipated to be finalised in the latter half of 2024, pending approval from relevant Competition Commission and Anti-trust authorities.

In India, the flocculants business for mining applications falls under BASF India Limited's Performance Chemicals Division within the Industrial Solutions Segment. For the fiscal year ending March 31, 2024, this business segment generated approximately Rs. 27.7 crore in net sales, constituting 0.20 per cent of BASF India's total sales.

Established in 1943 and headquartered in Navi Mumbai, BASF India Limited is a subsidiary of BASF SE. It operates across various segments in the Indian market, offering a wide array of chemical and industrial solutions. 

The company's Agricultural Solutions segment specialises in crop protection products such as insecticides, herbicides, fungicides, and seed treatment solutions. These products cater to the needs of farmers and agricultural businesses in enhancing crop productivity and protecting yields from pests and diseases.

In the Materials segment, BASF India provides performance materials including polyurethane, engineering plastics, and specialty plastics. These materials serve diverse industries by offering essential components for manufacturing processes and product development. The segment also encompasses monomers that are fundamental raw materials for polyurethanes, inorganics, and polyamides, supporting various industrial applications.

BASF India's Industrial Solutions segment focuses on dispersions, resins, additives, and performance chemicals. These products are utilised in paints and coatings, construction materials, paper production, adhesives, automobiles, printing, and packaging industries. They play a crucial role in enhancing product performance, durability, and sustainability across these sectors.

Furthermore, BASF India's Surface Technologies segment specialises in catalysts and coatings. These technologies are essential for enhancing the efficiency and performance of various industrial processes, contributing to environmental sustainability and operational effectiveness.

Lastly, BASF India's Chemicals segment supplies petrochemicals such as oxo-alcohols, acrylic acid, acrylic monomers, superabsorbents, and specialty plasticizers. These chemicals serve as vital components in the manufacturing of pharmaceuticals, agrochemicals, coatings, food additives, and various industrial products. BASF India also exports its diverse range of chemical solutions to global markets, contributing to its international presence and impact.

The market capitalisation of the company is Rs 23,895.19 crore, and it falls under the BSE 500 category. 

The 52-week high of the stock is Rs 5,880 per share while its 52-week low is Rs 2,421.35 apiece. 

At 11:49 AM, shares of BASF India were trading 2.12 per cent lower at Rs 5,520.35 per share. In comparison, BSE Sensex was trading 0.23 per cent lower at 80,527.07 levels.