Senior executives of BASF at the launch of two products for rice crop in Hyderabad on Wednesday.
BASF India has begun demerging its agricultural solutions business, a process it expects to take 18-24 months after which existing shareholders will be receive shares in the ratio of 1:1 in the new entity.
The demerger will be in line with German industrial chemical parent BASF’s September 2024 announcement to separate core businesses, which have significant edge over competitors, and standalone businesses such as agricultural solutions to sharpen the latter’s focus as they compete with pure play peers. It intends to list the resultant agricultural solution entity, globally, through an Initial Public Offering.
The new company, following the demerger in India, will unlock value for the shareholders, a leadership team 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 among others told media at the launch of insecticide Valexio and fungicide Mibelya for rice crop.
Mr. Heinz said for the parent entity demerger of the agricultural solutions business as well as implementation of new ERP was expected to happen by the second-half of 2027 at the earliest. The IPO thus is unlikely before first half of 2028 and the timing would still hinge on other factors such as market conditions, he said. In 2024, the agricultural division generated global sales of Euro 9.8 billion.
Last year, BASF registered sales of approximately Euro 2.4 billion to customers in India. BASF had more than 2,400 employees and 8 production sites as well as 42 offices in the country. Over the last 10 years, it has invested Euro 310 million to grow its operations in India.
To queries around plans for further investment, Mr. Heinz said, “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 said the company is exploring all opportunities in India, including acquisitions, specifically seed companies for certain crops. In doing so, it would not be looking at large entities.
On the two new products, senior V-P-Agricultural Solutions of BASF Asia Pacific Simone Barg said rice is a priority in the region from a food security perspective. Valexio and Mibelya will help boost rice yields as they help manage rice hoppers, a key rice pest, and control diseases such as sheath blight control.
Business Director-Agricultural Solutions at BASF India Giridhar Ranuva said the company plans to launch 10-12 new products up to 2028. It had launched 10 in the last four years.
Published – May 28, 2025 10:34 pm IST
