BASF Expands Dispersions Production in India with New Mangalore Facility

BASF, the world's largest chemical company, announced on Thursday it is expanding its dispersions manufacturing capacity at its Mangalore facility in southern India through the addition of a new production line. The move is intended to strengthen the company's supply reliability across the country while positioning it to tap into growing demand in several key industrial sectors.

The expansion covers three primary end-use industries: architectural paints, construction chemicals, and paper and packaging. According to the company, the new line will produce high-performance dispersions designed to meet evolving formulation requirements, including lower volatile organic compound (VOC) emissions and improved durability.

India's construction and coatings markets have seen sustained growth, underpinned by large-scale government infrastructure programs and rising urban consumption. BASF cited these macroeconomic drivers as central to its decision to invest, noting that local production reduces reliance on imports and shortens lead times for domestic customers.

On the product side, BASF highlighted its Acronal range for architectural applications, which it says delivers low-odour, stain-resistant coatings, and its Basonal PLUS series for paper coatings, which the company markets on reduced carbon footprint credentials. For construction, the company pointed to dispersion technologies intended for waterproofing membranes, sealants, and floor coatings.

Milind Joshi, Business Director for Dispersions in South Asia, said the new line is specifically designed to manufacture advanced formulations that combine performance with environmental considerations. "Acronal and Basonal technologies enable low-VOC, durable formulations across paints, construction, and paper applications, backed by reliable local production," Joshi said.

BASF has operated in India for more than 130 years and currently employs approximately 2,411 people across eight production sites and 42 offices in the country. The company reported sales of approximately €2.4 billion to Indian customers in 2024. Globally, BASF recorded total sales of €65.3 billion in 2024 and employs around 112,000 people worldwide.

The Mangalore investment is part of a broader regional strategy, with BASF describing the site as an important node in its Asia Pacific manufacturing network. The company did not disclose the capital expenditure associated with the new line or a specific timeline for when production is expected to commence.