BASF to develop ‘base of pyramid’ products at India R&D unit
Wednesday, August 21, 2013
At a time when foreign investors are shunning India due to uncertain economic scenario, BASF, world’s biggest chemical company, is still bullish on the country.
The company is setting up its research and development (R&D) hub in the country to develop products for lower income segments as well as emerging middle class, or the ‘base of pyramid’.
It sees a market potential of of 100 million euros, or Rs 850 crore, by 2020 for the products developed at the R&D hub.
“India can eventually be the headquarters of our ‘base of the pyramid’ research. From India we plan to bring out products primarily for Indian markets but also for the emerging middle class elsewhere,” said Prasad Chandran, CMD, BASF India.
Chandran looks after India, Bangladesh, Pakistan and Sri Lanka markets.
A company note said BASF is doing an analysis of sectors including food, housing, energy and healthcare for developing the products, with a team working to identify projects.
“By developing innovative products and solutions for customer segments on subsistence and low income levels, the project focuses on identifying new growth markets and ensuring BASF’s entry into these markets at an early stage by offering cost-competitive solutions, thus enabling a better quality of life,” said Chandran.
He said owing to its demographic advantages, India offers tremendous opportunities. Apart from India and the rest of South Asia, the company is now planning to expand the project to South America, Africa and Asean regions.
The company said beyond 2020 this particular research initiative is expected to add significantly to its overall revenues. BASF has also chosen India for manufacturing specialty catalysts, mainly for the pharma industry, at Mangalore, which should be ready by by the last quarter of 2013, he said.
Source: DNA (link opens in a new window)