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BASF in India

Report 2010

BASF Group 2010

Million 2010 Sales Income from operations before depreciation and amortization (EBITDA) Income from operations (EBIT) before special items Income from operations (EBIT) Income before taxes and minority interests Net income Earnings per share () Adjusted earnings per share () EBITDA in percent of sales Cash provided by operating activities Additions to long-term assets 1 Excluding acquisitions Research costs Amortization and depreciation 1 Segment assets (as of December 31) 2 Personnel costs Number of employees (as of December 31)
1 2

2009 50,693 7,388 4,852 3,677 3,079 1,410 1.54 3.01 14.6 5,693 5,972 2,536 1,398 3,711 40,707 7,107 104,779

Change in % 26.0 50.7 67.7 111.1 139.5 223.2 223.2 90.4 13.5 (11.2) 1.1 6.7 (9.2) 19.5 15.8 4.2

63,873 11,131 8,138 7,761 7,373 4,557 4.96 5.73 17.4 6,460 5,304 2,565 1,492 3,370 48,626 8,228 109,140

Intangible assets and property, plant and equipment (including acquisitions) Intangible assets and property, plant and equipment, inventories and business-related receivables

business development 2010

BASF achieved record sales and earnings in 2010. The chemicals business in particular benefited from the strong economic recovery in 2010, which was more dynamic than we had initially anticipated. In the first half of the year, demand was additionally driven by inventory restocking in key customer industries. There were temporary supply bottlenecks for some chemical products. Higher raw materials costs could largely be passed on to customers. In this favorable market environment, margins improved for numerous products. Compared with 2009, sales increased by 26% to 63,873 million. Income from operations improved by 111% and amounted to 7,761 million.

BASF Group 2010

Record sales and earnings achieved in 2010 Cognis acquisition strengthens portfolio with specialty products Outlook 2011: BASF aims to significantly increase sales and earnings

SAlES And EBIT 2010

compared with previous year



+26% +111%

On the cover: Employees at BASFs Mangalore site in India.


In the Chemicals segment, we supply products to customers in the chemical, electronics, construction, textile, automotive, pharmaceutical and agricultural industries as well as many others. Furthermore, we ensure that other BASF segments are supplied with chemicals for the production of downstream 1 pro3 ducts. Our portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and solar cell 11,377 industries, to solvents and plasticizers, Million as well as starting materials for products such as detergents, plastics, textile fibers, paints and coatings, and 2 pharmaceuticals. Key data
Million Sales Income from operations (EBIT) 2010 11,377 2,310 2009 7,515 735 Change in % 51.4 214.3

1 3

1 -- Inorganics: 11% 2 -- Petrochemicals: 67% 3 -- Intermediates: 22%

1 -- Inorganics: 1


2 -- Petrochemic

3 -- Intermediate

The Plastics segment includes a broad range of products, system solutions and services. We offer a number of engineering plastics for the automotive and electrical industries as well as for use in household appliances and sports and leisure products. Our styrenic foams are used as insulating materials in the construction industry and in packaging. Our polyurethanes 9,830 are extremely versatile: As soft foams, 2 Million for example, they improve car seats and mattresses, and as rigid foams they increase the energy efficiency of refrigerators. Key data
Million Sales Income from operations (EBIT) 2010 9,830 1,273 2009 7,128 554 Change in % 37.9 129.8

1 -- Performance Polymers: 45% 2 -- Polyurethanes: 55%



1 -- Performance Polymers: 45

2 -- Polyurethane

pErFormAncE producTS
Performance Products lend stability and color to countless everyday items and help to improve their application profile. Our product portfolio includes vitamins and food additives as well as ingredients for pharmaceuticals and for hygiene, home and personal care items. Other Performance Products improve processes in the paper industry, oil and 1 5 gas production, mining and water treatment. They can also enhance the 12,288 efficiency of fuels and lubricants, the million effectiveness of adhesives and coatings, 4 and the stability of plastics.
2 3

Key data
Million Sales Income from operations (EBIT) 2010 12,288 1,345 2009 9,356 (150) Change in % 31.3

1 -- Dispersions & Pigments: 26% 2 -- Care Chemicals: 22% 3 -- Nutrition & Health: 12% 4 -- Paper Chemicals: 14% 5 -- Performance Chemicals: 26%

1 -- Dispersions

2 3

2 -- Care Chemic

3 -- Nutrition & H

4 -- Paper Chem

5 -- Performance

FuncTIonAl SoluTIonS
In the Functional Solutions segment, we bundle system solutions and innovative products for specific sectors and customers, in particular for the automotive and construction industries. Our portfolio comprises automotive and industrial catalysts, automotive and industrial coatings and concrete 3 admixtures as well as construction systems such as tile adhesives and architectural coatings. 9,703

Key data
Million Sales Income from operations (EBIT) 2010 9,703 457 2009 7,115 107 Change in % 36.4 327.1

1 -- Catalysts: 52% 2 -- Construction Chemicals: 22% 3 -- Coatings: 26%

1 -- Catalysts: 52

1 2

2 -- Construction Chemicals: 2

3 -- Coatings: 26

AGrIculTurAl SoluTIonS
Our crop protection products guard against fungal diseases, insects and weeds and they increase quality and secure crop yields. Our research in plant biotechnology concentrates on plants for greater efficiency in agriculture, healthier nutrition and for use as renewable raw materials.

Key data
Million Sales Income from operations (EBIT) 2010 4,033 749 2009 3,646 769 Change in % 10.6 (2.6)


1 -- Crop Protection: 100%


1 -- Crop Protect

oIl & GAS

As the largest German producer of oil and gas, we focus our exploration and production on oil- and gas-rich regions in Europe, North Africa, South America, Russia and the Caspian Sea region. Together with our Russian partner Gazprom, we are active in the transport, storage and trading of natural gas in Europe.

Key data
Million Sales Income from operations (EBIT) 2010 10,791 2,334 2009 11,356 2,289 Change in % (5.0)


1 -- Exploration & Production: 35% 2 -- Natural Gas Trading: 65%



1 -- Exploration & Production: 2 -- Natural Gas

Overview of BASFs segments


BASF in India - Report 2010

About the Report


BASF in inDiA RepoRt 2010

The BASF Group .............................................................................................. 02 Our Strategy ..................................................................................................... 03 BASF Asia Pacific Strategy ............................................................................. 04 Message from the Chairman ........................................................................... 06 Milestones of BASF in India ............................................................................ 08 Strong Local Presence ..................................................................................... 10 BASF Takes Action .......................................................................................... 14 Environment, Health and Safety ..................................................................... 18 Employees ....................................................................................................... 24 Society ............................................................................................................. 26 Focus on Education ........................................................................................ 28 Awards and Recognition ................................................................................. 29 BASF in the Regions ....................................................................................... 30 Ten-year BASF Summary ................................................................................. 32

ABout the RepoRt

BASF in India - Report 2010 marks the second year of our publishing a concise document about the development, progress and performance of our activities across the three spheres of our influence - economy, ecology and society - in India. This consolidated report also carries an overview of the BASF Group along with its financial performance, as per the requirements of the German Commercial Code and the International Financial Reporting Standards (IFRS). The reporting period for this publication was the financial year 2010 and all data are those compiled into the global BASF Report 2010. Sales, employee numbers, and environmental data at joint venture companies are included pro rata based on our stake. Local sales figures in this report refer to sales by BASF Group companies to customers located in India. Sales from Cognis companies to customers in India are included as of December 9, 2010. Employee numbers refer to employment by BASF Group companies (including Cognis) as of December 31, 2010.


the BASF Group

BASF in India - Report 2010

the BASF GRoup

At a glance

BASF is the worlds leading chemical company the Chemical Company. With around 109,000 employees, six Verbund sites and approximately 390 other production sites worldwide, we help customers and partners in almost all industry sectors and countries around the world to be more successful. our portfolio ranges from oil and gas to chemicals, plastics and specialties such as crop protection products. in 2010, BASF posted sales of 63.9 billion and income from operations of 7.8 billion. We operate on a global scale BASF was founded as the Badische Anilin- & Soda-Fabrik in 1865 by Friedrich Engelhorn, to produce synthetic textile dyes from coal tar. Today, the company is a global concern with subsidiaries in more than 80 countries across all regions of the world. BASF is a European Company, a Societas Europaea (SE), and is headquartered in Ludwigshafen, Germany. The Ludwigshafen site is the largest integrated chemical complex in the world. It is also the largest Verbund site in the BASF Group, interlinking production plants intelligently to save resources and energy. BASF operates five further Verbund sites in Belgium, China, Malaysia and North America. We create chemistry As the worlds leading chemical company, we play a decisive role in shaping the future. We combine economic success with social responsibility and environmental protection. Acting sustainably and striving continually for innovation are therefore core elements of our business activities. Since 2008,

BASF has been the only industrial company worldwide to regularly publish a comprehensive corporate carbon footprint. We contributed our know-how to the development of a standard for reporting greenhouse gas emissions along the value-adding chain (the Greenhouse Gas Protocols Scope 3 standard). For the first time in 2010, our reporting takes into account this draft standard and includes emissions from the oil and gas business. We also recalculated how our climate protection products reduce our customers carbon emissions: A total of 322 million metric tons of CO2 emissions are avoided (2008: 287 million metric tons). We aim to continuously increase this contribution to climate protection. The innovative chemistry of BASF is the driving force for many industries and provides an important impetus for new products, technologies and processes. In 2010, BASF had more than 9,600 employees in research and development worldwide and around 1,900 collaborative partnerships with universities, institutes, startup companies and industry partners. In 2010, we invested nearly 1.5 billion in research and development projects. Our approach helps us to find answers to global challenges such as climate change, resource conservation, health and nutrition, housing and mobility. This is our contribution to a better future for us and for coming generations. As we like to say, we dont just create chemicals, we create chemistry.
More information on BASF

puBLiC ReCoGnition FoR SuStAinABiLitY in 2010

BASF shares included in the Dow Jones Sustainability Index (DJSI) for the tenth year in succession Top ranking in the materials sector in the Carbon Disclosure Leadership Index For the third time in succession, BASF was among the Top 100 Green Companies in China

ReSeARCh AnD DeVeLopMent

In 2010, we invested nearly 1.5 billion in research and development projects.

1.5 billion

BASF in India - Report 2010

our Strategy


ouR StRAteGY
For value-adding growth

As the worlds leading chemical company, we aim for long-term, profitable growth. to achieve this, we are committed to operational excellence, innovation and investment in growth markets. our actions are guided by sustainable development. our guidelines summarize how we intend to achieve our corporate goals and to establish and implement our values within the company.

We earn a premium on our cost of capital

The prerequisite for long-term success is earning a premium on our cost of capital. Earnings before interest and taxes (EBIT) after cost of capital is our key performance and management indicator.

We help our customers to be more successful

We want to recognize what our customers will need tomorrow. As a reliable partner, we work with customers to develop solutions that will meet their individual needs and strengthen their competitiveness. To do this, we operate where our customers are - in all the worlds important markets.

We form the best team in industry

We want to recruit, support and retain the best employees. That is why we invest in our employees development and help them balance work and family life. With our Diversity + Inclusion initiative, we promote teams that create value with their different backgrounds and experiences.

We ensure sustainable development

For us, sustainable development means combining economic success with environmental and social responsibility. We have anchored sustainability in our corporate strategy and organization: With sustainable products and services, we create competitive advantages for both BASF and our customers.


BASF Asia pacific Strategy

BASF in India - Report 2010


An interview with Dr. Martin Brudermller, Vice Chairman of the Board of Directors of BASF Se, responsible for Asia pacific

how did BASF perform in Asia pacific last year? I am very proud that the Asia Pacific region was a very strong contributor to our record year for BASF in 2010! For the first time, we broke both the 10 billion sales and the 1 billion EBIT mark in the region. What progress has BASF made towards its Asia pacific Strategy 2020 goals? We are making excellent progress. With our Industry Target Groups and Customer Target Groups, we have already identified around 600 million in additional sales potential by 2012. To ensure we can create innovations for Asia, from Asia, around 500 BASF employees at 12 sites in the region now work in research and development. In particular, 2010 marked the ground-breaking of our first Innovation Campus Asia Pacific, which will be located in Shanghai. To help us expand our local production, we have invested 2.4 billion in facilities in Asia Pacific over the past five years. And we have announced major new investments across the region. We have already achieved 90 million in annual savings through our Asia Pacific Site Optimization project. how does BASF develop its employees to meet the 2020 goals? Employees are at the heart of our strategy. During the past year we have launched a package of career development initiatives to ensure we can both recruit and retain the best team in industry. These initiatives include the establishment of the BASF Asia Pacific Institute for

Corporate Leadership, the upgrading of our career development program, and the launch of a formalized mentorship program. In particular we aim to further develop international career opportunities for our top local employees. What is the role of india in BASF Asia pacific Strategy 2020? In our Asia Pacific Strategy 2020, we have identified India as one of our major growth markets in Asia. In 2010, sales to customers in India crossed the 1 billion mark for the first time. With its two R&D centers in Mumbai and Mangalore, India also plays an important role for us in achieving our objective of providing more innovation from Asia for Asia. Both centers are part of our Global Technology Platform, making India one of our key hubs for research and development in the region. With our investments, we are also further improving our position to benefit from the strong growth in India. In 2010, we set up two new manufacturing plants in Thane and in Mangalore in order to help our local and international customers become more successful.

BASF in Asia pacific 2010: on track to 2020 Sales: 12.5 billion EBIT: 1.3 billion Employees: 16,000 Research and development staff: 500 at 12 sites in the region

An exCeptionAL YeAR
BASF achieved record sales in Asia Pacific in 2010.

(by location of customers)

12.5 billion

BASF in India - Report 2010

BASF Asia pacific Strategy


BASF Asia pacific Strategy 2020 Through 2020, BASF aims to grow on average two percentage points faster than the Asia Pacific chemical market each year. To meet this ambitious goal, which would double regional sales by 2020, the company has developed the BASF Asia Pacific Strategy 2020. This strategy is based on a combination of growth and new business initiatives. In Asia Pacific, BASF will organize its sales efforts around key industries in order to grow faster than the market. The company has established an initial set of industry target groups where it intends to become a preferred supplier, including the automotive, construction, packaging, paints and coatings, and pharmaceuticals industries. We will increase our headcount by at least 5,000 from approximately 15,000 which were employed at the end of December 2009. At the same time, we will double the number of employees in research and development between 2009-2020, especially at our two major R&D clusters in China and India. In our two challenging growth markets, China and India, we have set up dedicated recruitment centers to help us hire the talents we need. BASF plans to generate 70% of regional sales from local production, investing 2.3 billion between 2011-2015. Simultaneously, we aim to create further efficiency improvements that are expected to save 150 million annually by 2012, for example, by debottlenecking production and by exploiting technical synergies. BASF has a long tradition in India with a presence going back more than a century. India is one of the key markets for our Asia Pacific strategy.
Dr. Martin Brudermller, Vice Chairman of the BASF Board of Executive Directors, responsible for Asia Pacific


Growth of two percentage points above market Earn premium on cost of capital 70% of sales to be manufactured locally in Asia Pacific Headcount to increase by at least 5,000 Investments of 2.3 billion planned between 2011-2015 Efficiency improvements to save 150 million annually by 2012


Message from the Chairman

BASF in India - Report 2010

We aim to create chemistry with our customers, with our employees and with society.

BASF in India - Report 2010

Message from the Chairman



We succeed by creating chemistry

In the year 2010, we have seen a strong comeback from the challenging times of 2009. The lessons learnt have been invaluable in preparing us for the future. In 2010, we made progress towards our aim to provide state-of-the-art products and solutions by creating innovations in close partnership with our customers and helping them become more successful. We also brought together our diverse business units and companies into a Single Legal Entity. This corporate restructuring will help power our future expansion. I would like to congratulate and thank everyone involved in the successful completion of the Ciba integration and preparing the groundwork for the Cognis integration resulting in a wider product portfolio and an enhanced talent pool. We have also successfully set up Styrolution, our new Styrenics joint venture. BASF is The Chemical Company and we have taken several steps in India to enhance our leading position. In the economic field, we have posted strong growth. In the ecological field, we have introduced sustainable innovations both in our operations and in our solutions for customers. In the social field, we have focused our efforts on rehabilitation of tsunami-hit villages and Fighting Corruption in Public Life through the Million Minds project that aims to inspire a million minds against the social evil of corruption. We also made our presence felt in local industry and infrastructure development projects. This year we

contributed to landmark projects like New Delhis International Airport Terminal 3; introduced eco-friendly paint solutions for homes and businesses; developed packaging solutions that support the development of the local tea industry; promoted the development of a sustainable building industry in India and undertook a number of other initiatives. As we build up momentum for the future, I invite you to celebrate our success driven by innovation, by technology, and most importantly, by our team who has a passion to create chemistry.

Prasad Chandran Chairman, BASF Companies in India and Head South Asia

Chairman of BASF Companies in India & Head South Asia Heads the Industry Task Force for Sustainable Agriculture and Green India in association with The Energy and Resources Institute (TERI) Drives the Million Minds project, a BASF initiative to fight corruption and improve governance in India

1 billion
In 2010, BASF sales to customers in India crossed the 1 billion mark for the very first time.


Milestones of BASF in india

BASF in India - Report 2010

MiLeStoneS oF BASF in inDiA

A rich past, a promising future

BASFs first interaction with india was in textile colors, beginning in 1890. Backed by the accumulated expertise of over a century, today, we have a business portfolio that matches the current and future needs of the ever-growing indian market. the early days May 13, 1943: BASF India Limited is originally incorporated as R. A. Cole Private Limited. 1961: BASF acquires a 50% holding in R. A. Cole Private Limited and the Company is known as R. A. Cole Limited. At this time, BASF in India is involved in the production of Expandable Polystyrene under the Thermocole trade name at the Thane site, BASFs first production site in Asia. January 9, 1963: R. A. Cole Limited is renamed Indoplast Limited, marking a shift in focus towards plastics manufacturing. September 23, 1967: Indoplast Limited is renamed BASF India Limited, its present name. April 1968: BASF India Limited is listed on the Bombay Stock Exchange Limited (BSE). 1995: With the purchase of additional shares in 1994, BASF AG acquires majority holding (50.00104%) in BASF India. May 1995: BASF India Limited is listed on the National Stock Exchange of India Limited (NSE).

May 1996: BASF Industries Limited, a BASF Group Company, is formed. 1996: BASF starts operations at its new production site in Mangalore, manufacturing dyes and dispersions. Acquiring momentum 1998: Automotive Coatings business is acquired from Dr. Beck & Co. and Printing Inks business is acquired from JBA Printing Inks Limited. The Automotive Coatings and Printing Inks businesses later become a part of BASF Industries Limited. January 2000: BASF acquires the Coil Coatings business from Hydro Coatings worldwide and Hydro Coatings India Limited is renamed as BASF Coatings Private Limited. november 2000: BASF and the New York-based Chatterjee Group form a strategic alliance to produce and market polystyrene in India. BASF takes up majority share of the partnership and assumes complete operative and administrative direction of Pushpa Polymers Private Limited. This acquisition makes BASF the first globally active polystyrene manufacturer with its own production in India. Pushpa Polymers Private Limited changes its name to BASF Styrenics Private Limited. December 2000: BASF divests its textile dyes business to DyStar Group. July 2001: Cynamid Agro Limited is merged with

1890: BASFs first sales figures for India reported 1943: In India, two gentlemen, Mr. Kalyan Kumar Nag and Mr. R. A. Cole, pioneered the use of Expanded Polystyrene (EPS), which was first synthesized in Mr. Coles kitchen. Now known as Thermocole, the name chosen was a combination of Thermo for heat and Cole, the surname of one co-founder. R. A. Cole Private Limited later became BASF India Limited.

BASF in India is engaged in the business of manufacturing and marketing of Styropor, tanning agents, leather chemicals and auxiliaries, crop protection chemicals, textile chemicals, dispersions and specialty chemicals, performance plastics, automotive and coil coatings, construction chemicals, polystyrene and polyurethane systems, apart from actively marketing a wide range of intermediates, catalysts and other chemicals for life sciences, chemical and allied industries.

BASF in India - Report 2010

Milestones of BASF in india


BASF India Limited pursuant to BASFs worldwide acquisition of Cynamid AG. May 2003: The Automotive Coatings business is demerged from BASF Industries Limited and transferred to BASF Coatings Private Limited. Feb 2005: The Printing Inks business of BASF Industries Limited is sold to the Aster Group. April 6, 2005: BASF Polyurethanes India Limited is formed as a 100% subsidiary of BASF India Limited. July 2006: BASF AG acquires global construction chemicals business of Degussa AG. This leads to inception of BASF Construction Chemicals (India) Private Limited, which was earlier known as Master Builder Technology Private Limited. September 2006: BASF AG acquires USA based Engelhard Corporation. This leads to inception of BASF Catalysts India Private Limited, which was earlier known as Engelhard Environmental Systems (India) Private Limited. January 1, 2008: BASF AG converts to a European company and is now known as BASF SE. September 2008: BASF SE acquires Ciba Holding AG and begins integration of local Ciba entities around the world. A new era the way ahead February 2010: Ciba integration is completed The merger of Ciba India Limited, Diamond Dye-Chem

Limited and Ciba Research (India) Private Limited with BASF India Limited is completed. The merger expands BASF Indias portfolio in Specialty Chemicals. September 2010: BASF set to merge legal entities in india The Board of Directors of BASF India Limited approve the scheme of merger of three BASF legal entities in India BASF Coatings (India) Private Limited, BASF Construction Chemicals (India) Private Limited and BASF Polyurethanes India Limited with BASF India Limited. The merger was completed in January 2011. With the merger, BASF in India is set to reap synergetic benefits across business and functional areas, streamline operations, enable more efficient service for customers and have better brand positioning for BASF. november 2010: BASF Se acquires Cognis holding Gmbh BASF SE acquires Cognis Holding GmbH worldwide. With the purchase of Cognis, BASF India Limited will further strengthen its position in personal care ingredients, value-added products for home care, establish a strong position in human nutrition and strengthen its position in pharma excipients. December 2010: Styrenics business becomes Styrolution BASF decides a global carve-out of its styrene business. BASF SE and INEOS Industries Holdings Limited plan to enter a new joint venture. As of January 1, 2011, BASFs styrenics activities will operate as a separate company with the name Styrolution. BASF Styrenics Private Limited is renamed Styrolution India Private Limited. BASF retains its worldwide business with polystyrene foams.


1,830 employees 9 production sites 21 sales offices 2 R&D Centers working closely with BASFs Global Technology Platform 14 out of 15 global BASF divisions operational in India


Strong Local presence

BASF in India - Report 2010

StRonG LoCAL pReSenCe

A robust presence across the country

Serving markets through strategic locations

Nalagarh Chandigarh

New Delhi

Siliguri Kanpur

Ahmedabad Dahej Indore Ankleshwar Kolkata Thane Chandivali Bandra-Kurla Complex Mumbai Navi Mumbai Turbhe Pune Hyderabad, Secunderabad

Mangalore Bangalore Chennai

Production sites Mangalore Turbhe Dahej Ankleshwar Chennai Bangalore Nalagarh Kolkata Thane

Bandra-Kurla Complex Navi Mumbai Chandivali R&D Mumbai Mangalore

Ahmedabad Bangalore Chandigarh Chennai Hyderabad Indore Kanpur Kolkata New Delhi Pune Secunderabad Siliguri

SALeS peRFoRMAnCe oF BASF in inDiA in 2010 (LoCAtion oF CuStoMeRS)

BASF SALeS to CuStoMeRS in inDiA

(in MiLLion )
0 200 400 600 800 1,000

Rs. 61,056 million

(At the exchange rate of 1 = Rs. 60.631835 as on December 31, 2010)

2010 2009 2008 687 693 651 473


1.007 billion

2007 2006

BASF in India - Report 2010

Strong Local presence


updates on BASF Manufacturing sites in india Mangalore site BASFs largest in South Asia In Mangalore, BASF is involved in the production of performance chemicals (leather and textile chemicals), dispersions and paper chemicals, automotive and coil coatings, and construction chemicals. The Mangalore site is among the 153 BASF global production sites certified in accordance with ISO 14001. In 2010, the Dyes plant exported a record quantity of Eukesolar products. In the Dispersions plant a Monomer recovery unit was installed to separate organic phase from the Deso stripper effluent. In the Coatings plant, a wide range of advanced automation solutions were installed to improve productivity and ergonomics, enhance energy efficiency and maximize capacity utilization. The Construction Chemicals plant, commissioned in March, 2010, produces concrete admixtures for all India requirements. In the Engineering department, an upgrade of Effluent Treatment Plant and various improvement

measures were completed through Site Optimization and idea management. The Quality Assurance department developed an in-house test method (3M Petri film) to monitor bacterial load in our emulsion polymers. The method is reliable, well accepted globally and economical as compared to outside lab testing.

The Coatings plant at Mangalore received Best Supplier Award by various reputed automotive companies in 2010.

The new Construction Chemicals plant in Mangalore is BASFs 5th construction chemicals production site in India.

BASFS LARGeSt pRoDuCtion Site in inDiA - MAnGALoRe

Strategically located close to the port Close to our customer clusters Engaged in the the production of coatings material, dispersions and pigment preparations


Strong Local presence

BASF in India - Report 2010

Ankleshwar site Strengthening the BASF paper Chemicals business BASFs site at Ankleshwar is engaged in the production of paper chemicals. It has two operational units located close to each other. The legacy Ciba site was acquired after the merger of Ciba India Limited and Diamond Dye-Chem Limited with BASF India Limited. In 2010, the site achieved substantial emissions reduction and implemented several capacity and yield improvement projects.

Chennai plant BASF Catalysts india private Limited The Chennai plant produces automotive catalysts catering to several domestic and international auto players. With the growth of light duty vehicle production and the tightening of the emission norms, BASF started expansion planning in 2007 to gear up for an increased demand for automotive catalysts. The new expanded facilities were commissioned in the last quarter of 2009. The Chennai site implemented enhancements in 2010 that allow the production of zone coated catalysts identical to those used in USA, Germany and China.

The production facility at Ankleshwar manufactures optical brightening agents catering to paper and detergent industries.

With the expansion of the Chennai plant, the installed capacity has been tripled and is projected to meet future market requirements in India.

Located strategically in Gujarat Industrial Development Corporation (GIDC) Close proximity to various infrastructure facilities including a highway, railways and two airports Engaged in the production of paper chemicals

BASF in India - Report 2010

Strong Local presence


Dahej site Manufacturing hub for styrenics BASFs Dahej site is engaged in the production of HIPS (High-Impact Polystyrene) and GPPS (General Purpose Polystyrene). Currently, four grades of HIPS and three grades of GPPS are manufactured at the site, which find use in industries such as consumer durables, food packaging, injection molding products and various other applications. After the carve-out of the Styrenics business, the Dahej site will cater to the requirements of Styrolution India Private Limited as well as BASF India Limited, and will serve markets in Northern and Western India.

thane site First production site of BASF in india BASFs site at Thane is involved in the production of plastics, performance chemicals, care chemicals, construction chemicals, as well as dispersions and pigments. It also houses technical application centers for care chemicals, performance chemicals, engineering plastics compounding and polyurethanes. The site inaugurated new facilities in 2010, including a polymer blender and prepolymer reactor at the polyurethane system house, as well as a new pentane tank farm. The site achieved a yield improvement at the Styropor plant.

The Dahej site produces polystyrene products for use in various end-use industries.

The Thane site houses five production plants.

CoMMitMent thAt ShoWS

BASF site in Thane received several awards for industry safety performance, including the Certificate of Merit for Meritorious Performance in Industrial Safety from the National Safety Council Maharashtra Chapter.


BASF takes Action

BASF in India - Report 2010


housing and Construction

Adding sustainability to the Delhi airport: A high-speed underground metro-link connects Delhi to the new Terminal 3 at New Delhis International airport. GeofoamTM (lightweight blocks of Expanded Polystyrene), reduced the weight of the overall landscaping, prevented excessive use of natural soil, and reduced the construction time from 6 months to 45 days.

Sustainable buildings
Sustainable construction reflects the principles of sustainable development in the site, design, building, maintenance and occupation of buildings balancing economic, environmental and social aspects.
With our solutions, we aim to help reduce the environmental impact of a building over its entire lifespan, while optimizing its economic viability and the comfort and safety of its occupants. In 2010, BASF India took a leading role in the promotion and development of a local sustainable construction industry.
Adding momentum to green buildings In India, the Confederation of Indian Industry has set up the Indian Green Building Council (IGBC), which has introduced the green building rating system LEED (Leadership in Energy and Environmental Design) in collaboration with the US Green Building Council. BASF has a multi-faceted presence in IGBC: as an active member; as a representative on the Steering Committee of the annual Green Building Congress; and as a committed participant in this Congress. We have also installed a permanent display booth at the IGBC Center in Hyderabad to provide members of the local construction industry firsthand information about solutions that can help their projects achieve a higher LEED rating. In 2010, we were actively involved with The Energy and Resources Institute (TERI) which has set up a national rating system called Green Rating for Integrated Habitat Assessment, a green building design evaluation system recognized by the Government of India. BASF supports contractors, planners and architects who use our sustainable solutions to create green buildings with higher ratings.

BASF in India - Report 2010

BASF takes Action


360-degree insulation solutions: from design to installation India is strongly promoting energy conservation. The energy regulating body of India, the Bureau of Energy Efficiency, which focuses on energy usage in construction and housing, has introduced a rating for energy conservation. BASF, with its leading insulation and waterproofing solutions, is enabling planners and developers to construct more energy efficient buildings through total insulation systems to improve the overall energy efficiency by offering total thermal insulation and water-proofing for the building envelope using a combination of products from across the diverse areas of expertise polyurethanes, foams, dispersions and construction chemicals. BASF technical experts supervise and ensure that these solutions are executed as per the best engineering practices. The products which are adapted to local needs and available across the country reduce the environmental impact right from transportation of this lightweight material. thermocretetM the lightweight insulation concrete In India, 80% of buildings have flat roofs, making it necessary to have an overlay to ensure rainwater drainage. Conventional systems, such as brickbat coba or mud phaska, meet drainage requirements but are time, labor

and material intensive. BASF has introduced ThermocreteTM, a combination of cement, sand and expanded polymers (Styropor beads) and RheoFIT admixture. This roof overlay is 60% lighter than brickbat, reduces the weight on the structure, has eight times better thermal insulation compared to brickbat, and is faster to construct. ThermocreteTM is an innovative combination of products stemming from two BASF competencies; construction chemicals and foams, locally designed and developed for India. The S.E. Asia headquarters of World Health Organization (WHO) in New Delhi is an ideal example of efficient and practical usage of ThermocreteTM. Adding a fresh breath to paints Fumes that are released during the painting process are called Volatile Organic Compounds (VOCs). In order to create a better environment for workers and residents, BASF offers Acronal ECO as a binder for paints. With this technology, odor-causing impurities are removed but the functional properties of the paint remain. With the introduction of Acronal ECO, no-smell paints are helping people all over India benefit from the comfort of low VOC and low odor. The extended durability of the paint also leads to better aesthetics and long-term protection.

BASFs total insulation Solutions for houses

Combined area of Total Insulation Solutions installed by BASF in India in 2010: 50,000 square meters. Senergy with Neopor insulation provides efficient thermal insulation with aesthetic finishes to facades Insulation panels made of the plastic Basotect panels in roof and walls provide noise cancellation for acoustic performance Masterflex sealants are water repellent, watertight and weather resistant Peripor boards, Elastopor boards and Elastospray insulation materials improve energy efficiency

Coniroof , Masterpren , and Sonoshield water-proofing systems for roof enable a leak-proof structure The Mastertop flooring solution is robust, easy to clean and absorbs sound Glenium and other admixtures improve concrete flowabilty and durability to make processing more efficient

Mastertile and PCI Series tile adhesives and grouts offer solutions for internal and external tile fixing


BASF takes Action

BASF in India - Report 2010


health and nutrition

The polyamide packaging bags of 25-kilogram capacity retain the freshness and aroma of tea leaves during transportation.

Supporting sustainable living

BASF is helping Indias rapidly modernizing population find a better quality of life.
From health to nutrition, Indias new generation of consumers are demanding a better, more sustainable way of life. Chemistry plays an important role in making it possible.
new generation packaging solutions A better way to package tea The tea gardens of Assam in North East India are known for some of the worlds finest tea leaves. After plucking, these leaves are processed near the foothills, after which they make a long journey to the packaging plant. Traditionally, the leaves were packed in jute bags. However, jute is not very effective in retaining the aroma of freshly processed tea leaves. BASF Indias Packaging Industry Target Group introduced an innovative solution for the bulk packaging of tea leaves: polyamide bags. Polyamide bags have excellent aroma retention property and are puncture resistant, thus preventing spillage or wastage. This solution has already met with success. BASFs innovative plasticizer hexamoll DinCh For transparent films used in diverse sensitive applications such as fruit wrapping, textiles, toys and medical devices, BASF has introduced an innovative plasticizer Hexamoll DINCH. It is phthalate-free and helps manufacturers and exporters comply with regulatory standards such as REACH (Registration, Evaluation, Authorization and Restriction of Chemical substances) in Europe. One of Indias largest tea manufacturing brands, Hindustan Unilever, has started using these polyamide bags as part of a pilot project. This innovative solution from BASF will enable tea marketers to offer their end customers a superior aroma when sipping their favorite cup of tea.

BASF in India - Report 2010

BASF takes Action


Shaping the agricultural landscape with Samruddhi Samruddhi helps indian farmers The market for crop protection products in India is growing at a rapid pace. Farmers are interested in information on the best agricultural practices to increase crop yield and quality. BASF is helping farmers through its Samruddhi program (English: Prosperity) which focuses on enhancing yield and quality of crops grown by farmers. In 2007, the program started with Soybean and Potato farmers. In 2010, we extended Samruddhi to Onions. In 2011, the plan is to extend it further to Tomato and Groundnut. Samruddhi is a success story for all its partners.

During 2010, participating farmers achieved an average increase in soy production yield by 30%. Today we are working with more than 170,000 farmers helping them select the best agricultural practices, ideal seed varieties as well as best fertilizers and effective crop protection technologies to ensure a good harvest. Through Samruddhi, farmers perceive BASF as an important Partner in Progress.

I have been cultivating soybean for the past 12 years, and have started using the Samruddhi way of farming two years ago. I learnt about the proper time of fertilization and adequate spacing in soybean farming. Through this knowledge, I experienced an increase in yield from 15 to 35 kilograms, per kilogram of sown seeds. With the increase in profits, I have been able to buy a tractor and a thresher, and also fit a borewell in my farm. With BASFs constant support, I hope to be a big farmer someday. - Vijay Singh Raghuvanshi, Soybean farmer, Madhya Pradesh, India

By 2050, more than 9 billion people, 40% more than today, will live on Earth. The growing population and rapid urbanization will put heavy pressure on industry sectors like health & nutrition, housing & construction, energy & climate protection and mobility. BASF is working to create innovative solutions to address these megatrends.

In 2011, BASF is extending its Samruddhi program to new crops such as Tomato and Groundnut.


environment, health and Safety

BASF in India - Report 2010

enViRonMent, heALth AnD SAFetY

Growing the business sustainably

At BASF, economic considerations do not take priority over environment, health and safety. environmental protection, safety and security are defined in our corporate guidelines and are therefore important to us. Responsible Care at BASF in india As a signatory of Responsible Care, BASF is dedicated to the fundamental tenets of safeguarding peoples health, protecting the environment, reducing risk and supporting sustainable growth. In 2010 we enhanced our commitment by expanding the size and scope of the team responsible for environment, health and safety (EHS) at BASF in India. In particular, we expanded the teams role in Sustainable Development. We believe that our commitment to sustainability generates value for us and our stakeholders, as well as for future generations. product stewardship BASF has global group-wide directives on product stewardship in place. This ensures that our products are well understood and risks are managed throughout the value chain. Our compliance programs are tracked and we regularly communicate new regulatory changes to our customers and all involved. Our Trade Control Compliance program, supported by a strong software module ensures compliance with relevant legal requirements. With these measures, we support the Global Product Strategy of the International Council of Chemical Associations. transportation and distribution safety A network consisting of a local transportation and distribution safety advisor and more than 20 responsible

persons ensure that written procedures and work instructions are available for all transportation and distribution safety related processes. BASF ensures that all its transporters and warehouse operators meet minimum safety requirements by conducting Road Safety Assessment of road haulers and Warehouse Safety Assessments of the safety performance of the warehouse operator and assess the potential risks from products stored. Whenever an accident or incident takes place, all assistance is given to the transporter by the BASF logistics and emergency response teams and local transportation and distribution safety advisor. These incidents are also recorded, investigated and analyzed to undertake preventive measures to avoid them in the future. Regular workshops are conducted by global and regional experts from BASF. Furthermore, Tank Terminals for bulk storage of raw materials are used only after a risk assessment is conducted by the product steward of the respective business unit in line with the Chemical Distribution Institute terminal assessment programs.

Cargo securing practical training in progress.

ABout ReSponSiBLe CARe MAnAGeMent SYSteM (RCMS)

The EHS performance is monitored by BASF in India under RCMS, which is the internationally accepted benchmark for evaluation of EHS standards. The Responsible Care group is guided by the Chairman of BASF Group in India and headed by the Chief Executive Manufacturing in coordination with the Country Head and his team for Responsible Care for BASF in India. Our commitment to Responsible Care validates our claim of being BASF The Chemical Company.

BASF in India - Report 2010

environment, health and Safety


Chemical industry interface: We proactively shared our successful practices in transportation and distribution safety with the chemical industry at meetings, workshops and seminars organized by Indian Chemical Council and Federation of Indian Chambers of Commerce and Industry. Supply Chain: Sustainable partnership is of prime importance to assure our customers uninterrupted delivery of our products. We have taken initiatives to improve agility (quick response to sudden changes in supply and demand), adaptability (accommodate market changes) and to be aligned to customer needs. BASF is eliminating unnecessary transportation by road and using improved coastal infrastructure for movement of bulk cargo for the BASF production site in Mangalore. occupational safety In 2010, BASF in India reported a Lost Time Injury Rate of 0.25 for BASF employees and 0.40 for contract employees. There were no fatalities in 2010.

Quarterly Safety educational Campaigns in 2010: BASF launched quarterly educational campaigns on safety issues to further improve occupational safety performance in the workplace. Safety Campaigns were conducted for the benefit of all employees including contract employees to ensure compliance with BASFs minimum requirements, eventually leading to lower incident rates in the work areas. This began with the slip, trip & fall campaign in 2009 and continued in 2010 with programs on fork-lift safety, hand safety, hazard identification and risk assessment and working at heights. Safety initiative C.A.R.e.: In 2010, BASF continued to support behavior-based safety through the C.A.R.E. program, including offices as well as production sites. The C.A.R.E. program was rolled-out at the Ankleshwar site and the Office C.A.R.E program was launched at the Chandivali and Delhi offices. The C.A.R.E. program has covered more than 2,000 employees (including contract employees) to date. occupational health BASF in India took several steps in the area of occupational health. Health check-ups were conducted half-yearly and

Lost time injury rate BASF employees and contractors

(Per million working hours)
LTI per million working hours
1.2 1.0 0.8 0.6 0.4 0.2 0 0 0 0.38 0 2007 2008 2009 2010 0.71 0.62 0.73 0.40 0.25


annually and Influenza vaccination campaigns were conducted at all sites. Medical camps and adequate mock drills were conducted and first aid training was provided to key employees. A pandemic preparedness plan for BASF India was created and circulated to all sites and offices. Furthermore, medical audits were conducted at Chennai and Turbhe.


BASF employees Contract employees

KnoWinG C.A.R.e.
C.A.R.E. stands for four areas which are crucial for improving our saftey record: Communication about safety issues, Awareness of risks, Responsibility for safe working environment and Excellence in safe behavior.


environment, health and Safety

BASF in India - Report 2010

emissions emissions to air: CO2 emissions constitute a major portion of the greenhouse gas (GHG) emissions. In 2010, emission of GHG from chemical operations of BASF in India amounted to 65,677 metric tons, an increase of 21% compared to 2009. This increase was mainly due to the increased manufacturing activities at the sites, and full year emission reporting of the legacy Ciba site at Ankleshwar. In 2010, emission of air pollutants from chemical operations of BASF in India amounted to 467 metric tons. This marked
Site employees can undergo routine health check-up at our on-site occupational health centers. Shown above: BASF Mangalore site occupational health center.

a decrease of 5% compared to 2009.

Greenhouse gas emissions (total) (Metric tons of CO2 equivalents)

process safety BASF carries out a five-step system of reviews for the planning and construction of new chemical plants to protect the health of our employees, neighbors and the environment. As a part of this initiative, we carried out Process Safety Workshops at our different sites. To ensure proper hazard analysis of any change at our existing plants, we strengthened the management of change process, to review all technical or organizational changes.
Air pollutants (without Ch4) (Metric tons)
CO2 equivalents include: CO2, N2O, CH4, HFC, PFC, SF6

Climate protection Climate protection is an issue that affects us all. BASF has undertaken several steps globally in the area of climate protection. In India, in 2010, logistics played a large role in controlling CO2 emissions. BASFs production site in Mangalore used shipping transportation instead of largely relying on road transport for the movement of bulk cargo.
Includes: CO, NOX, NMVOC, SOX, dust, NH3/other inorganics

BASFS GLoBAL CoRpoRAte CARBon FootpRint 2010

We reduce emissions along the value-adding chain Significant greenhouse gas emissions (in million metric tons of CO2e per year) 1 our products for climate protection Emissions avoided by our customers (in million metric tons of CO2e per year) 1 1,720 Without use of BASF products

Raw materials: 43 BASF production: 25

Use of BASF end products: 56 Disposal: 29 Transport: 4

1,398 With use of BASF products

322 million metric tons of Co2 are avoided

CO2e is the abbreviation for CO2 equivalent. This unit enables comparison of various greenhouse gases such as nitrous oxide, methane, carbon dioxide, etc.

BASF in India - Report 2010

environment, health and Safety


energy The most important means of reducing our energy consumption and thereby also lowering emissions is energy efficiency, which is defined as primary energy consumption (fuel, electricity, steam) per ton of product. While electricity, fuel and steam consumption in 2010 increased by 11%, 19% and 4% respectively as compared to 2009, primarily due to the increased manufacturing activity at our sites and full year emission reporting of the legacy Ciba site, our overall energy efficiency improved on account of improvement in certain production processes.
Steam consumption (Metric tons)

Fuel consumption (MWh)

Water Water Supply: In 2010, BASF in India used 719,141 cubic meters (2009: 637,008 cubic meters) of water. This number is reported as water supply. The increase in water supply by 13% was due to increased manufacturing activity at the sites and full year emission reporting of the legacy Ciba site at Ankleshwar.
Water supply (total) (Cubic meters)

electricity consumption (MWh)

Water used for production: Of the 719,141 cubic meters of water used, 443,625 cubic meters (2009: 303,553 cubic meters) came into contact

pRoteCtinG the enViRonMent

BASF in India gives utmost importance to environment protection each of our sites has an effluent treatment plant to clean the discharge and make it more eco-friendly.

Effluent treatment plant at Mangalore site.


environment, health and Safety

BASF in India - Report 2010

with products, for example, when used for washing or as a solvent or a reaction medium. This number is reported as water used for production. In 2010, 27,435,717 cubic meters of water was used for cooling. We perceive an additional benefit from the recirculation of water. Resources can be saved as by every recirculation step, the same amount of newly circulated water can be omitted. The higher the difference between our water supply and the cooling water amount, the more we use our resources efficiently and protect the environment.
Water used for production (total) (Cubic meters)

organic substances (CoD) (Metric tons)

nitrogen (Metric tons)

emissions to water: Emissions of organic substances to water (measured as COD Chemical Oxygen Demand) amounted to 51 metric tons in 2010, an increase of 11% compared to 2009 due to full year emission reporting of the legacy Ciba site at Ankleshwar. The emissions to water of nitrogen were about 1.7 metric tons, an increase of 12% as compared to 2009, due to increased waste water generation at the Thane site. The emissions to water of heavy metals were about 0.13 metric tons. There is no change as compared to 2009.

heavy Metals (Metric tons)

Training is one of the basic parts of Responsible Care Management System. We have conducted training exercises across various sites for employees as well as contractors to create awareness and responsibility among them, which has reflected in their behavior at work.

BASF in India - Report 2010

environment, health and Safety


Waste In 2010, BASF in India generated 5675 metric tons of waste. The increase in waste compared to 2009 is attributed to increased production at the sites and a catalyst change-over twice at our Styrenics plant, which generally takes place once every year. In 2010, the recycled waste recovery was 2,683 metric tons compared to 1700 metric tons in 2009. The waste recovery rate was 47% in 2010, compared to 36% in 2009. Waste recovery rate stood at 0% from 2006-08 and is included from 2009, after inclusion of reporting from the legacy Ciba site at Ankleshwar.
total amount of waste (Metric tons) and recycling rate

emergency response and crisis management At BASF in India, we have a well rehearsed On Site and Off Site emergency incident and crisis management plan. We also invite the neighboring community and district crisis committee to the mock drills. The incident and crisis management plan for BASF in India is in line with our regional incident and crisis management plan to minimize the overall negative impact of a given situation. We have also launched a comprehensive disaster management program for our employees. A well-equipped disaster control centre has been created at our office in Navi Mumbai and is staffed with qualified professionals.

6,000 5,000 4,663


Metric Tons

4,000 3,000 2,000 1,000 0 1,013 0% 2006 0% 2007



2,108 36%






Recycling rate

Disaster Control Centre at Navi Mumbai.

Regular mock drills at our production sites keep the team ready and geared to take corrective action if the need arises.



BASF in India - Report 2010


Creating chemistry with an excellent employee base

BASF employees work in an environment that values their ideas and gives them opportunities to learn, grow and perform to their fullest potential. We strive to create teams, which are best in the industry, and our employer Value proposition is our guiding principle. Our commitment to employees extends beyond the employer-and-employee relationship and is aligned to our Asia Pacific goals, with three anchor elements global leadership as: The Chemical Company, leadership in career development and valuing and connecting people. We offer a diverse, transparent and open work culture, and a global career framework, which enhances and enriches work performance. We offer job satisfaction through initiatives that enable us to successfully attract, retain and engage some of the best talent in industry. Vibrant examples of our employer Value proposition From Researcher to Vice president I believe that autonomy and mastery are the primary motivators of human beings. BASF offers abundance of these two motivators. There is a tremendous amount of autonomy for leaders and employees to shape their businesses and teams. For those who want to pursue the path of mastery, there are several in-house training programs and if none of them meets the need, the company does not hesitate to support you through a program outside. My successful transformation from a researcher to general management to a global delegate would not have been possible without these facilities. - Dr. Raman Ramachandran
Dr. Raman Ramachandran, Vice President Marketing - Asia Pacific, Crop Protection division exemplifies how freedom of learning and decision-making empowers and shapes future leaders at BASF.

From employee to Business Director After spending 19 years at Ciba in varied businesses, working for the worlds most admired chemical company was a dream come true. Following the Ciba integration, I was given the responsibility to head the Dispersions and Pigments business of BASF in South Asia. The challenge was to handle the BASF complexity the size and the matrix structure and quickly integrate three diverse teams (Architectural and Construction Polymers, Pigments & Resins, and Coating Effects) into one unified Dispersions and Pigments South Asia Team. I must admit that in spite of these complexities, BASF gave me the freedom

nuMBeR oF eMpLoYeeS oF BASF in inDiA

0 500 1,000 1,500 2,000

2010 2009 2008 2007 2006 1,370 1,280 1,100

1,830 1,810

Ajai Gupta and Paramita Sarkar (from left to right) are ideal examples of how BASF offers an excellent career path for cross-industry individuals.

BASF in India - Report 2010



to operate, to focus on key tasks and to work with a passionate team and realize the synergies of the integration. - Ajai Gupta From a lateral entrant to a successful growth story I joined BASF with over 13 years of experience in the industry. As an experienced entrant, I was not only looking for constant learning and growth but also benchmarking it with the industry. Over the years, I have realized that BASF is not only a great organization for people to begin their careers but equally rewarding for those who join midway. In the past six and a half years, I have worked in three different divisions of BASF Dispersions, Care Chemicals and Nutrition & Health. This transition allowed me to interact with different industry segments. There are few organizations that facilitate such movement across different business lines. Experience also came to me from the variety in work exposure from Sales & Marketing to Strategy to Business Management. With these movements across industry segments, across varied roles, I have been able to apply the learning and model of one business into another business, bringing in positive change. - Paramita Sarkar From Trainee to Business Director Working in my current responsibility, as a team member of the Intermediates division of BASF in South Asia, I look back with great pride to the time spent in my previous assignment with our paper chemicals business, where we built a team with a humble beginning and went on to become market leaders within six to seven years.

After many successes, including being part of a capacity expansion project and 11 years, I got the opportunity to expand my horizon with my current portfolio. I am now a part of the team that identified a roadmap for growth in Intermediates and has successfully implemented this in the last four years. The investment of BASF into my career development and the companys view of looking at its people as a resource rather than an expense make me feel valued and honored. The best part of being with BASF is that I get a chance to lead and influence, with help from my team, and to reach out to a significant portion of the chemical industry. - Vivek Bapat From Campus Interviewee to a Leader in making I know it is a chemical company, but dont you think mechanical engineers are required everywhere? I still remember my first statement during the interview with the head of manufacturing at BASF and it seemed to work. My journey started in 2006 as a management trainee and in the last four years, I have already changed two cities, three locations and three job profiles within BASF. The experience has been enriching. Whenever work was challenging, there was always someone to motivate and appreciate. I believe that freshers and new employees always look for guidance and an open environment where their views are heard. The work culture of BASF and a receptive management encourage youngsters to participate in the decision-making process. - Anup Pandey


Our employees make use of their individual strengths and competencies for the success of the company. This diversity increases our innovative potential and helps us find tailor-made solutions for our customers wide range of requirements.

Vivek Bapat and Anup Pandey (from left to right) are perfect instances of how entrants can work their way up and realize their full potential at BASF.



BASF in India - Report 2010


enriching lives around us

Giving back to society is important to BASF. in india, we continue to bring about societal changes through two projects - Sadbhavana (empathy) and Fighting Corruption in public Life. the former pertains to relief and rehabilitation efforts, empowerment of women and education-led activities, while the latter focuses on fighting against the social evil of corruption. Sadbhavana post-tsunami relief and rehabilitation efforts Together with UN-HABITAT, we have taken up a water and sanitation project to provide sustainable relief to the victims of the 2004 tsunami in the interiors of South India. 28 villages in Cuddalore district of Tamil Nadu have been identified as beneficiaries, supporting 13,500 people. The project intends to provide clean water and toilets in these villages and in select schools. UN-HABITAT has extensive facilitation experience in providing clean drinking water and sanitation facilities in disaster stricken areas around the world. The project also aims to support the disabled by constructing and running disability resource centers. Drinking water comes home Shanthi, a single mother of five children from Singarakuppam village, in Cuddalore, used to spend two hours a day to collect water from a tap located 5 kilometers away from her home. However, life changed for Shanthi when BASF partnered with UN-HABITAT and Foundation for Ecological Research Advocacy and Learning (FERAL) for a water project. Today she has a refreshing smile on her face, as
Shanthi, one of the beneficiaries of the drinking water project in Cuddalore, Tamil Nadu.

fresh water is just a few steps from her home. Four community hand pumps installed in the village supply clean and potable water to 180 families.

BASFS pARtneRShip With un-hABitAt MAKinG A DiFFeRenCe in SoutheRn inDiA

BASF has joined hands with UN-HABITAT to undertake a project on water and sanitation in states in Southern India. BASF Social Foundation is the sponsor of the initiative. UN-HABITAT executes these projects with its implementation partners Foundation for Ecological Research Advocacy and Learning (FERAL) for the water and sanitation project and Leonard Cheshire Disability (LCD) for the disability project. BASF in India is the coordinating and monitoring partner.

BASF in India - Report 2010



Making life more hygienic Due to lack of proper sanitation facilities, Amudha and her four daughters at Kandakadu village, Tamil Nadu, used to walk for an hour just to relieve themselves. Under the UN-HABITAT / FERAL project, a leach-pit toilet was installed in their home. The local committee chose Amudhas family as recipients, as they fall in the vulnerable persons category, which includes women-headed households.

paralysis to leadership thulasi proves it is possible Thulasi grew up in Devanampattinam village of Cuddalore district, suffering from partial paralysis. Her life changed when she was spotted during a survey under the disability project by Leonard Cheshire Disability (LCD) in partnership with BASF. She received a disability identity card and supportive devices along with regular physiotherapy. Thulasi then enrolled for skills training in cell phone repair. Today, the same project that enabled Thulasi to stand on her feet is now grooming her to lead a self-help group that helps enable physically challenged individuals like her to avail themselves of their rights and entitlements. Fighting corruption Julio Ribeiro named BASFs Good Governance icon BASF has introduced the Good Governance Icon series as an initiative under its Million Minds project to fight corruption in public life. It highlights the achievements of people who have upheld the highest levels of integrity, while succeeding in their respective fields. In November 2010, BASF named super cop Padma Bhushan Julio Ribeiro as its Good Governance Icon.

Amudha (left), standing with one of her four daughters, is delighted to have a sanitation facility in her own home.

BASF FiGhtS CoRRuption With A SupeR Cop

Prasad Chandran, Chairman BASF Companies in India and Head South Asia felicitates Padma Bhushan Julio Ribeiro, as BASFs Good Governance Icon.

(Left to right) Prasad Chandran, Julio Ribeiro, Justice Santosh Hegde, P.P. Shetty.


Focus on education

BASF in India - Report 2010

FoCuS on eDuCAtion
investing for a better tomorrow

We firmly believe that the students of today will be our partners tomorrow. it is our vision to help them grow and become more successful. We do so by inspiring them, enabling them and helping them succeed with the power of chemistry. BASF Kids Lab In 2010, BASF Kids Lab inspired thousands of young minds with the magic of chemistry in two districts of Mangalore, Karnataka. More than 2,500 students from Grade VI-VIII in 28 schools learned about the significance of chemistry in everyday life with six hands-on experiments. ph.D program supporting the next generation of scientists Six years ago, BASF began a Ph.D program at its R&D center, aimed at students with strong practical skills who did not have the opportunity to join a prestigious research institute. In 2010, the first group of Ph.Ds completed the program and joined BASF as employees. interacting with the packaging leaders of tomorrow In 2010, BASF organized a packaging workshop at SIES School of Packaging one of the most renowned technical institutes in Mumbai. At the workshop, more than 70 students came together to discuss packaging trends and materials. They also exchanged views on different packaging issues and challenges confronted by the industry. The event helped the students to start thinking about packaging design from a new angle: starting from the material.

taking pharmaceutical solutions to the university level In pharmaceutical development, excipients facilitate the formulation and obtaining of the desired properties for the finished drug. Universities are active in this area but need access to the latest excipients for their research in novel drug delivery systems. To support their activities, BASF provided an excipients trolley to several universities and research institutes, each containing a broad range of excipient samples, books and information materials.

The BASF excipients trolley is well-stocked with excipient samples and information materials which are replenished regularly.


BASF Kids Lab is an interactive chemistry education program first launched at BASFs headquarters in Germany in 1997. It is a part of the companys global Sustainable Development Program. The concept is based on educational findings and intensive research conducted in Europe and USA. It was introduced in India in 2004.

Young students exploring the magical world of chemistry.

BASF in India - Report 2010

Awards and Recognition


AWARDS AnD ReCoGnition

excellence that shows

Frost & Sullivan Business excellence Awards BASF was recognized for excellence in product, service, and innovation at the Frost & Sullivan 2010 India Excellence in Chemicals, Materials, and Food (CMF) Awards. BASF was presented with the Voice of Customer Product Excellence accolade in the Pharmaceutical Additives category and in the Polymer Additives category. BASF was also recognized for Product and Customer Service Excellence in the Personal Care Actives category. The award methodology involved a multi-tier process where excellence in industry was gauged through ratings provided by end-user companies. BASFs performance was benchmarked against leading competitors in the industry to evaluate its standing in a host of crucial factors such as leadership, strategy, growth, innovation, integration and reliability. Best performance Award from Mahindra & Mahindra Mahindra & Mahindra, Indias leading tractor and utility vehicle manufacturer, honored BASF with the Best Performance Award in the Value Addition/Value Engineering category for the year 2009-2010. BASFs association with Mahindra & Mahindra started in 1996 and has grown ever since. Today BASF is one of the leading suppliers of coatings to the company. industrial Safety Award for thane site BASFs Thane site was adjudged as the first prize winner for Industrial Safety Performance by the Directorate of Industrial Safety and Health - Thane Region, under the large category of companies.
Employees of BASF Thane site with the trophy for Industrial Safety Award. BASF receives the Best Performance Award from Mahindra & Mahindra. BASF receives the Frost & Sullivan 2010 India Awards for Product Excellence in the Chemicals, Materials and Foods Sector.


BASF was ranked as the worlds most admired chemical company according to a survey carried out by U.S. business magazine Fortune in 2010. Industry experts voted BASF into top position in the chemical industry in the categories of product and service quality, global competitiveness and quality of management.


BASF in the Regions

BASF in India - Report 2010

BASF in the ReGionS

Sales 2010: 63,873 million; eBit 2010: 7,761 million




noRth AMeRiCA
compared with previous year







Regional centers Verbund sites Selected production sites


South AMeRiCA, AFRiCA, MiDDLe eASt

compared with previous year

Most important research sites






noRth AMeRiCA
Sales of companies based in North America rose by 41% to 13,246 million or 34% in local currency terms. Nearly all segments posted considerable gains in sales volumes and sales compared with the previous year. Income from operations in 2010 reached a new record of 1,107 million, representing an increase of 604 million over the previous year.

South AMeRiCA, AFRiCA, MiDDLe eASt

For companies based in South America, Africa, Middle East, sales were far above the 2009 level, increasing by 31% to 3,829 million thanks to the substantial economic recovery. In local currency terms, sales were 19% higher than 2009. Compared with 2009, income from operations declined by 104 million to 177 million. This was due to one-time expenses for valuation adjustments on receivables related to long-term supply agreements.

BASF in India - Report 2010

BASF in the Regions


BASF is the worlds leading chemical company The Chemical Company. With about 109,000 employees, six Verbund sites and approximately 390 additional production sites worldwide, we support customers and partners in almost all countries.



compared with previous year












compared with previous year






Sales of companies based in Europe grew by 16% compared with the previous year to reach 35,156 million. Sales increased in nearly all segments thanks to improved demand. The Oil & Gas segment posted a decline sales owing to lower natural gas prices. At 5,206 million, income from operations was more than twice as high as in the previous year.

Sales of companies based in Asia Pacific increased by 46% to 11,642 million, or 35% in local currency terms. Sales increased in all segments, particularly in our chemicals business. We posted record income from operations, which rose by 768 million to 1,271 million, thanks mainly to higher volumes.


ten-year BASF Summary

BASF in India - Report 2010


ten-Year Summary (million ) 2001 Sales and earnings1 Sales Income from operations before depreciation and amortization (EBITDA) Income from operations (EBIT) Income from ordinary activities Extraordinary income Income before taxes and minority interests Income before minority interests Net income Capital expenditures and depreciation1 Additions to property, plant and equipment and intangible assets Thereof property, plant and equipment Depreciation and amortization of property, plant and equipment and intangible assets Thereof property, plant and equipment number of employees at year-end personnel expenses1 Key data1 Earnings per share ()2, 3 Cash provided by operating activities5 EBITDA margin (%) Return on assets (%) Return on equity after taxes (%) Share2 Year-end price () Dividend per share ()2 Number of shares as of December 31 (million)2, 7

2002 32,216 5,105 2,641 2,641 2,641 1,599 1,504

2003 33,361 5,110 2,658 2,168 2,168 976 910

2004 37,537 7,685 5,193 4,347 4,347 2,133 2,004

2005 42,745 8,233 5,830 5,926 5,926 3,168 3,007

2006 52,610 9,723 6,750 6,527 6,527 3,466 3,215

2007 57,951 10,225 7,316 6,935 6,935 4,325 4,065

2008 62,304 9,562 6,463 5,976 5,976 3,305 2,912

2009 50,693 7,388 3,677 3,079 3,079 1,655 1,410

2010 63,873 11,131 7,761 7,373 7,373 5,074 4,557

32,500 4,142 1,217 609 6,121 6,730 5,826 5,858

3,313 3,037 2,925 2,307 92,545 6,028

3,055 2,677 2,464 2,012 89,389 5,975

3,415 2,293 2,452 1,951 87,159 5,891

2,163 2,022 2,492 2,053 81,955 5,615

2,523 2,188 2,403 2,035 80,945 5,574

10,039 4,068 2,973 2,482 95,247 6,210

4,425 2,564 2,909 2,294 95,175 6,648

3,634 2,809 3,099 2,481 96,924 6,364

5,972 4,126 3,711 2,614 104,779 7,107

5,304 3,294 3,370 2,667 109,140 8,228

4.864 2,319 12.7 3.1 36.64

1.30 2,313 15.8 8.4 9.3

0.81 4,878 15.3 7.4 6.0

1.83 4,634 20.5 13.2 12.9

2.87 5,2506 19.3 17.7 18.6

3.19 5,940 18.5 17.5 19.2

4.16 5,807 17.6 16.4 22.4

3.13 5,023 15.3 13.5 17.0

1.54 5,693 14.6 7.5 8.9

4.96 6,460 17.4 14.7 24.6

20.88 0.65 1,166.8

18.04 0.70 1,140.6

22.29 0.70 1,113.3

26.50 0.85 1,080.9

32.36 1.00 1,028.8

36.93 1.50 999.4

50.71 1.95 956.4

27.73 1.95 918.5

43.46 1.70 918.5

59.70 2.20 918.5

3 4 5 6 7

Starting in 2005, the accounting and reporting of the BASF Group have been prepared in accordance with International Financial Reporting Standards (IFRS). The previous years figures have been restated in accordance with IFRS. The figures for the years up to and including 2003 were prepared according to German GAAP. In the second quarter of 2008, we conducted a two-for-one stock split. The previous years figures for earnings per share and number of shares have been adjusted accordingly. Adjusted for special items and impairment of intangible assets, earnings per share were 5.73 in 2010 and 3.01 in 2009. Including extraordinary income. Includes the change in reporting from 2009 onward of the effects of regular extensions of U.S. dollar hedging transactions. Before external financing of pension obligations. After deduction of shares earmarked for cancellation.

Registered trademarks of BASF Group: Abate, Acronal PRO, CeoDS, COL.9, Digilab, Elastocool, Elastollan, Elastopave, Elastopor, Elastopor H, Elastoskin, Elastospray, E-por, Fendona, Fortuna, Glenium, Glysantin, Green Sense, Hydraulan, Interceptor, Kaurit Light, Lumogen, Masterflex, Mastertop, Neopor, Palusol, Polyheed, PolyTHF, Pozzolith, SEEBALANCE, Soluplus, Suvinil, Tinuvin XT, Ultradur, Ultramid, Ultrason, X-Seed (Trademarks are not necessarily internationally registered.) Registered trademarks of other companies: Carbon Disclosure Leadership Index, Carbon Performance Leadership Index, DJ Chemicals, DJ EURO STOXX, Dow Jones Sustainability World Index, MSCI World Chemicals, Patent Asset Index

BASF in India - Report 2010

connect with BASF


BASF touchpoints across India

registered office for BASF Group companies in India 1 Floor, VIBGYOR Towers, Plot No. C - 62,

BASF India limited Surathkal Bajpe Road, Bala, Via. Katipalla, Mangalore - 575 030, Karnataka Phone: +91 824 2237 000 Fax: +91 824 2270 025 BASF India limited

G Block, Bandra-Kurla Complex, Mumbai - 400 051, Maharashtra Phone: +91 22 6661 8000 Fax: +91 22 6758 2753 corporate offices BASF India limited Plot 37, Chandivali Farm Road, Chandivali, Andheri (East), Mumbai - 400 072, Maharashtra Phone: +91 22 2858 0200 Fax: +91 22 2858 0398 BASF India limited Thane-Belapur Road, Turbhe, Plot No. 12, TTC Area, Navi Mumbai - 400 705, Maharashtra Phone: +91 22 6712 7600 Fax: +91 22 6712 7628 BASF catalysts India private limited E-17 & 18 Industrial Estate, Maraimalainagar - 603 209, Tamil Nadu Phone: +91 44 2745 4466 / 4489 Fax: +91 44 2745 4490 Styrolution India private limited Thane-Belapur Road, Turbhe, Plot No.12, TTC Area, Navi Mumbai - 400 705, Maharashtra Phone: +91 22 6712 7600 Fax: +91 22 6712 7628 production sites BASF India limited Thane-Belapur Road, Turbhe, Plot No.12, TTC Area, Navi Mumbai - 400 705, Maharashtra Phone: +91 22 6712 7600 Fax: +91 22 6712 7628 BASF India limited C-68, MIDC, Thane-Belapur Road, Turbhe, Navi Mumbai - 400 613, Maharashtra Phone: +91 22 2761 9992 Fax: +91 22 2761 9242

Shed 269B, 3rd Phase, Bommasundra Industrial Area Anekal Taluka, Bangalore - 560 099, Karnataka Phone: +91 80 2783 2447 Fax: +91 80 2783 2447 BASF India limited Unit I, Plot No. 6214/6216, GIDC Phase IV Ankleshwar - 393 002, Gujarat Phone: +91 2646 221 890 Fax: +91 2646 250 464 Unit II, Plot No. 8001, GIDC Phase VI Ankleshwar - 393 002, Gujarat Phone: +91 2646 617 452 Fax: +91 2646 238 039 BASF India limited Gate No. 3, Jalan Industrial Complex, Jangalpur, Howrah - 711 411, West Bengal Phone: +91 33 3248 7499 Fax: +91 33 2283 4183 BASF India limited Khasara No. 87/1 Village, Beer Plassis, Solan District, Nalagarh - 174 101, Himachal Pradesh Phone: +91 1795 265 335 / 36 Fax: +91 1795 265 334 BASF catalysts India private limited E-17 & 18 Industrial Estate, Maraimalainagar - 603 209, Tamil Nadu Phone: +91 44 2745 4466 / 4489 Fax: +91 44 2745 4490 Styrolution India private limited Dahej Village, Vaghra Taluka, Bharuch - 392 130, Gujarat Phone: +91 2641 256 021 Fax: +91 2641 256 022

BASF is supporting the International Year

of chemistry with a host of activities

Children and young people discovering the world of chemistry in BASF Kids Labs. Neighbors and interested visitors learning about BASF at open houses in numerous countries. Exhibits and cooperation with schools and museums to raise interest in chemistry. These are just a few of the many examples of how BASF is supporting and participating as an official sponsor of the United Nations International Year of Chemistry 2011. For more, see

The responsible care initiative contributes to sustainability

Sustainable development is anchored in BASFs corporate strategy. For us, environment, health, safety and security are central elements of sustainable business management. Responsible Care combines these in the chemical industrys initiative and is an important part of BASFs sustainability management. For more, see

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