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BASF Shuts Down Two Major Care Chemicals Plants in India

Plastmatch Global Digest 2026-08-11 14:18:55

Due to severe overcapacity in the Indian market, high production costs, and continued pressure on profit margins, BASF India plans to shut down its sulfuric acid plant and low-temperature reactor at the Dahej production site by the end of 2026.

The company’s board of directors approved the shutdown plan at its meeting on August 4. The announcement stated that the competitive landscape in India’s local industry had changed dramatically, directly leading to severe overcapacity across the industry, persistently high costs, and a substantial squeeze on business profitability.

The suspension can only be implemented after completing all statutory regulatory approval procedures.

The two plants shut down this time belong to BASF India.Nutrition and Nursing DivisionThe Care Chemicals business segment. BASF stated that despite the shutdown of the aforementioned production lines, the company will continue to produce, import, and sell other categories of care chemicals locally in India according to customer demand.

The Dahej base care chemicals-related business generated revenue of INR 542 million in FY2025–2026 (approximately RMB 38.32 million), accounting for about 4% of BASF India’s total revenue.

This production capacity reduction decision reflects the widespread operational difficulties facing India’s chemical manufacturing industry: excess capacity compounded by intensifying competition is continuously squeezing the profit margins of chemical companies.

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