BASF in India Report 2010
Transcript of BASF in India Report 2010
BASF in IndiaReport 2010
Million €
2010 2009 Change in %
Sales 63,873 50,693 26.0
Income from operations before depreciation and amortization (EBITDA) 11,131 7,388 50.7
Income from operations (EBIT) before special items 8,138 4,852 67.7
Income from operations (EBIT) 7,761 3,677 111.1
Income before taxes and minority interests 7,373 3,079 139.5
Net income 4,557 1,410 223.2
Earnings per share (€) 4.96 1.54 223.2
Adjusted earnings per share (€) 5.73 3.01 90.4
EBITDA in percent of sales 17.4 14.6 -
Cash provided by operating activities 6,460 5,693 13.5
Additions to long-term assets 1 5,304 5,972 (11.2)
Excluding acquisitions 2,565 2,536 1.1
Research costs 1,492 1,398 6.7
Amortization and depreciation 1 3,370 3,711 (9.2)
Segment assets (as of December 31) 2 48,626 40,707 19.5
Personnel costs 8,228 7,107 15.8
Number of employees (as of December 31) 109,140 104,779 4.2
1 Intangible assets and property, plant and equipment (including acquisitions)2 Intangible assets and property, plant and equipment, inventories and business-related receivables
business development 2010BASF 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 addition-ally 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
BASF Group 2010
Record sales and earnings achieved in 2010•Cognis acquisition strengthens portfolio with •specialty productsOutlook 2011: BASF aims to significantly •increase sales and earnings
Sales
+26% +111%
EBIT
SAlES And EBIT 2010compared with previous year
On the cover: Employees at BASF’s Mangalore site in India.
plASTIcS
The Plastics segment includes a broadrange of products, system solutionsand services. We offer a number ofengineering plastics for the automotiveand electrical industries as wellas for use in household appliancesand sports and leisure products. Ourstyrenic foams are used as insulatingmaterials in the construction industryand in packaging. Our polyurethanesare extremely versatile: As soft foams,for example, they improve car seatsand mattresses, and as rigid foamsthey increase the energy efficiency ofrefrigerators.
Key data
Million € 2010 2009Change
in %
Sales 9,830 7,128 37.9
Income from operations (EBIT) 1,273 554 129.8
11 -- Performance Polymers: 45%
2 -- Polyurethanes: 55%
2€9,830
Million 11 -- Performance Polymers: 45%
2 -- Polyurethanes: 55%
2€9,830
Million
pErFormAncE producTS
Performance Products lend stabilityand color to countless everyday itemsand help to improve their applicationprofile. Our product portfolio includesvitamins and food additives as well asingredients for pharmaceuticals and forhygiene, home and personal care items.Other Performance Products improveprocesses in the paper industry, oil andgas production, mining and watertreatment. They can also enhance theefficiency of fuels and lubricants, theeffectiveness of adhesives and coatings,and the stability of plastics.
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2
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5
€12,288million
1 -- Dispersions & Pigments: 26%
2 -- Care Chemicals: 22%
3 -- Nutrition & Health: 12%
4 -- Paper Chemicals: 14%
5 -- Performance Chemicals: 26%
Key data
Million € 2010 2009Change
in %
Sales 12,288 9,356 31.3
Income from operations (EBIT) 1,345 (150)
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2
3
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€12,288Million
1 -- Dispersions & Pigments: 26%
2 -- Care Chemicals: 22%
3 -- Nutrition & Health: 12%
4 -- Paper Chemicals: 14%
5 -- Performance Chemicals: 26%
BASF’S SEGmEnTS AT A GlAncE
chEmIcAlS
In the Chemicals segment, we supply products to customers in the chemical, electronics, construction, textile, auto- motive, pharmaceutical and agricultural industries as well as many others. Furthermore, we ensure that other BASFsegments are supplied with chemicals for the production of downstream pro- ducts. Our portfolio ranges from basic chemicals, glues and electronic chemi-cals for the semiconductor and solar cell industries, to solvents and plasticizers, as well as starting materials for products such as detergents, plastics, textile fibers, paints and coatings, and pharmaceuticals.
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1 -- Inorganics: 11%
2 -- Petrochemicals: 67%
3 -- Intermediates: 22%
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€11,377Million
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1 -- Inorganics: 11%
2 -- Petrochemicals: 67%
3 -- Intermediates: 22%
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€11,377Million
Key data
Million € 2010 2009Change
in %
Sales 11,377 7,515 51.4
Income from operations (EBIT) 2,310 735 214.3
oIl & GAS
As the largest German producer of oiland gas, we focus our exploration andproduction on oil- and gas-rich regionsin Europe, North Africa, South America,Russia and the Caspian Sea region.Together with our Russian partnerGazprom, we are active in the transport,storage and trading of natural gasin Europe.
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1 -- Exploration & Production: 35%
2 -- Natural Gas Trading: 65%
€10,791Million
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1 -- Exploration & Production: 35%
2 -- Natural Gas Trading: 65%
€10,791Million
Key data
Million € 2010 2009Change
in %
Sales 10,791 11,356 (5.0)
Income from operations (EBIT) 2,334 2,289 2.0
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 admixtures as well as construction systems such as tile adhesives and architectural coatings.
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1 -- Catalysts: 52%
2 -- Construction Chemicals: 22%
3 -- Coatings: 26%2
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€9,703Million
Key data
Million € 2010 2009Change
in %
Sales 9,703 7,115 36.4
Income from operations (EBIT) 457 107 327.1
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1 -- Catalysts: 52%
2 -- Construction Chemicals: 22%
3 -- Coatings: 26%2
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€9,703Million
FuncTIonAl SoluTIonS
AGrIculTurAl SoluTIonS
Our crop protection products guardagainst fungal diseases, insects andweeds and they increase quality andsecure crop yields. Our research inplant biotechnology concentrates onplants for greater efficiency in agricul-ture, healthier nutrition and for use asrenewable raw materials.
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1 -- Crop Protection: 100%€4,033Million
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1 -- Crop Protection: 100%€4,033Million
Key data
Million € 2010 2009Change
in %
Sales 4,033 3,646 10.6
Income from operations (EBIT) 749 769 (2.6)
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BASF in inDiA RepoRt 2010
BASF in India - Report 2010 About the Report 01
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
“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.
ABout the RepoRt
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 Protocol’s
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 don’t just create chemicals, we create chemistry.
the BASF GRoup At a glance
02 the BASF Group BASF in India - Report 2010
ReSeARCh AnD DeVeLopMent
€1.5 billion
In 2010, we invested nearly €1.5 billion in research and development projects.
basf.com
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 successionTop ranking in the materials sector in the Carbon •Disclosure Leadership IndexFor the third time in succession, BASF was among the •Top 100 Green Companies in China
BASF is the world’s 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 world’s 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,
ouR StRAteGYFor value-adding growth
As the world’s 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
We help our customers to be more successful
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 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 world’s important markets.
We form the best team in industry
We ensure sustainable development
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.
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 in India - Report 2010 our Strategy 03
basf.com/strategy
04 BASF Asia pacific Strategy BASF in India - Report 2010
BASF ASiA pACiFiC StRAteGY An interview with Dr. Martin Brudermüller, 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.
• WithourIndustryTargetGroupsandCustomerTarget
Groups, we have already identified around €600 million
in additional sales potential by 2012.
• ToensurewecancreateinnovationsforAsia,fromAsia,
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.
• Tohelpusexpandourlocalproduction,wehave
invested €2.4 billion in facilities in Asia Pacific over
the past five years. And we have announced major new
investments across the region.
• Wehavealreadyachieved€90millioninannualsavings
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.
€ 12.5 billionBASF achieved record sales in Asia Pacific in 2010.
(by location of customers)
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 in India - Report 2010 BASF Asia pacific Strategy 05
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 ASiA pACiFiC StRAteGY 2020
•Growthoftwopercentagepointsabovemarket•Earnpremiumoncostofcapital•70%ofsalestobemanufacturedlocallyinAsiaPacific•Headcounttoincreasebyatleast5,000• Investments of €2.3 billion planned between 2011-2015•Efficiencyimprovementstosave€150millionannually
by 2012
‘‘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 Brudermüller, Vice Chairman of the BASF Board of Executive Directors, responsible for Asia Pacific
“We aim to create chemistry – with our customers, with our employees and with society.”
06 Message from the Chairman BASF in India - Report 2010
BASF in India - Report 2010 Message from the Chairman 07
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 Delhi’s
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,
BASFCompaniesinIndiaandHeadSouthAsia
pRASAD ChAnDRAn
• ChairmanofBASFCompaniesinIndia&Head South Asia
• HeadstheIndustryTaskForceforSustainable Agriculture and Green India in association with The Energy and Resources Institute (TERI)
• Drivesthe‘‘MillionMinds’’project,aBASFinitiativeto fight corruption and improve governance in India
€1 billionIn 2010, BASF sales to customers in India crossed the €1 billion mark for the very first time.
08 Milestones of BASF in india BASF in India - Report 2010
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
fromHydroCoatingsworldwideandHydroCoatingsIndia
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
then
1890: BASF’s 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. Cole’s 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.
MiLeStoneS oF BASF in inDiA A rich past, a promising future
noW
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’s 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, BASF’s 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).
BASF in India - Report 2010 Milestones of BASF in india 09
BASF India Limited pursuant to BASF’s 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:BASFSEacquiresCibaHoldingAGand
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 India’s 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
BASFSEacquiresCognisHoldingGmbHworldwide.
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.
BASFSEandINEOSIndustriesHoldingsLimitedplanto
enter a new joint venture. As of January 1, 2011, BASF’s
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.
FACtS AnD FiGuReS
•1,830employees•9productionsites•21salesoffices•2R&DCentersworkingcloselywithBASF’sGlobal
Technology Platform•14outof15globalBASFdivisionsoperationalinIndia
10 Strong Local presence BASF in India - Report 2010
StRonG LoCAL pReSenCeA robust presence across the country
Serving markets through strategic locations
SALeS peRFoRMAnCe oF BASF in inDiA in 2010 (LoCAtion oF CuStoMeRS)
Rs. 61,056 million€ 1.007 billion
(At the exchange rate of €1 = Rs. 60.631835 as on December 31, 2010)
BASF SALeS to CuStoMeRS in inDiA
(in MiLLion € )
0 200 400 800 1,000
2010 1,007
2009 687
2008 693
2007 651
2006 473
600
NalagarhChandigarh
New Delhi
Siliguri
Kanpur
Ahmedabad
Dahej
Indore
AnkleshwarKolkata
ThaneChandivali
Bandra-Kurla ComplexMumbai
Navi MumbaiTurbhe
PuneHyderabad, Secunderabad
MangaloreBangalore
Bandra-Kurla ComplexNavi MumbaiChandivali
Chennai
MumbaiMangalore
R&D
MangaloreTurbheDahejAnkleshwarChennaiBangaloreNalagarhKolkataThane
Production sites
AhmedabadBangaloreChandigarhChennaiHyderabadIndoreKanpurKolkataNew DelhiPuneSecunderabadSiliguri
BASF in India - Report 2010 Strong Local presence 11
updates on BASF Manufacturing sites in india
Mangalore site – BASF’s 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.
BASF’S LARGeSt pRoDuCtion Site in inDiA - MAnGALoRe
• Strategicallylocatedclosetotheport• Closetoourcustomerclusters•Engagedinthetheproductionofcoatingsmaterial,
dispersions and pigment preparations
The Coatings plant at Mangalore received “Best Supplier Award” by various reputed automotive companies in 2010.
The new Construction Chemicals plant in Mangalore is BASF’s 5th construction chemicals production site in India.
12 Strong Local presence BASF in India - Report 2010
Ankleshwar site – Strengthening the BASF paper
Chemicals business
BASF’s 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.
AnKLeShWAR Site
•LocatedstrategicallyinGujaratIndustrialDevelopmentCorporation (GIDC)
•Closeproximitytovariousinfrastructurefacilities including a highway, railways and two airports
•Engagedintheproductionofpaperchemicals
With the expansion of the Chennai plant, the installed capacity has been tripled and is projected to meet future market requirements in India.
The production facility at Ankleshwar manufactures optical brightening agents catering to paper and detergent industries.
BASF in India - Report 2010 Strong Local presence 13
Dahej site – Manufacturing hub for styrenics
BASF’sDahejsiteisengagedintheproductionofHIPS
(High-ImpactPolystyrene)andGPPS(GeneralPurpose
Polystyrene).Currently,fourgradesofHIPSandthree
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
BASF’s 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.
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.
The Dahej site produces polystyrene products for use in various end-use industries. The Thane site houses five production plants.
BASF tAKeS ACtion housing and Construction
basf.com/future
14 BASF takes Action BASF in India - Report 2010
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
permanentdisplayboothattheIGBCCenterinHyderabad
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
ratingsystemcalledGreenRatingforIntegratedHabitat
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.
Sustainable buildingsSustainable 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 sustainability to the Delhi airport: A high-speed underground metro-link connects Delhi to the new Terminal 3 at New Delhi’s 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.
BASF in India - Report 2010 BASF takes Action 15
BASF’s total insulation Solutions for housesCombined area of Total Insulation Solutions installed by BASF in India in 2010: 50,000 square meters.
Glenium® and other admixtures improve concrete flowabilty and durability to make processing more efficient
Peripor® boards, Elastopor®
boards and Elastospray® insulation materials improve energy efficiency
Masterflex® sealants are water repellent,
watertight and weather resistant
Insulation panels made of the plastic Basotect® panels in roof and walls
provide noise cancellation for acoustic performance 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
Mastertile® and PCI® Series tile adhesives
and grouts offer solutions for internal
and external tile fixing
Senergy® with Neopor® insulation provides efficient thermal insulation with aesthetic finishes to facades
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 water-
proofing 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
forIndia.TheS.E.AsiaheadquartersofWorldHealth
Organization(WHO)inNewDelhiisanidealexampleof
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.
BASF tAKeS ACtionhealth and nutrition
basf.com/future
16 BASF takes Action BASF in India - Report 2010
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 world’s 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,juteisnotveryeffectiveinretainingthearoma
of freshly processed tea leaves. BASF India’s 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.
OneofIndia’slargestteamanufacturingbrands,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’s innovative plasticizer – hexamoll® DinCh
For transparent films used in diverse sensitive applications
such as fruit wrapping, textiles, toys and medical devices,
BASFhasintroducedaninnovativeplasticizer–Hexamoll®
DINCH.Itisphthalate-freeandhelpsmanufacturersand
exporterscomplywithregulatorystandardssuchasREACH
(Registration, Evaluation, Authorization and Restriction of
Chemical substances) in Europe.
Supporting sustainable living BASF is helping India’s rapidly modernizing population find a better quality of life.
From health to nutrition, India’s new generation of consumers are demanding a better, more sustainable way of life. Chemistry plays an important role in making it possible.
The polyamide packaging bags of 25-kilogram capacity retain the freshness and aroma of tea leaves during transportation.
BASF in India - Report 2010 BASF takes Action 17
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 BASF’s 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.
18 environment, health and Safety BASF in India - Report 2010
TheEHSperformanceismonitoredbyBASFinIndiaunderRCMS,whichistheinternationallyacceptedbenchmark forevaluationofEHSstandards.TheResponsibleCare® group is guided by the Chairman of BASF Group in India and headedbytheChiefExecutive–ManufacturingincoordinationwiththeCountryHeadandhisteamforResponsibleCare® for BASF in India. Our commitment to Responsible Care® validates our claim of being “BASF – The Chemical Company”.
ABout ReSponSiBLe CARe® MAnAGeMent SYSteM (RCMS)
enViRonMent, heALth AnD SAFetYGrowing 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 people’s 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
forenvironment,healthandsafety(EHS)atBASFinIndia.
In particular, we expanded the team’s 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.
BASF in India - Report 2010 environment, health and Safety 19
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 BASF’s 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.Healthcheck-upswereconductedhalf-yearlyand
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
Lost time injury rate BASF employees and contractors (Per million working hours)
0
0.2
0.4
0.6
0.8
1.0
1.2
LTI p
er m
illio
n w
orki
ng h
ours
201020092006 2007 2008
0
0.38
0 0
0.62
1.05
0.40
0.25
0.730.71
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.
KnoWinG C.A.R.e.
emissions
emissions to air: CO2 emissions constitute a major
portionofthegreenhousegas(GHG)emissions.In2010,
emissionofGHGfromchemicaloperationsofBASFin
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
a decrease of 5% compared to 2009.
20 environment, health and Safety BASF in India - Report 2010
Air pollutants¹ – (without Ch4) (Metric tons)
¹Includes:CO,NOX,NMVOC,SOX,dust,NH3/other inorganics
BASF’S GLoBAL CoRpoRAte CARBon FootpRint 2010
1 CO2e is the abbreviation for CO2 equivalent. This unit enables comparison of various greenhouse gases such as nitrous oxide, methane, carbon dioxide, etc.
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
1,398With use of
BASF products
1,720Without use of BASF products
322 million metric tons of Co2 are avoided
Raw materials: 43
BASF production: 25
Use of BASF end products: 56
Disposal: 29Transport: 4
Site employees can undergo routine health check-up at our on-site occupational health centers. Shown above: BASF Mangalore site occupational health center.
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.
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. BASF’s production site in
Mangalore used shipping transportation instead of largely
relying on road transport for the movement of bulk cargo.
Greenhouse gas emissions (total) (Metric tons of CO2 equivalents¹)
¹ CO2 equivalents include: CO2, N2O,CH4,HFC,PFC,SF6
BASF in India - Report 2010 environment, health and Safety 21
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. 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 used for production:
Of the 719,141 cubic meters of water used, 443,625 cubic
meters (2009: 303,553 cubic meters) came into contact
Steam consumption (Metric tons)
electricity consumption (MWh)
Fuel consumption (MWh)
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.
pRoteCtinG the enViRonMent
Effluent treatment plant at Mangalore site.
Water supply (total) (Cubic meters)
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.
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.
22 environment, health and Safety BASF in India - Report 2010
Water used for production (total) (Cubic meters)
organic substances (CoD) (Metric tons)
nitrogen (Metric tons)
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.
tRAininG
BASF in India - Report 2010 environment, health and Safety 23
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.
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.
Regular mock drills at our production sites keep the team ready and geared to take corrective action if the need arises.
MoCK DRiLLS
total amount of waste (Metric tons) and recycling rate
Met
ric T
ons
1,000
2,000
3,000
4,000
0
6,000
5,000
20102006 2007 2008 2009
47%
36%
5,675
4,663
2,1082,348
0%0%
1,013
0%
• • Waste • • Recycling rate
Disaster Control Centre at Navi Mumbai.
24 employees BASF in India - Report 2010
eMpLoYeeSCreating 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
From employee to Business Director
“After spending 19 years at Ciba in varied businesses,
working for the world’s 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
0 2,000
2010 1,830
2009 1,810
2008
2007
2006
nuMBeR oF eMpLoYeeS oF BASF in inDiA
500 1,500
1,370
1,280
1,000
1,100
Ajai Gupta and Paramita Sarkar (from left to right) are ideal examples of how BASF offers an excellent career path for cross-industry individuals.
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.
BASF in India - Report 2010 Employees 25
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 company’s 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 don’t 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
www.basf.com/employees
WE Form ThE BEST TEAm In InDuSTry
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.
Shanthi, one of the beneficiaries of the drinking water project in Cuddalore, Tamil Nadu.
SoCietY enriching lives around us
26 Society BASF in India - Report 2010
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
TogetherwithUN-HABITAT,wehavetakenupawater
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-HABITAThasextensivefacilitationexperiencein
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 Singarakup-
pam village, in Cuddalore, used to spend two hours a day
to collect water from a tap located 5 kilometers away from
herhome.However,lifechangedforShanthiwhenBASF
partneredwithUN-HABITATandFoundationforEcological
Research Advocacy and Learning (FERAL) for a water
project. Today she has a refreshing smile on her face, as
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.
BASF’S pARtneRShip With un-hABitAt – MAKinG A DiFFeRenCe in SoutheRn inDiA
BASFhasjoinedhandswithUN-HABITATtoundertakeaprojectonwaterandsanitationinstatesinSouthernIndia. BASFSocialFoundationisthesponsoroftheinitiative.UN-HABITATexecutestheseprojectswithitsimplementationpartners – 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.
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/FERALproject,aleach-pittoiletwasinstalled
in their home. The local committee chose Amudha’s 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. Herlifechanged
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 BASF’s ‘‘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.”
BASF in India - Report 2010 Society 27
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 andHeadSouthAsiafelicitatesPadmaBhushan Julio Ribeiro, as BASF’s “Good Governance Icon.”
(Left to right) Prasad Chandran, Julio Ribeiro, Justice Santosh Hegde, P.P. Shetty.
28 Focus on education BASF in India - Report 2010
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.
BASF KiDS’ LAB
BASF Kids’ Lab is an interactive chemistry education program first launched at BASF’s headquarters in Germany in 1997. It is a part of the company’s 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.
The BASF excipients trolley is well-stocked with excipient samples and information materials which are replenished regularly.
Young students exploring the magical world of chemistry.
FoCuS on eDuCAtion investing for a better tomorrow
BASF in India - Report 2010 Awards and Recognition 29
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. BASF’s
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, India’s 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.
BASF’s 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
BASF’s Thane site was adjudged as the first prize winner
for “Industrial Safety Performance’’ by the Directorate of
IndustrialSafetyandHealth-ThaneRegion,underthe
large category of companies.
BASF was ranked as the world’s 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 RAnKeD the WoRLD’S MoSt ADMiReD CheMiCAL CoMpAnY
Employees of BASF Thane site with the trophy for “Industrial Safety Award.”
BASF receives the Frost & Sullivan 2010 India Awards for Product Excellence in the Chemicals, Materials and Foods Sector.
BASF receives the “Best Performance Award” from Mahindra & Mahindra.
SÃOPAULO
FLORHAMPARK
FREEPORT
GEISMAR
R
RR
R
R
basf.com
Regional centers
Verbund sites
Selected production sites
R Most important research sites
noRth AMeRiCAcompared with previous year SALeS eBit eMpLoYeeS
+41% +120% 16,487
South AMeRiCA, AFRiCA, MiDDLe eAStcompared with previous year SALeS eBit eMpLoYeeS
+31% –37% 6,879
BASF in the ReGionSSales 2010: €63,873 million; eBit 2010: €7,761 million
noRth AMeRiCA South AMeRiCA, AFRiCA, MiDDLe eASt
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.
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.
30 BASF in the Regions BASF in India - Report 2010
NANJING
ANTWERP
KUANTANSINGAPORE
HONG KONG
LUDWIGSHAFEN
RR
R R
R
R
R
R
R R
R
R
BASF is the world’s 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.
ASiA pACiFiCcompared with previous year SALeS eBit eMpLoYeeS
+46% +153% 15,965
euRopecompared with previous year SALeS eBit eMpLoYeeS
+16% +118% 69,809
euRope ASiA pACiFiC
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.
BASF in India - Report 2010 BASF in the Regions 31
ten-YeAR BASF SuMMARY
32 ten-year BASF Summary BASF in India - Report 2010
ten-Year Summary (million €)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Sales and earnings1
Sales 32,500 32,216 33,361 37,537 42,745 52,610 57,951 62,304 50,693 63,873
Income from operations before depreciation and amortization (EBITDA)
4,142
5,105
5,110
7,685
8,233
9,723
10,225 9,562 7,388 11,131
Income from operations (EBIT) 1,217 2,641 2,658 5,193 5,830 6,750 7,316 6,463 3,677 7,761
Income from ordinary activities 609 2,641 2,168 4,347 5,926 6,527 6,935 5,976 3,079 7,373
Extraordinary income 6,121 – – – – – – – – –
Income before taxes and minority interests 6,730 2,641 2,168 4,347 5,926 6,527 6,935 5,976 3,079 7,373
Income before minority interests 5,826 1,599 976 2,133 3,168 3,466 4,325 3,305 1,655 5,074
Net income 5,858 1,504 910 2,004 3,007 3,215 4,065 2,912 1,410 4,557
Capital expenditures and depreciation1
Additions to property, plant and equipment and intangible assets
3,313
3,055
3,415
2,163
2,523
10,039
4,425 3,634
5,972
5,304
Thereof property, plant and equipment 3,037 2,677 2,293 2,022 2,188 4,068 2,564 2,809 4,126 3,294
Depreciation and amortization of property, plant and equipment and intangible assets
2,925
2,464
2,452
2,492
2,403
2,973 2,909 3,099 3,711 3,370
Thereof property, plant and equipment 2,307 2,012 1,951 2,053 2,035 2,482 2,294 2,481 2,614 2,667
number of employees at year-end 92,545 89,389 87,159 81,955 80,945 95,247 95,175 96,924 104,779 109,140
personnel expenses1 6,028 5,975 5,891 5,615 5,574 6,210 6,648 6,364 7,107 8,228
Key data1
Earnings per share (€)2, 3 4.864 1.30 0.81 1.83 2.87 3.19 4.16 3.13 1.54 4.96
Cash provided by operating activities5 2,319 2,313 4,878 4,634 5,2506 5,940 5,807 5,023 5,693 6,460
EBITDA margin (%) 12.7 15.8 15.3 20.5 19.3 18.5 17.6 15.3 14.6 17.4
Return on assets (%) 3.1 8.4 7.4 13.2 17.7 17.5 16.4 13.5 7.5 14.7
Return on equity after taxes (%) 36.64 9.3 6.0 12.9 18.6 19.2 22.4 17.0 8.9 24.6
Share2
Year-end price (€) 20.88 18.04 22.29 26.50 32.36 36.93 50.71 27.73 43.46 59.70
Dividend per share (€)2 0.65 0.70 0.70 0.85 1.00 1.50 1.95 1.95 1.70 2.20
Number of shares as of December 31 (million)2, 7 1,166.8 1,140.6 1,113.3 1,080.9 1,028.8 999.4 956.4 918.5 918.5 918.5
1 Starting in 2005, the accounting and reporting of the BASF Group have been prepared in accordance with International Financial Reporting Standards (IFRS). The previous year’s figures have been restated in accordance with IFRS. The figures for the years up to and including 2003 were prepared according to German GAAP.
2 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.
3 Adjusted for special items and impairment of intangible assets, earnings per share were €5.73 in 2010 and €3.01 in 2009.4 Including extraordinary income.5 Includes the change in reporting from 2009 onward of the effects of regular extensions of U.S. dollar hedging transactions. 6 Before external financing of pension obligations.7 After deduction of shares earmarked for cancellation.
Registered trademarks of BASF Group: Abate,AcronalPRO,CeoDS,COL.9,Digilab,Elastocool,Elastollan,Elastopave,Elastopor,ElastoporH,Elastoskin,Elastospray,E-por,Fendona,Fortuna,Glenium,Glysantin, GreenSense,Hydraulan,Interceptor,KauritLight,Lumogen,Masterflex,Mastertop,Neopor,Palusol,Polyheed,PolyTHF,Pozzolith,SEEBALANCE,Soluplus,Suvinil,TinuvinXT,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
connEcT WITh BASFBASF touchpoints across India
registered office for BASF Group companies in India
1st Floor, VIBGYOR Towers, Plot No. C - 62,
‘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
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
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 in India - Report 2010 connect with BASF
The responsible care® initiative contributes to sustainabilitySustainable development is anchored in BASF’s corporate strategy. For us, environment, health, safety and security are central elements of sustainable business management. Responsible Care combines these in the chemical industry’s initiative and is an important part of BASF’s sustainability management.
For more, see basf.com/sustainability
BASF is supporting the International Year of chemistry with a host of activitiesChildren 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 basf.com/IYc
Corporate Media Relations Phone: +91 22 6661 8100, Fax: +91 22 6660 3741
Investor Relations Phone: +91 22 6661 8151, Fax: +91 22 2495 0512
Design: Origin Beanstalk Creative Consultants
Photographs: Somsubhro Sarkar and BASF Archives
FurThEr InFormATIon conTAcT
You can download this publication on the Internet at www.basf-india.com
You can also order the report by telephone: +91 22 6661 8120