BASF announced on September 21 that it is evaluating the construction of a new methylene diphenyl diisocyanate, or MDI, production complex in Dahej, Gujarat, India, and has already secured an industrial land parcel through BASF India Polyurethanes Private Limited. The project is now in the advanced stage of a feasibility study and is intended to serve growing demand in India and neighboring markets. A final investment decision has not yet been made and remains subject to the study outcome and required approvals.
MDI is a major building block for polyurethane products used across building insulation, refrigeration, automotive components, furniture and consumer goods.
Dahej is already an established BASF manufacturing location.
At its integrated chemical complex there, BASF India currently operates an MDI splitter and polyurethane production facilities, giving the company existing infrastructure that could support a larger local MDI footprint.
BASF Board member and Chief Technology Officer Stephan Kothrade described India as one of the most attractive growth markets globally, with demand expected to expand across a wide range of industries.
If approved, the project would allow BASF to supply more MDI to customers in India and surrounding markets from local production.
BASF currently operates MDI production facilities in Antwerp, Belgium; Chongqing and Caojing in China; Yeosu, South Korea; and Geismar, Louisiana, in the United States.
Its approximately USD 1 billion MDI expansion at Geismar is now entering the final phase of commissioning.
Ramkumar Dhruva, President of BASF's Monomers division, said the Indian study represents a potential next step in strengthening the company's global MDI network as the Geismar project approaches completion.
The India announcement also follows a recent pricing move in the region.
On September 11, BASF raised prices for Lupranate® MDI basic products and TDI by USD 250 per metric ton across ASEAN and South Asian countries, effective immediately or as existing contracts allow. The company cited continuing increases in raw-material, transportation and energy costs.
At the end of 2025, BASF operated eight production sites and more than 40 offices in India, employing 2,435 people. The company recorded approximately EUR 2.3 billion in sales to customers in India during 2025.
BASF has not yet disclosed the proposed Dahej complex's capacity, investment value, construction schedule or targeted start-up date.
