BASF India Limited — Important, 04-02-2025: Closure of operations

BASF India Limited has announced the closure of its Turbo Tube Dryer (TTD) Unit at the Dahej manufacturing site within its Care Chemicals business. This decision stems from the unit's outdated technology, which has resulted in low utilization, high maintenance costs, and increased production of off-specification materials. The TTD Unit generated revenues of Rs. 37.7 crore, accounting for only 0.3% of the company's total revenues during the 2023-24 financial year. The closure, expected in the first half of 2025, will provide direct fixed cost savings, with only a minor loss anticipated in unit earnings. This development reflects a strategic move to enhance operational efficiency and focus on more competitive capabilities within the sector. Investors should monitor this situation as it may present a positive outlook for cost management.