Chennai: Ahmedabad-based Adani Group has announced its foray into the petrochemical business with its joint venture (JV) with German chemical producing major BASF SE.
The latter will set up a petrochemical production hub at a cost of Rs 16,000 crore in Gujarat, the two companies said after signing a memorandum of understanding on Thursday. The designated site would be at Mundra port in Gujarat and a feasibility study will be completed by the end of 2019.
The German company will hold the majority in the joint venture, which will invest in the acrylics value chain, they said.
The investment will go into the development, construction and operation of production plants including propane dehydrogenation (PDH), oxo C4 complex (butanols and 2-ethylhexanol), glacial acrylic acid (GAA), butyl acrylate (BA) and potentially other downstream products.
The products are predominantly for the Indian market to serve a wide range of local industries, including construction, automotive and coatings, whose growing demand is currently supplied via imports.
Adani Green Energy is one of the biggest companies involved in solar power generation in India. Besides the group has also set up solar PV manufacturing unit at Mundra SEZ.