BASF India's board approved the closure of its sulfation and low-temperature reactor plants at the Dahej manufacturing site by the end of calendar year 2026. The decision cited a changing competitive landscape in India that has resulted in extensive overcapacities, high costs and margin pressure in the Care Chemicals business.
The Dahej manufacturing operations linked to the Care Chemicals business generated revenue of 5.42 billion rupees in fiscal year 2025-26, accounting for around 4% of BASF India's total revenue. The shutdown is subject to requisite regulatory and other approvals. BASF stated that its Care Chemicals business will continue to manufacture, import and sell other chemical products in India based on customer requirements. The decision underscored the pressure facing chemical manufacturers as excess capacity and intensifying competition squeeze margins in the Indian market.
