Vibrant Gujarat Summit: Adani Group, BASF sign MoU for Rs 16,000 cr

On the eve of the ninth edition of Vibrant Gujarat Summit, the Gautam Adani-led Adani Group announced that it has signed a MoU with German chemical giant BASF for establishing a joint venture for an investment of Rs 16,000 crore in the acrylics value chain.

The move will mark Adani's foray into the petrochemicals sector, which is currently dominated by Mukesh Ambani's Reliance Industries.

Adani said that the planned investment of Rs16,000 crore would be BASF's largest in India to date. The German major will hold a majority stake in the joint venture.

"The designated site would be at Mundra. A feasibility study (for the investment) will be completed by the end of 2019," it said.

Gautam Adani said that the partnership with BASF would be a big step forward in enabling the 'Make in India' programme as it would allow them to produce at Mundra several of the chemicals that are currently imported.

Adani Group is likely to announce further investment of Rs25-30,000 crore in the state in various businesses during the Vibrant Gujarat Summit on Friday, officials said.

A company official said that fresh investments of Rs25-30,000 crore are likely to be announced for increasing capacity of its Mundra port, and for enhancing capacity of its solar manufacturing facility in Mundra.