BASF Considers Setting Up MDI Plant in Dahej, Gujarat

BASF, one of the world’s leading chemical manufacturers, is reportedly assessing the feasibility of a new methylene diphenyl diisocyanate (MDI) production facility in Dahej, Gujarat. The coastal town has emerged as a major hub for petrochemical and specialty chemical projects, offering logistical advantages for both raw material import and product export.

MDI is a key feedstock for the polyurethane industry, which supplies materials for construction, automotive and consumer goods sectors. A domestic MDI plant could reduce India’s reliance on imports, potentially lowering costs for downstream manufacturers and creating skilled employment opportunities in the region.

While BASF has not disclosed a timeline, the company’s interest aligns with India’s broader push to expand indigenous chemical capacity under the Make in India initiative. Final investment decisions will depend on regulatory clearances, market demand assessments and the overall economic climate.