BASF India will shut its sulfation and low-temperature reactor plants at its Dahej manufacturing site by the end of calendar year 2026, as mounting overcapacity, high costs and margin pressure weigh on its Care Chemicals business in India.

 

The company’s board approved the closure at its meeting on August 4, citing a changing competitive landscape in India that has resulted in “extensive overcapacities, high costs and margin pressure.”

 

The shutdown is subject to requisite regulatory and other approvals.

 

The plants form part of BASF India’s Care Chemicals business, which sits within its Nutrition & Care segment. Despite the closure, BASF said the Care Chemicals business will continue to manufacture, import and sell its other chemical products in India based on customer requirements.

 

The Dahej manufacturing operations linked to the Care Chemicals business generated Rs 542 crore in revenue during FY2025-26, accounting for around 4% of BASF India’s total revenue.

 

The decision underscores the pressure facing chemical manufacturers as excess capacity and intensifying competition squeeze margins in the Indian market.