In November 2017, BASF India Limited announced plans to expand its manufacturing capacity for Cellasto® at its Dahej plant in Gujarat, while ceasing the production of thermoplastic polyurethane (TPU) at the same facility. This strategic decision was made to align with evolving customer demands in the South Asia region.
Cellasto®, BASF’s trade name for components made from cellular polyurethane elastomers, has been utilized for over 55 years in automotive suspension systems to reduce noise, vibration, and harshness (NVH). The expansion at Dahej includes the addition of a new production line and the enhancement of existing testing equipment, aiming to better serve India’s growing automotive market for both two-wheel and four-wheel vehicles.
Concurrently, BASF decided to discontinue TPU manufacturing at the Dahej site, opting instead to supply the South Asia markets with TPU from its global production network. TPU is widely used in the manufacture of industrial hoses, elevator belts, and footwear. This move ensures a seamless supply to customers throughout the region.
Raman Ramachandran, then Chairman and Managing Director of BASF India Limited and Head of South Asia, stated, “We continue to stay close to our customers by adjusting our production to meet their changing needs. For instance, by 2030, India is slated to be among the three largest automotive manufacturers worldwide. To be able to meet this demand, our manufacturing facilities need to be efficient and effective. We are confident that by refocusing our manufacturing capabilities, we will be able to achieve greater efficiency while better addressing our customers’ expectations and needs.”
This strategic shift underscores BASF’s commitment to adapting its operations to market dynamics and supporting the anticipated growth of India’s automotive industry.
