BASF India Limited shareholders have approved the demerger of its agricultural solutions business into a separate listed entity, BASF Agricultural Solutions India Limited, through a court-convened meeting held on June 24, 2026. The scheme, sanctioned by the National Company Law Tribunal (NCLT), provides for a share exchange ratio of 1:1, meaning shareholders will receive one share of the new entity for every share held in BASF India Limited. The company expects the allotment of shares to be completed by March 2027, followed by listing on the Bombay Stock Exchange and the National Stock Exchange.

Business Performance and Rationale

The agricultural solutions business has demonstrated strong momentum, recording sales of INR1,944 crores and a profit before tax of INR254 crores in the financial year 2025-2026. Alexander Gerding, Managing Director of BASF India Limited , stated that the demerger aims to unlock value by transitioning towards a pure-play agricultural solutions entity. This strategic shift is intended to sharpen focus, increase agility, and drive value creation through industry-tailored KPIs and a dedicated operational structure, including a separate ERP system.

Demerger Details and Timeline

The demerger process has received no-objection letters from SEBI and the stock exchanges. Management indicated that the entire process, including regulatory approvals from NCLT, Registrar of Companies, and Regional Directorate, may take approximately 18 to 20 months. Consequently, the listing of the new entity is anticipated between January and March 2027, subject to the receipt of requisite approvals. The company noted that most work related to the demerger has been handled in-house, with external agencies utilized primarily for obtaining the share entitlement ratio, fairness opinion, and representation before the NCLT.

Shareholder Queries and Management Response

During the meeting, shareholders raised queries regarding the cost of the demerger, the timeline for listing, and the composition of the board for the new entity. In response, management clarified that the agricultural solutions business will have its own management and board of directors, including a managing director, CFO, company secretary, and independent directors. The specific board composition will be decided closer to the implementation of the scheme. Management emphasized that the demerger would not have a detrimental impact on minority shareholders, as all equity shareholders will become beneficial economic owners of the resulting company.

Key Financial Metrics

The meeting was conducted via video conferencing, with Mr. V. Nallasenapathy, ex-NCLT Technical Member, presiding as the Chairperson. The resolution was deemed passed subject to the receipt of the requisite number of votes.

BASF India Limited has concluded the sale of its entire 100% stake in BASF India Coatings Private Limited to entities affiliated with the Carlyle Group for INR 230.16 crore. The transaction, which was determined by an Independent Valuer, was completed on June 30, 2026, upon receipt of the consideration. Consequently, BASF India Coatings Private Limited has ceased to be a wholly owned subsidiary of BASF India Limited.

The divestment involved the transfer of the entire equity shares to Bond German BidCo 2 GmbH and Bond France BidCo SAS. This move follows the Board of Directors' decision communicated to the stock exchanges on March 30, 2026. The completion of this carve-out marks the transition of the coatings business into an independent entity named Surventis, which launched operations on July 01, 2026.

Surventis is backed by global investment firm Carlyle in partnership with Qatar Investment Authority, with BASF retaining a 40% stake in the new entity. The company generated sales of about €3.9 billion in 2025 and employs around 10,700 people. It positions itself among the world's leading suppliers of automotive coatings and surface treatment solutions.

Strategic Focus and Operations

Surventis will operate with a focus on reliability, quality, service, and performance. The company serves more than 42,000 customers across over 140 countries from a network of more than 30 production and development sites. Its headquarters in Muenster, Germany, hosts the world's largest integrated paint manufacturing site.

The portfolio spans well-known brands such as Chemetall®, Glasurit®, and R-M®. Surventis will continue to develop, produce, and market coatings and surface treatment solutions for industrial, automotive, and refinish customers worldwide.

Leadership and Ownership

Surventis is led by Chief Executive Officer Jens Luehring. The Executive Committee includes Chief Financial Officer Michael Pontzen and Chief Transformation Officer Ewout van Jarwaarde. Other key leaders include Nils Lessmann, Frank Naber, Patrick Zhao, and Steve Arndt.