BASF India Limited has taken a significant step towards sustainable energy sourcing by signing a share purchase agreement to acquire a 26% stake in Clean Max Amalfi Private Limited. This strategic move is aimed at securing renewable power supply for BASF India's manufacturing plants in Dahej and Panoli.

Key Details of the Agreement

Transaction Timeline and Next Steps

The share purchase agreement was signed on November 11, 2025, following the Board of Directors' approval on July 30, 2025. BASF India is set to sign additional agreements, including:

• Shareholders Agreement
• Energy Supply Agreement
• Other ancillary agreements

These agreements are crucial for BASF India to avail benefits available to captive users under the applicable laws.

Closing Conditions

The completion of this transaction is subject to customary conditions precedent, including the receipt of requisite approvals. This approach ensures compliance with all regulatory requirements before the deal is finalized.

Strategic Implications

This acquisition aligns with the growing trend of corporations investing in renewable energy sources. For BASF India, this move secures a supply of green energy for its manufacturing operations and demonstrates its commitment to sustainable practices and reducing its carbon footprint.

The use of wind-solar hybrid power underscores the company's adoption of diverse renewable energy technologies. This strategy may help BASF India mitigate energy costs in the long term while contributing to its environmental sustainability goals.

As the renewable energy sector in India continues to expand, such corporate investments are likely to play a crucial role in driving the transition towards cleaner energy sources and supporting the country's climate objectives.

BASF , the German chemical giant, has announced a significant strategic move in its global coatings business, with potential implications for its Indian subsidiary, BASF India Limited. The company has entered into a binding agreement with Carlyle, a global investment firm, and Qatar Investment Authority (QIA) for its automotive OEM coatings, automotive refinish coatings, and surface treatment businesses.

Deal Highlights

• Enterprise Value: €7.70 billion
• Expected Closure: Q2 2026 (subject to regulatory approvals)
• BASF's Stake: 40% equity in the new standalone company
• Cash Proceeds: Approximately €5.80 billion (pre-tax)

Impact on BASF India Limited

The global transaction's effect on BASF India Limited and its wholly owned subsidiary, BASF India Coatings Private Limited, is currently under evaluation. Key points to note:

• The automotive coatings business in India was transferred to BASF India Coatings Private Limited on January 1, 2025.
• As of March 31, 2025, the coatings business in India generated sales of Rs. 479.60 crore.
• This represents 3.10% of BASF India Limited's consolidated sales.

Financial Overview of Indian Coatings Business

BASF India Limited has stated that it will assess the implications of this global announcement on its operations and its subsidiary. The company has committed to updating the stock exchanges on further developments related to this transaction.

This strategic move aligns with BASF's global exploration of options for value creation in its coatings business, as previously announced on September 26, 2024. The transaction, once completed, is expected to create a new global standalone company in the coatings sector.

Investors and stakeholders of BASF India Limited are advised to monitor future announcements for a clearer picture of how this global deal will impact the company's local operations and financial performance.