The said merger will enable operational flexibility, leverage differentiated steering and create value. The company’s agricultural solutions business has generated sales of Rs 2,006 crore, representing 14.57% of the total revenues of the company for the financial year ended March 31, 2024.
The company has constituted a committee of independent directors of the company to commence exploratory steps and examine the relevant aspects of the proposed demerger of company’s agricultural solutions business and make recommendation to the board thereof.
On 5 December 2023, the company had informed the stock exchanges regarding BASF SE’s differentiated steering approach for its global agricultural solutions business, in line with the principles of empowerment, differentiation and simplification.
Further, on 26 September 2024, the company had informed the stock exchanges that globally BASF SE will complete the legal and enterprise resource planning (ERP) separation of the agricultural solution business by 2027. Thereafter, as a next step, BASF SE, Germany is also targeting readiness for a potential initial public offering (IPO) of its global agricultural solutions business and is also evaluating the option of listing of a minority share in the mid-term. The company had also informed the stock exchanges that it would assess the relevance and the implications of the new global corporate strategy of BASF SE for its agricultural solutions business in India.
BASF India is engaged in providing chemicals, plastics, performance products and crop protection products.
The company’s consolidated net profit declined 14.2% to Rs 127.94 crore in Q2 FY25 as compared with Rs 149.10 crore in Q2 FY24. Net sales increased 14.7% YoY to Rs 4244.73 crore during the quarter ended 30 September 2024.