Basf, Atul End Alliance For Marketing Vat Dyes
BASF AG of Germany has snapped ties with Atul Ltd for marketing of vat dyes. Under the agreement, BASF was to market vat dyes in international markets except for the US, with Atul manufacturing the dyes. While BASF executives confirmed that the marketing venture was off, they refused to give any reasons for the break up. Atul executives could not be contacted.
Under the agreement between the two companies, distribution in the US was to be carried out by Atul's subsidiary, Atul Americus while the marketing arrangement for exports was to be co-ordinated between BASF AG and Atul's subsidiary, Atul Europe.
Atul Ltd was expecting an export income to the tune of Rs 50-75 crore from this range of dyes and BASF would market nearly 25 per cent of the vat dye production at Atul.
Now, both the players will have to start looking for partners all over again. Industry sources said that BASF AG is on the look out for other Indian companies to source its requirement of vat dyes. Atul's range of products would have complemented its range.
Atul, too, will have to find a player with a strong marketing presence in European countries. Worldwide, BASF AG is the second-largest manufacturer of vat dyes, said industry sources.
Meanwhile, BASF Industries Pvt Ltd, the wholly owned Indian subsidiary of BASF AG, Germany, has acquired the automotive paints division from Dr Beck & Co (India). BASF AG had a 51 per cent stake in Dr Beck, which it transferred to Schenectady International Inc of US.
A senior BASF official said, "We are in the midst of a stock taking exercise after which the transfer price for the paints business will be finalised. We will take over all the 65-70 employees of Dr Beck and carry on manufacturing at the same site in Pune." BASF will share utilities with Schenectady on a cost plus basis.
"We will definitely modernise the plant after we take over as globally, BASF AG is the third largest company in the automotive paints business," he added.
The current production of the company stands at 60 to 70 tonnes per day and the automotive paints business contributed around 15 per cent of Dr Beck's turnover.