Growth would have been higher, but for a comparative slowdown in the fourth quarter. Turnover increased by 10 per cent as compared to the third quarter from Rs 80.80 crore to Rs 89.37 crore, while bottomline declined from Rs 5.44 crore to Rs 2.43 crore. Company sources attribute this to the seasonal slowdown in the agrochemicals division. While agrochemiclals constitutes a significant share of BASF India's sales, it is a marginal player in insecticides, the largest segment of crop protection chemicals inIndia.

BIL, however, has a strong presence in the smaller fungicides market.As for exports, they too have declined during the year by 22 per cent from Rs 37 crore in 1997-98 to Rs 28.8 crore in 1998-99. This however, has to be viewed in the background of a 120 per cent growth in exports in the previous year. Exports were low, mainly on account of lower exports sales of the textile dyes division. However, with new pigments launched by the company, performance of this division is likely to improve in future.

BASF (India), a 50 per cent subsidiary of BASF AG, Germany, is a diversified chemicals company engaged in the manufacture of leather chemicals, agrochemicals, textile dyes, expandable polystyrene (EPS) and specialty chemicals. During the year, crop protection and leather division of the company has performed exceeding well. Earlier, the leather chemical division has been affected by environmental problems in the industry.

However, company sources say that this has been a blessing in disguise as thecompany does not manufacture any polluting chemicals, thus with the new guidlines in place BASF India is in a good position to capitalise on the demand. Further, the leather industry during the year has performed appreciably as compared to the previous year. The company is a market leader in leather chemicals and auxiliaries and has a wide range of products comprising synthetic tanning agents, fat liquors, dyes and finishing agents. This, coupled with its strong brand image has helped the company maintain its leading position in this segment.

Performance of the plastics division (expanded polystyrene) too has improved during the year. Though prices of the commodity remained low during the year, the company has managed to record volume growth during the year. With the price of petrochemicals increasing across the board, that of polystyrene are likely to follow suit during the current fiscal.

As for the textile dyes division, the company has done well in the domestic market as compared to the export market.With the textile industry recording a double figure growth rate, textile dyes division of the company is likely to perform well in the future too. As has been the case in the earlier years, BASF (India) has recorded a consistent growth in the technical advisory service fee.

The most important point for the company is the increased interest shown by its German parent. The parent company has said that it will be making an investment to the tune of DM 1 billion in India in the next four years. The investment will be routed through BASF (India) Ltd and Dr Beck & Co, in each of which the German giant has a 51 per cent stake, Knoll India, in which it has 40 per cent, and BASF Industries Pvt Ltd (BIPL) and Knoll International Pvt Ltd which it owns fully.

BASF of Germany is also setting up a basic research centre in India. The new R&D centre will be part of the company's broader scheme of developing India as a major manufacturing base for BASF products. Increased investment, support and interest by the parentcompany have the potential of providing higher growth rates for the company and improved discounting on the bourses.However, in the short run, with the economy showing signs of improvement and the weatherman predicting a normal monsoon, BASF (India) with its diversified portfolio is likely to do well.