BASF/Knoll Considering More Investment In India

Juergen Strube, chairman of BASF, which is the parent company of theGerman pharmaceuticals firm Knoll, has indicated that BASF is considering increasing its investments in its Indian drugs subsidiary, Knoll India. Dr Strube said Knoll is "open to the idea of acquisitions worldwide," but that the Indian project would depend on "price and timing."

Overall, BASF is to invest around 1 billion Deutschemarks ($639.5 million) in India over the next four years. The Indian investment is part of an 11 billion mark ($7 billion) investment in Asia as a whole. The firm's main future investment in India will be at Magalore, where it intends to expand manufacturing facilities. Knoll also has a plant in Goa.

Knoll's most recent Asian investment in the pharmaceuticals sector, was the acquisition of a majority stake (51%) last year in Japanese drugmaker Hokuriku Seiyaku (Marketletters passim). This purchase was intended to provide Knoll with a 1% market share in Japan (the level for which Knoll is aiming in other major pharmaceutical markets), although initially the share was said to be more like the 0.3% level, but with every prospect of building this up.