BASF looks to drive future growth with product launches and business expansions
Product innovations
According to a company statement, BASF will focus on creating customer-orientated solutions by combining its knowledge from a variety of areas, as well as focusing on innovation as a driving force for growth, now and in the future.
Innovations “require a broad portfolio, interdisciplinary cooperation and a deep understanding of our customers’ value chains. We therefore will continue to develop our portfolio in the direction of customer-focused businesses,” explained vice chairman Dr. Martin Brudermüller.
In line with this customer focus, BASF launched a multi-functional emollient Cetiol RLF earlier this month, in response to demand for value-added skin feel products.
“More consumers, especially those with sensitive skin are looking for nourishing and soothing products and to help manufacturers meet these demands, BASF’s care chemicals division has launched Cetiol”, the company claims.
Likewise, the company has also stated to expect sales of US$40bn (€30 bn) and an EBITDA of US$9.3bn (€7 bn) by 2020 to be generated from products that have been on the market for less than ten years.
Reliance on emerging markets
Another way BASF expects to boost future growth is business expansion in emerging markets. “BASF’s sales to customers in emerging markets have almost tripled in the past 10 years and accounted for approximately one-third of total sales in 2010”, according to the company.
By 2020, the company expects this contribution from the emerging markets to increase to 45 percent of total sales.
In the company’s results for the third quarter ended September 2011, performance products generated total sales of US$5.3 bn (€4 bn) of which, the care chemicals division generated US$1.7 bn (€1.3bn). This was an increase of 85 percent from the same period in 2010.
BASF is planning investments of US$40 – 60 bn (€30 – 35 bn) between 2011 and 2020, with a third expected to be invested in to the emerging markets.
