Chemicals giant BASF plans to increase focus on the Indian market and cash in on the demand for innovative solutions as the global economic crisis dampens demand for its products worldwide.

BASF is currently reviewing future strategic options, including the formation of a joint venture or the complete sale of its leather chemicals businesses.

"We see the crisis an opportunity, which will provide a competitive atmosphere engineering plastics and through our research and development we aim to provide innovative solutions which will be cost efficient for the manufacturing sector," group vice president Hermann Althoff said.

While the company's market share is not that big, in terms of size, it is one of the fastest in terms of growth, Althoff said on the sidelines of the Plastindia 2009 summit.

BASF, which is reviewing strategic options, will sharpen its focus on performance products segment and customer industries. As part of the strategy, the company set up a new operating division, paper chemicals, and started preparations to integrate Ciba businesses.

The company is developing its performance products segment further. The initial organisational changes will be effective as of 1 April 2009.

The company is building a new engineering plastics compounding plant at its existing site in Thane. The company has a plant in Thane with a yearly capacity of 9,000 tonnes.

BASF India, based in Mumbai, has presence in automotive, electronic and electrical and furniture segment.

Besides, Thane, BASF India has manufacturing facilities in Mangalore and Dadra.

BASF India currently manufactures and markets expandable polystyrene, tanning agents, leather chemicals and auxiliaries, including specialised metal complex dyes, leather dyes, textile chemicals, dispersions and speciality chemicals, acrylic polymers in primary forms and crop protection chemicals.

The company is also involved in the trading of chemicals, including dyestuffs and related textile auxiliaries, and renders technical services to various industries.