Hyderabad | 5 May 2026: In a masterstroke of global operational restructuring, BASF, the German chemical behemoth, is actively consolidating its digital and business operations into India. The company is set to launch twin capability nodes – a Global Service Hub and a Global Digital Hub in Hyderabad by mid-2026. Besides an offshore expansion strategy; this also heralds the establishment of a new central nervous system for BASF’s global enterprise. Hyderabad was selected following a competitive evaluation of global locations, driven by the city’s talent base, infrastructure, and mature IT/life sciences ecosystem.

BASF Group

BASF is the world’s largest chemical producer, driven by the purpose of creating chemistry for a sustainable future. It does not just manufacture chemicals; it engineers the foundational materials for nearly every industry on earth- from agriculture to automotive.

A highly diversified portfolio encompassing Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. Operating in over 200 countries, the company reported preliminary 2025 revenues of approximately €59.7 billion, supported by a global workforce of roughly 112,000 employees.

The company is aggressively pursuing “Digital-First Chemistry,” utilizing AI to model molecular structures, optimize complex supply chain logistics, and drive enterprise-wide process harmonization through its dedicated Global Digital Services division.

BASF maintains a formidable global service delivery network with existing hubs in Berlin (Germany), Kuala Lumpur (Malaysia), and Montevideo (Uruguay). These new facilities will complement BASF’s existing global hubs in Berlin (Germany), Kuala Lumpur (Malaysia), and Montevideo (Uruguay). BASF’s roots in India run exceptionally deep, spanning over 130 years. Prior to this announcement, BASF India already operated 8 production sites, 42 offices, the Innovation Campus in Mumbai, and the Coatings Technical Centre in Mangalore, employing over 2,400 personnel.

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With the opening of our Global Service Hub in Hyderabad, we are creating a strong foundation for the future of Global Business Services. Hyderabad offers the right ecosystem and talent base to support scalable, high-quality services for BASF’s businesses worldwide

– Tobias Dratt, President of Global Business Services

Expected Outcome and Scope: The Twin-Engine Model

BASF is deploying a highly sophisticated “Twin-Engine” operating model, establishing two distinct legal entities that will share a roof and a culture, but maintain razor-sharp functional focus:

  • BASF Global Business Services Private Limited: The operational engine. It will centralize and standardize high-value corporate functions-Global Finance, HR, Supply Chain logistics, Intellectual Property management, and EHSQ (Environment, Health, Safety, and Quality).
  • BASF Digital Solutions Private Limited: The transformation engine. Tasked with driving enterprise-wide IT modernization, cybersecurity, and the deployment of predictive AI across global business units.

The Goal: By co-locating the business process owners with the software engineers, BASF expects to drastically accelerate its automation lifecycle, ultimately generating over 3,000 high-value jobs.

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Today,  Hyderabad stands among the fastest-growing GCC hubs in the country, surpassing most major cities and adding over 75 GCCs in the past year alone. We are now setting our sights even higher, with a target of over 100 new GCCs and more than 1 lakh jobs this year.

– Shri D. Sridhar Babu, Minister for IT and Industries, Telangana

SSF Insight Box: The Bio-Chemical & Tech Convergence

  1. Bayer’s Global Business Services Hub: Much like BASF, life sciences and agriculture giant Bayer operates a massive GCC in Hyderabad. They utilize the local talent pool not just for transactional HR and Finance, but to manage global crop-science data and drive enterprise-wide sustainability analytics.
  2. Corteva Agriscience’s Global Hub: Focusing on agricultural chemicals and seeds, Corteva leverages its Hyderabad center to integrate agronomic data with advanced software development, utilizing local engineers to build digital platforms that help farmers worldwide optimize chemical usage and increase crop yields.
  3. Novartis Global Service Center: Operating one of its largest capability centers globally in Hyderabad, Novartis utilizes the ecosystem to run sophisticated bio-statistical analyses, regulatory compliance reporting, and global supply chain logistics, proving that the local workforce is highly capable of handling the strict compliance requirements of the chemical and pharmaceutical sectors.

Industry Standpoint

BASF’s dual-hub strategy is the epitome of the “Integrated Global Business Services (IGBS)” model. Historically, organizations kept IT and Business Services in separate silos, often in different countries, leading to friction. The key strategic focus for the organization:

  • Strengthening India Footprint: The move is expected to significantly increase BASF’s employee count in India, reinforcing the country as a key strategic location.
  • Beyond Back-Office: According to Tobias Dratt, President of Global Business Services at BASF, these are not mere “back-office” setups but strategic hubs designed for complex enterprise operations.
  • Government Support: The Letter of Intent (LoI) was presented to Telangana’s Minister for IT and Industries, Duddilla Sridhar Babu, who noted that Hyderabad added over 75 GCCs in the past year, targeting 100+ new centers in 2026.

The establishment of these hubs highlights the growing trend of multinational companies moving critical business operations and digital, high-value functions to Hyderabad. By uniting Digital Solutions and Business Services in Hyderabad, BASF is creating a closed-loop system: the business teams identify process bottlenecks, and the digital teams sitting across the hall build the AI/RPA solutions to fix them. This is the gold standard for creating a frictionless, self-optimizing corporate capability centre.

Curated by SSF Global

Tracking the shifts shaping GCCs, enterprise ecosystems, and the future of global business.

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