Social business to promote

• Miscellaneous
• 05th March 2009
• YC

Hambrecht, Chairman of the Board of Executive Directors of BASF SE, and Dr. Muhammad Yunus, Nobel Peace Prize Laureate and Managing Director of Grameen Bank, signed an agreement in Ludwigshafen to establish a joint venture SOCIAL BUSINESS COMPANY called BASF Grameen Ltd - under BASF SE on 5 March 2009 which will produce treated mosquito nets that offer protection against insect borne diseases and dietary supplement sachets containing vitamins and micronutrients.”

 

 

 

 

 

 

Hambrecht, Chairman of the Board of Executive Directors of BASF SE, and Dr. Muhammad Yunus, Nobel Peace Prize Laureate and Managing Director of Grameen Bank, signed an agreement in Ludwigshafen to establish a joint venture SOCIAL BUSINESS COMPANY called BASF Grameen Ltd - under BASF SE on 5 March 2009 which will produce treated mosquito nets that offer protection against insect borne diseases and dietary supplement sachets containing vitamins and micronutrients.” 

Social business to promote health for people in Bangladesh

Ø             Joint venture BASF Grameen Ltd. established

Ø             Better nutrition and protection against insect-borne disease

Ø             Nobel Peace Prize Laureate Muhammad Yunus: “BASF Grameen Ltd. combines business sense with social needs”
 
Ludwigshafen, Germany – March 5, 2009 – BASF SE and Grameen Healthcare Trust have announced the establishment of a joint social business venture. Dr. Jürgen Hambrecht, Chairman of the Board of Executive Directors of BASF SE, and Dr. Muhammad Yunus, Nobel Peace Prize Laureate and Managing Director of Grameen Bank, signed an agreement in Ludwigshafen to establish a joint venture called BASF Grameen Ltd. The purpose of the company is to improve the health and business opportunities of the poor of Bangladesh. BASF Grameen Ltd. will start by utilizing two products from BASF’s portfolio: dietary supplement sachets containing vitamins and micronutrients, and impregnated mosquito nets that offer protection against insect-borne disease.

Social commitment with an entrepreneurial twist

“Our social business joint venture is intended to empower people to take part successfully in business life,” said Hambrecht. “The more people who do so – be they business partners, customers or employees – the better the economic and social development of a country and its population. Investing in people’s entrepreneurial skills is therefore part of corporate responsibility.” Social business is a new business model for BASF. The idea is for a business venture to serve a social purpose, cover its own costs and recoup the partners’ initial investment. Any additional profits are reinvested fully in the company. “BASF Grameen Ltd. is not a charity. It combines business sense with social needs,” stressed Yunus. According to the WHO World Malaria Report 2008, Bangladesh had an estimated 2.9 million cases of malaria in 2006 and 72 percent of the population is at risk of the disease. Bangladesh also has some of the highest child and maternal malnutrition rates according to the UNICEF State of the World’s Children Report 2008. Approximately 8 million children under the age of 5 years are malnourished. “In the long term, we can better help these people through a business model that offers them beneficial products and services at affordable prices rather than through charitable donations,” said Yunus.
 
Microcredits to combat malaria and malnutrition

Given the substantial need for dietary supplements and mosquito nets, BASF and Grameen have decided to locate their joint venture with these two products in Bangladesh. The joint venture will initially operate from the BASF’s site in Dhaka, the country’s capital. Alongside an initial investment of €200,000, BASF will contribute the funds for one million sachets of vitamins and micronutrients and 100,000 mosquito nets to the joint venture. Grameen’s contribution includes its knowledge of the market, distribution structures and networks in Bangladesh.
 
In the initial stages, the dietary supplement business will focus on large consumers such as schools, and established distribution channels such as pharmacies. This will familiarize people with the benefit of the sachets as part of everyday nutrition and for healthy nutrition. In the medium term, the products will also be sold directly to end users via established Grameen networks. In towns, the impregnated mosquito nets will be sold in food stores, clothing stores and pharmacies. In rural areas, agricultural wholesalers will sell the malaria protection nets in association with the Grameen network and will also instruct purchasers in their use. Grameen Bank plans to provide microcredits to support people in setting up their own distribution outlets and in funding the purchase of mosquito nets.
 
“Social business is an excellent way of creating value from values, and BASF is seizing that opportunity,” said Hambrecht. “Our market-oriented joint venture will provide long-term help in addressing social challenges in Bangladesh. In addition, it will allow BASF to explore new markets and customer groups.” BASF is the first DAX30 company and the first chemical company in the world to set up a social business with Grameen.
 
Note to editors:

You can download a photo from the BASF homepage at www.basf.com/pressphoto-database, key word: “BASF Group,” search term: “BASF Grameen Ltd.”

About Grameen Healthcare Trust

Grameen Healthcare Trust (GH) aims to extend the success of the microfinance model of Grameen Bank to health care by designing and developing a bottom-up health care infrastructure built from sustainable best practices in a broad range of health care services around the world, and improving upon them to deliver the highest quality health care in an efficient and sustainable manner for a broad market, including the poorest of the poor. GH will enable the poor to be self sufficient in addressing their health care needs such that they can accept. GH has a particular focus on maternal health and childcare. In the future, GH aims to provide services covering prenatal care, maternal health and pediatrics. The program will also deal with anemia and malnutrition in children. GH will set up a medical college, and a series of hospitals, nursing institutes, rural diagnostic centers and health management centers, as part of its broader program.
 
About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals as well as oil and gas. As a reliable partner BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has approximately 97,000 employees and posted sales of more than €62 billion in 2008. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

Contact:

BASF SE

Ingrid Nienaber
Phone: +49 621 60-99123
Fax:      +49 621 60-92693
ingrid.nienaber@basf.com This email address is being protected from spam bots, you need Javascript enabled to view it

Grameen

Grameen Healthcare Trust
Lamiya Morshed
Phone: +880 (2) 9005257-69 Ext. 1336
Fax:      +880 (2) 8013559
lamiya@grameen.com This email address is being protected from spam bots, you need Javascript enabled to view it

Grameen Creative Lab

Verena Marquardt/Saskia Bruysten
Phone:  +49 611 98682 -47 or -701
Fax:      +49 611 98682700
verena.marquardt@circ.de This email address is being protected from spam bots, you need Javascript enabled to view it
saskia.bruysten@circ.de