IndiaRF Announces US$156Million Investment in Archean Group’s Marine Chemicals Business
Posted on: 26/Nov/2018 5:32:09 PM
India Resurgence Fund (“IndiaRF”), promoted by PiramalEnterprises Limited and Bain Capital Credit,announced US$156 million investment inChennai based Archean Group’s marine chemicals business. The investment proceeds will be used to refinance itsexisting debt, towards capital investment to optimize the plant’s output across all product lines, and provide working capital to enable the Business to grow its market share in India and across key export markets such as Japan, China, Middle Eastand Europe.
The partnership between IndiaRF and the Archean Group is strategic and long term.Towards this,IndiaRF has invested through debt and equity, and offered repayment terms such that the initial years’cash flows are re-invested into growing the business, and capital is to be returned once the turnaround is fully implemented. As part of this partnership, IndiaRFwill be actively engagedwith Archean’s ManagementTeam in implementing the turnaround plan.
Commenting on the investment,Mr.ShantanuNalavadi, Managing Director, IndiaRF said, “We are pleased to partner with the Archean Group, which reiterates our robust outlook on the marine chemicals business. This,coupled with the Company’sglobally competitive position, will facilitate IndiaRFto work closely with the promoters and the management team, to steer the company towards an accelerated expansion, growth and profitability path.”
The Management Team and Promoters of the Archean Group said,“We are delighted to have a strong partner in IndiaRF, and hope to best leverage the combined strengths of the Piramal Group and Bain Capital Credit, as we strive towards achieving our ambitious growth targets.”
ArcheanChemical Industries Private Limited is the largest producer and exporter of industrial salt and Bromine in India. In addition, the company manufactures sulphate of potash, a high end fertiliser.
