Mandala leads $121.3m investment in India agribusiness player

According to a statement, Mandala - which focuses on Indian food industry investments - is expected to hold a stake of either 14.3% or 17.3% in the company's newly formed subsidiary Jain Farm Fresh Foods (JFFF) after purchasing INR4 billion of equity shares and compulsorily convertible debentures. The capital-raising program also includes the allotment of INR1.1 billion in JIS equity warrants to JAF Products Private and INR2.9 billion worth of compulsorily convertible debentures in JFFF to Mandala.

"The high intrinsic value accorded to our globally leading food business by this specialist agribusiness investor reflects the scale and vertical integration achieved by us over the years," said Anil Jain, JIS managing director. "This fundraise will allow us to further grow the business in existing and new categories of fresh and processed fruits, vegetables and allied products."

The investment will be used to support the organic and inorganic growth plans of JFFF as well as to reduce JIS' net debt by INR7.7 billion by the end of the month. As of the end of the 2015 financial year, the company had total debts of INR29.5 billion. JIS' net profit improved dramatically during the same period, rising from INR39 million to INR498.3 million. Revenue increased 2.3% to INR42.8 billion. 

Last year, Mandala invested INR1.1 billion in JIS subsidiary Sustainable Agro-commercial Finance. The deal gave the firm a 20% stake in the farm loan provider while JIS' interest was reduced to 49%.

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• Topics
• South Asia
• Industrials
• Expansion
• India
• Agriculture