IFC invests $27.5m in Indian food additives producer
World Bank investment arm International Finance Corporation (IFC) has invested $27.5 million in Lucid Colloids, one of the top four producers of food additive guar gum.
According to a release, the financing comprises compulsorily convertible debentures of $12.5 million and the balance as debt.
Guar gum is a thickening and stabilizing agent used in food products, and for industrial applications. Lucid Colloids is a family-owned company manufacturing guar gum and other hydrocolloids and their derivatives. The company has manufacturing plants at Jodhpur in Rajasthan and Aurangabad in Maharashtra.
The investment will help Lucid source guar from about 40,000 additional farmers a year in the priority state of Rajasthan. IFC's investment will be used to expand capacity by setting up a new guar gum plant in Gujarat, two guar splitting plants in Rajasthan, and a research and development facility aimed at improving crop yield and water efficiency.
"Agribusiness is a priority sector for IFC in India," said Vipul Prakash, director for manufacturing, agribusiness and services, Asia Pacific, IFC. "By expanding the market for high quality guar, this investment will increase incomes for a large number of guar farmers in India, many of whom are women, particularly in Rajasthan which is a priority state for IFC."
IFC invested over $4.5 billion across the global agribusiness supply chain in fiscal 2013.
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