Mumbai-based Godavari Biorefineries
Ltd, a manufacturer of biofuels, specialty chemicals and related products, has
raised $15 million from Mandala Capital, which invests in agri-focused
companies in India, according to a press release.
Godavari will use the funding for
establishing a new manufacturing plant for specialty chemicals. It will also
use the money to start a facility for research and development. This is the second investment by Mandala in India
this year.
Godavari Biorefineries, chairman,
Samir Somaiya said that we focus on developing processes to manufacture
specialty and high performance chemicals using biomass as raw materials.
Godavari Biorefineries, a part of
the Somaiya Group, is one of large producers of ethanol in India. Currently, it
has a capacity to manufacture over 70 million litres of ethanol. It also
manufactures chemicals such as acetaldehyde, ethyl acetate, crotonaldehyde, MPO
and paraldehyde.
The company's clients include
Hindustan Coca-Cola Beverages Ltd and BASF and it expects a turnover of over Rs
1,200 crore in the next financial year ending March 31, 2016.
Mandala Capital, CEO, said Godavari’s
success in supplying chemicals to global players demonstrates the viability of
the process chemistry developed by it.
Mandala Capital manages an
agri-business private equity fund doing deals in agri-technology, seed, sugar
and cold storage, with a focus on companies based in India or addressing the
needs of the Indian market.
The Mandala Agribusiness Fund is
backed by University of Texas Investment Management Company (UTIMCO) and TIAA-CREF.
Last month, it invested
around $18 million in Jain Irrigation Systems Ltd's (JISL) agri-NBFC subsidiary
Sustainable Agro-commercial Finance Ltd (SAFL). Last October, it invested Rs
150 crore in Gati Kausar India Ltd, the cold chain arm of Gati Ltd.
source : vccircle.com