Agri Business

IFC invests Rs 165 cr in Lucid Colloids

Rajalakshmi S | | Updated on: Sep 03, 2014

To help Lucid source guar from 40,000 additional farmers a year

IFC, a member of the World Bank Group, has invested $27.5 million (about Rs 165 crore) to finance the expansion and backward integration plans of Lucid Colloids and support small farmers in India.

“The financing comprises compulsorily convertible debentures of $12.5 million and the balance as debt. With this investment, Lucid will be able to source guar from about 40,000 additional farmers a year in the priority state of Rajasthan,” IFC said in a statement.

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.

IFC’s investment will support Lucid in expanding its capacity by setting up a new guar gum plant in Gujarat, two guar splitting plants in Rajasthan along with a research and development facility aimed at improving crop yield and efficiency of water and other resources, the statement said.

“As we enter the next phase of our growth, IFC’s global expertise in the agri-business sector will help us become globally competitive, strengthen environmental and social standards, and improve corporate governance practices,” said Uday Merchant, Chairman & Managing Director, Lucid Colloids.

Guar gum is a thickening and stabilising agent used in food products, and for industrial applications.

In fiscal 2013, IFC had invested over $4.5 billion (about Rs 2,720 crore) across the global agri-business supply chain — from farm to retail — to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers.

“Agri-business is a priority sector for IFC in India,” said Vipul Prakash, Director for Manufacturing, Agri-business 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.”

Published on September 03, 2014

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