India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises Limited and Bain Capital Credit, has picked up a significant minority stake in Archean Chemical Industries Private Limited (ACIPL), the marine chemical business of city-based Archean Group.
In all, IndiaRF has invested $156 million in the company through a combination of debt and equity.
A spokesperson of Archean declined to divulge the components of the investment. To a question on board reconstitution, he merely said that the details were still being worked out. To an another query, he said that the firm had a debt of about ₹800 crore. A part of the fund infusion by IndiaRF would be used to settle this.
Easy repayment terms
IndiaRF has also offered easy repayment terms. Accordingly, cash flows in the initial years will be re-invested into growing the business. “Capital is to be returned once the turnaround is fully implemented. As part of this partnership, IndiaRF will be actively engaged with Archean’s management team in implementing the turnaround plan,” IndiaRF said in a statement.
Archean Chemical produces and exports industrial salt and bromine. In addition, the company manufactures sulphate of potash, a high-end fertiliser. It has a marine chemicals plant in the Greater Rann of Kutch in Gujarat. According to information on the website of ACIPL, the unit is the first-of-its-kind to indigenously-produce sulphate of potash and liquid bromine from sea brine. Its salt operations started in 2013, liquid bromine production in 2014 and sulphate of potash in 2015.
“We are pleased to partner with the Archean Group, which reiterates our robust outlook on the marine chemicals business. This, coupled with the company’s globally competitive position, will facilitate IndiaRF to work closely with the promoters and the management team to steer the company towards an accelerated expansion, growth and profitability path,” said Shantanu Nalavadi, managing director, IndiaRF, in a statement.
