Safex Chemicals India Ltd, an agrochemical company, on Wednesday said homegrown private equity firm ChrysCapital is investing $50 million in the company for a significant minority stake. The transaction involves a combination of secondary sale by an existing PE investor, BanyanTree Growth Capital, along with a primary raise by the company for growth initiatives, it said in a statement.
Founded in 1991, Safex manufactures and sells branded agrochemicals that help protect crops and boost their productivity.
“Agrochemicals is a large and attractive market and Safex has demonstrated a robust historical track record by significantly outperforming the industry growth while maintaining attractive return metrics. Going forward, Safex has multiple growth levers in place, from penetrating deeper in the Indian branded business to entering the technicals segment, which will further propel the company to become a marquee player in the agrochemical industry,” said Raghav Ramdev, Managing Director, ChrysCapital said.
Safex claims to have grown it’s revenue at a CAGR of 26% over the last four years. The company has a pan-India presence with a network spanning 10,000+ distributors across 17 states.
“ChrysCapital has deep capabilities and a proven track record of collaborating with entrepreneurs and business groups to build sizeable and industry leading players. We intend to leverage our strong management capabilities and ChrysCapital’s extensive network to drive Safex’s growth by bringing innovative products and solutions to the Indian agrochemical industry through M&A and in-licensing opportunities,” said SK Chaudhary, Founder Director of Safex.
The article was first published on livemint.com