IFC proposes to invest up to $60m in India’s Deepak Fertilisers

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International Finance Corporation (IFC), a part of the World Bank Group, has proposed to invest up to $60 million in Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) to help it ramp up production and distribution of specialty fertilizers in India.

IFC will finance the project through a mix of quasi-equity instruments, it said in a disclosure.

DFPCL is engaged in manufacturing and trading of iso-propyl alcohol (IPA), nitric acid, methanol, technical ammonium nitrate (TAN), compound fertilizers and other chemicals.

The company will use the capital to finance its IPA project, N2O abatement facilities, for maintenance purposes, and working capital requirements of Smartchem Technologies Limited’s fertilizer business. STL is a 100 per cent subsidiary of DFPCL.

The investment will help DFPCL increase its IPA production capacity in India by 100,000 MTPA, the disclosure said.

DFPCL also plans to expand its ammonia production capacity through Performance Chemiserve Private Limited, a subsidiary of STL. The company’s manufacturing sites are located in Taloja, Maharashtra and Panipat, Haryana.

The entire project will entail an investment of about $160 million.

Apart from funding, IFC will also assist the company with a greenhouse gas reduction plan, including the establishment of the N2O catalyst conversion devices and formulate and implement an environmental and social action plan.

S.C. Mehta and family with related entities own about 51.2 per cent in DFPCL, and the balance is held by financial institutional investors and general public.