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Nexus-backed organic farming co Suminter India to raise Rs 150 cr from IFC

IFC's investment to help co expand across Madhya Pradesh, Rajasthan, Odisha, Maharashtra, Karnataka

T E Narasimhan  |  Chennai 

IFC: The investor common between six out of 10 new small finance banks

Nexus India-backed Organics Pvt Ltd will receive an investment of about Rs 150 crore from International Finance Corporation (IFC) and other investors. The company is engaged in sourcing, processing and exporting of certified organic products from India.

The total project cost is estimated to be approximately Rs 150 crore, out of which up to Rs 130 crore would be contributed by way of equity in the company by IFC and other investors (of which up to Rs 130 cr is being contributed by IFC). 

The balance of Rs 20 crore is proposed to be funded through a mix of existing cash, internal accruals and additional equity and/or incremental working capital debt facilities from other financial institutions.

IFC's investment will help the company expand its procurement and processing operations across the states of Madhya Pradesh, Rajasthan, Odisha, and Karnataka.

The proposed IFC investment would be used for funding additional working capital needs for growth for the next few years and capital expenditure for the expansion of its existing processing facilities in Madhya Pradesh.

The project involves funding the company's working capital requirements as it prepares to source from additional around 14,000 farmers whose farms are already undergoing the process of organic certification across the states of Madhya Pradesh, Rajasthan, Odisha, and Karnataka.

Sameer Mehra along with his family, holds approximately 45 per cent of equity shares in Suminter while the balance 55 per cent is held by two leading investors — Venture Investments (Nexus) and (Capricorn) through their investment vehicles. 

First Published: Sat, September 02 2017. 23:47 IST
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