Safex Chemicals raises Rs 60 crore from BanyanTree

The investment will be used for capacity expansion, marketing and business developments

Safex Chemicals, a Delhi-based crop-protection firm, has raised Rs 60 crore ($9 million) from private equity fund BanyanTree Growth Capital II LLC, which is focused on providing growth capital to SMEs in the country.

The investment will be utilised for meeting the capital expenditure requirements for expansion of new capacities, marketing and business development and long term working capital requirements of the Company, said a press release.

Caparo Financial Solutions, the financial services arm of the UK-based Caparo Group, advised Safex Chemicals on the transaction.

Safex Chemicals, promoted by S K Chaudhary, Neeraj Jindal, Rajesh Jindal and Piyush Jindal, is engaged in manufacturing and distribution of agrochemical formulations, with its focus in Northern India. The company has built a network of more than 6,000 dealers across India, and has a leadership position in Punjab and Northern UP. It has recorded a compounded annual growth rate of more than 40 per cent over the last five years, said a company announcement.

BanyanTree has invested in 19 companies from two of its funds, including in companies like Rotomag Motors and Controls, an electric motor manufacturer; GPT Healthcare, a chain of hospitals; packaged food firm Nilon's; coaching services provider MT Educare; renewable power firm Atria and others.