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IndiaRF to invest $156 million in Archean Group's marine chemicals business

Archean Chemical Industries Private Limited is one of the leading the largest producer and exporter of industrial salt and bromine in India.

T E Narasimhan  |  Chennai 

Petrochemicals plant
Petrochemicals plant

(IndiaRF), a company promoted by Piramal Enterprises Limited and Bain Capital Credit, on Monday announced it will invest $156 million in Chennai-based Archean Group’s marine chemicals business.

The investment proceeds will be used to refinance Archean’s debt, capital investment to optimise plant output across all product lines, and provide working capital for business in India, Japan, China, Middle East and Europe.

The partnership between IndiaRF and the is strategic and long term. IndiaRF has invested through debt and equity, and offered repayment terms such that initial years’ cash flows are re-invested in the business, and 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, said in the statement.

“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 of IndiaRF.

hopes to best leverage the combined strengths of the Piramal Group and Bain Capital Credit, as it strive towards achieving our ambitious growth targets.

Archean Chemical Industries Private Limited is one of the leading the largest producer and exporter of industrial salt and bromine in India. In addition, the company manufactures potash sulphate, a high-end fertiliser.

First Published: Mon, November 26 2018. 17:47 IST
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