Morgan Stanley inks first Private Equity deal in India

Morgan Stanley's Asia private equity group, Morgan Stanley Private Equity Asia, has invested Rs 182 crore (about $38.5 million) for a minority stake in Biotor Industries. The later is the largest integrated manufacturer of castor oil and castor derivatives in the world. This is Morgan Stanley Private Equity’s first investment in the country.

"Morgan Stanley Private Equity Asia raised $1.5 billion dedicated fund for Asia last year and we expect to deploy a significant amount of the fund in India over the next two years,” said Chin Chou, managing director and head, Morgan Stanley Private Equity Asia.

Rajesh Kapadia, managing director for Biotor Industries, said: “The investment will provide us access to Morgan Stanley’s global franchise and relationships, which will help us to increase international presence.”

 

There has been global efforts to replace oil-based chemicals with green, renewable, natural, biodegradable and sustainable chemicals has been driving strong demand for castor oil and its derivatives. It is one of the best raw materials for plastics and foams derived from natural sources.

Biotor, on the other hand, has a fully integrated business model – from contract farming of castor seeds to the manufacture of downstream derivatives. It has an extensive distribution network in the US and Europe. Biotor is in the process of executing multiple strategies that are expected to drive top-line growth and improve margins. This includes rapid growth of contract farming, developing hybrid seeds, biofuels and expansion of castor derivatives.