IndiaRF plans to invest ₹1,000 crore in Anthea Aromatics for a controlling stake. The investment includes primary funding and secondary transactions. This marks IndiaRF’s first investment from its second fund and highlights Anthea’s strong export-driven business model in the specialty chemicals sector, which presents significant growth opportunities.
The India Resurgence Fund (IndiaRF), a collaboration between the Piramal Group and Bain Capital, is set to invest up to ₹1,000 crore in Anthea Aromatics Pvt. Ltd, acquiring a controlling interest in the specialty chemicals manufacturer. The investment breakdown includes ₹270 crore earmarked for primary funding, with the rest sourced from secondary transactions involving ICICI Ventures and other non-promoter shareholders, as reported by Mint.
Shantanu Nalavadi, Managing Director of IndiaRF, acknowledged Anthea’s strategic position in the market due to its proprietary development capabilities and robust manufacturing processes, expressing confidence in its growth prospects. He emphasized the necessity for capital infusion and enhanced leadership to facilitate Anthea’s next growth phase, focusing on expanding capacity, research and development, and enhancing product diversity.
The firm has a pronounced interest in the specialty chemicals sector, recognizing significant export opportunities for Anthea, which derives over 80% of its revenues from international markets. With a global capacity share ranging from 12% to 15%, Anthea provides a wide range of aroma specialty chemicals across various industries, including flavors, fragrances, pharmaceuticals, and agrochemicals.
This investment involves IndiaRF’s first allocation from its second fund, which is currently being raised and follows its inaugural fund’s success with approximately $850 million in managed assets and several prior exits. Anthea Aromatics, founded by Vincent Paul in 1992, operates five manufacturing units across the Indian states of Maharashtra and Karnataka. The global market for aroma specialty chemicals is anticipated to exceed $5.5 billion, with significant growth projected annually.
IndiaRF is a private equity firm focusing primarily on distressed assets and growth opportunities within India. The funding for Anthea Aromatics highlights the increasing attention on the specialty chemicals sector within India’s economy. The market for aroma specialty chemicals is experiencing significant growth, driven by global demand in various industries. With a notable emphasis on enhancing manufacturing and research capabilities, the partnership aims to capitalize on the emerging export opportunities available within this sector.
In summary, IndiaRF’s investment in Anthea Aromatics signifies both a strategic entry into the specialty chemicals sector and a commitment to fostering growth through enhanced capabilities and market expansion. This investment aligns with the firm’s objective of targeting India-centric investment themes, especially as the global market for aroma chemicals continues to thrive. The collaborative efforts aim to scale Anthea’s operations and leverage its existing strengths for future growth.
Original Source: www.livemint.com
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