IFC to commit $30m to Indian food-processing company

IFC continues to focus on the development of domestic pulse processing in India.

The International Financial Corporation is planning to commit $30 million to Mumbai-based ETC Agro Processing Limited in India to expand the company’s production capacity.

The total cost of the project is estimated to be $98 million, with IFC, which is an arm of The World Bank, bankrolling part of the project with its senior debt investment in Indian Rupee (INR) in the form of a non-convertible debenture, according to a disclosure.

The proceeds will be used to finance the set-up of a new pulses processing facility in Kolkata, West Bengal, for yellow peas, lentils, green gram and black gram. The facility will be one of the largest pulses processing plants in the world that carries a production capacity of 300,000 metrics tonnes per annum. Total output in India will be 475,000 MTPA, according to the statement.

“Pulses are a key source of protein and an integral part of the diet of the Indian population,” IFC said in a statement.

IFC has been an active debt investor in the Indian mid-market. Last week, it also planned to invest $47.5 million corporate loan to Granules India, a pharmaceutical company. It would be IFC’s forth investment in the company since 2007. IFC’s total investment in the company is estimated to be around $73.5 million, according to the statements.

ETC Agro is a subsidiary of ETC Group, a vertically integrated agricultural supply-chain manager involved in an array of activities. ETC Group has been IFC’s long-term partner and the group’s shareholders include Standard Chartered Private Equity and Pembani Remgro Infrastructure Fund.