International Finance Corp (IFC), the private sector arm of the World Bank group, is investing $20 million in Kanoria Chemicals and Industries for the expansion of its caustic soda unit in Uttar Pradesh.
'The expansion of the Renukoot plant's capacity from 90,000 to 130,000 tonnes per annum by March 2008 will be based on more efficient, environmentally friendly membrane cell technology, which consumes less energy,' an IFC statement said.
'By providing long-term funding to Kanoria, IFC is addressing a midsize player's critical need among 31 chlor-alkali producers in India. The loan will equip the company to grow dynamically and acquire economies of scale,' the statement added.
According to IFC, the Indian chemicals industry is valued at around $30 billion and projected to grow to about $60 billion by 2010. The industry accounts for 13 percent of India's exports.
'With 6,000 players in agrochemical, chlor-alkali, fertilisers, manmade fibres, paints, and petrochemicals, today, the highly-fragmented industry is attracting global players and creating new challenges.'
Source : IndiaPrwire