The private equity arm of Standard Chartered Bank has invested Rs 85 crore in Privi Organics , a Mumbai-based aroma chemical manufacturer and exporter . Most of the products manufactured by Privi Organics are used by fragrance and flavours companies. The company also exports products to over 25 countries.
Privi is planning an expansion of its manufacturing facilities at Mahad in Maharashtra and the fund infusion will partly be used to finance this expansion. The specialty and fine chemicals market is pegged at $860 million and most of the products in this segment are used as additives in the textile, leather, paper, cosmetics and detergent industries. The global chemical industry underwent a major downturn during the recession .
According to a report by SRI Consulting, the specialty chemical segment was among the hardest hit, leading to the shut down of a number of plants globally. ?The aroma chemicals space presents significant opportunities for Indian companies, as India emerges as a key manufacturing center for aromatic and speciality chemicals,? said Rahul Raisurana, Managing Director, Standard Chartered Private Equity .
Source: Economic Times