New Delhi, India, June 28, 2006—The
International Finance Corporation, the private sector arm of the World
Bank Group, has provided a $17.5 million Rupee-denominated loan to strengthen
and expand the operations of Atul Limited, one of the leading chemical
manufacturers in the Indian state of Gujarat. IFC’s financing will enable
the company to capitalize on its technical expertise and move from commodity
products such as dyes to high-value niche segments and to strengthen its
environmental, health, and safety practices.
Iyad Malas, IFC’s Director for South Asia, said, “IFC is pleased to support
Atul’s expansion. Our participation is expected to help strengthen the
company’s cash flows with long-tenor funding and enable it to become more
competitive. IFC’s strategy in India is to invest in medium-size manufacturing
companies that are modernizing to become internationally competitive.”
He elaborated, “IFC finances private sector investments in transition
and developing economies, mobilizes capital in international financial
markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.”
Sunil Lalbhai, Managing Director of Atul, said, “We have adopted a strategy
to transform into a global market leader for select products while retaining
a smaller portfolio of commodity products where we have a sustainable low-cost
advantage. The expansion program constitutes a significant step in this
direction. We are delighted to be associated with IFC as partners and look
forward to a fruitful relationship.”
Rashad Kaldany, IFC’s Director for Oil, Gas, Mining, and Chemicals added,
“India is one of the most important countries for IFC’s efforts to support
the growth of the chemical industry in an environmentally friendly and
sustainable manner. We are delighted to expand our chemicals sector
portfolio in the country with this transaction.”
Atul was established in 1947 as part of the Lalbhai Group of companies,
one of India’s large business houses. Its main facilities are located
in the towns of Atul and Ankleshwar in the state of Gujarat. The company
manufactures a wide range of chemicals including agrochemicals, bulk chemicals
and intermediates, colors, pharmaceuticals and intermediates, and polymers.
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications.
In India, IFC's current held portfolio is $1.2 billion, making India IFC's
second-largest country of operations. IFC is focusing on direct investment
and technical advisory support to promote private sector–led growth and
competitiveness in India. In FY2005 alone, IFC committed $413 million
in new investments in the country. For more information, visit www.ifc.org.