New Delhi, India, February 23, 2005
—The International Finance Corporation—the private sector lending arm of the World Bank Group— has signed a $30 million loan agreement with DCM Shriram Consolidated Limited (DSCL), a leading company in the Indian chemicals and agri-products sectors.
IFC’s financing, part of the company’s $64 million investment plan, will help DSCL convert its caustic soda/chlorine production plant at Kota to environment-friendly membrane cell technology. The investment plan also includes the expansion of DSCL’s PVC, carbide and power generation capacities at Kota.
DSCL was created by demerging DCM Limited in 1990 and is managed by Ajay and Vikram Shriram. The core businesses of DSCL include chemicals (PVC, caustic soda and chlorine) and agri-products (urea, sugar, hybrid seeds, and pesticides). The company also operates retail stores that act as one-stop shops for farm inputs, as well as not-for-profit advisory centers to help the local farming community. Other businesses of the company include cement and textiles. DSCL is based in north India and has a consolidated turnover of about $350 million.
Mr. Ajay Shriram said, “We have greatly benefited from IFC’s involvement by drawing upon the IFC team’s global expertise in the chemicals industry to strengthen our own internal processes. Given DSCL’s growth plans and focus on developing an environmentally responsible business, I hope this investment will forge a long-term partnership with IFC.”
Mr. Rashad-Rudolf Kaldany, IFC director for oil, gas, mining and chemicals investments, said
“DSCL's integrated business model enables the company’s operations to be highly competitive across various businesses as well as in benchmarking and adopting international best practices.”
Mr. Iyad Malas, IFC director for South Asia, said, “The project is an example of IFC’s commitment toward supporting the efforts of medium-size domestically owned companies in the region to develop sustainable businesses. IFC will continue to work with DSCL to increase the reach of its social sustainability initiatives.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing 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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5. billion held for participants in loan syndications.
