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
.
