Stanchart invests INR500m in Indian agrochemical business

The investment in PI Industries will be used to scale up the company’s current facilities and build a new manufacturing plant in Gujarat.

Standard Chartered Private Equity has invested INR500 million ($11 million; €7 million) in PI Industries, an Indian agrochemical company.

Standard Chartered Private Equity did not respond to requests for comment at press time.

PI Industries is primarily involved in agrochemicals, seeds, speciality fertilisers and fine chemicals. The company has plants in Gujarat and Jammu and a research and development facility in Rajasthan. This year, it booked a net profit of INR200 million for the half year ended September 30.

The investment, in the form of convertible preference shares and debentures, will be used to partly finance the expansion of the company’s current facilities and to set up a new manufacturing facility in Gujarat. It also gives Rahul Raisurana, a managing director at Standard Chartered Private Equity, a board seat.

Last month, one of the firm’s Indian portfolio companies, Man Infraconstruction, filed a draft IPO prospectus with the Securities and Exchange Board of India. The company aims to raise INR1.5 billion through a fresh issue of shares, which would dilute the stake held by the firm.

Standard Chartered Private Equity normally invests between $10 million and $50 million per deal. The firm invests across a range of industries, focusing on mid- to late-stage companies and management buyouts. It targets businesses based and operating in Greater China, Korea, Southeast Asia and India.