FC may invest up to $30-mn in Camlin Fine Sciences facility in Dahej

International Finance Corporation (IFC) has proposed an investment of around $30-mn in Camlin Fine Sciences Ltd. The speciality chemical company would use the money to fund its proposed investment in Gujarat.

IFC seeks to partly finance the company’s capital expenditure plan through a mix of long-term foreign currency senior debt and a quasi-equity instrument. This kind of structure is not easily available from local banks at reasonable terms, especially without adequate fixed asset security cover, said the World Bank’s investment arm.

 The project is proposed to be located in the Dahej SEZ in Gujarat, where it would enhance the availability of diphenols and a range of derivatives, such as antioxidants, performance chemicals and aroma chemicals used in food products, supplements, animal feed, pharmaceuticals and agrochemicals. The demand for antioxidants is growing due to the centralised mass production of food, change in lifestyles and increasing consciousness regarding health among consumers.

The project would also help address the shortage of diphenols for sectors that heavily rely on its derivatives. The cost of production of diphenols at the Dahej facility is expected to be lower than that in the company’s Italy plant, from where technology would be transferred. IFC expects some of the cost savings to translate into lower prices for customers.

The project would help Camlin innovate new product formulations that improve the quality of speciality chemicals and make the manufacturing process more cost-effective and more customised to local needs.