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Bain-Piramal fund invests $41 mn in Primacy Industries
Photo Credit: 123RF.com

India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises Limited and Bain Capital Credit, on Wednesday said it has invested Rs 310 crore ($41 million) in contract manufacturer Primacy Industries Ltd.

Primacy Industries will use the funds to strengthen its balance sheet and to boost its growth plans, a statement said.

Primacy, which was established in 2005, is engaged in the contracting business for fragrance-based consumer products in air care, personal care and health and hygiene categories. It has presence in India, the US, Europe, the Middle East and Australia. The company's customers are mainly retailers and consumer packaged goods (CPG) companies in the US, Europe and India.

Shantanu Nalavadi, managing director, IndiaRF, noted that it has invested in Primacy to tap into significant growth and mergers and acquisition (M&A) opportunities in the fragrance-based consumer product manufacturing space.

"India is amongst the lowest cost manufacturing destinations globally and we see huge potential for a high quality, global platform like Primacy to benefit from greater manufacturing outsourcing opportunities in fragrance & allied consumer product categories," added Nalavadi.

IndiaRF, the $1 billion corpus fund, aims to invest capital in debt and equity by making distress-to-control investments and special situations across sectors, other than real estate, in the Indian market.

In November 2018, India Resurgence Fund had invested about $156 million, via debt and equity instruments, in Archean Chemical. https://www.vccircle.com/bain-piramal-fund-invests-156-mn-in-archean-chemical Six months later, it decided to invest up to $144 million (Rs 992 crore) in New Delhi-based Panacea Biotec Ltd.

Before that, the fund made a joint bid with Dalmia Bharat Ltd for Binani Cement Ltd, which was finally acquired by UltraTech Cement Ltd.

IndiaRF had also shown interest in acquiring debt-ridden Religare Finvest, which has not made much headway over the past year.

Last month, IndiaRF along with its affiliates announced investment of up to Rs 615 crore ($83 million) in formerly New Vernon Capital-backed automotive firm Setco Group.

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