First Carlyle Ventures III, an affiliate of the alternative asset management giant The Carlyle Group, has invested $25 million (Rs 110 crore) in Visen Industries Ltd, a manufacturer of water-based polymer emulsions in India. Alpen Capital acted as the sole financial advisor to the company for the transaction.
The investment will come from FCV III, a part of the Carlyle Asia Growth Partners IV (CAGP IV), which happens to be a $1.04 billion sector-agnostic fund. CAGP IV invests in high-growth companies in key Asian markets such as India, China and Korea, while FCV III focuses on investments into India.
VCCircle first broke the news on June 21. Our earlier report, based on the input from a person with direct knowledge of the transaction, said that the investment would be through fully convertible preference shares in lieu of a minority stake in the mid-size company, which was started by first-generation entrepreneur Vijay Nair two decades ago.
Visen manufactures the entire range of water-based polymer emulsions including acrylates, versatates and polyvinyl acetates, catering to customers across industries encompassing paints, textiles, adhesives and construction. The company enjoys solid business ties with key industry players like Asian Paints, Berger Paints, Kansai Nerolac and Jotun Paints.
The company also meets the export demands of customers from the Middle East and Africa. As part of its growth strategy, the firm is strengthening and growing its business in India while expanding its presence in international markets.
“Visen’s business is a play on the strong consumption-led demand growth across paints, textiles, adhesives and construction in India and other emerging markets. It has a clear track record of growth and a well-defined, strategic roadmap for future expansion,” said Wayne Tsou, managing director and head of Carlyle Asia Growth Capital.
According to Vijay Nair, managing director of Visen, the company hopes to leverage Carlyle’s relationships as it seeks to build Visen into a global player in the polymer emulsion industry.
Since its closing at $1.04 billion in June, 2009, Carlyle Asia Growth Capital Partners IV (CAGP IV) has invested in eight more companies. CAGP IV is the fourth fund managed by the Carlyle Asia Growth Capital group, a sector-agnostic growth capital fund which invests in high-growth companies with strong local management and leading market positions across China, India, Korea and other key Asian markets.
In 2006, Carlyle, through First Carlyle Ventures III, had invested $20 million (Rs 90 crore) in Claris Lifesciences Ltd, via preferential shares. It has also been upping its stake in Allsec Technologies, a business process outsourcing company.
The Carlyle Group has closed four growth capital investments, totalling over $140 million in Asia. These include an undisclosed sum in Andhra Pradesh-based dairy firm Tirumala Milk Products Pvt Ltd, two Korean firms (EO Technics Co and HKucar Global) and one Chinese company (ATMU Inc.).