International Finance Corporation will provide $60 million (Rs 408 crore) in debt funding to DCM Shriram Ltd, the World Bank’s private-sector lending arm said in a disclosure.
The funding will support the Indian company’s capital expenditure plans of $122 million (Rs 830 crore). The remaining will be funded through loans from other banks or financial institutions and internal accruals.
The company plans to expand its cogeneration power plant at Ajbapur sugar factory in Uttar Pradesh and its chlor-alkali facility at Bharuch, Gujarat. It also plans to spend on routine annual maintenance across four sugar plants in Uttar Pradesh, its chemical complex in Kota (Rajasthan) and its Bharuch plant.
Besides, the company is planning to take up modernisation of technology of its chlor-alkali facilities in Bharuch and Kota, and expansion of captive power plant to support expansion of the chlor-alkali capacity, the IFC disclosure said.
DCM Shriram is owned by brothers Ajay S Shriram, Vikram S Shriram and Ajit S Shriram, who have a 63.9 per cent stake in the company.
It has two main business lines – agribusiness, which includes fertiliser, seeds, sugar and trading of agricultural inputs, and chloro vinyl, which includes caustic soda, chlorine, carbide and polyvinyl chloride.
It also has other smaller businesses such as Fenesta Building Solutions, which makes value-added PVC products, and cement as well as a joint venture with Axiall Inc for PVC compounding.
According to the disclosure, the company had revenue of $922 million for 2014-15 and had a market capitalisation of about $296 million as of March 11, 2016.