International Finance Corporation (IFC), the private-sector lending arm of World Bank, is lending up to $40 million to public-listed specialty chemicals firm SRF Ltd's packaging unit, according to a disclosure.
SRF is looking to set up a green-field BOPET (biaxially-oriented polyethylene terephthalate) plant at Indore in Madhya Pradesh, with an investment of around $58 million. While IFC is considering financing up to $40 million, the balance will be funded by SRF’s internal accruals.
The proposed facility will have a capacity of 30,000 TPA and a metallisation capacity of 8,000 TPA. The project aims to create 200 jobs.
More than 60 per cent of the project output will be used in the food packaging and beverages industries.
Earlier in 2012, IFC had invested around $85 million in SRF's green-field projects in Thailand and South Africa.
“The proposed investment will strengthen the relationship as IFC and SRF continue to engage on opportunities within and outside India,” IFC said in the disclosure.
Established in 1970, SRF manufactures intermediates. Its business portfolio covers technical textiles, fluorochemicals, specialty chemicals, packaging films and engineering plastics.
It has operations in Madhya Pradesh, Rajasthan, Uttarakhand, Tamil Nadu and Gujarat.