Mumbai-based Godavari Biorefineries Ltd, a manufacturer of biofuels, specialty chemicals and related products, has raised $15 million from Mandala Capital, which invests in agri-focused companies in India, according to a press release.
Godavari will use the funding for establishing a new manufacturing plant for specialty chemicals. It will also use the money to start a facility for research and development.
"We focus on developing processes to manufacture specialty and high performance chemicals using biomass as raw materials," said Samir Somaiya, chairman, Godavari Biorefineries.
Godavari Biorefineries, a part of the Somaiya Group, is one of large producers of ethanol in India. Currently, it has a capacity to manufacture over 70 million litres of ethanol. It also manufactures chemicals such as acetaldehyde, ethyl acetate, crotonaldehyde, MPO and paraldehyde.
The company's clients include Hindustan Coca-Cola Beverages Ltd and BASF and it expects a turnover of over Rs 1,200 crore in the next financial year ending March 31, 2016.
“Godavari’s success in supplying chemicals to global players demonstrates the viability of the process chemistry developed by it," said Uday Garg, CEO of Mandala Capital.
Mandala Capital manages an agri-business private equity fund doing deals in agri-technology, seed, sugar and cold storage, with a focus on companies based in India or addressing the needs of the Indian market.
The Mandala Agribusiness Fund is backed by University of Texas Investment Management Company (UTIMCO) and TIAA-CREF.
Last month, it invested around $18 million in Jain Irrigation Systems Ltd's (JISL) agri-NBFC subsidiary Sustainable Agro-commercial Finance Ltd (SAFL). Last October, it invested Rs 150 crore in Gati Kausar India Ltd, the cold chain arm of Gati Ltd.