Partners-backed perfumery S. H. Kelkar and Co. Pvt Ltd is in talks with private equity investors like Standard Chartered PE, Jacob Ballas and Everstone for a second round of fundraising, two people with direct knowledge of the development said. The company plans to raise up to Rs 120-125 crore (approximately $24 million) for further expansion.
“The company is looking to expand its export bases and widen its product portfolio with the proceeds,” one of the persons said.
An e-mail query sent to the group CEO B Ramakrishnan did not elicit any response.
When contacted, Rahul Raisurana, managing director with Standard Chartered PE’s mid cap fund, denied that such talks were on. E-mail queries sent to Srinivas Chidambaram of Jacob Ballas India and John Foley, Partner at Wayzata, did not get any response either.
Wayzata had invested $21 million in SH Kelkar and Co. (a Kelkar Group firm) in September 2010 through its Wayzata II Indian Ocean Fund.
The Kelkar Group, with an annual turnover of $115 million, has focused on its core business of fragrances, flavours and aroma chemicals for nearly nine decades. It has presence in global markets, employs over 750 people and runs three manufacturing sites in India and one in the Netherlands.
According to data provided by VCCEdge, the financial research platform of VCCircle, the company saw it turnover rise to Rs 275.4 crore in March 2011, compared to Rs 252.04 crore a year ago. However, its profit after tax declined from Rs 36.29 crore in March 2010 to Rs 19.03 crore in March 2011.