June 12, 2016

Rabobank Equity Advisors’ India Agri Business Fund II has invested Rs 100 cr (US$15 million) for an undisclosed minority stake in Indian agro-chemical company, Parijat Industries, reports The Economic Times.

This is the second investment announced by Fund II since the beginning of June, when it made its first investment of Rs 100 cr (US$15 million) for a minority stake in India’s condiment and food company, Cremica Food Industries Ltd.

Parijat has a presence in 70 countries, has six international offices, and exclusive distribution rights in India, Russia and the CIS, and West Africa, according to Business Line. The company is targeting sales of Rs 1,500 cr (US$225.5 million) by 2021 and growth for its distribution network from its current 4,500 points to 10,000 points within three years. If achieved this expansion would make the company a leading agrochemical presence in the rapidly growing regional sector, according to the Times of India.

“We are especially excited at the company’s export forays and new products expected to be launched in the domestic market over the next few years,” said Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors reports the Economic Times.

“Our team at Parijat is committed to exponentially growing its domestic presence besides the international footprint. We are delighted to have Rabo Equity as our partner and hope to leverage their extensive domain knowledge and global outreach in the food and agri sector,” said Keshav Anand, Chairman & Managing Director, Parijat Industries.

The India Agri Business Fund II is the second fund by Rabobank Equity Advisors. This latest fund, with a total targeted corpus of $200 million, will focus on investments in agriculture, dairy, and warehousing. Having raised the first half of the targeted funds from anchor investors and sponsors, Rabo Equity Advisors will shift its focus to commercial investors such as insurance companies, pension funds, and funds of funds for the remainder. The fund plans to invest between $15 million and $17 million into each of 10 to 12 companies. Through its first fund – India Agri Business Fund I, Rabobank has invested approximately $120 million in 10 companies, and has moved on to begin exits from these investments.