ICICI Venture picks minority stake in Anthea Aromatics for Rs 120 crore

MUMBAI: ICICI Venture is investing about Rs 120 crore for a “significant” minority stake in Anthea Aromatics, which manufactures and exports chemicals to firms across the world for use in food flavouring and fragrances.
The investment – the first from ICICI Venture’s new $500 million (about 3,330 crore) fund, India Advantage Fund Series 4 (IAF4) – comes soon after the highly successful initial public offering of SH Kelkar, India’s largest fragrance and flavours manufacturer.

The fund saw a first close of about $190 million. ICICI Venture is the private equity arm of ICICI Bank.

Navi Mumbai-based Anthea Aromatics, founded by Vincent Paul, a former head of organic chemistry at Hindustan Lever Ltd, is the country’s second largest aroma chemicals marketing and manufacturing company.

It is among the most profitable companies in India, with a leading presence in terpene chemicals. A niche segment characterised by significant entry barriers, these chemicals are used as active intermediates for manufacturing end products in the $25 billion global flavours and fragrances industry.

The Anthea Group comprises four companies, two of which are equal joint ventures with DRT of France, the world’s largest processor of crude sulphate turpentine, a key raw material in the manufacture of aroma chemicals. Together with group companies, Anthea is currently among the world’s top five terpene-based aroma chemical manufacturers. Other than DRT, its key customers include P&G, IFF and Givaudan.

In 2015-16, the group earned revenue ofRs 350 crore, largely driven by exports.