Rabobank-backed PE fund invests about Rs 100 crore in Parijat Industries

NEW DELHI: Rabobank-backed India Agri Business Fund II (IABF-II) has invested about Rs 100 crore in agro-chemicals company Parijat Industries, the private equity fund announced on Thursday.

This is the second investment announced by the $200 million (about Rs 1,331 crore) fund this month, after it invested Rs 100 crore in condiments manufacturer Cremica Food Industries.

The private equity fund, which has picked up a minority stake in the New Delhi-headquartered Parijat Industries, did not, however, disclose the exact stake picked up by it in the company, in its official press statement.

"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.

India Agri Business Fund II is the second PE fund backed by Rabobank, and focuses primarily on backing ventures operating in the country's food and agri-business segment.

Sponsored by Rabobank, the fund is advised by Rabo Equity Advisors, a subsidiary of the Dutch multinational banking and financial services major, and counts development finance institutions, such as, CDC and Asian Development Bank, as anchor investors.

Rabo Equity Advisors also advises India Agri Business Fund I, a $120 million (about Rs 798 crore) fund which has invested in 10 companies, across sectors, and includes, Prabhat Dairy, LT Foods, and Vacmet, among others.

The PE fund had made a partial exit from Prabhat Dairy in September last year, after the Ahmednagar-based, integrated milk and dairy products company had made its public market debut.

Parijat Industries, which makes and distributes crop protection chemicals, and has wholly-owned subsidiaries in Russia, Hong Kong, UK and West Africa, has projected sales of Rs 1,500 crore by 2021, and has also stated plans of expanding its domestic distribution network to 10,000 retail points in three years, from its current 4,500.

"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 & Agriculture sector," said Keshav Anand, managing director, Parijat Industries.