Global private equity major CVCI to invest 125 million dollars in JBF Global Pte Ltd, a wholly owned subsidiary JBF Industries Ltd.
These funds are meant to be used for international operations of the Company, for expansions and acquisitions. With this transaction, CVCI’s investment in JBF Industries is worth Rs 560 crores since June 2005.
“The investment is through a preferential allotment of security. Given the fact that the company has huge potential and has consistently performed and delivered since our first investment, we are very happy to continue our association with JBF and participate in its growth “Says Mr P R Srinivasan, Director CVCI.
The Company has begun production at its RAK plant, JBF RAK FZ LLC, in Emirates, a joint venture with RAKIA (Ras Al Khaimah Investment Authority) for setting up a Polyester PET resin packaging in the Emirate of Ras Al Khaimah. The plant, a world class manufacturing facility with a capacity of 900t/day polymerization will address the markets outside India. One line in the plant is for production of thick film while the second line is for longer width thin film. Equipments are from Dornear, Germany. This is the first plant of this size set up by an Indian company in the Emirates. The new facility started its first phase production in July 2007. In the 2nd Phase ” JBF RAK FZ LLC, is expected to start production of Polyester Film (BOPET) by quarter ending 31st December 2007. JBF RAK FZ LLC will be part of JBF Global Pte Ltd.
Says Mr B C Arya, Chairman, JBF Industries Ltd “We are well placed as a manufacturer of Polyester and Polyester Chips to address the global markets. Our expertise in project planning and management has been well proved with our success in our expansions in our Sarigram Plant and in the RAK plant. We will look at inorganic and organic growth for expansion to address the global market. We are proud of the faith that Citigroup placed in us. They had invested in our earlier expansion plans and their investments again in our new expansions indicate the success they have had with their investments in JBF Industries. We are committed to creating stakeholder value by managing growth effectively
The company is listed with BSE and NSE.
About JBF Industries Ltd.
JBF Industries Ltd is a Rs 2,000 crores POY and polyester chips manufacturing major. JBF Industries is the largest producer of textile grade polyester chips in India and is amongst the top three players in manufacture of POY. It has undertaken expansion plans successfully in the last two years with all its plants running at near 100 % capacities. It has also set up a JV in United Arab Emirates to produce polyester PET resin packaging and polyester films. JBF Industries Ltd with its existing expansion in is expected to grow to over a billion dollars by 2008 – 2009.
Source: Business Wire India