Indian food and agribusiness-focused private equity firm Rabo Equity Advisors has invested INR450m ($8.7m) in Sri Biotech Laboratories India, via its India Agri Business Fund. The company manufactures and markets bio-organic agri inputs which are used for crop nutrition and crop protection. In addition Sri Biotech produces seeds, multi-micronutrients, biologically enriched organic manures and focuses on Integrated Crop Management and sustainable crop approaches. The investment will be used to strengthen in-house R&D focusing seed research, development of new molecules of crop protection and infrastructure. The commitment will represent a significant minority shareholding of the fund, at 28 per cent to 38 per cent over the next two years through a structured mechanism.
The fund will also have a proactive association with the company including two seats on the board of directors.
Sri Biotech's products are sold through a strong dealer network in the states of Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Gujarat and Madhya Pradesh and the company now aims to establish a stronger network in the existing states plus open up new states and exports, according to the firm.
Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors, said, “Sri Biotech has witnessed rapid growth over the last few years and has become a market leader in biological and organic agri inputs.”
India Agri Business Fund is a $100m fund targeted at the expansion of Indian food and agribusiness companies. It is sponsored by Rabobank with IFC, FMO & DEG being the three lead Investors. Rabobank also has a majority shareholding in the management and advisory companies, while the fund has a long-term “Knowledge Sharing Agreement” with Rabobank.
Source: Alt Assets