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India : $27.5 Million invested by IFC in Lucid Colloids

September 4, 2014

International Finance Corp. (IFC), a member of the World Bank Group said that it has invested $27.5 million (Rs.165 crore) in Lucid Colloids Ltd, to sponsor its growth and backward integration strategy and to support small farmers in India.

guar gum and other hydrocolloids and their derivatives are produced by Lucid Colloids.The company has manufacturing plants at Jodhpur in Rajasthan and Aurangabad in Maharashtra. Guar gum is a thickening and stabilizing agent used in food products and for industrial applications.

IFC s investment will assist Lucid in increasing capacity by establishing a new guar gum plant in Gujarat, two guar splitting plants in Rajasthan, together with a research and development facility aimed at improving crop yield and efficiency of water and other resources.

Uday Merchant, chairman and managing director, Lucid Colloids said, IFC s global expertise in the agri-business sector will help us become globally competitive, strengthen environmental and social standards, and improve corporate governance practices .

He added, IFC s long-term financing will enable the firm to withstand price volatility of guar gum.

Vipul Prakash, director for manufacturing, agri-business and services, Asia Pacific, IFC said, Agri-business is a priority sector for IFC in India . By expanding the market for high-quality guar, this investment will increase incomes for a large number of guar farmers in India, many of whom are women, particularly in Rajasthan which is a priority state for IFC.

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Source: TendersInfo (India)

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