India-based sustainable manufacturer Godavari Biorefineries has closed a round of financing at $15 million in equity. Private equity firm Mandala Capital was the buyer.
Godavari intends to invest the funds in research and development for green products and chemicals besides expanding its manufacturing infrastructure.
In recent years, the company has been focusing on the manufacture of value added, complex chemicals derived from ethanol and waste generated during the process of refining sugar.
The newly raised funds are to be used to implement the first phase of development of a new manufacturing plant for specialty chemicals. The plant would lead to an increased capacity for ethanol production, the removal of bottlenecks in production and the strengthening of the company’s utility infrastructure.
At present, Godavari manufactures more than 70 million liters of ethanol.
The company also manufactures chemicals such as acetaldehyde, ethyl acetate, and paraldehyde. It is positioned as an alternative renewable source of supply to oil-based petrochemicals.
Godavari’s products find application in paints, printing inks, pharmaceuticals, flexible packaging, fragrances and cosmetics.
According to the company, it is a preferred supplier to a number of Indian companies and multinationals such as Hindustan Coca-Cola Beverages Limited and BASF.
Samir Somaiya, the chairman of Godavari, has stated that the company was focuse “on developing new production processes to manufacture specialty and high performance chemicals using biomass as raw materials within the value chain”.
The company with chemical plants in Karnataka and Maharashtra expects turnover of more than $187 million this fiscal.
Ajith Kumar S