Lucid Colloids Receives $27.5 Million Funding to Support Capacity Expansion Plans
04 Sep 2014 --- Lucid Colloids Ltd. and International Finance Corporation (IFC), a member of the World Bank Group, have finalised a transaction whereby IFC will invest INR 750 Million (US$ 12.5 million) in Lucid by way of Equity and US$ 15 million (INR 900 million) by way of Long Term Debt. The funds will be used to part finance Lucid’s capacity expansion plans of INR 2,800 million (US$ 47 million).
Lucid Colloids is a family owned company in the business of manufacturing Guar Gum and other hydrocolloids and their Derivatives. The promoters have an experience of over 40 years in the business. The Company has about 375 employees and a sales turnover of about US$ 125 million. About 85% of the turnover is from export sales.
IFC is the investment arm of the World Bank, investing in and helping businesses grow in emerging markets.
“Agribusiness 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" said Mr. Vipul Prakash, IFC Director for Manufacturing, Agribusiness and Services, Asia Pacific.
Lucid also has a JV company with Taiyo Kagaku Co. Ltd. and CBC Co. Ltd. of Japan. The JV – Taiyo Lucid Pvt. Ltd. manufactures a water soluble dietary fibre from Guar which is used as a nutritional supplement. Lucid’s product have a wide application in Oil & Gas fracturing, Food, Pharma & Nutrition, Personal Care, Paper, Mining, Explosives, Paints & Construction materials and several other miscellaneous applications.
“We look forward to working with IFC to take Lucid to the next level. IFC’s guidance on corporate governance, implementing IFC’s performance standards and agribusiness expertise will be very helpful for Lucid to achieve our long term goals. We are proud to partner with IFC and look forward to a mutually beneficial relationship in the years ahead” said Mr. Uday Merchant, Chairman & Managing Director of Lucid.
Lucid is setting up new projects at Bikaner, Meglasiya and Mokheri in Rajasthan and at Jhagadiya in Gujarat. Lucid already has manufacturing plants at Jodhpur in Rajasthan and Aurangabad in Maharashtra. The Company has marketing and sales subsidiaries in the USA, UK and UAE and sales offices in New Delhi and Bengaluru.
Mr. Merchant further added that “The new projects undertaken by Lucid will enhance Lucid’s control over its entire supply chain and increase the production capacity for finished products supplied to the Oil & Gas and Food sectors. It will also increase Lucid’s capabilities to manufacture value-added products under higher standards of food safety and occupational health and safety. Lucid’s engagement with Guar farmers will deepen through better extension work emanating from field research on Guar on its own Agri Research Farm”
“Lucid currently supports about 60,000 farmers on about 2.5 lac hectares in the arid and semi-arid zones of west and northwest India with sustainable agriculture, thus creating shared values with the community. We expect to double this in the next 3 years” said Mrs. Shailaja Merchant, Executive Director at Lucid.
Lucid is already ISO 9001, ISO 14001, OHSAS 18001 and ISO 22000 certified. Lucid has also undertaken to adopt IFC’s “Sustainability Framework” Guidelines and Performance Standards and will be implementing these as an on-going process:
• PS1: Assessment and Management of Environmental and Social Risks and Impacts.
• PS2: Labour and Working Conditions.
• PS3: Resource Efficiency and Pollution Prevention.
• PS4: Community Health, Safety, and Security.
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources.
