India Resurgence Fund invests USD 156 million in city-based Archean Group

The investment proceeds will be used to refinance its existing debt, towards capital investment to optimise the plant’s output across all product lines, and provide working capital to enable the business to grow its market share in India and across key export markets such as Japan, China, Middle East and Europe.

The partnership between IndiaRF and the Archean Group is strategic and long term. Towards this, IndiaRF has invested through debt and equity, and offered repayment terms such that the initial years’ cash flows are re-invested into growing the business, and capital is to be returned once the turnaround is fully implemented. IndiaRF will be actively engaged with Archean’s Management Team in implementing the turnaround plan.

Shantanu Nalavadi, MD, IndiaRF said, “Our partnership with the Archean Group reiterates our robust outlook on the marine chemicals business. This, coupled with the Company’s globally competitive position, will facilitate IndiaRF to work closely with the promoters and the management team, to steer the company towards an accelerated expansion, growth and profitability path.”