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India Agri Business Fund acquires significant minority stake in Vacmet India Limited

Team YS
20th Jul 2010
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Rabo Equity Advisors, Investment Advisor for India Agri Business Fund (the “Fund”) has announced an investment of US$11 million for acquisition of significant minority stake in Vacmet India Limited (Vacmet) by the Fund. Vacmet is a closely held company engaged in the manufacturing of flexible packaging materials having applications primarily in the food sector.

The company was established in 1993 by Mr. Dinesh Chand Agarwal, a graduate in plastic & polymer engineering from UK. He is a first generation entrepreneur having more than 35 years of experience in the polymer industry. The promoter family is one of the renowned business families of Agra with significant business interests in the textile and food packaging industry. Mr Agarwal said, " we are proud to have succeeded in getting the Rabobank's Fund as our partner which should open up new business channels as well as lead us to newer packaging technology. We are also looking at Rabo Equity team to hand-hold us in transiting to a broad based governance structure."

Mr Rajesh Srivastava, Chairman, Rabo Equity Advisors said "It is a pleasure to be investing in a company with great backend strength, prudent promoters and huge potential in offering innovative packaging solutions to food companies. For us, it fits in well with our other portfolio companies who need packaging."

Currently, the company has four manufacturing facilities based at Kosi, Chatta and Agra, Uttar Pradesh. It is one of the few companies in the Southeast Asia to manufacture products as diverse as Hot Stamping Foil, Selective Metallized Film, Holographic Films, Metallized Paper and other Metallized & Coated Products. The products are supplied largely to convertors that supplies packaging materials to companies such as Unilever, Procter & Gamble, ITC, Cadbury, Dabur, Colgate etc.

The company started as manufacturer of converted products and has gradually moved on to high value add products since then. Going forward the company’s focus will be on innovation and developing end-to-end packaging solution which will include setting up a converting and printing line primarily for the food packaging business.

The company is undertaking massive expansion of its current capacities of BOPET and metalizing films. In the first phase it plans to invest INR 195 crores to set up a BOPET facility, which will be operational by March 2011. During the next phases, Vacmet plans to venture into setting up of BOPP and PET chips capacities. The company proposes to invest INR 400 crores over next 3 years.

India Agri Business Fund Ltd

The fund of USD 120million was sponsored by Rabobank and also funded by IFC, FMO, DEG, CDC Group, Capvent, RWB Capital and Rising Tide. It is the first food and agri focused private equity fund in India and has so far made 5 investments in diverse sub-sectors.

Rabo Equity Advsiors

It is a subsidiary of Rabobank acting as the investment advisor for India Agri Business Fund. With a strong team led by Rajesh Srivastava, it is pro-actively guiding and supporting the investee companies besides sourcing and processing deals for the Fund.

Rajesh Srivastava    Dinesh Chand Agarwal

Chairman and Managing Director   Chairman & Managing Director

Rabo Equity Advisors Pvt.Ltd    Vacmet India Limited

New Delhi       Agra

Date: 20th July 2010

For further enquiries please contact:

Satish Kumar, Manager (Admn/Operations), Rabo Equity Advisors

Mob: +91 9717594777

Email: Satish.kumar@rabobequity.in

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