Mumbai: International Finance Corp. (IFC), a member of the World Bank Group, on Wednesday said that it has invested $27.5 million ( ₹ 165 crore) in Lucid Colloids Ltd, to finance its expansion and backward integration plans and to support small farmers in India.
Lucid Colloids produces guar gum and other hydrocolloids and their derivatives. 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 support Lucid in expanding capacity by setting up a new guar gum plant in Gujarat, two guar splitting plants in Rajasthan, along with a research and development facility aimed at improving crop yield and efficiency of water and other resources.
“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,” said Uday Merchant, chairman and managing director, Lucid Colloids.
IFC’s long-term financing will enable the firm to withstand price volatility of guar gum, he added.
In fiscal 2013, IFC invested over $4.5 billion across the global agri-business supply chain—from farm to retail.
“Agri-business is a priority sector for IFC in India,” said Vipul Prakash, director for manufacturing, agri-business and services, Asia Pacific, IFC. “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.”
