IFC to invest $20 mn in Kanoria Chemicals

New Delhi, Apr 29: International Finance Corporation, the private sector arm of the World Bank Group, will invest up to 20 million dollars in Kanoria Chemicals and Industries Ltd, to help the company expand the capacity of its caustic soda plant in Uttar Pradesh.

"The expansion of the Renukoot plant's capacity from 90,000 to 1,30,000 tonnes per year by March 2008 will be based on more efficient, environmentally-friendly membrane cell technology, which consumes less energy per tonne of output," an IFC statement said here.

Kanoria will also expand the capacity of its downstream chlorine derivative production units, which will help improve the company's margins. By providing long-term funding to Kanoria, IFC is addressing a midsize player's critical need among 31 chlor-alkali producers in India.

The loan will equip the company to grow dynamically and acquire economies of scale in a competitive and cyclical capital-intensive industry.

UNI