Atul II

completed

Atul Limited (“Atul” or the “Company”), was established in 1947, in Valsad district, in the State of Gujarat and currently has two sites, the main one being the focus of IFCs investment which is located in the town of Atul. This main site which accounts for 85 % of production is 1,250 acres in area and located in a rural setting, about 180 km north of Mumbai, there is no other industry near the site which is mostly wooded and in which Atul has undertaken reforestation. The nearest communities are between 1.5 and 5 km from the site boundary. Atul’s secondary site is Ankleshwar located approximately 280 km north of Mumbai and inside the Ankaleshwar industrial estate which is one of the largest in India and well organized. The company is seeking financing for its corporate investment program at the Atul site which involves: (i) expansion of its para cresol line, (ii) building a multi-effect evaporator, (iii) expanding its 2,4-D line of crop protection, and (iv) implementing measures to reduce water consumption and expanding CO2 absorbing tree plantation. The cleaner production aspects of this transaction are expected to be realized through a water audit which is expected lead to water savings. The audit is also expected to lead to a detailed water pinch assessment for further recommendations to conserve water. Atul is an existing client of IFC with good environmental & social performance to date. The IFC initially invested in Atul in 2006.