Camlin

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Headquartered in Mumbai, India; Camlin Fine Sciences (“CFS” or the “company”) is a provider of high-quality shelf life extension solutions including antioxidants, aroma ingredients and performance chemicals. CFS was created by the demerger of the fine chemicals division from the parent company, Camlin Limited (now Kokuyo Camlin Limited) in 2006, and listed on the Bombay Stock Exchange in 2007.  CFS today is one of the leading solution providers globally for the shelf life extension of food and animal feed, and is the largest manufacturer of two major synthetic anti-oxidants viz. TBHQ and BHA (www.camlinfs.com).  The key raw materials for the anti-oxidants is diphenol viz. Hydroquinone (“HQ”), and Catechol. The company makes HQ and Catechol at its plant in Italy, these are then shipped to India for formulation where the company formulates anti-oxidants and a few other performance chemicals based on HQ. Also, the company makes Vanillin (used as flavoring agent in foods, beverages, and pharmaceuticals) from Catechol at its plant in India and China.  The company has the following manufacturing facilities: -                      Diphenols (i.e. Hydroquinone and Catechol) manufacturing plant in Ravenna, Italy; -                      Anti-oxidant and other performance chemicals plants in Tarapur, India; -                      Blending facilities in Indaiatuba, Brazil; Mexico City, Mexico and Tarapur, India; -                      Guaiacol and Guethol plants in Mahad, India; and -                      Vanillin plant in Tarapur, India and Yuyao city, Zhejiang province, China.  In addition to these facilities, the company also uses outsourced facilities for formulation of certain specialty chemicals (derivatives of diphenols) in India and blending in the U.S. The company’s R&D team of about 50 scientists is located in India (Tarapur and Mumbai), Italy, Mexico, Brazil and the U.S.IFC is considering a loan of up to US$30 million to fund CFS’s growth and expansion plans, which include: i) capex for development of a new greenfield facility in India at Dahej, Gujarat to produce Diphenols (i.e. HQ and Catechol), which is currently manufactured only in Italy, (ii) working capital requirements for the growth in sales of the new products viz. blends and Vanillin; and iii) re-financing of a term loan (the “project”).For the proposed facility in Dahej, the company has leased about 16 acres (6.75 hectares) of land in Dahej Special Economic Zone (SEZ) Part II at plot No. Z/96/D (https://goo.gl/maps/Es4gbhNWDQy) and has received environmental clearance for the project from the Government of India. Currently leveling and fencing work is underway at the site, with detailed technical and engineering designs ongoing in parallel. The construction is expected to start later this year, and the production is expected to start in late 2019 or early 2020.