Vinati Organics Limited

completed

Vinati Organics Limited (“VOL” or the “Company”) is an Indian manufacturer of pharmaceutical inputs and specialty chemicals. The Company is the world’s largest manufacturer of Iso Butyl Benzene (“IBB”), the basic raw material for Ibuprofen, with an existing capacity of 14,000 metric tons per annum (mtpa). It is also the world’s second largest manufacturer of 2-Acrylamido-2-Methyl Propane Sulfonic Acid (“ATBS”) with an existing capacity of 10,000 mtpa. It has recently backward integrated into Iso Butylene (“IB”), a key raw material used in ATBS, by commissioning a 12,000 mtpa plant. VOL’s two manufacturing facilities are located in Mahad and Lote. The plant in Mahad manufactures IBB and the one in Lote manufactures ATBS, TBA and IB. Both the plants are located within designated industrial zones, which have a number of other chemical and active pharmaceutical ingredient (API) manufacturing facilities as well. The Company’s growth plans include expansion of ATBS, Tertiary Butyl Acrylamide (“TBA”) Industrial Polymer, greenfield expansion into Di Acetone Acrylamide (“DAAM”) and backward integration into IB all at its plant in Lote (the “Project”). Part of these plans have been recently completed by the Company and the implementation of the remaining components is pending. Specifically, the Project consists of (i) expansion of ATBS capacity from 5,000 mtpa to 18,000 mtpa (of which 5,000 mtpa is already completed); (ii) backward integration into IB with a 12,000 mtpa capacity (recently completed), (iii) expansion of TBA and Industrial Polymers facilities from 500 mtpa to 1,000 mtpa and 1,500 mtpa to 4,500 mtpa respectively; and (iv) green field DAAM plant with a capacity of 1,000 mtpa. IFC is considering a debt and quasi equity package to part finance the Project.