IndiaRF reaffirms capital support to Archean

Distressed asset player India Resurgence Fund (IndiaRF) Monday committed USD 156 million in debt and equity support to Archean group's marine chemicals business.

The investment will be used to refinance Archean Chemical Industries' existing debt and towards capital investment to optimise output at a plant across all product lines, the fund, which is a joint venture between Piramal Enterprises and Bain Capital, said in a statement.

The infusion will also be used for providing working capital to enable the business to grow its market share in India and export markets such as Japan, China, the Middle East and Europe, it added.

The statement, however, did not disclose the exact financial details of the transactions but stressed that the partnership between the fund and the company is "strategic and long term".

"IndiaRF has invested USD 156 million through debt and equity, and offered repayment terms such that the initial years' cash flows are re-invested into growing the business, and capital is to be returned once the turnaround is fully implemented," the fund said.

It will be "actively engaged" with Archean's management in implementing a turnaround plan, it added.

Archean Chemical Industries is the largest producer and exporter of industrial salt and bromine in India and also manufactures sulphate of potash, a high-end fertiliser, the  statement said.

It owns and operates an integrated marine chemicals complex in Kutch, Gujarat. Archean Chemical is part of the Archean group, which has diversified business interests across sectors including industrial salt, industrial chemicals and fertilisers, mining and minerals, and granites.

(With inputs from agencies.)