International Finance Corporation plans to offer $35 million to DCM Shriram Ltd to help the agribusiness company expand a sugar factory and install a power plant.
IFC will provide the loan by way of an external commercial borrowing, the World Bank’s private-sector investment arm said in a disclosure.
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DCM Shriram is expanding its sugar plant at Hariawan by 5,000 tonnes of cane per day and a distillery unit at Ajbapur in Uttar Pradesh. It is also setting up a 30 megawatt co-generation power plant using bagasse as fuel in Hariawan, IFC said. The total project cost is estimated at $86.1 million, it added.
DCM Shriram is owned by brothers Ajay S Shriram, Vikram S Shriram and Ajit S Shriram, who control a stake of more than 60% in the company.
DCM Shriram has two main business lines. One is agribusiness, which includes fertiliser, seeds, sugar and trading of agricultural inputs, and the second is chloro vinyl, which includes caustic soda, chlorine, carbide and polyvinyl chloride.
It also has other smaller businesses such as cement, value-added PVC products maker Fenesta Building Solutions and a joint venture with Axiall Inc for PVC compounding.