SRF India BOPET (IFC-37933)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Pithampur industrial area, Indore, Madhya Pradesh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 10, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SRF Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 58.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 26, 2025

Disclosed by Bank Feb 5, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Through this loan by IFC, SRF proposes to set up another greenfield facility for the production of BOPET in Indore, India with a capacity of 30,000 tpa and a metallization capacity of 8000 tpa (the "Project"). The proposed Project will be located in Indore domestic tariff area which is in close vicinity to the existing Indore SEZ unit (located about 2.5 km away). SRF's existing Indore unit manufactures polyethylene terephthalate (PET) resin and BOPET films. PET resin which is the main raw material for BOPET films manufacturing, will be partially supplied from the existing facility and balance will be sourced locally or imported as the case may be.

BOPET is a polyester film made from PET resin and is used for its high tensile strength, chemical and dimensional stability. The manufacturing process consists of melting the PET resin and extruding so as to form of a multi-layer film which is then stretched. To improve the permeation properties of the film, the BOPET film can further be metalized with a very thin film of aluminum, under vacuum. The waste film generated in the process is melted and reused in the process.

The proposed project is located in the Pithampur industrial area, Indore in the state of Madhya Pradesh. The greenfield BOPET packaging film facility will be set up at Plot no 675, Industrial Area Pithampur Sector 3, Indore, Madhya Pradesh, India.

The project will occupy ~4 ha of land within the broader industrial areas which is ~ 3,000 ha in extent. Land for the project has been allocated by Madhya Pradesh Audyogik Kendra Vikas Nigam (MPAKVN), a subsidiary of Madhya Pradesh State Industrial Development Corporation (MPSIDC), in a fully developed industrial area. A contractor has been appointed to construct the facility on an Engineering, Procurement and Construction (EPC) basis and the project is expected to become operational by March 2017.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is estimated to be about US$58 million. The proposed IFC investment is an A Loan of US$ 40 million for IFCs own account. The balance will be funded by SRF’s internal accruals.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Headquartered near Delhi and listed on Indian stock exchanges, SRF Limited ("SRF" or the "company") (http://www.srf.com) is a leading chemical based industrial intermediates group and has three main business lines: i) Technical Textiles - involved in manufacturing of tyre cord fabrics and industrial fabrics; ii) Chemicals and Polymer - involved in manufacturing of fluoro-chemicals ,Engineering Plastics and specialty chemicals; and iii) Packaging Films - involved in manufacturing of bi-axially-oriented polyethylene terephthalate ("BOPET") and bi-axially oriented polypropylene ("BOPP") films. SRF employs more than 6,500 employees globally working in 9 manufacturing plants in India, 2 in Thailand and 2 in South Africa with a customer base spread over 75 countries.SRF has an existing BOPET manufacturing capacity of 60,000 tonnes per annum (tpa) in India (plant at Kashipur with 6000 tpa capacity and plant at Indore with 54,000 tpa capacity), 28,500 tpa in Thailand (IFC financed project) and 28,500 tpa in South Africa (for BOPP films).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - SRF Ltd Client -

Contact Information
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COMPANY CONTACTS
Mr. Rahul Jain, Vice President- Corporate Controller & Treasurer
SRF Limited
Block C, Sector 45,
Greenwood City,
Gurgaon – 122003 INDIA
Telephone : +91 124 4354734
Fax: +91 124 4354500 / 4264500
http://www.srf.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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