SRF India BOPET (IFC-37933)

Countries
  • India
Where the impacts of the investment may be experienced.
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
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 10, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
SRF Limited
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
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, etc.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 27, 2017

Disclosed by Bank Feb 5, 2016


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Project Description
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). 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 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. IFC is considering to extend an A loan of up to $ 40 million to SRF India for its proposed new BOPET facility in India.
Investment Description
  • International Finance Corporation (IFC)
Contact Information
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/