Citigroup Venture Capital India hikes stake in JBF Industries

18 December 2007

Mumbai: Private equity major Citigroup Venture Capital India (CVCI) will invest $125 million in JBF Industries' wholly owned subsidiary JBF Global Pte Ltd, taking its investment in JBF to Rs560 crore since June 2005.

JBF says it would use the funds for expansions and overseas acquisitions of its international operations.

"The investment is through a preferential allotment of security," says P R Srinivasan, director, CVCI. "Given the fact that the company has huge potential and has consistently performed and delivered since our first investment, we are very happy to continue our association with JBF and participate in its growth."

The company says it has begun production at its a joint venture polyester PET resin packaging plant, JBF RAK FZ LLC, jointly with the Ras Al Khaimah Investment Authority (RAKIA), since July this year.

The plant has a polymerisation capacity of 900t / day for markets outside India, which the company says is the first plant of such size set up by an Indian company in the Emirates. It has one line for production of thick film and another for longer width thin film.

The plant is expected to commence second phase production of polyester film (BOPET) by 31 December 2007. JBF RAK FZ LLC will also be integrated with JBF Global Pte Ltd.