Project detail - INDIA AGRI BUSINESS FUND II LIMITED

INDIA AGRI BUSINESS FUND II LIMITED

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Who is our client

India Agri Business Fund II is the follow-on fund of India Agri Business Fund, with the objective of investing in equity and equity-linked instruments in companies focused primarily on the Indian food and agricultural sectors, covering all areas of the value chain. It fund aims to drive development in three ways: (i) productivity improvement through high quality inputs and farm services; (ii) wastage reduction through investments in storage and logistics, and; (iii) focus on quality through feeds and additives and value added services. The fund is sponsored by Rabobank and managed by Rabo Equity Management Company.

Funding objective

Ensuring food security in India is an two-pronged endeavor that involves (i) increasing farm yields (India's productivity in field crops and animal protein is far below the global average) and (ii) reducing food and agricultural wastage and loss (15% of food grain is lost every year in India due to lack of proper storage). The increasing gap in demand and supply has also led to food inflation, increasing food imports and consequently threatening food security. The capital required to realize food security is still scarce in India, even after accounting for the entry of generic PE funds into the sector. Through its investments, the India Agri Business Fund II aims to bring about operational, supply chain and technical efficiency in the agricultural sector.

Why we fund this project

Through FMO's investment, long-term capital will be made available to a market segment in India that is in dire need of capital. By participating in the first close, FMO ensures that the fund is successfully launched. FMO's commitment may also serve as an additional "stamp of approval" for the fund and may help attract commercial interest in the fund.

Region
Asia
Country
India
Sector
Agribusiness, Food & Water
Signing date
10/28/2014
Total FMO financing
USD 10.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B