NEW YORK, May 26, 2015 /PRNewswire/ — India based Kiran Global Chems Limited (KGCL) a part of M.S. Jain Group, India’s number one and the world’s number two manufacturer of Sodium Silicate, the main ingredient required for the production in various industries such as detergents, textile, foundry, ceramics, paper and also used in applications such as underground tunneling, mineral beneficiation, oil drilling etc., have now initiated the process of raising US $25 million or INR 155 crore via private placement of its equity shares to a clutch of New York, US based investors.
The investment bankers in India familiar with the transaction has confirmed that Kiran Global Chems Limited has entered into an exclusive agreement with a US based merchant banker to raise US $25 million for the expansion of its several domestic and international silicate manufacturing facilities and to partly clear off their debt.
Apart from a strong presence in lndia, UAE, Qatar, Egypt and South Africa, KGCL is currently in the process of setting up manufacturing facilities in Saudi Arabia, Abu Dhabi and Malaysia. The company currently owns and manages 36 units at different locations in India and 4 units internationally.
With a focus on forward integration and diversification, KGCL has invested in precipitated silica which will be a value addition to the business and will bring added revenue to the company apart from consuming huge quantities of sodium silicate which is the primary raw material.
A separate manufacturing facility in Tamil Nadu is being set up for this product with a focus mainly to cater to the tyre, toothpaste and pharmaceutical industries which posses a big presence in South India.
The plant is located strategically near to its consumers to cut down on logistics cost and to enhance its quality of service. The plant is slated to go into production during the first week of August 2015.
“The company is also in the process of setting up 2 such plants at Abu Dhabhi and Egypt. KGCL is actively looking to raise capital of US $25 million to partially clear off its debt and bring the remainder into the company as working capital fund,” said the banker who is exclusively mandated on this transaction.
Post private placement KGCL will be valued at US $500 million or INR 3,000 crore. KGCL will become India’s first silicate manufacturer to be valued at half a billion dollars. The company is also not ruling out its listing plans on the US markets once the funding is concluded.
KGCL as per record serves over 3 billion people in India, Middle East and Africa. KGCL is also planning to introduce Geo-polymer cement products.
Geo-polymer cement is made from industrial wastes from the power and steel sector and sodium silicate and has no carbon footprint. The company plans to aggressively focus and position the product as a replacement for Portland cement.
KGCL plans to introduce colloidal silica that is used as moisture absorbent, high temperature binder and surfactant.
“We are looking to lay a strong foundation to build a globally respected chemical brand. We are in the process of reducing our cost of financing and adding new products and technology,” said Atul Jain, Vice Chairman of Kiran Global Chems Limited.
Founded by M.S. Jain, the current chairman of the KGCL, the company has grown several folds under his dynamic leadership.
Media contact: Robert Hansell, (424) 666-2456
SOURCE Kiran Global Chems Limited