The project sponsors and major shareholders of the company are Messrs Tarachand, Nandlal, Prakash, and Vinay Chawla. They hold directly and indirectly 61.4% shares of the company as of January 31, 2008. The rest of the shares are held by other members of the Chawla family.

The total project cost is estimated at $15 million equivalent for capital expenditure and $4.8 million equivalent for working capital. The proposed IFC investment is up to $6.75 million equity.

6.35 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	6.35

* These investment figures are indicative

The project site is a greenfield site and located in the designated industrial zone in Khopoli, Khalapur District, Maharashtra. The site has easy access to main high way and is about 85 kilometers from Mumbai.

The project is expected to:

- increase government revenues through increased sales,
- employ some rural labors around the project site;
- benefit institutional clients as increased local supply tends to reduce their cost and improve logistics and avail more product variety;
- benefit suppliers as demand will increase;
- finance a niche edible oil producer and ultimately help edible oil sector to grow more sophisticated and mature;
- enhance the competition and the private sector and deliver more value to customers; and
- deliver a positive net present value to financiers.

IFC’s expected development contribution include:

- providing risk capital to a family owned small to medium-sized firm that looks to grow rapidly;
- engaging and guiding the company to improve corporate governance, transparency and reporting and thereby preparing the company to enter capital market more easily in the future;
- adding the company’s credibility to other investors; and
- advising the company on appropriate standards of environmental, safety and social practice.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project sponsor including a visit by IFC’s appraisal team to the company’s existing production facilities in Mumbai, discussions with the company’s senior management team regarding their current operations as well as future plans, including a visit to the new project site in District Khalapur near Mumbai.

The main environmental and social issues related to this investment include:

- Environmental and social management system (ESMS);
- Labor and Working Conditions (Occupational Health and Safety of workers as well as contractors’ laborers);
- Waste Management (air emissions, wastewater discharge, solid and hazardous waste);
- Resource management and conservation (e.g. water, energy);
- Operational safety (boilers, generators, handling of equipments, including potential accidents related to construction, fleet operations etc.);
- Community engagement and relationship.

More details on the above can be found in the Environmental and Social Review Summary (ESRS).