Vinati is a listed company with Mr. Vinod Saraf and family (the “Sponsors”) holding close to 75% of the share capital.

The total estimated project cost is $38.2 million, of which $16 million has already been incurred. IFC is proposing a financial investment of up to $16 million. The balance will be funded through internal accruals.

16.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	16.0
Equity	0.0

* These investment figures are indicative

The Project is at the Company’s existing plant site in Lote, Ratnagiri district, Maharashtra state (India). Lote has been identified by the Government of Maharashtra as an industrial area to help build local industries and promote industrial development in the state.

The Project is expected to have the following development impact: (i) Supporting a global-scale and competitive manufacturing operation which is environment friendly as it is committed to minimizing effluent discharge; (ii) Demonstration effect of good Environmental and Social practices among the mid-sized Indian pharmaceutical and specialty chemicals producers, where such practices are limited and (iii) Local employment generation - addition of up to 100 new jobs on permanent / contract basis and an additional 50-100 jobs during construction phase in a relatively underdeveloped area in Maharashtra state.

The Project is expected to have the following additionality: (i) While local currency loans are available for 5-7 year tenor, the Company has limited access to long-term foreign currency loans, which is a more suitable financing option for the Company, given its high proportion of exports. Longer tenor financing from IFC will help the Company in currency risk mitigation; (ii) Providing a sustainable financing package; (iii) Supporting a mid-sized and indigenous company led by a first generation entrepreneur during its growth phase; (iv) Providing assistance to the Company in achieving best practices in Corporate Governance and (v) Helping a company that is strongly committed to sustainable production in achieving international best practices in Environmental and Social standards.

This is a Category B project 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, and it is possible to readily design and implement engineering and management measures to mitigate adverse impacts on account of the Project and from the facility operations. Key aspects of relevance to the Project include: resource conservation, recycling, recovery of materials and energy and water efficiency; management of emissions to air, soil and water; management of hazardous materials and hazardous wastes; management of occupational health and safety including work place environment quality; ensuring fair labor working conditions including for contractors; and transportation safety including management of impacts on community health, safety and security. The Company will implement a social and environmental management system (SEMS) consistent with IFC Performance Standards and good international industry practice. Further details on the potential environmental and social impacts, corresponding mitigation measures, and guidance on how and where information about the project can be obtained are provided in the IFC Environmental and Social Review Summary (ESRS) and the Environmental and Social Action Plan (ESAP).