Mr. Surender Gupta is Dunar’s Managing Director and son of the founder Late Shri. Duli Chand Agarwal, who founded the Company in 1979. Mr. Gupta has been actively involved in the basmati rice industry for over two decades. Mrs. Kanta Gupta, the sister-in-law of Mr. Gupta, is also involved in making strategic decisions as a board member. Mr. Surender Gupta with his wife and children and Mrs. Kanta Gupta own 63% and 28% of Dunar, respectively. The remaining minority shares are owned by Mr. Gupta’s mother and Dunar’s management.

Project cost of about US$140 million includes capital expenditure for the expansion as well as additional working capital requirement associated with increased sales. The Company plans to raise up to US$30 million in equity and fund the remaining project cost by internal cashflow and working capital debt. IFC is proposing to invest up to US$30 million in total with combination of equity (up to 20% of the Company’s share capital) and A loan. A private equity fund is proposing to invest about US$10 million in equity as a co-investor to the IFC investment.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Company owns two production facilities in Karnal, Haryana and Amritsar, Punjab where the Project will take place.

(i) This Project is expected to generate new rural employment of 34 permanent and about 100 seasonal employees in Haryana and Punjab in three years. (ii) This Project is likely to create additional backward linkages with farmers as it is expected to increase procurement of basmati rice paddies from about 230,000 mt to 440,000 mt in three years, via "mandis" (markets) from farmers in various states. (iii) This Project is likely to create forward linkages with SME distributors as well. (iv) This Project will provide climate change benefits by adding 5 MW husk power generation capacity.

(i) The Project will be the largest fund raising effort and first external source of equity for the Company and this is likely to help the Company obtain long term financing including by public listing in the future. (ii) IFCs value added services, such as identifying areas of improvement in corporate governance and introducing potential customers overseas where IFC operates, as well as joint guidance from the co-investor will enhance the success of the Project and the Company in the long term. (iii) IFC will use its expertise to advise the Company in the areas of environmental, safety and social practices.

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects. Key environmental and social risks and issues related to this project include: Company’s capacity to manage its social, environmental, health and safety performance, and engage with local communities in accordance with local requirements and IFC Performance Standards and EHS Guidelines; assurance of fair, safe and healthy working conditions during construction and operations; utilization of equipment and operational practices that maximizes conservation of energy, water and process materials including recycling and reuse initiatives; management of air emissions, wastewater treatment and discharge, and solid and other waste disposal; handling and management of hazardous materials and hazardous wastes; the impacts of operations on local ambient environment; and impacts of transport infrastructure on the nearby communities.
Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the IFC Environmental & Social Review Summary.