LOIL is an unlisted company and the promoter family holds 100% of its share capital. The Company was promoted by Mr. Vasudev Goenka and is currently being managed by his sons, Mr. Ravi Goenka and Mr. Rajiv Goenka.

The estimated Project cost is approximately US$43.6 million and IFC is proposing a financial investment to fund a part of the expansion. The balance will be funded from other financing institutions and internal accruals of the Company

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity	10.0

* These investment figures are indicative

The project site is Mahad, Maharashtra, India, where the Company’s existing plant is located.

- IFC''s proposed investment will help LOIL become a leader in adopting latest practices to ensure clean production. This is significant, especially in an industry where most medium-scale chemical manufacturers tend to follow polluting processes with minimal investment in waste effluent handling. LOIL has designed a zero discharge ETP for additional effluents generated from expansion projects where processed effluent will be used as feed water.
- The proposed investment in a thermal co-generation power plant will provide the most efficient ‘Energy and Product Integration'' solution between steam intensive ETAC plant and power intensive DD plant.
- LOIL is in the process of carrying out R&D for cost effective thermal solar panels which has potential to integrate with co-generation unit in DD plant. This pioneer design will mitigate LOIL''s reliance on fossil fuels and reduce its greenhouse gas footprint.
- The proposed expansion is expected to create nearly 70 jobs over the next two years and result in other indirect development benefits such as linkages with local suppliers, upgrade of existing infrastructure, and indirect employment creation through auxiliary businesses in the region and during construction phase.
- Considering that 70% of India''s current requirement for DD products is being imported, the proposed investment will facilitate self sufficiency and conserve foreign exchange.

- Supporting climate change related initiatives and strengthening EHS practices: IFC''s involvement will help LOIL further enhance its climate change initiatives / EHS practices by ensuring that the proposed effluent treatment plant is built according to international guidelines and practices.
- Role of an anchor investor: LOIL is currently unlisted and is closely held with the promoters holding close to 100% stake. IFC''s affiliation and investment will provide visibility to the Company and will help in raising its profile amongst its clients, suppliers and potential investors.
- Long-term financing in an uncertain fund raising environment: LOIL is on a growth track and long-term funding to support its capex plans is essential. In an increasingly challenging fund raising environment, the Company needs a judicious financing that can support its plans to build an environmentally sustainable business in a capital intensive industry.
- Corporate Governance practices: Considering that LOIL is a closely held and managed company, IFC''s association will ensure that it follows better corporate governance practices as it grows and prepares itself to access public markets in future.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria.

Key environmental, health and safety, human resources and social issues that were reviewed included: air emission, wastewater treatment and discharge, solid and hazardous waste management, operation hazard and hazardous material management, employee health and safety, fire protection and emergency response, community health/safety, and community relationship and development.

LOIL has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the IFC Environment and Social Performance Standards and the World Bank Group (WBG) environmental, health and safety guidelines.

Please refer to the disclosed Environmental and Social Review Summary for the details of environmental and social issues.