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Mandala eyes Fund II as Fund I nears full deployment – exclusive

The Indian agribusiness private equity fund manager is set to launch Fund II in the coming weeks after Fund I invested in Godavari Biorefineries this week.

Mandala Capital, the Indian agribusiness private equity fund manager, is set to start fundraising for a second fund after a recent investment took Fund I to 90 percent deployment. The second fund will be much larger than the $120 million Fund I, according to Uday Garg, managing director.

Fund I, which closed last year and is backed by University of Texas Investment Management Company and TIAA-CREF, this week invested $15 million into a biorefinery company that produces foods, biofuels, specialty chemicals and power from sugar cane.

Godavari Biorefineries will use the capital to invest in research and innovation of higher-margin products to meet growing demand for chemical products from renewable feedstock, according to a press release. “Innovation in green chemistry is a source of growth and expansion for the company,” said Samir Somaiya, chairman at Godavari Biorefineries.

Godavari’s products are used in paints, printing inks, pharmaceuticals, flexible packaging, fragrances and cosmetics and the company supplies to a wide number of Indian companies and global multinationals such as Hindustan Coca-Cola Beverages and BASF across the beverage, confectionery, pharmaceuticals, fragrances and chemicals sectors.

More details about Fund II will emerge in the coming weeks before marketing officially starts.