Wednesday, November 25, 2020
Home Business IFC To Soon Invest In Nexus Venture Supported Agrex, An Organic Food...

IFC To Soon Invest In Nexus Venture Supported Agrex, An Organic Food Company

The investment arm of World Bank for the private sector, International Finance Corporation is intending to invest up to $25 Million (Rs 160.7 Crore) in Agrex Ltd., which is an organic food company based in Dubai.

IFC To Soon Invest In Nexus Venture Supported Agrex, An Organic Food Company

The organic food company will utilize the funding for building up a green field processing facility in Ethiopia, Uganda, Sri Lanka, and the Philippines, stated by the company.

The company will utilize the funds for constructing Greenfield processing facilities in the Philippines, Sri Lanka, Ethiopia, and Uganda. The total estimated cost of the project is anticipated to $35 Million, while the remaining amount will be recovered through equity infusion of $5 Million from other investors and other $5 Million through debts from financial institutions, cash, and internal accruals.

Agrex, founded in 2012, is affianced in procuring, processing, and exporting certified organic products from regions Africa and Asia. The founder of the company, Sameer Mehra has a share of 45% stake, while the rest of the 55% is owned by Nexus Venture Partners, a venture capital firm and Capricorn Investment Group, which is an alternative asset management firm.

The operational assets of the company comprise fully owned sesame seed sorting and cleaning facility in Uganda and leased coconut oil processing facility in the Philippines. It has third-party manufacturing contract for sesame and soybean warehouse and processing plant in Ethiopia. It is also functioning with textile manufacturers that are the third party for operating its organic-based clothing business.

Agrex also works with individual farmers and their groups and has made organic farming provision in the Philippines, Ethiopia, and Uganda. The totality of farms is spread across 35,000 Hectares in these three nations.

No part of the total land is based on lease and owned by the company. It sources the organically produced products from the farmers. It has also presented an offer to pour $20 Million in Suminter India Organics Pvt. Ltd., an organic food exporter.

Both the companies Agrex and Suminter India Organics are started by a single man, Sameer Mehra and Capricorn Investment Group and Nexus Venture Partners are common investors in both the organizations.

The investment arm of World Bank has made ample of investment in the agri-based business. In June this year, it presented a proposal to invest in a food-grain milling factory of Agrocorp International Pte. Ltd. Moreover, It also made an investment of $30 Million in ETC Agro Processing (India) Pvt. Ltd. in form of debt funding.

John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.


Please enter your comment!
Please enter your name here

Follow Us

Most Popular

Why a Data Centre Disaster Recovery Plan is Worth for Every Business!

For any business, the data center recovery plan should be a priority. However, many businesses ignore and neglect a data center disaster recovery plan. A...

Stop Paying for YouTube Premium, Get YouTube Vanced

If you’re one of the subscribers of YouTube Premium, then you’re at the right place. Because after reading this article, you’re going to quit...

What can 3D Printing Do? 5 Examples

3D printing, also known as additive manufacturing, can create a 3D printed image from a digital file by building up materials layer by layer....

Satellite or Cable TV – The Better of the Two

Many people are not aware of the differences between cable and satellite TV. And this creates confusion when they try to subscribe to a...

What New Restaurant Owners Need to Know About Inventory Management

Your dream restaurant is starting to flourish. Consumers are regularly visiting your establishment, and you are beginning to make a profit. Your team's hard...

Understanding Production Reporting in the Gas and Oil Industry

If you work for or own an oil or gas company, you’ll most likely need to write production reports. Proper oil and gas reporting...