Harmony Organics on Monday has raised Rs 225 crore from Piramal Alternatives, the fund management business of the Piramal Group, to intensify its foray into emerging global market opportunities in the fragrance and flavour industry.
Sandeep Mehta, Managing Director and CEO of Harmony Organics, a Speciality chemicals company, stated the firm is aims to deploy strategic investments to establish and add new facilities at the current and additional locations in the coming of quarters. “The current funding is against the issuance of convertibles for the purpose to expand capacities and explore inorganic opportunities.”
The outcome of this expansion will result in Harmony emerging as one of the leading aroma chemical players in the country, ” Mehta said. Overall, the strategy is to go for an initial public offering in the next couple of years based on the strong growth trajectory and ability to expand its product portfolio, he added.
“Through Piramal Alternatives, we target to aid mid-market companies by providing flexible, bespoke, and value accretive capital, ” Kalpesh Kikani, CEO of Piramal Alternatives, said.
Harmony Organics Active Research Program
Harmony Organics has an active research program with activities in progress from lab scale to kilo lab to pilot plant scale.
Its’ strategy is to expand into future products that provide synergy to our existing portfolio and make best use of the strengths we already have in terms of people and infrastructure. In addition to our internal R&D Projects we also collaborate with excellent researchers at premier institutions in India to integrate into our manufacturing the state-of-the-art advances in Chemistry and Chemical Engineering.
The Pune-based Harmony Organics is the manufacturer of Phenyl Ethyl Alcohol (PEA) and its aroma chemicals are used in the fragrance and flavour industry. The company’s flagship products are PEA and Cinnamic Aldehyde, with an installed production capacity of 20,000 tonnes per year at its factory located in Pune.
According to the company’s website – Their next capacity expansion project is currently in progress at the Kurkumbh site. This will take their installed capacity for Phenyl Ethyl Alcohol to 8400 TPA by early 2022. In addition to capacity increase the project will also upgrade site infrastructure to enable us to lower the cost of production and increase consistency and reliability to higher levels. All these benefits will be passed on to its discerning customers.
The funds raised from Piramal Alternatives are in the form of convertible securities, the company said in a statement.
