United Phosphorous to raise $75 mn in loan

Ahmedabad, Oct 16 (IANS) Agro-chemical major United Phosphorus Ltd (UPL) is raising around $75 million in loan from the International Financial Corp (IFC) to fund its expansion as well as new projects in the next three years.

The IFC loan will also enable UPL finance acquisition of new products or companies in the emerging markets. The company's investment plan for expansion, acquisition and new projects is estimated at $100 million.

UPL chief financial officer S. Krishnan said a major part of the loan would be used for the expansion of Ankleshwar and Jhagadia facilities in Gujarat.

He, however, refused to give details about the new products.

Funds will be used in leveraging India as a low-cost production base by expanding the plants processes in the country and by rationalising the company's cost base.

UPL has 23 manufacturing sites across the world of which nine are in India.