India Agribusiness Fund II Limited

South Asia Food and agriculture, Other consumer services

Rabo Equity Advisors, part of Rabobank, is an investment advisor with offices in New Delhi and Mumbai. The team brings together significant sector expertise, especially in food and agribusiness.

Rabo Equity’s India Agri Business Fund 2 (IABF 2) is a private equity fund which invests in growing businesses across the agribusiness sector. This includes infrastructure, food processing, rural retail, and cold chain storage and distribution companies.

The fund focuses on the food processing sector, which is estimated to grow 12-15 per cent in the next five years.

Our investment

In December 2014, CDC committed $30 million in IABF 2. The fund raised $150 million which it uses to back between 12 and 15 small and medium sized companies with equity investment sizes ranging from $5 million up to $30 million. We hope to see a significant share of our investment benefiting the low-income states in India where a large number of agribusinesses are based.

Expected impact

Indian agribusiness is a fast-growing domestic market, where increased demand for food products has been fuelled by rapid growth in disposable incomes and demographic change.

But the sector continues to face limitations such as poor quality farm services, shortfalls in warehousing and cold chain facilities, as well as fragmented retail markets.

Investments to modernise food and agribusinesses – and reduce food waste – are urgently needed and will have a direct impact on reducing poverty.

IABF 2’s predecessor, India Agri Business Fund 1, was the country’s first dedicated agribusiness fund. It has made ten investments in companies including Super Agri Seeds, Prabhat Dairy and NCML.

Rabo Equity is also looking to attract global institutional investors to support its plan to double investments in the country.

Environmental and social aspects

We work closely with the fund manager to develop and implement an Environmental and Social Management System that has the capacity to manage the higher level of E&S risk associated with this sector.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Food and agriculture, Other consumer services
Website:
http://www.raboequity.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Rabo Equity Advisors
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
October 2014
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$30m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Cremica Food Industries Limited

Cremica, based in the Punjab, is an Indian condiments company catering to the consumer retail sector and to the food service sector. Its key products are mayonnaise and ketchup and it also has a range of sauces, purees and snack foods.

View investment details

India South Asia Food and agriculture June 2016 Active
Parijat Industries (India) Private Limited

Parijat, based in Delhi, is a generic formulations player in the crop protection chemicals industry, including insecticides, herbicides and fungicides.

View investment details

India South Asia Food and agriculture June 2016 Active
Olive Bar and Kitchen Pvt Ltd India South Asia Other consumer services November 2017 Active
Global Gourmet Pvt. Ltd India South Asia Food and agriculture February 2018 Active
Naturell India Pvt Ltd India South Asia Food and agriculture April 2018 Active
Nature Bio Foods India South Asia Food and agriculture November 2018 Active