Jayant Oil to sell 23% for Rs 300 cr

Jayant Oil Mills & Derivatives has decided to offload 23 per cent stake to a foreign bank for Rs 300 crore.

The Mumbai-based castor oil derivatives major, which is shifting its manufacturing unit to its upcoming Rs 1,500-crore SEZ in Vadodara, recently inked an MoU with the bank, sources close to the development told Business Standard while confirming the size and equity stake of the deal.

Jayant Oil is also planning to come up with an IPO of about Rs 600-1200 crore in 6 months to fund its expansion plans in Vadodara, sources said.

Jayant Oil Mills is looking for a tie-up with French company Arcena for contract farming of castor in 27 districts across Maharashtra.

"We are considering various options to fund our SEZ and are close to a deal with an equity partner," said Maneck Kanga, executive director of Jayant Oil Mills while refusing to divulge the name of the investor.

The company has acquired 300 acres of land in Vadodara for its SEZ which will house the captive units. About 70-80 acres will be utilised for setting up a unit to manufacture Nylon 11, a derivative of castor oil.

The company is also enhancing its existing crushing capacity of castor seeds from 1200 to 1500 tonnes. It will shift its sebassic acid plant in Vadodara to the SEZ and enhance its capacity from 8,000 tonnes per annum to 20,000 TPA.

"All our units will be under one roof at the upcoming SEZ in Vadodara, which is one of the first 15 special economic zones that were been notified by the centre," according to Kanga.

The company has also forayed into pharma, with its Ayurnet Healthcare venture manufacturing standard ayurvedic medicines.