Morgan Stanley fund and IFU focus on Suminter
- ByStartupStory | December 6, 2022
According to at least two people with knowledge of the potential deal, North Haven India Infrastructure Fund, managed by Morgan Stanley Investment Management Inc., and Denmark’s Investment Fund for Developing Countries (IFU) have emerged as the front-runners to invest in organic food exporter Suminter India Organics Pvt. Ltd. The people, who spoke on the condition of anonymity, said that Mumbai-based Suminter India Organics intended to raise between $50 million and $55 million (408-450 crore) through the transaction.
Investments are made in industries like energy, utilities, mobility, logistics, social infrastructure, and healthcare by North Haven India, which focuses on asset-light infrastructure assets. Previous investments made by the fund include the waste management and recycling start-up Recykal, the pallet sharing company LEAP India, and the iBus Network and Infrastructure.
Clean Max Enviro Energy Solutions, Leap India Food and Logistics, DCDC Health Services Pvt. Ltd., and Lakshmi Agri Logistics are a few of IFU’s major investments in India. Up until the time of publication, email inquiries to spokespeople for Suminter India, North Haven India, and IFU went unanswered. Since its founding in 2004 by Sameer Mehra, Suminter has served as a conduit between small farmers and buyers all around the world looking for superior organic goods. Oilseeds, cereals, fibres, medicinal plants, spices, seasonings, spice blends, ready-to-eat foods, and other speciality items are among the products that the company exports from organically farmed crops.
In the beginning, Suminter assisted farmers in obtaining certifications for organic farming, a procedure that took close to three years. Currently, the business collaborates with over 80,000 organic farmers. The company gives farmers seeds and instructions on how to use different bio-manures, bio-pesticides, and composting techniques.
Direct farm projects in nine states—Gujarat, Maharashtra, Uttaranchal, Rajasthan, Kerala, Orissa, Madhya Pradesh, Andhra Pradesh, and Mizoram—provide Suminter with the majority of its organic product supply. The company’s revenue increased from 417 crores the year before to 669 crores in FY21. According to the most recent information available compiled by VCCEdge, its net profit increased to 26 crores from 1.7 crores during the period.
2018 saw the company receive funding of an undisclosed amount from impact investor responsAbility Investments AG of Switzerland. External investors in the company also include Capricorn Investment Group and the alternative asset management firm Nexus Venture Partners.
International Finance Corp., the private sector investment arm of the World Bank, announced in September 2017 that it intended to invest up to $20 million in equity in Suminter. Later, the $10.66 million investment was approved by the IFC board, according to a statement on the organization’s website.
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