ACE International Limited
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
ACE International is a leading dairy derivatives company in India with over three decades of experience. It offers a diversified B2B and B2C product range and has a strong track record of profitability. ACE serves a growing niche market by developing and supplying dairy-based formulated food ingredients for nutraceuticals and fast-moving consumer goods in India.
What is our funding objective?
FMO is investing USD 18 million in equity as part of a broader consortium that includes reputable European impact investors. The capital raised will be primarily growth-focused and allocated to expanding the company’s existing processing facilities, developing a new facility, and integrating its milk procurement system upstream.
Why do we fund this investment?
FMO believes that by investing in ACE, it is supporting a front-runner in a burgeoning and dynamic sector. ACE International also delivers a strong social impact. Last year, the company sourced 25% of its milk from the women-led Milk Farmer Producer Organization (“FPO”). This women-led FPO initiative pays premiums for quality milk, provides training and veterinary services, and is piloting value-added products for its members, such as biodigesters. The company plans to further invest in its own milk procurement system in the future, incorporating some elements of the FPO model. Finally, ACE International is venturing into nutraceuticals and nutritional food supplements—an exciting and impactful sector with significant growth potential in India.
What is the Environmental and Social categorization rationale?
This transaction has a B+ Environment & Social (E&S) risk. It involves a milk derivatives manufacturing facility in Uttar Pradesh with approximately 270 employees. The existing processing facilities trigger IFC Performance Standards (PS) 1–4. Full dependence on the milk supply chain, the large number of smallholders, supply from larger-scale dairy farms, and plans to upgrade the existing factory warrant the higher risk category of B+. Animal welfare issues, climate change impacts, sourcing quality feed during the dry season, and agroforestry and silvo-pastoral initiatives increase the potential PSs triggered to include PS 5 and PS 6.
- Website customer/investment
- https://www.mahaanmilkfoods.com/
- Region
- Asia
- Country
- India
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 2/25/2025
- Effective date
- 10/16/2025
- Total FMO financing
- INR 1627.02 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+