ACE International Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
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 prospective customer?
ACE International is a leading dairy derivatives company in India with over three decades of experience. It has a diversified B2B and B2C product range and a strong track record of profitability. ACE serves a growing niche market in the development and supply of dairy based formulated food ingredients for nutraceuticals and fast-moving consumer goods in India.
What is our funding objective?
FMO would like to invest up to USD 20m in equity within a broader consortium that includes reputable European impact investors. Capital raised will primarily be growth-focused and used for the expansion of the company's existing processing facilities, development of a new facility, and upward integration of its milk procurement system.
Why do we want to 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 has a strong social impact. Last year, the Company sourced 25% of its milk from the women-led Milk Farmer Producer Organization (“FPO”). The women-led FPO initiative pays premia for quality milk, provides training and veterinary services, and is piloting value-added products to its members such as biodigesters. The Company will invest further in its own milk procurement system in the future, taking along some elements of the FPO model. Finally, ACE International is venturing into nutraceuticals and nutritional food supplements, an exciting and impactful sector with growth potential in India.
What is the Environmental and Social categorization rationale?
Subject to due diligence, this transaction has been evaluated as a category B+ in terms of Environment & Social (E&S) risk. ACE is categorized as B+. It has a milk derivates manufacturing facility in Uttar Pradesh with ~270 employees. The existing processing facilities trigger IFC Performance Standard (PS) 1-4. The full dependence on the milk supply chain, the large number of smallholders, the supply from larger-scale dairy farms, and the plans for upgrading the existing factory, warrant the higher risk category B+. Animal welfare issues, climate change impacts, sourcing of quality feed during the dry season, and their agroforestry and silvo-pastoral initiatives increases the potential PSs triggered to potentially PS 5 and PS6.
- Website customer/investment
- https://www.mahaanmilkfoods.com/
- Region
- Asia
- Country
- India
- Sector
- Agribusiness, Food & Water
- Publication date
- 2/25/2025
- Deadline for feedback
- 4/26/2025
- Total FMO financing
- USD 20.00 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+