Kotak Strategic Situations India Fund II (KSSF II), an alternative investment fund managed by Kotak Alternate Asset Managers Ltd (KAAML), said Thursday it has invested Rs 375 crore ($45 million) in Cropnosys (India) Pvt. Ltd.
Bangalore-headquartered Cropnosys plans to use the funding to scale up its manufacturing capabilities and product offerings. It is also focused on introducing organic bio-fertilizers to the market, the fund said in a statement.
This is at least the third deal by the KSSF II so far since it marked its first close—a fundraising milestone after which alternative investment firms start deploying capital—at $1.25 billion (Rs 10,200 crore) in March.
KSSF II, which has a target corpus of $1.6 billion, invested Rs 450 crore in Viney Corp in June to help the company and its promoter buy out a Dubai-based private equity firm. Also in June, the fund invested Rs 582 crore in RattanIndia Power.
Founded in 2006, Cropnosys is an agrochemical firm. It manufactures crop protection products such as herbicides, fungicides and insecticides. It also sells crop micronutrients products. It manufacturing facility is located in Vapi, Gujarat.
Explaining the rationale behind investing in Cropnosys, Rahul Shah, partner at Kotak Strategic Situations Fund, said India has emerged as the leading exporter of agrochemicals globally on the back of its strong manufacturing ecosystem, proven track record and cost competitiveness.
Established in early 2005, Kotak Alternate Asset, a part of the Kotak Mahindra Group, manages alternative assets and offers investment advisory services. It has raised and managed over $18 billion across various asset classes, including private equity, real estate, infrastructure, special situations, private credit, and investment advisory.