Harmony Organics raises INR 225 Cr from Piramal Alternatives

• Fund raised in the form of convertible securities
• Plans to tap global market opportunities and develop new & expand capacities in Fragrance & Flavor industry

MUMBAI, India, Aug. 9, 2023 /PRNewswire/ -- Harmony Organics Pvt Ltd, a Pune-based Specialty Chemicals company has raised Rs. 225 crores from Piramal Alternatives, the fund management business of the Piramal Group, to tap into growing global opportunities in the fragrance & flavor industry. The funds raised from Piramal Alternatives are in the form of convertible securities.

Established in 1976 and the company is the largest manufacturer of Phenyl Ethyl Alcohol (PEA) in India & 2nd largest in the world – their aroma chemicals are used for the fragrance & flavor industry. The company's flagship products are PEA & Cinnamic Aldehyde; with an installed production capacity of 20,000 Tons per year at its factory located in Pune.

The company has developed derivatives of PEA, Cinnamic Aldehyde, and other value-added specialty chemicals to cater to the requirements of the F&F industry.

Globally, the Fragrance & Flavor industry is showing a strong growth forecast and was valued at USD 29.0 billion in 2021, projected to reach USD 37.3 billion by 2026. The Indian fragrance & flavor industry is contributing as one of the largest in terms of production, consumption and offers innumerable growth opportunities of 10-12% in the coming 3-4 years. With over 15 Geo- climatic zones, India is the leading country in the world with its rich diversity in flora and fauna.

Speaking on the occasion, Mr. Ravi Nangia, Chairman, Harmony Organics, said "The opportunity in the fragrance and flavors industry for India is huge, and with the "MAKE IN INDIA" policy of government is likely to grow even further over the next 3-4 years. This funding support from Piramal will help the company to tap this opportunity and set it on a tremendous growth path on the back of a robust order book The company is a leading "Member Exporter" of CHEMIXIL contributing to the government's goal of achieving the target.

Mr. Sandeep Mehta, Managing Director & CEO - Harmony Organics, said "The company has already onboarded global customers such as Givaudan, IFF, Symrise, Takasago, P&G, MANE and the domestic leading players like KELKAR group, Oriental Aromatics, many other leading players and shall continue to track opportunities to address the larger market size. It has also filed US patents as well as REACH certifications. The company is planning to make strategic investments to build & expand state-of-the-art facilities at the existing & new locations in the next couple of quarters The current funding is against issuance of convertibles for the purpose to expand capacities and explore inorganic opportunities. This expansion with result Harmony becoming one of the leading aroma chemical player in the Country. Overall, the plan is to take the company public in the next couple of years based on the strong growth trajectory and ability to expand its product portfolio"

Mr. Kalpesh Kikani, CEO, Piramal Alternatives said "We are delighted to partner with Harmony Organics in their growth trajectory and look forward to supporting them in this journey by adding value to the business going forward. Through Piramal Alternatives, we aim to aid mid-market companies by providing flexible, bespoke and value accretive capital."

The Piramal Group's fund management division, Piramal Alternatives, has a proven track record of strong relative performance, multiple realizations across asset classes, and collaborations with a number of world-class investors. Piramal Alternatives aims to be a significant provider of customized solutions across the entire capital stack to high-quality corporates that are looking to maximize their growth.

ICBC Mumbai was the exclusive financial advisor for this deal. 

About Harmony Organics:

Harmony Organics is a leading manufacturer of Aroma Chemicals for the Fragrance & Flavor Industries. Phenyl Ethyl Alcohol is their flagship product with an installed production capacity of 6000 Tons per year. The company is the largest manufacturer of PEA in India and 2nd largest in the world. Harmony Organics also manufactures Cinnamic Aldehyde with a current manufacturing capacity of 2400 tons per year and planned expansion to 3600 tons per year by Mar 2022. Harmony Organics began with a plant in New Bombay 30 years ago for the manufacture of aroma and specialty chemicals, mainly for the fine chemical industry. The company has made products like phenyl ethyl alcohol involving the use of highly hazardous material like ethylene oxide. The company has Kosher, Halal, and REACH certifications for all the products (where relevant).