Birla Carbon India Pvt, a closely held subsidiary of the billionaire Kumar Mangalam Birla-led Aditya Birla Group, is seeking to raise approximately $1.5 billion in an offshore loan, according to sources that spoke with Bloomberg.
According to the sources, the sale's proceeds will be primarily utilised to repay current debt, with a smaller amount reserved for expansion. Axis Bank, First Abu Dhabi Bank, ICICI Bank, Standard Chartered Bank, DBS Group Holdings, HSBC Holdings, and Union Bank of India are among the lenders.
When the deal closes, the manufacturer of carbon black additives—which are commonly used in the production of tyres and plastic coatings—will be among the top five Indian debtors seeking foreign currency loans this year, according to statistics published by Bloomberg.
Carbon black is a substance that is created when coal tar, vegetable matter, or petroleum products such as fuel oil, fluid catalytic cracking tar, and ethylene are incompletely burned in a controlled amount of air.
India, which is the world's fastest growing major economy, is seeing tremendous credit expansion, which serves as a backdrop for the planned fundraising. According to the data, Indian corporates have raised $19.8 billion in loans thus far in 2023, the most in the last four years.
Birla Carbon did not reply to Bloomberg's request for comment right away. According to the company's website, it is the leading producer and supplier of carbon black worldwide. Birla Carbon has two technology centers at Marietta (USA) & Taloja (India), besides well-equipped laboratories across its manufacturing units providing for continuous R&D focus.