Inside Equity Fund has committed to invest an initial US$3.75mn in Technopet as part of the company’s US$10mn+ investment plan over the next 2-3 years to expand its PET preforms production capacity. Technopet is the only PET preform manufacturer in Madagascar, and increasing its production capacity will directly increase the proportion of local production versus imports. The Fund will also work with the promoters towards the improvement/certification of its operations, the development of its activities on the other islands of the region and the reduction of the environmental footprint of this sector.
Mr Rushil Patel, Principal at Inside Capital Partners said: “We are very excited to work with the strong entrepreneurs and experts at Technopet to materialize the vision of building a key Malagasy business and help it to become a regional player. Through direct promotion of local SME manufacturing and import substitution, we expect our investment to generate both attractive returns for our investors and strong benefits for the Malagasy socio-economic environment. Furthermore, we are convinced that with the increased scale of its operations and the deployment of new technologies, the company will be able to work towards the reduction of PET waste in the region which, needless to say, would have tremendous environmental and social impact.”
Mr Shayan Hassim, Managing Director at Technopet said: “We are delighted to partner with Inside Capital Partners in taking Technopet to the next level in terms of scale, performance and regional outreach. More than that, we are excited to demonstrate that unwavering ethics and best practices in terms of CSR and ESG commitments can be aligned with commercial success in developing countries, and those are values that we share with Inside Capital Partner's team.”
Following that investment, the Fund which is in the second year of its investment period, has committed in excess of 60% of its total committed capital.
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