In one of the biggest fundings in the Indian chemical sector, the US-based TFCC International has announced investment of $4.14 billion in Chennai-based Ramcharan Co Pvt Ltd for a 46 per cent equity. This values the little-known company — which is into deep-tech, end-of-life chemicals (converting unsegregated waste into energy) and new-generation energy storage devices — at $9 billion.

The money will be deployed in environment-to-energy management systems and renewable energy devices with high storage capacity that are made from sodium silicate. The investment will be with a horizon of five to seven years, and the first round would close by January 2021, says a joint press release.

TFCC International is a deep-impact fund, with investments from high-networth individuals, government agencies and financial institutions based in New York. It has had investments in West Asia and South Asia; in India it is looking at impact investments in the areas of environment solutions, renewable energy and low-cost housing. Currently with a portfolio of $20 billion invested in South Asia, TFCC is entering the Indian market through its investment in Ramcharan Co.

Tapping energy from waste

Chris Curtis, Chairman, TFCC International, said, “We are looking forward to this business with great anticipation. Technologies such as those promoted by Ramcharan, and the immense headroom for sustainable growth, echoes with our investment objectives, and we believe that Ramcharan’s products in the waste-to-energy field and the new generation of energy storage devices will help the environment in a significant manner. It also is in line with the global sentiment expressed in the recently concluded COP26 meets, and in line with Prime Minister Narendra Modi’s expectation for India.”

TFCC had signed an MoU with Ramcharan in March this year to invest into its equity, which was concluded with a shareholders’ agreement in October 2021. Ramcharan currently has a business plan and orders of up to $9 billion and is looking at surge sales from three years to the sixth year of its production, taking the expected revenue to $40 billion after the fourth year.

The technology used by Ramcharan allows for zero toxic residue, and can convert all types of unsegregated waste into energy.

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Ramcharan had started off as a chemical distribution company and moved to research based on managing end-of-life chemicals, owing to the harm they cause to the environment.

Ramcharan is planning a zero-parts-per-million production unit, and is among the first globally to set up ‘end-product responsibility’ for its products. The technology, developed in-house, has been branded under the name Entity 1; a slew of products are lined up for release from 2022 till 2024. It plans to have manufacturing facilities in Tamil Nadu and Gujarat, the release said.