Role of Exim Bank for Export Oriented Projects

Presentation by T C Venkat Subramanian Managing Director & CEO Exim Bank, Mumbai

Role of Exim Bank
‡ Closely involved with two-way transfer of technology, trade and investment. ‡ Promotes international competitiveness through a range of products and services at all stages of the business cycle:
² ² ² ² ² ² ² Import of Technology, Export Product Development, Export Production, Export Marketing, Pre shipment, Post shipment and Investment Abroad.

Strengths of Exim Bank ² Multi-product. diversified organisation constantly striving to reach out to its customer. promoter and partner in quest for excellence. ‡ These include programmes for promoting joint ventures and wholly owned subsidiaries abroad. ² Functions as a facilitator. ² Products and services are tailored to meet the needs of different customer groups. . quality and growth.

.Internationalisation Efforts ² Seeks to develop commercially viable relationships with externally oriented companies in order to enhance their internationalisation efforts. ² Enables Indian companies to acquire assets to improve international competitiveness.

.International Linkages ‡ Created a network of alliances with ² ² ² ² ² multilateral agencies. trade and investment. export credit agencies. trade and investment promotion bodies. commercial banks and financial institutions ‡ Linkages helps to create an enabling environment to support two-way transfer of technology.

Facilitating Export Oriented Projects ‡ Participated in export development projects supported by the World Bank. . ² This was followed by an unprecedented direct line of credit from IFC. ‡ Bank had administered an Agency Line of Credit from the International Finance Corporation for technological upgradation of small and medium enterprises.

Export Marketing Finance ‡ Exim Bank operates Export Marketing Finance (EMF) programmes ‡ Extends soft loans extended for implementation of strategic export development plans of Indian exporters in targeted industrialised country markets. .

Export Marketing Fund ‡ EMF programme was first introduced in 1986 with an amount of US$ 10 mn .allocated by World Bank to Government of India for grant finance to export oriented firms. ‡ Finance by way of grants ‡ 180 companies benefited from different sectors of industry for their overseas marketing activities. . including acquiring quality certification such as ISO 9001.

‡ After full commitment of the EMF-II programme.Export Marketing Fund II ‡ World Bank extended phase II of the programme through Exim Bank ‡ Finance to 119 companies. ‡ The programme has helped a number of Indian companies in obtaining a variety of quality certifications . ‡ Funds drawn from the Bank·s own resources. Exim Bank launched the EMF-III programme in 1992 which included extension of loans and grants.

facilitating and promoting India¶s foreign trade . aimed at enhancing their internationalisation efforts From financing.Evolving Vision To creating export capability by arranging competitive financing at various stages of the export cycle To developing commercially viable relationships with a target set of externally oriented companies by offering them a comprehensive range of products and services.

‡ Brought put a publication titled ´Business Practices of Successful Indian Exportersµ. ² highlights the reasons for success of Indian exporters in select sectors and delineate the business practices followed by them. .Enhances competitiveness through research studies ‡ Exim Bank periodically conducts studies on select sectors / markets which have export potential. ² This will help other firms to adopt suitable strategies in their globalisation efforts.

Financing of Export .Oriented Companies Term Loans Guarantees Equity .

Financing of Export-Oriented Companies Term Loans Project Finance Equipment Finance Working Capital Short Term < 1 year Term Loans for 1-2 years Long Term upto 5 years Overseas Other Investment Finance Programmes Loans to Indian companies for Equity Investment in their ventures overseas Loans to Indian companies to onlend to their overseas ventures Direct Equity stake Export Marketing Finance Export Product Development Finance for R&D EOU Projects & TUFS Software Training Institutes Minor Ports Technology Parks .

Mauritius Pharmaceuticals .Range of Financing Programmes Overseas Investment Finance Loans to Indian companies for Equity Investment in ventures overseas Loans to Indian companies to onlend to their overseas ventures Exim Bank .Netherlands Software .S. Japan Denim Fabrics .Your Equity Partner in Overseas Ventures Examples : Packaging ..Sri Lanka Shoes .Jordan.Indonesia Fine Blanking Tools .A. Morocco Watches .Singapore Laminated Tubes .U.A.S.UK Chemicals .U.China . Ireland Glass Bottles .Malaysia Phosphoric Acid .

minor product adaptation. overseas travel. product launch. it is necessary to focus on greater geographical dispersion through developing new markets ‡ Exim offers finance for export marketing to Indian companies to implement strategic export marketing plans and invest in supply side upgradation ‡ These may include desk / field research. brand promotion and investment in supply side upgradation Examples * Knitting Needles * Polyester Ropes * Home Appliances * Auto Components * Herbal Products * Textiles * Bicycles * Software * Castings * Printing Machinery . participation in international trade fairs.Export Marketing Finance ‡ With increasing competitive environment. training.

Finance for Export Oriented Companies Package for Software Exports Project / Equipment Finance Working Capital Finance Software Training Institutes Overseas Investment Finance Product / Process Certification Export Marketing Product Development Research & Development .

Your Equity Partner in Overseas Ventures Examples : Packaging .Singapore Laminated Tubes .Malaysia Phosphoric Acid ..A.Jordan.UK Chemicals .U.Mauritius Pharmaceuticals . Japan Denim Fabrics .Netherlands Software . Morocco Watches .S.China .A. Ireland Glass Bottles .U.S.Indonesia Fine Blanking Tools .Range of Financing Programmes Overseas Investment Finance Loans to Indian companies for Equity Investment in ventures overseas Loans to Indian companies to onlend to their overseas ventures Exim Bank .Sri Lanka Shoes .

Export Marketing Finance ‡ With increasing competitive environment. training. participation in international trade fairs. it is necessary to focus on greater geographical dispersion through developing new markets ‡ Exim offers finance for export marketing to Indian companies to implement strategic export marketing plans and invest in supply side upgradation ‡ These may include desk / field research. product launch. brand promotion and investment in supply side upgradation Examples * Knitting Needles * Polyester Ropes * Home Appliances * Auto Components * Herbal Products * Textiles * Bicycles * Software * Castings * Printing Machinery . minor product adaptation. overseas travel.

Finance for Export Oriented Companies Package for Software Exports Project / Equipment Finance Working Capital Finance Software Training Institutes Overseas Investment Finance Product / Process Certification Export Marketing Product Development Research & Development .

commenced business in September 2001. with WestLB. a JV. for the first time in India. Washington. Germany and IFC. promoted by Exim Bank.New Initiatives ‡ Global Trade Finance Private Limited (GTF). ‡ GTF offers. structured foreign trade financing products such as forfaiting and . ‡ GTF¶s objective is to promote market driven export-financing solutions for small and medium sized Indian exporters (SMEs) operating in an increasingly competitive world trade environment.

. The Bank brings out a bi-monthly newsletter µAgri Export Advantage¶ to facilitate information dissemination. in-house. The Bank has set up an agro-portal.New Initiatives Agri Business Group: The Bank has put in place an µAgri Business Group¶ The Group looks for viable projects and export transactions in agriculture sector. which is an IT initiative to promote knowledge-based agriculture enterprise.

particularly in the SME sector. Bank¶s network of overseas offices will play an active role and the services will be offered to well reputed and quality conscious Indian companies.New Initiatives Export Marketing Service for Indian Companies: The Bank has launched a new initiative by way of offering Export Marketing Service for Indian Companies. on a success fee basis. .

* Phosphoric Acid .U.A.Manufacturing .S.S.U.U.K. * Pharmaceuticals . ACTIVITIES .Vietnam * Fine Blanking Tools . Morocco * Software .. ‡ LOANS AGAINST INDIAN PROMOTERS¶ LOANS TO JVS/WOS.Jordan.A.Warehousing Marketing Trading Exim Bank supported setting up of number of overseas joint ventures : * Sugar . Uganda * * * * Marketing Knitting Needles Watches Denim Fabrics Netherlands Malaysia Netherlands Mauritius .Joint Ventures Overseas ‡ EXIM BANK : PROVIDES EQUITY FINANCE ‡ GUARANTEES FAVOURING BANKS OVERSEAS FINANCING JVS/WOS.

.Export Marketing Services ‡ The Export Marketing services leverage the Bank¶s high international standing. indepth knowledge and understanding of the international markets and well established institutional linkages to support a select group of Indian companies in their overseas marketing efforts on a success fee basis.

The import arrow is thinner than the export arrow. It also reflects the aim of value addition to exports. . The Logo has a two-way significance.Significance of Exim Logo The Bank aims to promote India¶s international trade. The Logo reflects this.

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