International Finance Corporation (IFC), the private banking arm of the World Bank, is aggressively looking at the opportunity to participate in the expansion and globalisation of the Indian SMEs in the manufacturing sector. | |
| IFC's senior manager for South Asia Sujay Bose told reporters here that Indian SMEs in the manufacturing sector, especially in the automotive components segment, hold a high promise of expanding globally thanks to their technical capabilities and low costs. |
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| Bose said that IFC will be keen to fund the expansion and acquisition of these firms through equity and debt funding. "We will bank on the relevance of long term funding options for these players, as they may take long to turn in high profitability," Bose said. |
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| While there is no set time limit for IFC's equity exit, the debt can be offered with tenors as long as 15 to 20 years, he added. |
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| In addition to the direct funding IFC will offer, the firms will also be offered technical assistance by a team of industry experts, Bose said. |
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| Although IFC is present across the industry spectrum through their funding of large, medium and small size units, there will added focus now on the firms in the annual revenue range of Rs 100 crore, Bose explained. |
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| As Indian firms plan to go global and tap opportunities anywhere in the world, IFC expects a major merger and acquisitions syndrome, Bose stressed. "We will be interested in being part of this acquisition play by supporting the funding needs of the Indian firms," he said. |
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| Bose informed that IFC will also offer to play matchmaker for Indian players to find the right partners for them in the emerging markets like Brazil or Africa. |
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| The mergers will be intended to expand the capacities, enhance product range or market access, he said. |
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