Date:21/01/2007 URL: http://www.thehindu.com/2007/01/21/stories/2007012101511500.htm

Business

ECGC mulling export factoring subsidiary

MUMBAI: The Export Credit Guarantee Corporation of India (ECGC) may float a full-fledged subsidiary to help boost exports by SMEs.

"We have already started looking for strategic alliance for this purpose with global financial outfits. The partner will have a majority stake in the subsidiary,'' ECGC Chairman and Managing Director Christy Fernandes told reporters here on Friday.

He said the ECGC might rope in more than one global outfit to launch the export factoring subsidiary.

Mr. Fernandes was interacting with reporters shortly after launching a separate business unit within the organisation for export factoring.

He, however, declined to give any timeframe for the launch of the subsidiary, saying the decision would be taken only after examining the success of the recently-launched business over a period.

ECGC, Mr. Fernandes said, expected to incorporate at least 200 clients in its fold within the first three years of launching of the separate business unit, which is expected to generate a turnover of Rs. 570 crore.

"Within the first year, we hope to rope in 60 clients and a total of Rs. 150 crore turnover,'' Mr. Fernandes said.

He said the company would provide the service mainly to SME exporters across the country through its 51 branches.

ECGC has tied up with IDBI Bank for this new initiative. — PTI