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 Annual Report 2009-10
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| Home : Finance & Services : SME Finance: Initiatives | :: SME INITIATIVES |
- Exim Bank has signed a Memorandum of Cooperation with DHAN Foundation,
Madurai (a leading NGO covering 3 lakh families in 4 states) for advisory
and financial support for export related activities for their grass
root enterprises
- Set up units to produce value-added products from organic tamarind
grown in the area
- CFTRI technology has been tied-up
- Steps are on to set up an export oriented coco-peat projects
- To market products made out of palm leaves and handmade
papers in Europe through our overseas offices
- To devise marketing strategy for marketing local handicrafts
to foreign tourists through 5 star hotels.
- Exim Bank has signed Memorandum Of Cooperation with BASIX, Hyderabad.
BASIX promotes development for the rural poor and
women, mainly through Micro-credit and Micro Finance.
Highlights of MoC:-
- joint consultancy studies,
- productivity enhancement,
- market linkages, capacity building,
- entrepreneurship
development,
- commercialization of India's rural sector in overseas market
- technical assistance to micro and small-enterprises in the
farm and non-farm sectors in other developing countries,
- Exim Bank along with BASIX to organise skill upgradation workshop
for handloom weavers in Mahabubnagar Mandal & for tussar silk weavers
in Kosgi, Andhra Pradesh
- BASIX in association with Govt. of Rajasthan and UNDP is
engaged in discussions for developing export clusters in Rajasthan
including Stone Carving and Dari Cluster in Lawan, Dausa and Pottery
Cluster in Basawa.
- Exim Bank is engaged in helping the clusters in product development
and establishing export market linkages, organizing workshops
and training programs for skill upgradation of rural artisans.
- Exim Bank’s Dubai ( formerly Budapest ) office helped in exporting sandstone
slabs to Hungary
- Exim Bank has signed a Memorandum of Cooperation with Uravu (an
NGO involved in employment generation programs in the bamboo sector
for tribal & poor families in Waynad, Kerala) to provide larger
visibility to bamboo-based handicraft products. Highlights of MoC:-
- Facilitate promotion of Uravu's or its associates' products
in overseas market.
- Identification of suitable buyers / parteners by Exim Bank for
facilitating export business of Uravu and its associates.
- Exchange of information on international markets for various
products, technology, trade, business and investing opportunities
to facilitate increased co-operation for commercial exploitation
in overseas markets.
- Conducting joint studies and research in areas of mutual
interest
- Exim Bank has initiated discussion with handloom weavers
cooperative societies in Fulia (West Bengal) for marketing
their products overseas
- National Institute of Fashion Design, Handloom & Handicraft
Export Promotion Council and Directorate of Handloom, Govt. of
West Bengal participated in the discussions at Exim’s office in
Kolkata
- One suggestion under discussion is to form a marketing company
with equity participation by the weavers co-op, West Bengal Govt.
and Exim Bank which will take up marketing of the products
- Feasibility report under preparation by Indian Institute of
Social Welfare & Business Management, Kolkata
- Exim Bank is also associated with rural knowledge centre of M.S.
Swaminathan Research Foundation for providing technology inputs to
rural areas.
Export Market through Lines of Credits
- Exim Bank’s extends export Lines
of Credit (LOC) to overseas financial institutions, regional
development banks and foreign governments and their agencies and Buyers’
Credits (BC) to foreign corporates
- LOCs serve as a market entry mechanism to Indian exporters and provide
a safe mode of non-recourse financing option to Indian exporters
- LOCs/BCs are particularly relevant for Indian SME exporters
as the payment risk is borne by Exim Bank; Obviate the need for credit
insurance from ECGC, etc.
- Bank has supported a no. of SMEs through LOC/BC mechanism for entering export market without payment risks
- Bank’s exposure to SMEs will increase considerably when these LOCs get disbursed
Export Factoring Services
- Exim Bank's joint venture company, Global Trade Finance Limited, Mumbai (joint venture with IFC
and FIM Bank) offers export factoring services to SME exporters
Market and Skill Development
- Exim Bank recently launched an ‘Export Marketing Services’ programme
- Seeks to help Indian SME sector to establish their products
overseas and enter new markets through Exim’s overseas offices
and MOU partner network
- No upfront fees, but operates on success-fee basis
- Eximius Centres of Learning in Bangalore/ Pune/ Ahmedabad
– for knowledge building & capacity creation for SMEs
- Set up to organise seminars and workshops for the benefit
of exporting companies, particularly SMEs
- Enterprise Management Development Services Programme under
implementation in association with International Trade Centre,
Geneva comprise:
- Development of IT tool kit which will enable SMEs to develop
bankable business plans thereby enhancing their access to
finance
- Tool kit will also enable lending institutions to screen viable projects
- Exim Bank has allocated funds for providing loans to number
of small units with export orientation
Institutional Linkages
- Tie-up with CFTRI, Mysore
- Adoption of technologies that can be upscaled with relatively lower amount of investments
- Promotion of SME projects based on CFTRI technologies in overseas market
- Tie-up with CBI Netherlands
- Trade capacity creation and knowledge building
- Select workshops for SMEs done in the past include specialty
& fine chemicals, engineering goods, market entry and market access
strategies for Indian SMEs to EU
- Recently conducted a series of workshops (Jaipur, Shillong, Delhi) with Dutch experts for promotion of Indian handicrafts abroad
- Tie-up with a number of commercial banks for easier credit delivery
Similar arrangements will be proposed with relevant institutions in India and abroad for enhancing SME competitiveness
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