The Hindu Business Line : Exim Bank extends export marketing services to SMEs

Kolkata, Sept. 2 Exim Bank has chalked out a new capacity-building programme for the SME sector by extending ‘Export Marketing Services’ to establish their products overseas and also enter new markets through the bank’s overseas offices and institutional partner network.

The bank is also working with large corporates such as ITC Ltd (for agarbattis rolled by rural women), for establishing institutional linkages with tiny and cottage sector and rural artisans through a programme anchored on a success-fee basis approach.

Making a presentation at an interactive session organised by the Federation of Indian Export Organisations (FIEO), eastern region here, on the bank’s role vis-À-vis globalisation strategies for Indian SMEs, Mr S.R. Rao, Executive Director of the bank, said some of the sectors already assisted include ayurvedic products (exported to Hungary), tiger prawns (to a restaurant chain in South Africa), incense sticks to Singapore, S. Africa and the US and Lucknow chikan kurtas to Singapore. Asked on the tie up with ITC Ltd for export marketing of agarbattis sourced by the company from the cottage sector, Mr Rao said, “We assist in locating overseas buyers/partners/for their products/services.”

He said the programme was highly successful in establishing rural linkages for export of cottage sector products benefiting the rural population. Exim Bank, he pointed out, was already looking at similar projects in the North-East to promote the traditional handicrafts of the region.

He said the bank has successfully operated the agency credit line for the SME sector from IFC, Washington for $15 million, and has provided matching rupee loans.

Exim Bank also finances units in agri export zones to facilitate export of agri products. Pointing out that the bank will encourage viable projects in the agri sector, for product development and export marketing, Mr Rao said there was a tripartite MoU between Exim Bank, Agricultural and Processed Food Products Export Development Authority and Nabard for promoting agri exports. The bank already has a MoU with the Union Ministry of Food Processing industries for financing new units in this sector.

Mr Rao said Exim Bank was negotiating a line of credit of $250 million from Asian Development Bank, which will be earmarked for extending loans to the SME sector.

The bank, he said, will have the option to draw funds in different currencies to suit the needs of customers.

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