NEW DELHI, India - November 24, 2006 - Export Development Canada (EDC) today announced the signing of a Letter of Offer to finance the sale of plastic molding equipment by the Indian affiliate of Ontario-based Husky Injection Molding Systems (Husky) to Tata Auto Comp Systems Ltd (TAC), a subsidiary of Tata Motors Ltd, one of India's leading auto manufacturers. EDC's loan to TAC would facilitate the CAD 1.1 million sale of an injection molding machine manufactured by Husky's Luxembourg operations.
"This transaction is an important step to integrating Canadian capabilities with India's auto industry," said EDC Acting President and Chief Operating Officer Eric Siegel. "EDC is playing a valuable supporting role to Canadian foreign affiliates, as the competitive landscape becomes increasingly globalized. We are pleased to be active in a fast-growing segment of a market of capital importance to Canada and to be building up our relationship with Tata Group, a world-leading industrial conglomerate."
Mr. Siegel made his remarks during a 10-day tour of Mumbai and New Delhi to meet a wide range of Indian and Canadian companies. India is the second fastest-growing automotive market in the world, with approximately eight million vehicles produced annually. Passenger cars represent an especially high-growth segment, posting double-digit growth in 2003 and 2004. Market growth forecasts suggest India's auto sector will achieve growth of about 10 to 12 per cent by the end of 2006, which matches long-term economic growth prospects for the market.
TAC is part of the Tata Group which is one of India's largest conglomerates including India's second largest steel producer, Tata steel. Tata Group has combined revenues of approximately USD 14 billion. TAC is co-owned by Tata Motors, Tata Industries, Tata Sons and Tata Investments Limited. It was established in 1996 specifically to serve the Indian auto industry and has seven subsidiaries and 11 joint ventures. The joint ventures involve key companies such as Johnson Controls, Faurecia, Toyo Radiators and other Japanese companies. TAC buyers are made up of Indian automotive original equipment manufacturers, including Tata Motors.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact: Phil TaylorPublic AffairsExport Development Canada (613) 598-2904ptaylor@edc.ca
