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.”
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
It was established in 1996 specifically to serve the Indian auto industry and has seven subsidiaries and 11 joint ventures.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international
EDC’s knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year.
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