MUMBAI, India, Nov. 4, 2015 /CNW/ - Export Development Canada (EDC) and Tata Sons have entered into an agreement, under which EDC will provide up to USD 500 million every year in financing for Tata companies. EDC will underwrite loans under the agreement as opportunities arise for Canadian companies, particularly small- to medium-sized exporters (SMEs), within Tata companies' global supply chains.
Tata companies have invested more than CAD 1.3 billion in Canadian operations over the past 5 years, CAD 355 million last year alone, with active consideration for new developments going forward.
Among Tata companies present in Canada are Tata Global Beverages, Tata Steel, Tata Consultancy Services, Tata Chemicals, Tata Communications, Tata Technologies and Tata Interactive, with approximately 3,000 employees at various operations. Their facilities include an IT development centre (Ontario), telecommunications facilities (Quebec and Ontario), iron ore mining (Quebec) and soda ash distribution centres (Quebec and New Brunswick). Tata companies' worldwide operations already count more than 1,000 Canadian suppliers.
The financing agreement was signed by Mr. Madhu Kannan, Member, Group Executive Council, Tata Sons, and Mr. Benoit Daignault, President and CEO of EDC.
Commenting on the agreement, Mr. Kannan said, "The Tata group has had a long standing and successful presence in Canada. EDC continues to be a very important partner for us and we are delighted to enter into this funding arrangement with them which would facilitate the expansion plans of Tata companies."
"The Tata group is a critical organisation within a key market for Canada - India -- and the financing is a reflection of Tata's importance to Canadian exporters," said Mr. Daignault. "Equally important is Canada's importance to Tata, with EDC's financing helping them deepen their roots here at home and create new opportunities for Canadian companies," he added.
About the Tata group
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising over 100 independent operating companies. The group operates in more than 100 countries across six continents, with a mission 'To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust'. Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. In 2014-15, the revenue of Tata companies, taken together, was $108.78 billion. These companies collectively employ over 600,000 people. Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors and shareholders. There are 30 publicly-listed Tata enterprises with a combined market capitalisation of about $134 billion (as on 31st March 2015). Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels. (www.tata.com)
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment. (www.edc.ca)
SOURCE Export Development Canada
For further information: EDC, Phil Taylor (Eastern Standard Time -11 hrs from IST), Email: [email protected], Tel: 1-613-291-1276; Tata Sons, Debasis Ray/Sarika Kapoor Chokshi, No-022-66657209/7891, [email protected]; [email protected]