Pune, India, July 25, 2006—
The International Finance Corporation, the private sector arm of the World Bank Group, has invested $ 7.7 million in equity to strengthen and expand the operations of RSB Limited, one of the leading automotive component manufacturers with operations in Pune, Jamshedpur and Dhawar. IFC’s financing will enable the company to become a global player and to strengthen its corporate governance and environmental, health, and safety practices.
Iyad Malas, IFC’s Director for South Asia, said, “IFC’s strategy in India is to invest in medium-size manufacturing companies that are modernizing to become internationally competitive. IFC’s participation in the RSB group will help strengthen the company by enabling it to broaden its product range, realize better economies of scale and improve its competitiveness. Our support to RSB will translate into the availability of high quality manufactured automotive components in the growing domestic and international market at low cost.” He elaborated, “IFC finances private sector investments in transition and developing economies, mobilizes capital in international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.”
Dmitris Tsitsiragos, IFC’s Global Manufacturing and Services Director, said, “ The investment in RSB group fits in with IFC’s strategy in the transport equipment sector in India, of helping local players to scale up and become internationally competitive.” IFC’s Transport Equipment sector includes OEMs, automotive and railway component manufacturers and other transport services. He added, “In the Indian automotive component industry, IFC is targeting companies with high growth potential to enable them to expand manufacturing capacity and to access the export market.”
R K Behera, Chairman, RSB Group, said, “We are delighted that International Finance Corporation, chose RSB in partnering us for accelerating the implementation of growth and expansion projects.”
Speaking on the occasion, S K Behera, Managing Director, RSB Group, added that, “RSB’s strength lies in seven manufacturing plants spread across the country, delivering international quality products and building enduring relationships with our key customers. With two more plants under commissioning in Uttaranchal and Chennai, the RSB group is set for tapping into hitherto unexplored markets in domestic and international markets.”
About RSB Group
RSB Group was established in 1975, and consists of two main companies: International Auto Limited and RSB Transmissions Limited. The company manufactures and supplies a wide range of automotive components to car, truck, tractor and construction machinery original equipment manufacturers. The group plans to grow its business by expanding production capacity at its plants in Jamshedpur and Pune; building new plants in Chennai and Uttaranchal to manufacture components for construction machinery and commercial vehicles respectively and setting up two new facilities to supply part of its requirement for forged components.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
In India, IFC's current held portfolio is $1.2 billion, making India IFC's second-largest country of operations. IFC is focusing on direct investment and technical advisory support to promote private sector–led growth and competitiveness in India. In FY2005 alone, IFC committed $413 million in new investments in the country. For more information, visit
www.ifc.org
.