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.