A

Seminar Repor

On

lIFCI
(Industrial Financial Corporation of India)
Session (2007-09)

Submitted to :- Submitted By:-

Mr. Harvinder Shyama

Faculty MBA Ist sem.
JMIT, Ynr Roll No. 2007056

SETH JAI PARKASH INSTITUTE OF MANAGEMENT &

TECHNOLOGY
Radaur, Yamuna Nagar-135001
(Affiliated to Kurukshetra University,
Kurukshetra)
 Contents
 About IFCI
 Liberalization Conversation into Company
 IFCI is Economic Contribution
 Corporate Strategy
 Board of Directors
 Product & Services
 IT Services
 Strength and Experience
 Corporate Advisory
 Project Advisory & Finance
 IFCI Venture Capitla Funds Ltd.
 ABOUT IFCI
At the time of independence in 1947, India’s capital market was

relatively under-developed. Although there was significant demand

for new capital, there was a dearth of providers. Merchant bankers

and underwriting firms were almost non-existent. And commercial

banks were not equipped to provide long-term industrial finance in

any significant manner.

It is against this backdrop that the government established The

Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the

first Development Financial Institution in the country to cater to the

long-term finance needs of the industrial sector. The newly-

established DFI was provided access to low-cost funds through the

central bank’s Statutory Liquidity Ratio or SLR which in turn enabled

it to provide loans and advances to corporate borrowers at

concessional rates.
LIBERALISATION - CONVERSION INTO COMPANY IN 1993

This arrangement continued until the early 1990s when it was

recognized that there was need for greater flexibility to respond to

the changing financial system. It was also felt that IFCI should

directly access the capital markets for its funds needs. It is with this

objective that the constitution of IFCI was changed in 1993 from a

statutory corporation to a company under the Indian Companies

Act, 1956. Subsequently, the name of the company was also

changed to "IFCI Limited" with effect from October 1999.

FOCUS

IFCI has fulfilled its original mandate as a DFI by providing long-term

financial support to all segments of Indian Industry. It has also been

chiefly instrumental in translating the Government’s development

priorities into reality. Until the establishment of ICICI in 1956 and

IDBI in 1964, IFCI remained solely responsible for implementation of

the government’s industrial policy initiatives. Its contribution to the

modernization of Indian industry, export promotion, import

substitution, entrepreneurship development, pollution control,

energy conservation and generation of both direct and indirect

employment is noteworthy. Some sectors that have directly

benefited from IFCI’s disbursals include:

• Consumer goods industry (textiles, paper, sugar);

• Service industries (hotels, hospitals);

• Basic industries (iron & steel, fertilizers, basic chemicals,

cement);

• Capital & intermediate goods industries (electronics, synthetic

fibers, synthetic plastics, miscellaneous chemicals); and

• Infrastructure (power generation, telecom services).

IFCI's ECONOMIC CONTRIBUTION

IFCI’s economic contribution can be measured from the following: -

• Cumulatively, IFCI has sanctioned financial assistance of Rs

462 billion to 5707 concerns and disbursed Rs 444 billion since

inception.

• In the process, IFCI has catalysed investments worth Rs 2,526

billion in the industrial and infrastructure sectors.

• By way of illustration, IFCI’s assistance has been helped create

production capacities of:

• 6.5 million spindles in the textile industry

• 7.2 million tons per annum (tpa) of sugar production

• 1.7 million tpa of paper and paper products

• 18.5 million tons tpa of fertilizers

• 59.3 million tpa of cement

• 30.2 million tpa of iron and steel

• 32.8 million tpa of petroleum refining

• 14,953 MW of electricity

• 22,106 hotel rooms

• 5,544 hospital beds

• 8 port projects, 66 telecom projects and 1 bridge project.

• The direct employment generated as a result of its financial

assistance is estimated at almost 1 million persons.

• IFCI has played a pivotal role in the regional dispersal of

industry -- 47% of IFCI’s assistance has gone to 2,172 units

located in backward areas, helping to catalyse investments

worth over Rs1,206 billion.

• IFCI’s contribution to the Government exchequer by way of

taxes paid is estimated at Rs9 billion.

• IFCI has played a key role in the development of cooperatives

in the sugar and textile sectors, besides acting as a nodal

 agency in both sectors. 371 cooperative societies in these

sectors have been assisted by IFCI.

• IFCI has promoted Technical Consultancy Organizations

(TCOs), primarily in less developed states to provide necessary

services to the promoters of small- and medium-sized

industries in collaboration with other banks and institutions.

• IFCI has also provided assistance to self-employed youth and

women entrepreneurs under its Benevolent Reserve Fund

(BRF) and the Interest Differential Fund (IDF).

• IFCI has founded and developed prominent institutions like:

• Management Development Institute (MDI) for

management training and development

• ICRA for credit assessment rating

• Tourism Finance Corporation of India (TFCI) for

promotion of the hotel and tourism industry

• Institute of Labor Development (ILD) for

rehabilitation and training of displaced and retrenched

labor force

• Rashtriya Gramin Vikas Nidhi (RGVN) for promoting,

supporting and developing voluntary agencies engaged

in uplifting rural and urban poor in east and northeast

 India.

• IFCI, along with other institutions, has also promoted:

• Stock Holding Corporation of India Ltd. (SHCIL)

• Discount and Finance House of India Ltd. (DFHI)

• National Stock Exchange (NSE)

• OTCEI

• Securities Trading Corporation of India (STCI)

• LIC Housing Finance Ltd.

• GIC Grih Vitta Ltd., and

• Bio-tech Consortium Ltd. (BCL).

• IFCI has also set up Chairs in reputed educational/

management institutions and universities. A major
contribution of IFCI has been in the early assistance provided
by it to some of today’s leading Indian entrepreneurs who may
not have been able to start their enterprises or expand without
the initial support from IFCI.

CORPORATE STRATEGY
IFCI has been able to achieve a financial turnaround

with the consistent support and cooperation of all its

stakeholders and is now endeavouring to re-position

itself .

As a part of its organizational strategy, IFCI plans to

induct strategic investor(s) who may provide
besides funds support, business know-how,
marketing techniques, technology, clientele, brand
name etc. to achieve scale and scope economies
and provide expansion of the capital and resources
base. In the interim period, IFCI plans to enhance
organizational value through better realization of its
Non-performing Assets (NPAs) and unlocking of
value of its investment port-folio including unquoted
investments as well as real estate assets.

The present business strategy of IFCI envisages (a)

retaining and enhancing its core competence in long

term lending to industrial and infrastructure sectors

and (b) expanding fee-based businesses to

capitalize on emerging opportunities in Corporate

Advisory Services.
Board of Directors
Shri Atul Kumar Rai, , Chief
Executive Officer & Managing
Director is B.A. (Hons.)
Economics from University of
Delhi and hold postgraduate
qualification in Economics from
Jawahar Lal Nehru University.
Shri Rai has rich experience of
over 20 years and had held
various posts in the Government
of India, including as Director in
DDA, Banking Division in Ministry
of Finance. He is presently also
on the Board of Directors of
Tourism Finance Corporation of
India Ltd., GIC Housing Finance
Ltd., IFCI Financial Services Ltd.,
IFCI Venture Capital Fund Ltd.,
Assets Care Enterprise Ltd., IIBI
and Haldia Petrochemicals Ltd
Smt Sukriti Likhi nominee
Govt. of India
Shri R.C. Razdan, Chief
General Manager in IDBI Bank
Ltd., is Post Graduate in
Marketing Management. He has
rich experience of over 30 years
in Commercial and Development
Banking in various capacities. He
is IDBI nominee on the Board of
Bhandari Exports Ltd.
Shri S. Ravi is a practicing
Chartered Accountant and
founder member of Ravi Rajan &
Co. He is on the Board of
Corporation Bank, IDBI Capital
Market Services Limited, Batiliboi
Limited, Mahindra Ugine Steel
Co. Ltd., Spectrum Power
Generation Ltd. Gujarat Pipavav
Port Ltd., LIC Housing Finance
Ltd, IDBI Home finance Limited,
Kudremukh Iron Ore Company
Ltd., Hindustan Aeronautics Ltd.,
Management Development
Institute (MDI), UTI Trustee
Company Pvt. Ltd.

Shri Thomas Mathew T.,

Managing Director, LIC. MA.
(Eco), LLB, PGDM, AIII, is having
very rich and varied experience
in both national and International
operations of LIC. He is also a
director in LIC Housing Finance
Ltd., LIC Care Homes Ltd., LIC
(Lanka) Ltd., Saudi Indian
Insurnace Co. Riyadh, Mahindra &
Mahindra Ltd. and Larsen &
Toubro Ltd.,

Shri P.G. Muralidharan,

former Secretary to
Government of India, has more
than 34 years of rich experience
of various Ministries of Central &
State Govts. He had been
Chairman of various PSUs. He
had led Government delegation
to various foreign countries for
important assignments.
Shri P.S. Shenoy is former
Chairman & Managing
Director of Bank of Baroda.
He is banker by profession
having overall rich experience of
more than 38 years in Banking &
Finance. He is also a director in
SIDBI Venture Capital Ltd., ICRA
Management Consulting
Services Ltd., Torrent Power Ltd.,
Investment and Precision
Castings Ltd., Chartered Finance
Management Ltd.

Prof. Shobhit Mahajan,

Director, Delhi University
Computer Center, has done his
M.S. (Physics) and Ph.D (Physics)
from University of California,
Berkeley. He has rich experience
of research and teaching in the
University of Delhi and
California. He has authored
several books on science and
computer. Prof. Mahajan does
not hold Directorship/Committee
membership in any other
company.
 Products and Services

Areas of Operations

The lending policies of IFCI have evolved

over the last five decades of operations.

These policies have sought to achieve the

primary objective of providing medium

and long-term financial assistance to

mainly manufacturing concerns and to

fulfill the overall goals of industrial and

economic development in India. The

principal activities of IFCI include:

• Project finance
• Financial services
• Non-project specific assistance

• Corporate Advisory Services

i. Project finance involves providing credit and other

facilities to green-field industrial projects (including

infrastructure projects) as well as to brown-field projects,

viz., expansion, diversification and modernization of

existing industrial concerns through various types of

 assistance that are tailored to the borrowers’ needs.

ii. Financial services covers a wide range of activities

wherein assistance is provided to existing concerns

through various schemes for the acquisition of assets, as

part of their expansion, diversification and modernization

programs. These schemes are also extended to

equipment which could be directly got fabricated by the

actual user, or procured from domestic suppliers, or

imported. Tailor-made schemes to suit the individual

borrower's requirements have been designed to provide

quick funds after a need-based appraisal. The interest

rate and rentals (in case of equipment leasing) are

competitive and determined on the basis of the risk

perception about individual concerns.

iii. Non-project specific assistance is provided mainly in the

form of corporate / short-term loans, working capital, bills

discounting, etc to meet expenditure, which is not

specifically related to any particular project.

IT Services
IFCI has been evolving over the years to meet the needs of its

customers and has been taking the help of technology to move

forward. With this aim IFCI set up its full-fledged IT department in the

year 1985. The core team of professionals in the department has

helped IFCI adapt to various technologies and enabled IFCI to become

one of the top 100 IT Users in the country (MIS Dec. 99). With this

vast in-house experience, IFCI has now started providing total IT

solutions to various Business Houses/Financial Institutions and also its

Subsidiaries & Associates.

Mission

To be among the leading IT solution providers in the country. To

share the expertise gained in operation and continue to develop new

competencies in emerging technologies so as to come up with

mutually beneficial solution to customers.

Goal

• To provide innovative and cost effective solutions to clients with

a blend of traditional and latest technologies maximising value

at the least cost..

 • To provide maximum service at least cost and shorter turn-

around times.

• To develop long term relationship with our clients

Our Team

IFCI's strength has always been its People and the convergence of

their minds. They are highly skilled developers comprising Software

Technologists, Finance & Domain Specialists, selected with great care

and located over 12 offices of the Company all over the country. They

are dedicated Software Specialists, fully equipped to provide total

support to the customers.

Strengths and Expertise

Over the years IFCI's IT Group has gained considerable knowledge

and expertise in the following areas in IT domain as well as in the

financial domain being part of the premier financial Institution

• Complete IT solutions using state-of-the-art technologies for

multifaceted business environments.

• Complete IT strategy planning for large

geographically dispersed organisations.

• Web-enabling of applications for

users/customers/citizens direct access to the information.

• Application Systems suitable for financial/manufacturing sector

using latest technologies.

• Planning of Computing Environment, Sizing of Hardware

• Evaluation and Selection of Database Engines

• Creation of LAN of computers.

• WIDE Area Networking of Computer Systems (WAN), Virtual

Private Networking (VPN)

• Structured Cabling Systems.

• Operations Management, LAN, WAN & ORACLE Database (DBA)

Administration.

• Facilities Management

• Data, Voice, Video, VOIP, Imaging & Document Management

 System

• Data Migration.

• Systems Integration.

• Groupware Applications using Lotus Notes.

• Shared Databases

• Workflow Applications

• Knowledge Management

• Migration from client server computing to server based

computing through CITRIX Metaframe Software - Installation &
Administration

• Setting up of Corporate email facility, post-office protocols -

Installation & Administration.

• Web Designing, Administering Servers & Installation.

 CORPORATE ADVISORY
With its traditional core competence in project

finance, and coupled with its expanding expertise in

investment banking and corporate finance & advisory

services, IFCI aims to be a provider of total financial

solutions for any aspiring or existing business entity.

With its traditional core competence in project

finance, and coupled with its expanding

expertise in investment banking and corporate

finance & advisory services, IFCI aims to be a

provider of total financial solutions for any

aspiring or existing business entity.

PROJECT ADVISORY & FINANCE

INFRASTRUCTURE ADVISORY

MONITORING AGENCY FOR PUBLIC ISSUES

CORPORATE FINANCE & INVESTMENT BANKING

RESTRUCTURING ADVISORY SERVICES

BID PROCESS MANAGEMENT

ANCILLARY SERVICES
 PROJECT ADVISORY & FINANCE
At a time when India is throwing up investment avenues in newer

sectors and projects, there is a critical need to provide specialised

advisory services to the Indian Corporate Sector in their efforts towards

Industrial Advancement.

As a catalyst of Industrial growth, IFCI provides the following

project Advisory Services:

· Investment appraisal of Navratna (most valued public sector

companies) Companies

· Project Conceptualization and related services, including

Guidance in relation to Selection of Projects, Preparation of

feasibility studies, DPR, Capital Structuring, Techno-economic

Feasibility, Financial Engineering, Project Management Design

etc.

· Credit Syndication including preparation of Information

Memorandum, Syndication of domestic/foreign loans, post

sanction Follow-up, assistance in Legal Documentation etc

· Documentation of various project documents.

INFRASTRUCTURE ADVISORY
Assets available for Sale

Where Sale Notices have been issued

(i) by Official Liquidator
(ii) by Recovery Officer
(iii) Under Securitisation Act 2002
(iv) by other Institutions
Where
(i) Recovery Certificates have been issued By DRTs
(ii) Liquidation Proceeding is Pending

This section has two parts. Part A gives the names of Companies

where Sale Notices have been issued by the Official Liquidators

attached to the High Courts and / or by the Recovery Officers

attached to Debt Recovery Tribunals (DRTs) and / or under

Securitisation Act 2002. Part B gives the names of cases where

execution proceedings before Recovery Officers of DRTs are pending

and/or cases where liquidation proceedings before Official Liquidators

attached to High Courts are on.

To peruse the notices published in respect of cases of Part-A and to

get the details of Company Profile in respect of cases of Part– B ,

interested buyers may click the name of the 'Company' listed below.
 IFCI VENTURE CAPITAL FUNDS LTD.
(IVCF)
IFCI Venture Capital Funds Ltd. (IVCF) was originally set up by

IFCI as a Society by the name of Risk Capital Foundation (RCF) in

1975 to provide institutional support to first generation

professionals and technocrats setting up their own ventures in

the medium scale sector, under the Risk Capital Scheme. In

1988, RCF was converted into a company, Risk Capital and

Technology Finance Corporation Ltd. (RCTC), when it also

introduced the Technology Finance and Development

Scheme for financing development and commercialisation of

indigenous technology. To reflect the shift in the company’s

activities, the name of RCTC was changed to IFCI Venture Capital

Funds Ltd. (IVCF) in February 2000.

Over the years, IVCF has provided financial assistance to new

ventures, supported commercialisation of new technologies,