Coromandel: Enhancement of Short-Term Finance
商品編號：9B16N006
出版日期：2016/02/17
再版日期：2016/02/17
商品來源：Ivey
商品主題：Finance; International Business
商品類型：Case (Field)
涵蓋議題：Cash credit;short-term finance;letter of credit;government subsidy
難易度：5 - MBA/Postgraduate
內容長度：13 頁
地域：India
產業：Manufacturing;
事件年度：2015
In April 2015, Coromandel International Limited (CIL), a manufacturer of fertilizers based in Chennai, India, requested that the National Bank of India increase CIL’s existing short-term finance arrangement. CIL operated 14 state-of-the-art manufacturing facilities across India with a combined installed capacity of four million tonnes per annum and over 2,000 employees. It sold its products through a countrywide dealer network as well as in its own 800 retail chain stores, with plans for aggressive expansion both at home and to various countries in Southeast Asia, Latin America, and Africa. However, CIL was dependent on government subsidies and, because many of its raw materials had to be imported, was also dependent on a positive foreign exchange rate. Over the previous three years, CIL had acquired four fertilizer companies as part of its growth strategy in inorganics. With extended short-term financing, CIL could integrate these companies and take advantage of the resulting synergy. The country head of the Wholesale Banking Group was concerned that CIL’s request would exceed the bank’s exposure norms on the fertilizer industry as well as the bank’s prudential exposure limits on a single borrower. Should the bank accept CIL’s request for enhanced short-term borrowing?
教學手冊：8B16N006;
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