EDC Canada to fund Tata Sons $500 mn annually to boost business with Canadian companies

Export Development Canada (EDC), the country's trade finance agency, has agreed to provide funding of up to $500 million (C$658 million) annually to India's Tata Sons to increase business with Canadian companies.

Madhu Kannan, group executive council member, Tata SonsAn agreement to this effect has been signed yesterday by Tata Sons group executive council member Madhu Kannan and EDC president and CEO Benoit Daignault.

''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,'' a joint statement said.

Mumbai-based Tata Sons has invested over C$1.3 billion in Canada over the past five years, with C$355 million last year alone.

Tata companies' global operations currently involve over 1,000 Canadian suppliers.

Commenting on the agreement, 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 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.

Across Canada, Tata companies have offices, manufacturing and sales centers, including Tata Steel Minerals Canada, Tata Consultancy Services, Tata Global Beverages, Jaguar Land Rover, Tata Communications, Tata Technologies, Tata Chemicals, Tata Technologies and Tata Interactive Systems, employing around 3,000 people.

Their facilities include an IT development centre in Ontario, telecommunications facilities in Quebec and Ontario, iron ore mining in Quebec) and soda ash distribution centers in Quebec and New Brunswick.

Ottawa-headquartered EDC provides financing and insurance assistance to help Canadian companies to expand international business.

The Tata group, founded in 1868, is a global enterprise operating in more than 100 countries across six continents.  There are 30 publicly-listed Tata enterprises in diverse fields with a combined market capitalisation of about $134 billion. The group's total revenue for the fiscal 2014-15 was $109 billion.