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GE arm to invest Rs 1,000 cr in India

July 05, 2004 16:54 IST

GE Commercial Finance, an arm of the US conglomerate General Electric, on Monday announced its plan to invest Rs 1,000 crore (Rs 10 billion) to expand operations in India.

"Globally, GE is a leading player in the mid-market segment and what sets the company apart is its capability to take asset and term risks," Pramod Bhasin, president, GE Capital India, said in a statement.

The company provides financial products and experience so that mid-market companies can grow, cut costs, manage cash flows and balance sheet issues, better leverage equipment and real estate, and make the most of commercial assets, he said.

GE Commercial Finance will invest up to $222 million to support growth of India's mid-market segment which spans a wide spectrum of products, businesses and industry cycles, GE Commercial Finance CEO Anil Chawla said.

GECF targets the mid-market companies in India and South East Asia, whose turnover are under Rs 400 crore (Rs 4 billion), he added.

"Mid-market enterprises are going to be key drivers in India's growth. But these companies need to make significant capex investments to be globally competitive. This segment is under-funded by 42 per cent and the decision to invest in this is designed to bridge this gap," Chawla said.

The NBFC with an asset base of $1.2 billion and a network of 21 branches in India was assigned highest safety rating 'AAA' from rating agencies Crisil and Fitch, he said.

GE Commercial Finance serves companies involved in healthcare, manufacturing, construction, power, infrastructure and equipment finance in 35 nations.

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