Bureau Mumbai, Feb 12: The Export Credit Guarantee Corporation (ECGC) which is embarking on a major restructuring exercise is scouting for partners for a foray into export factoring business.The implementation of the Coopers and Lybrand's recommendations will be done by the ECGC in a phased and structured manner in a span of two years starting from this month, said D Mehta chairman and managing director of the corporation.
The restructuring will help diversify the export insurance organisation into trade related financial services, said Mehta.
In keeping with its customer orientation objective, ECGC will be expanding its branch network, introducing mobilie relation managers and electronic delivery channels to provide within reach customer service, said Mehta. Of the total 239 recommendations, 98 will be executed within six months, 60 within six months to one year and 73 within one to two years. Eight recommendations made by the consultants will be examined in detail later, he said.
The ECGC was inparleys with some banks to set up a separate export factoring business joint venture.
``To start with, we will independently take up margin factoring and later set up a joint venture company,'' he said, adding that forfaiting service would come at a much later stage.
As per the recommendations, ECGC has also decided to diversify into selling information to buyers and countries and has envisaged a major branch expansion drive to cater to small exporters.
The institution which is setting up an advanced information technology unit is planning to relocate some of its surplus staffers in the newly expanded areas.
The C and L adopted a modular approach to restructure with interlinkages between modules. The module included visioning, business process, redesign, organisational structure, human resources and information technology, said J Rajagopal, managing director of C and L.
The new mission now defines its role in building its core business of providing export business cover and in diversifying intotrade development and basic financing services.
Also on the anavil are plans to revise the corporation's country rating methodology and adoption of appropriate rating models for short and long-term policies and guarantees.
ECGC has decided to adopt a seven group country rating structure that would permit a greater manouverability, differentiation in risk perceptions and more homogeneity amongst country groups. The recommendations, once implemented, would help the organisation shorten service delivery and achieve considerable time and cost savings.
The management consultants have also made suggestions with regard to human resource management and technology, which includes networking of corporation's offices across the country.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
