Mumbai, Mar 16: Export and Import bank of India (Exim) and European Bank for Reconstruction and Development (EBRD) are planning to take stake in ventures promoted by Indian business and corporates in eastern and central Europe. "Exim and European financial institution can jointly take some equity share in ventures promoted by the Indian companies in areas like pharma sector,” Exim chief general manager S Rao said.
Asked about specific investment proposals, Rao said, "Work is in preliminary stage and purpose of taking stake is to provide comfort about the Indian ventures".

EBRD's head for business development Bruno Balvanera said that the European agency would bring in country and financial expertise to the venture and pick up minority stake.

"We expect an appropriate return on investment and will need to have clear exit strategy - arrangement to sale or buyback of EBRD's stake,” Balvanera said.

The Central and eastern European economies, which have been through restructuring phase, provide good business opportunity for Indian companies to set up a base, Rao said.

Some of the countries like Poland in the region are slated to become of part of European Union, providing access to a large market endowed with high per capita purchasing power, Rao added.

Balverna said that his bank has already provided financial assistance to London-based L N Mittal Group to rehabilitating steel units in east Europe.
Bureau Report