Dairy Sector
ICICI Bank has been working with various co-operatives as well as private players in this sector.

Product suite:

Working Capital : Working Capital is designed to take care of the day to day business requirements of the organization. Looking at players, your domestic and international businesses, we can provide export packing credit, cash credit and bill purchasing/discounting facility customized to the requirements of the clients. The peak seasonal requirement due to distinctive seasonal production cycle of flush and lean months with a relatively stable consumption cycle can also be addressed.

Long term fund requirement for expansion/ new project: We provide medium term and long term funds for new project, expansion and upgradation of existing plants. In all cases we strive to customize the product offering based on the client’s specific cash flow pattern.

Cattle Financing : ICICI Bank can finance the dairy farmers for purchase of Milch animals and other related dairy equipment for farmers supplying milk to the dairy.

For further information, please write to ayaskant.sarangi@icicibank.com

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Products on Offer
1) Regular commercial banking services for Sugar Industries like Working capital finance, Term loans, Forex etc.

2) Corporate-linked Agricultural Loan is a product in which ICICI Bank ties up with a sugar company to provide financial assistance to farmers linked to the sugar company. The corporate would generally be having an arrangement with the farmers to supply agricultural inputs and/or to procure/assist in marketing farm produce.

Features

• The duration of the loan will be between 12-18 months depending on the duration of the crop
• Loan will be disbursed either in from of agri inputs or a combination of agri inputs and cash
• Value of loan sanctioned to a farmer will be a function of area grown under sugar cane cultivation.
• Bullet repayment of principal and interest. Repayment of principal and interest will be deducted by the sugar company when it makes cane payments to the farmers.

Eligibility criteria for farmer selection

• Land ownership
• Consistent supply of cane for the last three years
• Registered member of the sugar mill
• The farmer should have an assured irrigation facility

For further information, please write to bhupinder.singh@icicibank.com or ritesh.jain@icicibank.com

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• Long term loans for Capital expenditure on plantations and processing facilities.
• Short term loans for working capital requirements of the plantations and the processing factories.
• Bill Discounting, Bank Guarantee and Packing credit facilities for Exporters.
• Cash management service for domestic marketers.
• Real time remittance services for Auction Houses, Brokers and Exporters.
• Dealer financing through Bill Discounting, for domestic marketers.

For further information, please write to ganesh.pg@icicibank.com

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• Organizer financing:

Seed organizers undertake seed production on behalf of the seed company. ICICI Bank provides financial assistance to the seed organizers on recommendation and letter of comfort given by the seed companies. Short-term loans are extended for seed cultivation or against the stocks held by the seed organizers pending seed certification process. The credit limit depends on the value of seeds to be procured by the seed company from the seed organizer. The seed organizer gives instruction to the seed company to make payments directly to the bank on due date from the payments due to the organizer and this arrangement is to be confirmed by the seed company.
• Regular working capital financing
  The working capital requirement for seed companies is seasonal and varies depending upon the crop portfolio and seasonality. Working capital assessment for seed companies is done on cash flow method. The regular working capital assistance may be in the form of cash credit or working capital demand loan. The fluctuating part of the working capital can be structured as cash credit and balance can be structured as working capital demand loan which is a revolving credit for a fixed tenor with a minimum stipulated drawal.

• Short term loans for Peak level working capital requirements

Short term loans for a tenure of 3–6 months to support peak season requirements can be given during Kharif and Rabi seasons. The loans are for a fixed period and gets closed at the end of the season. This facility can be availed by the seed company for making farmer payments during peak seasons.

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Fertilizer Companies
The Fertilizer companies require high working capital due to their seasonal nature of sales and long credit period given to farmers. The industry is characterized by an established distributor and dealer network, which forms the backbone of the dispersed sales network. Certain products are designed for meeting the short-term credit requirements of the channel participants recommended by the corporate on basis of the selection parameters stipulated: -

• Dealer financing

This product provides short term financing to the dealers of fertilizer companies for making purchases of products from the companies. The financing shall be typically for the inventory-holding period of the dealer i.e. typically for a period up to 90 days. The financing to the dealers will be made either on one of the following basis: -
- Financial recourse in the nature of Corporate Guarantee for the overall arrangement
- Non-Financial Recourse in the nature of Letter of Comfort for the overall arrangement (Stop supply etc)

• Securitisation of receivables for companies
  Many fertilizer companies have outstanding loans in their books towards the credit provided to the dealers for a period of 90 days. These book debts can be securitised to provide liquidity to the company, the pricing and the structure of the transaction can be worked on a case to case basis

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• Warehouses / Godowns
• Silos
• Cold Chains
• Refrigerated transport infrastructure
• Development of Market yards
• Agri Business clinics
• Value Addition farm centers
• Food Parks
• Agri Export Zones etc.

The group is actively involved in conceptualizing and structuring innovative and customized financial products for these kinds of projects, based on the projects arrangement with private and public enterprises. The group is jointly working with various warehousing corporations, private infrastructure participants, government bodies and corporates across the country.

For further information, please write to santosh.pai@icicibank.com.

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ICICI Bank has identified State Level marketing federation as one of the thrust areas and is working with state level marketing federations of various states.

• Working Capital Working Capital facilities designed to take care of the day to day business requirements of the organization. Looking at the domestic trading business of MARKFED, ICICI Bank can provide cash credit and other customized short term products
• Short term financing of fertilizer distribution Distribution of fertilizer is a core function of each Markfed. There is a strong demand for fertilizer at the onset of Rabi and Kharif seasons, which coincides with their requirement of funds. We have the capability to structure this short term fund requirement at competitive rates that will replace the regular and expensive cash credit limits.
• Long term fund requirement for expansion/ new project ICICI Bank provides medium term and long term funds for new projects and/or expansion. ICICI Bank would be keen on funding Markfeds for the construction of silos and warehouses. We have the capability to structure the loan so as to reduce the risk and transfer the benefit to the client.

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• Converting the Markfed structure into Farmer Service Centers Each State Level Marketing Federation has a wide distribution network at district level which are called "District Co-operative Marketing Society" and "Primary Agricultural Credit Society (PACS)" network which are used to distribute agricultural inputs to the farmers.

  ICICI Bank has proposed to convert these district level co-operatives and convert them into full fledged Farmer Service Centers (FSC). The District Level Co-operative societies can be strengthened further by clubbing a few co-operative Societies into Farmer Service Centers, which would be the one point service providers to the Farmers. ICICI Bank proposes to provide credit assistance to the farmers using the infrastructure of FSC. In addition to providing credit, ICICI Bank also proposes to tie up the other loose ends in the chain. This could include an alliance with a number of crop output companies such as MNC Corporates, Exporters and Retailers who would assure off-take and prices to the farmers. Through its relationship with a number of Agri input companies, ICICI Bank can also bring in input companies so that the entire input requirement (fertilizer, seeds, pesticides) of the farmers can be provided under one roof.

  FSC initiatives undertaken by various private sector companies have resulted in substantial value addition at farm end. ICICI Bank has played a key role in conceptualizing, developing and implementation of FSC model with various partners.

  Other Related products which can be explored

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• Cash collection and disbursement
  Different regional offices of MARKFED have collections and payments from their district level co-operatives. We can provide a solution, which will take care of both cash collection and disbursement. Our solution will provide following benefits:
  - Reduced time for cash collection and disbursement
  - Provide instantaneous funds transfer from/to district level branches to head office.
  - Customized MIS report giving the status of cash collected and disbursed from each center and various other customized reports.
  - Our network of 500+ branches and extension counters provides a technologically advanced network at numerous towns /districts in different states.

For further information, please write to rashmi.sharma@icicibank.com

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Products for Food Processing Sector
The bank has been working with various companies both established and new entrants in this sector. The various products offered are:

Working Capital Finance to take care of the daily business requirements of the organization. The bank provides pre/post shipment credits, cash credit and bill purchasing/discounting facility based on the requirements of the corporate.
Term loans: We provide short term funds to take care of any seasonal requirement and medium term and long term funds for new project, expansion and upgradation of existing plants. Agricultural Commercialization and Enterprise Programme: This is an USAID provided funds managed by ICICI Bank. The main purpose is to improve the investment environment for private agribusiness in post farm horticulture. Focus is primarily on promoting agribusiness innovations and diversity. The activities that are covered are fresh and processed fruits and vegetables, herbal products, spices, fruits and vegetables based processed foods, flowers and foliage.

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For further information, please write to suman.thomas@icicibank.com

Ace Program

ACE program is a financial aid program exclusively meant for assisting projects in Post Harvest Horticulture. The program, sponsored by USAID, is being implemented by ICICI Bank. The program provides long-term project finance at attractive rates of interest for projects selected through a stringent screening.