Slide 1 - Exoticadvise

Report
Exotic Advise Private Limited
CORPORATE PROFILE
June 2012
The Genesis
EXOTIC ADVISE PRIVATE LIMITED was formed with a unique objective of providing out-of-the-box
consultancy in the field of financial services
Ex-Bankers, with a passion for client-centric approach to create solutions, came together to cater to
the current market that is mainly mechanised & driven by the Institutional Lenders
We take pride in our capability of arranging funds beyond the standard requirements of Working
Capital and Term Loans. Our Team revels while handling complicated structures and enjoys placing
these structures with Financial Institutions of repute
Our coverage includes Foreign Banks, Private Banks, Nationalised Banks, Co-operative Banks, Special
Purpose Financial Institutions & NBFCs etc.
We approach our clients with customised solutions and discuss with them benefits of taking the
alternate approach. These clients appreciate our initiatives and work with us closely to accomplish
the desired objectives.
We think long term and value our relationships
The Concept
Exotic means Daringly Different
Brain is an extremely complex system that is an EXOTIC creation of nature,
which when used well leads to INNOVATIVE ideas
Exotic leads to Innovation
Mission, Vision & Values
Vision
Our Vision is to be an integrated financial services company of repute, offering a broad
spectrum of financial services to suit every need of our client. We believe our emphasis on
quality will be instrumental in helping us attain market leadership
Mission
Our mission is to provide out-of-the-box financial solutions to our clients catering to challenging
situations through structured solutions - both for Domestic & International Businesses
Values
TRUST – Assurance that our Clients/ Institutions are Genuine
SPEED - Prompt and Effective responses to our Client’s/ Institution’s needs
WISDOM – Deep understanding of Banking & Finance leading to Appropriate Solutions
DISCRETION – Assurance of Complete Confidentiality
PERFORMANCE - Delivery of Consistent Results
The Management
Puhup Srivastav
Seasoned Banker with more than 15 years experience. Worked in the fields of Investment Banking
& Corporate Banking at Financial Institutions viz. Kotak Mahindra Bank, ICICI Bank and Global
Trust Bank. MBA from ICFAI Business School, Bangalore and CFA from ICFAI, Hyderabad
Sourabh Sharma
An expert on the Capital Markets, has experience of more than 15 years and has worked with JP
Morgan Chase in the Research Division of their International Investment Banking. MBA from ICFAI
Business School, Mumbai.
Anurag Singh
Extremely good at Business Development, has worked in the Financial sector (in Delhi & Mumbai)
for over 10 years with Institutions like Tata AIG, IDBI Bank and ICICI Bank. MMS from NL Dalmia
College, Mumbai.
Corporate Overview
Focus
Serving Emerging Corporate across all industries
Approach
Client Centric - Solution Based approach rather than
Transaction Based approach
Organisation
Team of professionals, with a cumulative experience of
over 60 years in Banking & Finance
Relationship
Build long-term sustainable relationships with clients through
trust on the back of responsive and robust advise.
Respect
Mutual Respect with all Stakeholders – Clients & Financial
Institutions
Partnership
Focus on clients with credible management and defined
business plans
What we bring...
Network
Strong relationships with Banks and Financial Institutions,
including Specialized Term Lending Institutions across India.
Experience
Team members bring a rich transaction closure and consulting
experience ‘Start to Success’ methodology providing valuable
insights at all stages of the transaction.
Innovation
Providing our clients with original, thoughtful ideas and
innovative solutions for their financial needs.
Quality
Senior team is involved in all transactions from start to finish to
ensure clients benefit from our experience and expertise.
Commitment
Rigorous Process Management to take care of timely
completion.
Go Global
We have created a niche in executing structures involving cross
border transactions viz. Overseas Acquisition Funding, ECBs,
FCTL for Import of Capital Goods, Export Finance etc.
Exotic Advise Private Limited
Our Services
Debt Syndication
Domestic Acquisition Finance
Unsecured Loans / Bill Discounting
Finance for Land Purchase
Invoice Finance & Purchase Bill Discounting
Lease Rental Discounting
Working Capital for Subsidiaries Abroad
Commercial Vehicle Loans
Finance For Overseas Project Execution
Securitisation of Receivables
Film Finance & TV Media Finance
Overseas Acquisition Finance
Project Finance for Modernisation
FCNR (B) Loans
Cash Credit, Letter of Credit, Bank Guarantee
Commercial Equipment Finance
Buyers Credit & Export Finance
Project Finance for Expansion
Loan Against Property / Shares
Foreign Currency Term Loan for
Import of Capital Goods
External Commercial Borrowings
Outsourced Banking
For Companies that are Large in size & deal with many Banks and for Companies that are small
in size & have limited manpower, we offer the Services of “Outsourced Banking”. The basic
advantages of this service are:
1. Lowers Manpower Costs
2. Frees Bandwidth of Decision-makers for Better Use
3. Steady Advisory from our Experts
Under this, we use our Experience & Skills of Corporate Banking to Represent the Company for
Managing their Banking Relationships entirely. We become the Single Point Contact for all the
Banks for their Requirements from the Company and become the Responsible Representative
of the Company for all their needs.
In discussion with the CFO/ Promoter, we help the Company plan all their Requirements &
Advise them on the Best Route to be taken to achieve these Objectives. On Agreement to the
Plan of Action, We execute it Effectively & Efficiently. In this Arrangement, for all Practical
purposes, we are Integral part of the Company and are involved on almost Daily Basis.
This helps us & the Company identify Areas of Improvement and Implement the Appropriate
Solutions.
Outsourced Banking contd...
In this Model, List of the Services to be offered are Customised as per the Client. Hence, they
normally vary from client to client. For Representative Purpose, the following are broadly the
Services that can be offered under this Umbrella
All types of Debt Fund-raising
Planning the Requirements of Funds for the Company with the CFO/ Promoter
Planning the Right Mix of Banks with the CFO/ Promoter
Preparation of CMA, Presentation and other Requisite Documents
Making Presentations on behalf of Company at Bank site, when required
Co-ordinating the Appraisal Process
Getting the Sanctions including Negotiation of Applicable Bank Rates
Co-ordinating the Documentation of Limits
Arranging Management Meetings, whenever required
Arranging Consortium Meetings in co-ordination with the CFO/ Promoter & the Banks
Arranging Factory Visits in co-ordination with the CFO/ Promoter or as directed
Managing individual disbursals including fulfilment of requisite documentation
Co-ordinating Stock Statements & Drawing Powers
Ensuring dispatch of Daily/ Periodic (as agreed) MIS to all concerned by e-mail
Quarterly Performance Update to the banks
This list is only Representative and would need Customisation to Requirements of the Client
Banking Consultancy
Very often, in the formative and the initial growth years, the management is busier ensuring
the survival and growth of company. The financial management is limited to the goal of
achieving the said objective. During this time, the management may land up with a debt
structure that might be serving their purpose well for the time being but might not be able to
support the growth in future.
We offer services where we evaluate the current banking set-up of companies with an idea to
improve their banking arrangement to support growth for the next level. The advisory more
often revolves around the following:
Right mix of long term and short term borrowings
Right mix of banks to ensure strong support, good appetite for funding in future and
reasonable cost to the company
Right mix of products to match the requirements of company
Right structure in terms of securities offered/ sharing of securities between banks etc
On conclusion of study, we produce a report to the management on the basis of which the
financial structure of the company may be modified. We also support the companies execute
these plans by raising funds/ facilities to bring the structure in line with the recommendations.
Process & Our Role – Debt Syndication
Understand Profile of the Company
Understand & Review the Business Plan & Financials
Evaluate the Company’s debt capacity & establish the optimal Debt-Equity structure
Prepare Strategy to achieve financing objective
Identify & evaluate the Financing Options
Structure the Deal to minimise cost & to maximise liquidity and financial flexibility
Utilise our network & reach with Financial Institutions to solicit favourable approvals
Conduct initial discussions with the banks to gauge interest
Co-ordinate discussions between the Bank & the Client
Assist in Desk-top review of the Company operations conducted by the Financial Institutions
Arrange the Facility Letters
Assist the Company in closing discussions and finalising terms
Co-ordinate the documentation process
Exotic Advise Private Limited
Few of Our Past Deals
Overseas Acquisition Finance
Company - A Mumbai based corporate group with a turnover of more than 350 Crs operating
in the Services Industry for the past 50+ years
Requirement – The Group has a subsidiary (Holding Company) in the Jabelali Free Trade Zone.
This Jabelali Company is the holding company for their International Operations spread across
the Middle East. The Group wanted to expand their Operations in South East Asia and wanted
to acquire a Company based in Hong Kong having presence in Singapore, Hong Kong & China
for this purpose.
Solution - Since the Group is based in India and its Flagship Company (Rated A- by Fitch) is the
strongest and since their International Operations so far were debt-free, we recommended
that the flagship company take a foreign currency loan and transfer the funds to their Jabel Ali
Company (as fresh equity infusion) that would acquire the Hong Kong Company
End-Result - We arranged the Term Loan in Foreign Currency (Libor-Linked Rates) from an
Indian Special Purpose Financial Institution to enable this transaction. The funding was done
for a tenor of 5 years with 1 year Moratorium with Quarterly Repayments. We took One
Month to execute this transaction “Start to Success”
External Commercial Borrowing
Company – A 20+ years old unrated company in the business of chemicals trading with a
turnover of about Rs 85 cr involved primarily in the business of importing chemicals –
Specialty Chemicals & APIs – and distributing them in India
Requirement – The company wanted to set-up a manufacturing facility in India. They
identified a chemical that was not manufactured in India and had huge applications. The
current requirement of the industry was being serviced by imports, primarily from Japan &
South East Asia. The company tied up with a Japanese manufacturer to get the technical
know-how and wanted to implement the project.
Solution – Since the rates in INR were very high at that time, we proposed an ECB in foreign
currency (USD)
End-Result - We convinced one of the largest Private Sector Banks, with International
presence, to look at the merit of the project and the inherent strength and integrity of the
promoters. Post the relevant due diligence, when they were convinced of our views, they went
ahead and sanctioned the required amount in ECB at Libor-linked rates, resulting in significant
cost savings for the company and the project is being set-up at internationally competitive
costs. The loan was for 7.5 years with a moratorium of 1.5 years
Credit Line For Overseas Acquisition
Company - A Company (Rated A-), based in Mumbai, in the business of Diamond studded Jewellery exports
has achieved the status of leadership in the industry by becoming a 1200 Crs company in a span of 10
years.
Requirement - This company sensed that it was time they made a related diversification by forward
integration. In line with this aim, the company wanted to target and acquire jewellery retail chains abroad.
The company after planning, wanted to work on the following objectives:
The company, being conservative, wanted to arrange funds first and then look for targets.
Since all the assets owned by the company were already pledged to their consortium banks, they
wanted to structure the limits in a manner that it does not require any additional security
Since they were already supplying to more than 10 countries worldwide, they wanted to have a
sanction with the freedom of acquiring a company anywhere in the world.
Solution & the End-Result - We worked closely with a Special Purpose Financial Institution and the
company to structure limits for acquisition and finally got an approval with the following terms:
The company can acquire another company anywhere in the world
The limits to have second charge on all the assets of the company – first chare with the consortium
An FD of 15% of the limits to be given – in line with the collateral security given to the consortium
The banks to be inducted into the consortium with small limits
The due-diligence report and the financials of the target company to be shared with the company
before the final acquisition
The loan to be in foreign currency with a tenor of 6 years and a moratorium of 1 year
Banking Consultancy
Company - A 30+ years old Rs 350 cr Garments Manufacturing Company, based in Mumbai,
rated BBB+ by ICRA and having 7 office across the country. The company manufactures
garments and sells it to retailers across the country through their offices.
Requirement – The company had a Working Capital Limits of Rs. 99 Crs & Term Loans of Rs. 52
Crs. They mandated us to evaluate their existing Banking Arrangement & recommend
necessary steps to reduce their overall Finance Cost. The company had two nationalised banks
sharing the entire Working Capital & Term Loans equally between them. The overall interest
cost of company was 6.3% of sales, which was very high.
Solution & End-Result - We recommended & got inducted in the consortium a Leading Private
Sector Bank. This led to significant cost reductions owing to :
Reduction in Non-Fund-Based Commission by 2%
Imports being shifted from Import LCs to Buyer’s Credit. The shift to Buyers Credit was
also Justified by the fact that the company had Exports & hence a Natural Hedge
Inter-changeability of the existing Cash Credit facilities with Working Capital Demand
Loan (WCDL) of shorts tenors. This led to savings of 2-4% depending on rates prevailing in
the market
Outsourced Banking
Company - A Company (Rated A-), based in Mumbai, in the business of Diamond studded Jewellery exports
has achieved the status of leadership in the industry by becoming a 1200 Crs company in a span of 10
years.
Requirement – The company has a working capital consortium of Rs 550 cr spread across 12 banks – 5
Nationalised, 5 Private Sector & 2 Foreign banks. Because of the large number of banks, it was getting
tedious to manage these banks. The company wanted a solution to make the entire set-up more
manageable
Solution - We introduced the concept of Outsourced banking and recommended that certain functions that
are more time-consuming and high cost but low on value addition may be outsourced to us.
End-Result – Today we front-end the company in managing their entire banking relationship. We are the
first-contact for the banks for all their requirements. The CFO, with his improved band-width has started to
spend more quality time for the company by focussing on improving the processes and identifying the
ways and means of reducing costs. We take care of the daily rigmarole of the company.
Project Finance
Company - A 30+ years old Rs 350 cr Garments Manufacturing Company, based in Mumbai, rated BBB+ by
ICRA and having 7 office across the country. The company manufactures garments and sells it to retailers
across the country through their offices.
Requirement – The company wanted to set up a new manufacturing facility in an SEZ to extend their
product line. They wanted us to prepare their project report, advise on the best possible finance structure
and arrange funds for them.
Solution – Since the entire machinery was to be imported from Europe and since the project had exports as
sales when fully operational, we recommended that the company take advantage of this natural hedge and
take the machinery component of the loan in foreign currency and the balance in rupee.
End-Result – We have arranged Foreign Currency Term loan for the machinery (50% of the project cost)
from a Specialised Financial Institution and the balance from a Nationalised Bank in INR at competitive
rates. The project is on in full swing. This loan has been arranged for a tenor of 7.5 years with a moratorium
of 1.5 years.
Exotic Advise Private Limited
We believe in Dealing with Good Companies and Executing Structures that are otherwise considered difficult.
We often take the Road less Travelled to achieve the Dual objectives of Deal Success & Cost Competitiveness.
Contact:
Puhup Srivastav
+91 9930197476
[email protected]
Amit Verma
+91 9619900165
[email protected]
Address: 303, Mastermind IV, Royal Palms, Aarey Colony, Goregaon (E), Mumbai 400 065
website: www.exoticadvise.com

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