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Financing the Future of Manufacturing in India Siemens.com/finance
Financing the Future ofManufacturing in India
Siemens.com/finance
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Challenges suppliers are facing in India
Digitalization Customer proximityFlexibility inproduction
Make in IndiaProgram
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Global view:CFOs see financing as key driver on road to successful digitalization
Source: ‚Investing in Success‘, Siemens Financial Services, 2016
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Indian perspective:Increasing need for flexible and tailored financing solutions
“We are a supplier for theaerospace and defense industries,and operational efficiency,automation and digitalization arecritically important for us to meetthe client’s requirements.”
“It’s essential to get finance from non-traditional, specialist sources. … There are alot of formalities and procedures to gothrough to get a traditional loan – slow andbureaucratic – and your available securitylimits your borrowing capacity.”
“There’s a major requirementfor financing – probably bestdelivered by organizations thatunderstand how the technologyworks.”
Source: ‚Investing in Success‘, Siemens Financial Services, 2016
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Financing solutions to support Siemens suppliers in India
Term LoansSFS can offer term loans to suppliers with an agreed payment periods based on the individual situation of the supplier.
Financing Expansion Plans for Increase CapacitySFS offers a Project Finance facility. The Supplier can use this to expand its existing factory to increase capacity, such asbuilding an additional wing. SFS can provide Construction Finance to help the Supplier build e.g. a new factory.
Corporate Loan for Working CapitalSFS can put a Corporate Loan facility in place for the Supplier. This facility can be used for daily corporate use and forstrategic acquisitions.
Operating Lease & Financial LeaseSFS offers finance models where usage measurements are directly tied to payment plans
Deferred Payment StructuresSFS can provide suppliers with a Deferred Payment financing structure. This allows suppliers to acquire the latesttechnology with the possibility to pay for it at a later date.
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Value proposition of Siemens Financial Services
Flexible financing packagesSiemens Financial Services’ financingpackages aren’t just standard packages.They are project-specific and suited to thecustomer’s individual situation.
Technological and financialexpertiseOnly a financing partner that understandsthe technologies being used can developthe appropriate solutions.
Entrepreneurial thinkingSiemens Financial Services considersboth the risk as well as the businessopportunities that can arise from aninvestment.
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How financing makes real what matters
• Shalaka Shafts decided to further expand production capacity by ordering 3 additionalequipments to cater to forecasted increase in demand from Siemens and it‘s other customers.
• Due to a sluggish market key customers changed their plans, which led to change in productionplans and orders for Shalaka shafts. The additional equipment ordered earlier had already ledto increased fixed costs and now also led to under utilized capacity.
• It was now possible for Shalaka Shafts to purchase additional equipment which was critical totheir portfolio diversification, and adapt to changing market demand.
• Shalaka Shafts received a holistic solution from Siemens
Benefits for the customer
Challenge
• SFS in India provided a unique financial including signing of a tri-partite agreement between thecustomer, Siemens Ltd. and SFS wherein in case of default by Shalaka Shafts, SFS wouldsettle it‘s dues with Siemens Ltd. against the receivables due to SSPL.
• The solution was the first of its kind for Siemens India, and was appreciated by both thecustomer and Siemens Ltd.
Solution
About Shalaka Shafts
Shalaka Shafts Pvt. Ltd. (SSPL)was incorporated in Nashik inAugust 2005
Post-modernization of their plantin 2003, the group has firmlyestablished itself as a leadingcomponent vendor to theswitchgear & OEM Industry
Shalaka Shafts manufacturessheet metal parts, and machiningservices for shafts, pistons andmachine components for theelectrical industry.
Shalaka Shafts has been asupplier to Siemens Ltd. since2008
Thank you!
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Contact
Siemens Financial ServicesCommunications
Otto-Hahn Ring 681739 Munich, Germany
Tel.: +49 89 636-4009mail: [email protected]
