EFIC assisted Warill Engineering with an advance payment bond
Warill Engineering Sales (Aust) Pty Ltd (Warill), a Dandenong-based designer and manufacturer of foundry equipment, has developed a strong presence in the emerging Indian market over the past six years.
In 2008 Warill won an A$1.8 million contract with Vignyan Industries Ltd (Vignyan), based near Bangalore, to supply and install a sand mixer, a moulding system and sand reclamation equipment.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, issued an advance payment bond to Vignyan. The bond secured the repayment of upfront funds paid to Warill by Vignyan, enabling Warill to start work on the contract.
Warill turned to EFIC when the company was unable to obtain the advance payment bond from its bank, having reached its approved loan limits.
“The contract with Vignyan Industries was our largest individual contract of this nature in our almost 30 years of operations,” said Les Craig, Warill’s managing director. “EFIC’s bonding facility helped free up our working capital so we could fulfil the order.”
EFIC’s bonding facilities can help eligible Australian exporters meet their contractual obligations to provide bonds while freeing up their working capital, enabling them to compete more effectively and confidently in global markets.
Exports now contribute over 50 per cent of Warill’s total business revenue, and around 40 per cent of the company’s export revenue comes from India.
Vignyan Industries Ltd is a public sector company that manufactures steel castings for the heavy engineering sectors, and counts Indian Railways among its customers.
Warill, which has developed a diverse range of equipment to suit most foundry processes, has also exported its machinery to other parts of Asia and New Zealand.
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