EFIC bond guarantees lucrative contract in India for Warrill Engineering Sales

Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, has helped Dandenong’s Warill Engineering Sales deliver on a A$1.8 million contract to export foundry equipment to India.

EFIC has issued an advance payment bond of A$347,000 to the purchaser of the equipment, Vignyan Industries Limited, in support of the Warrill contract to supply and install a sand mixer, a moulding system and sand reclamation equipment.

Warill, the only Australian-owned manufacturer of foundry equipment, turned to EFIC when it reached its approved loan limits with its bank.

“The contract with Vignyan Industries is our largest individual contract of this nature in our almost 30 years of operations,” said Les Craig,Warrill’s managing director. “EFIC’s bonding facility has helped free up our working capital so we can fulfil the order.”

Warrill’s Indian customer, based near Bangalore, is a public sector company that manufactures steel castings for the railway, heavy engineering sectors and steel ingots for rolling mills.

Warrill has been exporting to India for over 5 years, and with a solid base of around 15 regular customers, the Indian market now accounts for around 40 per cent of the company’s revenue. Warrill has smaller export markets elsewhere in Asia and in New Zealand.

“Warrill is typical of the many SME exporters who have been able to compete more effectively in global markets thanks to EFIC’s bonding facilities,” said Angus Armour, EFIC’s managing director.

EFIC's bonding facilities are available for export contracts where an overseas buyer requires a contract bond as financial assurance that the Australian supplier will honour its contractual obligations.