(1) The Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 with support from the World Bank and Government of India to provide long-term financing to Indian businesses. (2) ICICI emerged as a major source of foreign currency loans and was among the first Indian companies to raise funds internationally. (3) In 2002, ICICI merged with ICICI Bank to form India's first universal bank, ending its existence as a development financial institution.

1. INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA
(ICICI)
By:
Vaibhav Agarwal
Asst. Prof.
UNIT 3
Business Organisation
BBA 1st Year

2. INTRODUCTION
 In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of the World Bank, the Government of India and representatives of
Indian industry.
 The objective of creating a development financial institution for providing medium-term and long-
term project financing to Indian businesses.
 Mr. A. Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.
 ICICI emerges as the major source of foreign currency loans to Indian industry.
 Besides funding from the World Bank and other multi-lateral agencies.
 ICICI was also among the first Indian companies to raise funds from international markets.
 In 1977, ICICI sponsored the formation of Housing Development Finance Corporation.

3.  In 1986, ICICI became the first Indian institution to receive Asian Development Bank Loans.
 ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first
professional credit rating agency.
 ICICI promotes Shipping Credit and Investment Company of India Limited.
 In 1996, ICICI Asset Management Company was set up.
 ICICI Bank was set up.
 ICICI Ltd became the first company in the Indian financial sector to raise GDR.
 In 1998, The name The Industrial Credit and Investment Corporation of India Ltd. changed to
ICICI Ltd.

4.  Initially its equity capital was owned by companies, institutions and individuals.
 But at present its equity capital has been owned by public sector institutions like—Banks, LIC,
CIC and its associate companies.
 In March 2002, the ICICI was merger with the ICICI Bank and created a first universal bank in
India.
 With this merger, ICICI does not exist any more as a development financial institution.

5. OBJECTIVES OF ICICI
 To provide loans to industrial projects in private sector.
 To stimulate the promotion of new industries.
 To assist the expansion and modernization of existing industries.
 To provide Technical and managerial aid to increase production.

6. FINANCIAL SUPPORT OF ICICI
 Long term and medium term loans both in terms of rupee and foreign currency.
 Participating in equity capital and in debentures.
 Underwriting new issues of shares and debentures.
 Guarantee to suppliers of equipment and foreign loaners.

7. ACTIVITIES OF ICICI
 Project Finance:
 The project finance is provided to industries for the cost of establishment,
modernization or expansion of manufacturing and processing activities in the form of
rupee and foreign loans, underwriting, subscription to shares and debentures and
guarantees to supply of equipment and foreign donors.
 The rupee loan is given for the purchase of equipment and machinery, construction and
preliminary expenses. The foreign currency loans are provided for the purchase of
imported capital equipment.
 Leasing:
 The leasing operations of the ICICI commenced in 1983. Leasing assistance is given for
computerization, modernization/replacement, equipment of energy conservation, export
orientation, pollution control etc.

8. ACTIVITIES OF ICICI
 Project Advisory Services:
 The Project advisory services are provided to the Central and State Governments and
public sector and private sector companies. Advice to the governments is provided on
policy reforms and on value chain analysis and to private sector companies on strategic
management.
 Provision of Foreign Currency Loans:
 The ICICI has a provision of foreign currency loans and advances to enable Indian
Industrial concerns to secure essential capital goods from foreign countries.
 Other Institutions Promoted:
 ICICI promoted the Housing Development Finance Corporation (HDFC) to provide
long-term finance to individuals in middle and lower income groups, co-operations,
etc., for the construction and purchase on ownership basis of residential houses all over
the country.

9. ACTIVITIES OF ICICI
 Other Institutions Promoted:
 Credit Rating Information Services of India Ltd. (CRISIL) set up by ICICI in
association with Unit Trust of India (UTI) to provide credit rating services to the
corporate sector.
 Technology Development and Information Company of India Ltd. (TDICI), promoted
by ICICI, to finance the transfer and Up gradation of technology and provide
technology information.
 Programme for the Advancement of Commercial Technology (PACT) set up with a
grant of US $10 million provided by USAID (United States Aid) to assist market-
oriented R&D activity, jointly undertaken by Indian and US companies, ICICI has been
entrusted with the administration and management of PACT.
 Programme for Acceleration of Commercial Energy Research (PACER) funded by
USAID with a grant of US $ 20 million to support selected research and technology
development proposals in Indian energy sector PACER was also launched by ICICI.

10. THANKS
SOURCES:
http://www.icicigroupcompanies.com/history.html
http://www.yourarticlelibrary.com/banking/industrial-credit-and-investment-corporation-of-india-icici/23506/
P.C. Tulsian, Business Organisation and Management
T.N. Chabbra, Business Organisation
ICICI Group Website http://www.icicigroupcompanies.com/index.html