International Finance Corporation (IFC) - a member of the World Bank Group - and partners are investing in National Collateral Management Services Ltd (NCMSL), which is an Indian local agri-warehousing company. IFC, Rabobank-sponsored India Agri Business Fund, and public sector company Indian Farmers’ Fertilizer Cooperative Ltd will each invest approximately $6 million, $7.5 million and $5 million respectively(i.e. Rs 27.5 crore, Rs 34.5 crore and Rs 23.75 crore respectively).
The investment will help NCMSL build modern warehouses for efficient storage of agricultural commodities that will eventually help reduce waste of food grains and promote food security. It will also look to expand state-of-the-art storage facilities across India and help manage volatility of food prices in the country.
Sanjay Kaul, managing director and CEO, National Collateral, said, the company offers modern, scientific, and IT-enabled storage and preservation services for agricultural commodities. "The funds raised will be deployed over the next two years to create our own network of warehouses in over 40 locations across India,” Kaul said.
The company’s existing investors, India’s National Commodity and Derivative Exchange Ltd, Karur Vysya Bank, and the Haryana State Co-operative Supply and Marketing Federation Ltd, will collectively commit an additional $3.5 million (Rs 16 crore) to support the expansion.
Anita George, IFC Director for Infrastructure in Asia, said that the this investment sends a strong signal to the market on the viability of private solutions to expand critical agriculture-related infrastructure. "By reducing food waste and minimising price volatility, the project will benefit Indian farmers and help stabilise their income levels,” said George.
In India, huge quantities of food items are wasted annually due to inadequate agricultural infrastructure, including storage and transportation facilities. Storage and warehouses are owned predominantly by government enterprises in India. Industry experts believe that the private sector can play an active role in developing additional storage capacity for food and grains and that projects like National Collateral are a testimony to that.
The investment will help NCMSL build modern warehouses for efficient storage of agricultural commodities that will eventually help reduce waste of food grains and promote food security. It will also look to expand state-of-the-art storage facilities across India and help manage volatility of food prices in the country.
Sanjay Kaul, managing director and CEO, National Collateral, said, the company offers modern, scientific, and IT-enabled storage and preservation services for agricultural commodities. "The funds raised will be deployed over the next two years to create our own network of warehouses in over 40 locations across India,” Kaul said.
The company’s existing investors, India’s National Commodity and Derivative Exchange Ltd, Karur Vysya Bank, and the Haryana State Co-operative Supply and Marketing Federation Ltd, will collectively commit an additional $3.5 million (Rs 16 crore) to support the expansion.
Anita George, IFC Director for Infrastructure in Asia, said that the this investment sends a strong signal to the market on the viability of private solutions to expand critical agriculture-related infrastructure. "By reducing food waste and minimising price volatility, the project will benefit Indian farmers and help stabilise their income levels,” said George.
In India, huge quantities of food items are wasted annually due to inadequate agricultural infrastructure, including storage and transportation facilities. Storage and warehouses are owned predominantly by government enterprises in India. Industry experts believe that the private sector can play an active role in developing additional storage capacity for food and grains and that projects like National Collateral are a testimony to that.
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