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Presentation on theme: " Guar International 2014 COLLATERIZED TRADE FINANCE UNDER SECURED WAREHOUSING."— Presentation transcript:


2 Promoter IVFA has raised over 1.2 billion USD since its inception in 1999. IVFA has invested in 26 mid-sized profitable businesses, inclusive of 11 from which it has subsequently exited, and guided their transformation into world- class industry leaders that are sustainable, respected and admired by peers and society at large. Each of them is characterized by deep-rooted organizational cultures that encourage and nurture excellence in all aspects of business.

3 IVFA – Current Businesses

4 4 NBHC has a unique service basket offering customized end-to-end commodity management solutions fostering better utilization of resources Each service is a part of supply chain as well as an independent service offering Brands Efficiency in cost and operations globally benchmarked commodity management practices Quality Mitigates concern and enhances value during commodity storage Reach Larger segment of farmers to benefit from MSP including cost &efficiency Meets Strict compliances standards Informed Better decision making NBHC Platform NBHC Services Audit & Accreditation Reducing cost & wastage Reducing Pest risk Reducing market adoption risk Reducing cost & inefficiency Reducing liquidity risk Reducing compliance risk Reducing credit risk Storage & Bulk Handling Collateral Management Testing & Certification Preservation & Protection Supply Chain Management MSP Procurement

5 Presence 23 states (in which NBHC has worked) Sales & admin offices59 Warehousing Storage capacity (All types )2.15 + mn MT Storage space(All types )12.90 + mn sq.ft Storage facilities (All types ) 1320+ Storage facilities (Lease Franchisee Owned )570+ Collateral Management Commodity under CM (cumulative)25.68+ mn MT Storage facilities under CM (cumulative)9,000+ Geographical Spread 550+ locations CM & SP Funding facilitated (cumulative) Rs 43,000 + crs Assets under CM Management (cumulative) Rs 61,000 + crs No. of Banks / Financial Inst. Associated with 43 No. of warehouse receipts issued (cumulative)2,18,700+ Expertise in number of Commodities 160+ Quality Assurance & Pest Management QA Laboratories / facilities 35+ (200+ mobile labs) Number of Commodities tested 160+ Pest Management Services 15 states Accreditations23 licenses Commodity Fumigation (cumulative)33.33 mn MT Human Resources Sales, admin and operations support staff 690+ Supervisory outsourced staff 930+ Warehouses Security personnel 920+ NBHC Fact-file FACT FILE Recent

6 Crucial link in the Commodity-value chain Structured Trade in Secured warehouse is key to a seamless value chain Risk Management is the enabling catalyst for trade- farm gate to processor to wholesaler Enables enhancing market share, reduce costs, mitigate risks across the value chain Agri-productionStorage Commodity Sales & Primary Processing Storage & Logistics Processing Packaging & Logistics The Commodity Ecosystem Pre-harvest Post-harvestProduction & post –Production Producers Traders Processors Wholesalers Input credit Working Capital Asset Financing Working Capital Collateral Management Structured Finance Trade Finance Working Capital Trade Finance

7 The Indian Commodity Eco-system * Source: Company / Industry / Consultants Data Storage demand in agri-commodities though seasonal, evidences a secular growth trend Utilization levels as well as storage opportunity depict untapped opportunity Collateral Management in post-harvest credit directly co-related to WHR financing WHR financing estimated to grow to Rs 70,000 cr+ in 2018, from current level of Rs 25,000 cr on the back of increasing Policy impetus (like WDRA, increasing focus on agri- lending), advent of credible collateral management industry Improved and enhanced warehousing space, Regulatory measures, gradual improvement and traction in investments, participation of private sector, endeavour to imbibe, global standards, etc. are enablers of structured finance in secured warehouses Few service providers have focus in efficient commodity management, commodity quality testing & certification as well as in commodity care & protection

8 8 Warehouse Receipt Funding

9 9 Process Flow

10 Warehousing and Collateralized Trade Finance Access to credit working capital and post- harvest liquidity Easy liquidity services against inventory Storage management facilities either at door step or dedicated warehouses Supplier liquidity ensures uninterrupted supply flow on account of credit constraints Ability to negotiate payment and regulate payment tenors Liquidity matched to the seasonality of the business Definable and un-encumbered Collateral Real-time valuation and Mark to Market for margin calls Assets with short term horizon < 1 year Relatively non-NPA as risk of quantity and quality borne by professional Collateral Manager Ability to spread risks amongst larger cross section of stake holders, commodities and eco-system Expedient disposal of commodities in case of default Key features of a Professional Collateral Manager Brings invaluable and immense fiduciary trust within the eco-system Well capitalized and completely integrated service provider, ensures commitment and high quality of services Integrated bouquet of services ensure mitigation of risks across segments Price dissemination and commodity health care services, ensure value and quantity remains intact during storage Benefits to the Lenders Benefits to the eco-system

11 NBHC Cecure- Collateral Management Solutions Cecure Risk management based on Policies, Infrastructure & Operations Cecure’s Risk Management is a 4-step cyclic process. Risk Identification Risk Measurement Risk Management & Risk Mitigation Benchmark Performance 43 Banks Rs 61,000 crores managaed since inception Rs. 42,900 crores funding facilitated since inception Over 160 commodities 2000+ locations since inception 26 million MT quantity managed Over 170,000 farmers benefitted with Rs. 8800 crores funding Services - NBHC Cecure provides collateral management services based on structured warehouse accreditation, risk prevention & mitigation. Assurance of quality and quantity of the commodities is provided to both depositor and lender.

12 Associates Memberships

13 Associates Contd. Partial List of Institutional Clients

14 14


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