The Hindu Business Line : National Bulk Handling plans capacity expansion

National Bulk Handling Corporation Ltd (NBHC), a subsidiary of Financial Technologies (India) Ltd (FTIL), is considering creation and acquisition of up to five million tonnes of fresh warehousing capacities in collaboration with foreign investors.

NHBC, an end-to-end solution provider in bulk handling, has control over four lakh tonnes of warehousing space across the country. The company's services range from procurement, warehousing to grading and inspection, commodity care, disposal and others.

"Various global players are interested to invest in warehousing capacities. The issue is currently being discussed within the FTIL group," Mr Anil K. Choudhary, Managing Director and CEO of NBHC, told Business Line. He, however, said NBHC's role may be limited in managing the warehouses.

It may be mentioned that FTIL's decision on creating fresh capacities through foreign collaboration may also hinge on The Warehousing (Development and Regulation) Bill, 2005 now awaiting Parliamentary approval.

According to Mr Choudhary, the average size of the proposed warehouses, if created, would be much higher than the existing warehouses in the country.

Meanwhile, NBHC has already approached public sector banks seeking management control over warehouses created under Nabard Gramin Bhandar Yojna and is now under liquidation due to loan default.

In tie-up with banks

NBHC is currently tying up with a host of banks including public, private and foreign for promotion of funding on warehouse receipts. "Though the scheme was always there it was never an attractive proposition to banks due to lack of assurance on quality and easy asset liquidation in case of default," he said.

According to Mr Choudhary, NBHC's counter guarantee has made the scheme an attractive proposition to even the private and foreign banks and over Rs 200 crore credit was routed in last three months.

"We have already tied up or in the final stages of firming up collaboration with SBI and its associate banks, Bank of India, HDFC bank, UTI Bank, Kotak Mahindra, IndusInd, Development Credit Bank, City Bank and others," he said.

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