Focussing on the southern markets, the financial services company Inditrade Capital is looking at opportunities in agri-commodity and micro-financing business in a big way.

The company, through its subsidiary JRG Fincorp, has entered into the agri-commodity financing business in Kerala, Andhra Pradesh and Telangana. The opportunity in this under-serviced market is significant and the company hopes to rapidly scale up the loan book at around ₹300-400 crore, Sudip Bandyopadhyay, the promoter said.

The commodity business in India, he said, was estimated at ₹10 lakh crore and close to 50 per cent was funded by banks, NBFCs, etc, and the remaining by unorganised money-lenders. “We wanted to enter in an organised manner to fund the business,” he said.

To a question on the recent fall in commodity prices, he said “it is a cycle and demand is likely to remain strong”. However, in non-agri commodities, there has been stress and the subdued demand will stay for some more time, especially in the precious metals segment, till the Chinese economy recovers.

Asked whether the firm is shifting its focus from equity markets, especially in these turbulent times, he replied in the negative, saying they would rapidly expand its broking and distribution business either directly or through its subsidiaries.

“For the time being, we will remain in the southern markets and further improve our presence, both in online and onboard trading, to provide customers a better experience,” he said.

The company is also working on tie-ups with large telecom players and banks to rapidly scale up their broking and distribution business in South India. There are also plans to get into micro-financing business to cater to the semi-urban market, he said.

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