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The National Collateral Management Services Ltd (NCMSL), an agriculture warehousing company, is planning to add one lakh sq ft of warehouses facilities in Karnataka.
The company has identified Gulbarga, Davangere, Sidhanur, Tumkur and Hassan to add additional warehousing capacity.
Each warehouse will have 15,000 tonnes capacity.
“At present the Karnataka Industries Areas Development Board (KIADB) is helping us with land acquisition. The company is planning to spend Rs 45-50 crore to set up these five warehouses. Each warehouse on an average works out to Rs 4-5 crore,” Mr Sanjay Kaul, Managing Director and Chief Executive Officer, NCMSL, told Business Line.
Warehouse capacity
At present, the company has small warehouse capacities in Gulbarga (10,807 tonnes), Davangere (13,019 tonnes), Sidhanur (6,600 tonnes) and Hassan (2,775 tonnes) Harihar (3,723 tonnes), Gadag (4,583 tonnes), Shimoga (2,221 tonnes).
“We have been active in Karnataka for some time now by offering scientific and IT-enabled storage and preservation services with focus on agricultural commodities. In addition to storage bouquet of services to manage risks across various stages of commodity and inventory handling under a single umbrella is also handled,” explained Mr Kaul.
Warehouse receipt system
Welcoming the recently-introduced negotiable warehouse receipt system in the country, Mr Kaul said, “For warehouse receipts to become tradable, the Agriculture Produce Marketing Committees (APMCs) located in many States must enable trader, producer to trade in them and not just pile them.” The company recently raised additional equity of Rs 101.75 crore from IABF, IFC and four of its existing shareholders.
Shareholders
The company governed by an independent and professional board and its shareholders include IFFCO, IFC, Rabo Equity, ACE Geneva, Bank of India, Canara Bank, Corporation Bank, HAFED, Indian Bank, HDFC Bank, Karur Vysya Bank, NCDEX, Punjab National Bank and Yes Bank.
“The pan-India operation of the company helps us provide commodity handling and risk management services to clients across the country. We are geared to handle operations encompassing the sale, purchase, trading, and movement of commodities and inventories,” said Mr Kaul.
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