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NBHC partners with NCDEX for warehouse service

NBHC can now offer solutions to NCDEX members their clients across all commodities and geographies

Dilip Kumar Jha  |  Mumbai 

owned National Bulk Handling Corporation (NBHC) has joined hands with National Commodity & Derivatives Exchange (NCDEX) for providing warehousing services to the exchange's members and clients. Until April 2014, was a subsidiary of Financial Technologies (India) (FTIL).

In April, announced sale of its 100 per cent stake to Pvt Ltd, sole trustee of India Value Fund-IV, at Rs 242 crore.

"has been approved as the service provider (WSP) to today. The effort for getting NCDEX's accreditation was on for some time now. Based on our qualification and their diligence on us, the exchange has empanelled us. Now, we are ready to start working for NCDEX," said Anil Choudhary, Managing Director & CEO of

With this, NBHC has become one of the accredited WSPs to The company can now offer solutions to the members of and their clients across all commodities and geographies.

Confirming the development, NCDEX said in an email response, "The Exchange (NCDEX) has entered into an agreement with NBHC for its empanelment as a WSP."

NBHC manages around Rs 6,500 crore of on an average through its owned, leased and franchisee warehouses and provides services (issue receipts so that farmers, traders, processors etc. can raise funds from by keeping commodities as collateral) has tied up with 45

is basically managing and giving quality and quantity comfort to the The participants on the Exchange may hold commodities that are meant for delivery. There are instances where funding is required against commodity meant for delivery.

"Therefore, our services come into being.

As NBHC is associated with 45 banks, as a leader in collateral management having cumulatively managed commodities worth about Rs 65,000 crore, we are ready to give services to clients and members of NCDEX because of our stong relations with banks. It will take care of their liquidity requirements," said Choudhary.

A large number of agri contracts are liquid on NCDEX and a good quantity of commodity is delivered on the exchange platform.

"So, we believe that based on merit, service efficiency and integrity, we should be able to get a good part of the Exchange deliveries into our warehouses," he added.

After delinking with the Multi Commodity Exchange (MCX), NBHC was not associated with any commodity exchange until now.

"This was a long cherished aspiration of the company. From the side of exchange related business side, we were not very strong. Since, we have now aligned with NCDEX, we would be able to add lot of value to the entire commodity eco system and also to our business. Many of our valued and long term clients wanted us to partner with NCDEX. A part of their business, at times significant, was going past us as we were not accredited with NCDEX. We believe that we shall make a big headway in our business due to this association," Choudhary added.

First Published: Mon, December 15 2014. 22:31 IST