NBHC sees Rs 5,000 crore investment in 4 yrs
The National Bulk Holding Corporation Ltd is eyeing investments of around Rs 4,000 crore over the next four years, reports Suman Layak.business Updated: Apr 29, 2007 21:12 IST
The National Bulk Holding Corporation Ltd, (NBHC) the commodity warehousing and procuring arm of Financial Technologies - promoters of the Multi Commodity Exchange - is eyeing investments of around Rs 4,000 crore over the next four years.
Anil K Choudhary, chief executive officer of NBHC, told Hindustan Times: "We are in the process of deciding how we want to grow. Whether we want to be asset heavy by owning warehouses across the country, or do we want to float another company to own the assets?"
The NBHC manages around 179 warehouses across the country for its commodity holding and warehousing business. It also looks after around 1,200 warehouses for different banks that lend on the basis of warehouse receipts to farmers as well as other intermediaries in the commodity trade.
The company, however, is keen on building a country-wide chain of large warehouses that will be of global scale with the space to allow six trucks to load and unload at the same time. Choudhary said that the company is yet to figure out whether to own all the real estate it intends to occupy.
Apart from warehousing, the company is also expanding its procuring business. After doing a pilot in Madhya Pradesh procuring wheat for the Food Corporation of India 2006, the company has applied for procuring work in many other Indian states for the current year.
For collateral management the company now has tie-ups with nine banks. Choudhary feels that by the end of the current financial year the company will have tie-ups with 25 banks including some multi-national banks.
"Our parent, Financial Technologies has always been ready to pump in investments whenever we required," he said. "I am sure we will get enough investments whenever we need them. Raising money externally is also not a problem."
First Published: Apr 29, 2007 21:10 IST