Download - Www.nbhcindia.com Guar International 2014 COLLATERIZED TRADE FINANCE UNDER SECURED WAREHOUSING
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Guar International 2014
COLLATERIZED TRADE FINANCE UNDER SECURED WAREHOUSING
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Promoter
IVFA has raised over 1.2 billion USD since its inception in 1999.
IVFA has invested in 26 mid-sized profitable businesses, inclusive of 11 from which it has subsequently exited, and guided their transformation into world-class industry leaders that are sustainable, respected and admired by peers and society at large.
Each of them is characterized by deep-rooted organizational cultures that encourage and nurture excellence in all aspects of business.
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IVFA – Current Businesses
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NBHC has a unique service basket offering customized end-to-end commodity management solutions fostering better utilization of resources Each service is a part of supply chain as well as an independent service offering
Brands
Efficiencyin cost and operations globally benchmarked commodity management practices
QualityMitigates concern and enhances value during commodity storage
ReachLarger segment of farmers to benefit from MSP including cost &efficiency
MeetsStrict compliances standards
Informed Better decision making
NBHC Platform
NBHC Services
Audit & Accreditation
Reducing cost &
wastage
Reducing Pest risk
Reducing market
adoption risk
Reducing cost &
inefficiency
Reducing liquidity
risk
Reducing compliance
risk
Reducing creditrisk
Storage & Bulk Handling
Collateral Management
Testing & Certification
Preservation & Protection
Supply Chain Management
MSP Procurement
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Presence 23 states (in which NBHC has worked)
Sales & admin offices 59
Warehousing
Storage capacity (All types ) 2.15 + mn MT
Storage space (All types ) 12.90 + mn sq.ft
Storage facilities (All types ) 1320+
Storage facilities (Lease Franchisee Owned ) 570+
Collateral Management
Commodity under CM (cumulative) 25.68+ mn MT
Storage facilities under CM (cumulative) 9,000+
Geographical Spread 550+ locations
CM & SP Funding facilitated (cumulative) Rs 43,000 + crs
Assets under CM Management (cumulative) Rs 61,000 + crs
No. of Banks / Financial Inst. Associated with 43
No. of warehouse receipts issued (cumulative) 2,18,700+
Expertise in number of Commodities 160+
Quality Assurance & Pest Management
QA Laboratories / facilities 35+ (200+ mobile labs)
Number of Commodities tested 160+
Pest Management Services 15 states
Accreditations 23 licenses
Commodity Fumigation (cumulative) 33.33 mn MT
Human Resources
Sales, admin and operations support staff 690+Supervisory outsourced staff 930+Warehouses Security personnel 920+
NBHC Fact-file
FACT FILE Recent
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Crucial link in the Commodity-value chain
Structured Trade in Secured warehouse is key to a seamless value chain Risk Management is the enabling catalyst for trade- farm gate to processor to wholesalerEnables enhancing market share , reduce costs, mitigate risks across the value chain
Agri-production Storage Commodity Sales & Primary Processing Storage & Logistics
Processing Packaging & Logistics
The Commodity Ecosystem
Pre-harvest Post-harvest Production & post –Production
Producers Traders Processors Wholesalers
Input credit Working Capital
Asset Financing
Working Capital Collateral Management Structured Finance Trade Finance
Working Capital
Trade Finance
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The Indian Commodity Eco-system
* Source: Company / Industry / Consultants Data
• Storage demand in agri-commodities though seasonal, evidences a secular growth trend
• Utilization levels as well as storage opportunity depict untapped opportunity
• Collateral Management in post-harvest credit directly co-related to WHR financing
• WHR financing estimated to grow to Rs 70,000 cr+ in 2018, from current level of Rs 25,000 cr on the back of increasing Policy impetus (like WDRA, increasing focus on agri-lending), advent of credible collateral management industry
• Improved and enhanced warehousing space, Regulatory measures, gradual improvement and traction in investments, participation of private sector, endeavour to imbibe, global standards, etc. are enablers of structured finance in secured warehouses
• Few service providers have focus in efficient commodity management, commodity quality testing & certification as well as in commodity care & protection
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8Warehouse Receipt Funding
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9Process Flow
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Warehousing and Collateralized Trade Finance
• Access to credit working capital and post-harvest liquidity
• Easy liquidity services against inventory • Storage management facilities either at
door step or dedicated warehouses• Supplier liquidity ensures uninterrupted
supply flow on account of credit constraints
• Ability to negotiate payment and regulate payment tenors
• Liquidity matched to the seasonality of the business
• Definable and un-encumbered Collateral• Real-time valuation and Mark to Market for margin calls• Assets with short term horizon < 1 year• Relatively non-NPA as risk of quantity and quality borne by
professional Collateral Manager • Ability to spread risks amongst larger cross section of stake
holders, commodities and eco-system• Expedient disposal of commodities in case of default
Key features of a Professional Collateral ManagerBrings invaluable and immense fiduciary trust within the eco-systemWell capitalized and completely integrated service provider, ensures commitment and high quality of services Integrated bouquet of services ensure mitigation of risks across segments Price dissemination and commodity health care services , ensure value and quantity remains intact during storage
Benefits to the LendersBenefits to the eco-system
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NBHC Cecure- Collateral Management Solutions
Cecure Risk management based on • Policies, • Infrastructure & • Operations
Cecure’s Risk Management is a 4-step cyclic process. • Risk Identification • Risk Measurement • Risk Management &• Risk Mitigation
Benchmark Performance• 43 Banks• Rs 61,000 crores managaed since inception• Rs. 42,900 crores funding facilitated since inception• Over 160 commodities• 2000+ locations since inception• 26 million MT quantity managed• Over 170,000 farmers benefitted with Rs. 8800 crores
funding
Services - NBHC Cecure provides collateral management services based on structured warehouse accreditation, risk prevention & mitigation. Assurance of quality and quantity of the commodities is provided to both depositor and lender.
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Associates
Memberships
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AssociatesContd.
Partial List of Institutional Clients
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