SLCM to Foray into Agri Financing from April 1, 2014
• Acquires Chennai based NBFC to offer agri loans • To provide credit under "Kissan Dhan" scheme
Online, February 26, 2014 (Newswire.com) - Sohan Lal Commodity Management (SLCM), India's leading agri logistics and warehousing company, today announced its foray into agricultural financing from the new financial year that starts April 1. SLCM, which recently acquired Chennai-based non banking finance company, B.P. Jain Finance & Investments to launch agri loans, has all the requisite approvals in place. The credit facility will be offered as "Kissan Dhan."
SLCM is in the process of diversifying its portfolio in line with its strategy to offer end-to-end solutions across the entire agri value chain to customers engaged in farming and allied activities. Backed by technologically efficient process management system, SLCM already offers Procurement, Storage, and Preservation for over 50 agriculture products independent of geographic location and infrastructure. SLCM will now provide loans to the entire agri community against their agriculture output stored at the company's warehouses through Kissan Dhan. The loans against warehouse receipts will carry a competitive interest rate.
Commenting on the development, Mr. Sandeep Sabharwal, CEO, SLCM said, "This is yet another path breaking initiative from SLCM, which believes in providing best and affordable range of services to the agri environment. With the launch of Kissan Dhan, we have become the first company in this sector to provide finance against farm products after arriving at valuation of the goods stored, using Collateral at Risk model. We will extend our time tested technologically sound processes to Kissan Dhan for quick disbursement of loans to farmers and agri traders."
SLCM will infuse an initial amount of 50 crore rupees in the NBFC to augment its capital base. SLCM is targeting to build a book of 400 crore during the next financial year from warehouse receipt financing and other agri financing.
SLCM has world class processes and techniques, which have amply demonstrated their capability to change the face of agri storage industry. The company has been instrumental in devising technology and processes that have cut post harvest losses to 0.5% or a massive reduction of 95% of the normal losses.
It will again be the first warehousing company from India to shortly provide the same scientific support to agri economies of new developing nations in ASEAN and African regions.
About SLCM:
SLCM is a Delhi-based ISO certified, technology driven Agri-Logistic Company, which commands presence in over 70 locations across 20 states with 100+ warehouses in India. With over 3 decades of presence in warehouse management, SLCM offers holistic services in post harvest agri logistics ecosystem - from agri-commodity warehouse management to procurement and financing solutions to farmers, processors, traders, agri exchanges and government. SLCM handles about 50 plus agri commodities across India including cotton, pulses, maize, spices, Mentha Oil, etc. It is the only company in India which has patented a commodity management processes called AGRI REACH which ensures almost negligent storage losses.