National Bulk Handling Corporation Limited (NBHC), a group company of Financial Technologies (India) Limited (FTIL), is an end-to-end solutions provider in warehousing and bulk handling of agri-commodities. The company has established a meticulous system for storing commodities in all its warehouses across the country, encouraging banks to engage themselves in post-harvest lending also.
The company is on a move to scale up its presence in Uttar Pradesh. Anil K Choudhary, managing director and CEO of NBHC, shares the company's present and future initiatives in the state with Pallavi Bisaria.
What is National Bulk Handling Corporation?
National Bulk Handling Corporation Limited (NBHC) is an ISO 9001:2000 & ISO 22000:2005 certified company.
It is a national-level end-to-end solutions provider in warehousing, bulk handling, procurement, grading & inspection, commodity care & pest management, audit, accreditation & commodity valuation, collateral management and disposal of commodities.
What is warehouse receipt?
Banks are mandated to lend 18 per cent towards agriculture under priority sector lending norms. One of the major activities is warehouse receipt funding.
Under this activity, a farmer or small trader who stores his produce in an NBHC accredited warehouse, after its quality and quantity has been certified, can avail of a bank loan against a warehouse receipt issued by the collateral manager, i.e. NBHC.
How is it beneficial for the farmers/ traders?
When a farmer or a trader keeps goods in a warehouse, the godown manager issues a receipt acknowledging the quantity and standard of the goods stored there. The loan he secures is 2 to 3 per cent below the PLR and the bank's security margin varies between 20 per cent and 25 per cent of the commodity value.
Tell us about NBHC's presence across India.
We have close to 315 warehouses in total, with a combined capacity of 1.2 million tonnes. NBHC manages collaterals of around 16 banks nationally to the tune of Rs 3,000 crores. The banks with which we are associated are Axis Bank, Bank of India, Bank of Rajasthan, Federal Bank, Development Credit Bank, HDFC Bank, IDBI Bank, Kotak Mahindra Bank, etc.
Which spectrum of farmers do you cater to?
Our farmers deal in produce ranging from from Rs 7,000 to Rs 21 crore. We touch the entire spectrum of commodities, catering to the needs of even the marginal and small farmers as well.
Tell us about your presence in Uttar Pradesh.
In Uttar Pradesh, we have close to 100 warehouses, managing about 5,00,000 tonnes of produce. We cover 19 districts and are present in 55 to 60 centres across the state. We have our offices at Bareily, Kanpur, Shahjahanpur and Muzzafurnagar. An office at Lucknow and Rudrapur (Uttarakhand) are next on the agenda.
Where does Uttar Pradesh stand for NBHC and what are the common commodities being taken from the state?
We are quite positive about Uttar Pradesh as it has lot of potential. Enjoying the benefit of crops for both the harvesting season, viz. rabi and kharif, it offers us a range of commodities.
Besides menthe oil, which is most common from the state, other commodities comprises gur, bajra, paddy, sesame, sugar, mustard and potato.
What has been the advances made in UP by NBHC?
In UP, we have a tie-up with 7 to 8 banks, like Axis, HDFC, SBI etc. We have been operating since the last 6 to 9 months in the state and have done funding close to Rs. 100 crore.
What are your future plans for NBFC in Uttar Pradesh?
Besides setting up offices at Lucknow and Rudrapur, we are also in the process of opening full fledged testing labs at each centre of the state, which will be operational in 3 to 4 months time.
What are your initiatives for the rural areas and how do you work upon mass awareness regarding NBHC?
Our focus area for 2008-2009 will be rural areas. We have assigned targets for our business managers to penetrate further at the rural level. We hold awareness programs and seminars jointly with the banks.
We also make a point to participate in kisan melas which gives us an opportunity to be in direct contact with the farmers.
