Kerela-based JRG Group plans to expand commodities trade in Gujarat

In a bid to generate commodity trading business worth Rs 100-150 crore from Gujarat in six to nine months, JRG Group from Kerala, one of the premier brokerage houses will be extending its reach to Gujarat.

"This state has been the hub for capital market trading as well as commodity trading. We will be looking at the commodity market and there will a parallel development on the stock front," said Regi Jacob, managing director of Rs 600 crore JRG Securities, while talking to Business Standard.

"We had an agreement today and our head office in the state will be set up in about three weeks time. We are looking at setting up 40 offices in the state in the first year," said Jacob.

JRG has over 400 centres spread across eight states and by 2008, it aims to have 1,500 offices in India. "We plan to have more 150 offices in Gujarat by 2008. In the first year, we are targeting a client base of 10,000 and almost the same number of clients in internet trading also," Jacob said.

JRG started its functioning in the Stock Market in 1992 and is acting as broker of the National Stock Exchange, Bombay Stock Exchange, the powerhouse of India, the Broker of National Multi Commodity Exchange of India (NMCE), Multi Commodity Exchange Of India Limited (MCX) , National Commodity, and Derivative Exchange of India Limited (NCDEX) and the Insurance Regulatory and Development Authority (IRDA) as an insurance broker.

The Group has a strong presence in Karnataka, Tamil Nadu, Andhra Pradesh, Kerala Utter Pradesh, Punjab, Delhi and Hariyana.

Jacob said that JRG will mainly focus on gold and silver bullion in the state. Besides, the group will begin trading in urad, jeera, isabgul and crude oil, he added.

Six months later, JRG plans to introduce trading of south-Indian commodities like chilli, pepper and rubber in Gujarat.

About the difference between commodity trading in Gujarat and south-India where the Group has a strong presence, Jacob said, "Down south we have very few commodities. While rubber is an industrial product, pepper is used mainly as an additional flavour. The commodities traded in Gujarat are more of a daily requirement."

Also the quantum of people involved in the process are more than any other state where we have our presence, he said.

The three regional offices in Mehsana, Surat and Rajkot will cater to the trading set up in the state including Unjha, Tapan and Palanpur.

"The denizens of Gujarat have good knowledge in cash market trading and derivatives. It will be a motivated market and most of the people know how to react to the various market behaviour," Jacob said.

"JRG has extended its full expertise public by providing full-fledged trading facilities and services through their 396 centres, which are located in major places of the country and abroad with highly qualified and experienced financial experts," said Giby Mathew, executive director.

The centralised Data Base Management System with the state-of-the-art technology, gives an edge in the speedy services and efficient operations of the JRG Group, JRG started Online Commodity Futures Trading in June 2003 by extending an exclusive on-line 'Rubber Future Trading System' to the Members of Indian Rubber Dealers Federation, he added

JRG has a membership with Dubai Gold & Commodities Exchange (DGCX) for the expansion of their operations in Middle-east. JRG is all set to join hands with a leading business house in UAE.

"JRG is ready to provide opportunity to the public to trade in all types of commodities, which are implementing immediate future," Jacob said.