)
Financial Technologies-promoted warehousing and collateral management entity National Bulk Handling Corp (NBHC) on Monday dissociated itself with the group’s beleaguered sister company National Spot Exchange Ltd (NSEL), which currently faces a payment crisis. NBHC said the company acquired five warehouses in June-July 2013, linked with NSEL handling accumulatively. Thereby, less than three per cent of the total commodities currently under its possession, worth Rs 6,500 crore. In a statement, NBHC said the two (NBHC and NSEL) are different entities. NBHC is one of the leading companies in the private sector offering integrated services in commodity and collateral management, with pan-India operations and offers services to all eco-system participants. The value of the stock in the warehouses, managed by the company as on August 19, stood at around Rs 6,500 crore across various locations in 19 states. NBHC has tie-ups for collateral management activities with banks and non-banking finance companies. The nature of the seasonal business entails continuous inflow and outflow of commodities for storage.
NBHC’s services are offered to all eco-system participants across the supply chain. Further, the company’s operations, business format, revenue, etc are independent of the other group companies.
The company as on July 31 had over 1,500 storage/ warehouses and commodity management facilities under its management under various commercial formats. These facilities are for the business lines pursued by the company, namely warehousing, collateral management, etc.
“The stakeholders consider the fiduciary trust entrusted to the company impeccable and beyond doubt, which is a testimony of the fact that the company has since inception (2005-06) managed over Rs 49,000 crore of stocks for banks alone (about 22 million tonnes) assets which are perishable agricultural produce and cannot be stored beyond a reasonable period of time,” the statement said.
The company has not been empanelled with NSEL for managing the latter’s warehouses /depositary facilities.
