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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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