National Collateral Management Services Limited

completed

Incorporated in 2004, National Collateral Management Services Limited (“NCMSL” or “the Company”) is an independent provider of integrated supply chain solutions as well as risk management services for producers, traders and end users of agricultural and non-agricultural commodities. Its main services are warehousing and storage, procurement and collateral management for banks providing agri-commodity financing. The Project involves setting up of owned warehouses across the country for storing agri-commodities. The Company currently operates around 400 warehouses taken on short / medium term lease contracts across the country in over 80 locations. Due to the nature of these lease contracts, the Company is exposed to the risks of lease price volatility as well as non-renewal of the contracts. The Company believes that the only way to improve overall services levels (across procurement, warehousing and collateral management), operating efficiencies and long term-profitability in this business is by moving from a 100% lease-based model to a more balanced mix of owned and leased warehouses.