september 8, 2015. about us established in 1982 the first collateral management company incorporated...
TRANSCRIPT
ARYA COLLATERAL WAREHOUSING SERVICES PVT. LTD.
Agri-Warehousing in India
September 8, 2015
About Us
Established in 1982
The first Collateral Management Company incorporated in India
Trusted Partner of Multiple Banks, Agri-Corporations, Commodity Exchanges and Multilaterals
Team with rooted experience in Agriculture, Banking and Commodities
Operations across 16 States managing 400+ warehouses with AUM of Rs.15.00 Billion
Indian Agri-Storage Scenario
49%51%
74%
26%
Present Capacity Gap in Capacity
WarehousingRequirement : 135.0 Mn MT
Cold StorageRequirement : 61.0 Mn MT
Source : Planning Commission Report
A step deeper – Commodity Flow & Implications
Primary Production Centers• Farmgate• Home to smallholders
Secondary Centers• First level trading hubs• Small Mandi centers• Kachha Adatiyas
Tertiary Trading Centers• Trading hubs• Large Mandis• Home to traders
A step deeper – Commodity Flow & Implications
Primary Production Centers• Farmgate• Home to smallholders
Secondary Centers• First level trading hubs• Small Mandi centers• Kachha Adatiyas
Tertiary Trading Centers• Trading hubs• Large Mandis• Home to traders
Most storage located here
Most Banks located here
Largest beneficiary - Traders Largest storage gap
Very limited access to finance
The producer neglected
A losing battle for smallholders
Harvest Season
ARYA: Learnings and Experiences
Distress Sale• Ex
ploitation
Glut in Market
• Prior obligations
• Low Prices
Harves
t Season
Farmer
The approach to be market driven – Create an ecosystem
Focus on what exists than on creating new
Size agnostic warehousing model
Leverage the power of aggregation
Our Approach
Warehousing
Finance
Integrated Model
Market Linkage:
Exchange
• Warehouses at farm centers for Storage
• Finance availability from Banks at Warehouse
• Tie-up with Commodity Exchange and Corporates for Sale
Distress Sale• Ex
ploitation
Glut in Market
• Prior obligations
• Low Prices
Harves
t Season
Farmer
Typical Challenges in Implementation
Primary Production Centers• Farmgate• Home to smallholders
Secondary Centers• First level trading hubs• Small Mandi centers• Kachha Adatiyas
No Warehouses available
No Banks in vicinity
Limited scale reduces efficiency
Warehouse : Changing lenses
Warehousing
Finance
Integrated
Model
Market Linkage:
Exchange
Other storage options
Warehousing
Finance
Integrated
Model
Market Linkage:
Exchange
Air Warehouses
Field Silos
How does it work
Farmers
Produce
Warehouse
Farmer Market-Bank Linkage
Producer Company
(FPO)
Aggregates stocks of members
Spot Exchange
OR
Agri-Corporate
Facilities at Warehouse:• Grading and Sorting• Price Information• Finance
Bank lends to farmers
Farmers repay to Bank as per agreed mechanism
Suggest on Commodity
Suggest on DocumentationSuggest on Process
Certify Quality & QuantityManage Warehouse
Overall execution
Formation of FPOs
Assistance on DocumentationBusiness Planning
Corporate Governance
Policy Support
Appropriate balance between Food Security and Market Oriented Agri development
Consistent policy – Warehousing & Producer Organisations
Regulator - More practical guidelines
Thank You