MUMBAI (Commodity Online): In a major initiative to increase exposure to the agriculture sector, Shree Shubham Logistics Limited (SSLL) has announced signing of Memorandum of Understanding (MoU) with Axis Bank to work together in the area of warehouse-based receipt financing.

SSLL, a subsidiary of Kalpataru Power Transmission Limited, is a Gujarat-based company focused on developing commodity warehousing logistics parks in strategic locations in the country.

The agreement is aimed at bringing the two institutions together, with the bank extending finance against warehoused commodities and inventories, and under the collateral management structures of SSLL, providing end-to-end solutions to all the commodity stake holders in the agricultural and non-agricultural segment with a pan-India presence.

SSLL, managing a complete commodity value chain at its own Agri Logistics Parks at more than10 locations in Rajasthan and Gujarat and expanding its footprint by setting up 17 ALPs in next 1-2 years in the state of Madhya Pradesh and Maharashtra, has ambitious plans to develop 41 ALPS across the country in the near future.
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Aditya Bafna, Executive Director, Shree Shubham Logistics Limited, said: “We are extremely happy to sign this MoU with Axis Bank, one of the country's largest private sector banks. We will jointly work to provide liquidity to farmers against their produce and thereby enable them to time their sale for best returns. We see warehouse receipt financing as a great opportunity and we will be an aggressive player in this business.'

He further said that “Our services coupled with the bank’s vast network will provide a great extent of financial flexibility to farmers. It will reduce the seasonal price fluctuations and distress sales during the crop harvest season”.

SSLL has tied up with various leading banks as part of its collateral management network. SSLL works with these banks closely to help farmers and traders get credit for their farm produce. Earlier SSLL has signed agreements with Union Bank of India and Development Credit Bank.
This is yet another endeavour of SSLL to help this sector by bridging the gap between producer and banks by providing collateral management services. Thereby, assisting the banks, as well as the farmers and other key stake holders in the commodity sector. 
(Courtesy: IndiaPRWire)

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