Sohan Lal Commodity Management Pvt Ltd (SLCM), post harvest Agri-Logistics Group has tied up with Myanmar’s United Amara Bank(UAB) for collateral financing.Anubhav Sengar, Country Head, SLCM Ltd signed the MoU with UAB officials. The step aimed at strengthening the network for providing collateral management solutions to Farmers, Processors, Traders, Exporters & Importers across Myanmar.
The UAB will offer their customers financing for their commodities which will be stored at SLCM managed warehouses for a stipulated period. SLCM Ltd. would undertake Sampling, Testing, Grading, Assaying, Fumigation, Aeration and Quality Certification of the commodities to ensure the quantity & quality of the pledged commodities.
Sandeep Sabharwal, SLCM Group CEO said, “We have proven our capabilities with our earlier tie-ups in Myanmar and this partnership will strengthen our foothold there. Our process-oriented model has been successful in India where scientific warehousing is gradually becoming a priority.”
“Collateral financing has been a challenge in Myanmar but recently we have seen a paradigm shift in the policies and economy, especially relating to agriculture and collateral financing. Myanmar is an important region for pulses production as India imports 70-80 percent of its pulses from Myanmar,” he added.
Than Win Swe, CEO, UAB said, "We have over the last 3 years engaged in Stock Financing of a number of Import and Export customers and a Collateral Management Scheme will allow us to explore expanding this activity and provide more options for our customers."
Myanmar, where collateral based lending is limited mostly to land holdings, the recent shift of banks to include stock and goods as collateral is a landmark achievement.
Through the initial tie-ups with Yoma Bank and C B Bank, SLCM Ltd. has enabled disbursement of loans amounting to 625,000 USD and have managed 110,000 sq feet of space, 14 different commodities with a throughput of approx. 4.5 MT since commencement.
SLCM started its operations in 2014 in Myanmar with a rich pedigree in the agricultural sector. With this, SLCM Ltd. becomes the only warehousing and collateral management services provider in Myanmar and has tie-ups with three leading nationalized banks including Yoma Bank, C B Bank and United Amara Bank.
SLCM warehouse management is equipped with technology to offer storage and protection services for the entire range of agri-commodities.The company has been handling more than 157 agriculture commodities including Cotton, Barley, Bajra, Castor Seeds, Wheat, Pulses, Maize, Spices, Aloe Vera, etc. across India. As on today, SLCM manages a technology enabled network of more than 750 warehouses and 15 cold storages across 17 states with a total capacity of over 1.75 Million Metric Tonnes spread over 9.51 Million square feet area and a throughput of more than 240 Million Metric Tonnes. The company has also applied for patenting this scientific technology of storage under the aegis of “AGRI REACH” for which the patent is pending.
The Group also has a wholly owned NBFC in India christened as "Kissandhan" which has changed the paradigm of collateral financing by financing across diversified agri products whilst being agnostic to balance sheet of the borrower yet complying with the prudential norms of RBI. In a short tenure of a year, Kissandhan has already financed about 210 cr across 14 locations and multiple commodities in India.