L&T Finance has entered into a strategic partnership with National Collateral Management Services Limited (NCMSL), a major agri-infrastructure player, for collateral management and warehousing services. The objective of these services will be to assist industries, traders and farmers in financing their working capital requirements at all stages of the supply chain, ranging from pre-harvesting to the marketing and export stages.
Commenting on the tie up, Dinanath Dubhashi, CEO, L&T Finance stated "L&T Finance has been in the forefront in evolving and adapting to the financial sector. We have a large loyal customer base across rural India. This tie up with NCML will provide a great fillip to warehouse receipt financing and will help the farmers to avoid selling their produce at give-away prices by enabling them to hold on and wait for better prices.
LTF has already started warehouse receipt finance in selected territories and envisages expanding the business after the initial good response. Given the demonstrated track record of NCML, the partnership will enable L&T Finance to mitigate credit risk for its commodity finance product offerings."
Speaking on the occasion, Sanjay Kaul, MD and CEO, NCML said, "The tie up with L&T Finance will especially prove beneficial to stakeholders in view of the large rural customer base of L&T Finance across the country." He further added, "NCMSL has plans to build its own warehouses at 40 locations across 12 States and this partnership will facilitate secured post harvest lending on large scale to farmers, processors and other agri-business clients"