NCMSL raises $18.5 million in equity funding

BANGALORE: Agri-warehousing company National Collateral Management Services (NCMSL) has raised $18.5 million in equity funding. Of this, World Bank’s investment arm IFC invested $6 million, Rabobank’s India Agri Business Fund put in $7.5 million and Indian Farmers’ Fertilizer Cooperative provided $5 million. The company will use the funds to build more warehouses.

“We plan to deploy funds over the next two years to create our own network of warehouses in over 40 locations across India,” said Sanjay Kaul, NCMSL’s Managing Director and CEO. Existing investors, the National Commodity and Derivative Exchange Ltd, Karur Vysya Bank and the Haryana State Co-operative Supply and Marketing Federation, will also invest an additional $3.5 million in the company.

By 2015, the Indian food industry is estimated to grow to $258 billion up from the current level of $ 181 billion according to a report by E&Y India and FICCI. Agri-businesses ranging from farm inputs, logistics and warehousing, processing and marketing dairy and food produce are scaling operations and are raising equity funding in recent months.

In March this year, a warehousing management company, Sonhanlal Commodities (SLCM), raised Rs 35.5 crore in its second round of funding from Mayfield India and Nexus Venture Partners. In May 2010 they had raised Rs 10 crore from Nexus. In May this year, Small Enterprise Assistance Funds’ (SEAF) India Agribusiness International Fund acquired a significant minority stake in Gwalior-based food ingredients company, Tropilite Foods.