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Who is our client

National Collateral Management Services Limited (“NCML” or the “Company") founded in 2004, is an agricultural commodities storage company headquartered in Gurgaon, India. The Company’s objective is to provide the best handling, storage, custodian and supply chain management solutions for commodities throughout the warehousing industry in addition to weather intelligence and certification via its laboratories. NCML operates a pan-India network of warehouses with more than 1.7 million metric tonnes storage capacity.

Funding objective

The objective of our funding is to finance the construction of new steel silos for the storage and preservation of staple foods products; wheat and rice, for the purpose of securing food for the Indian food security system.

Why we fund this project

The rational for FMO to finance this transaction is based on the fact that the total food waste in India equals the total consumption of food in the UK. A “Zero tolerance to food waste” is highly promoted by the Indian Government. Supporting the expansion of NCMLs storage and preservation capacity will have a major impact on the agri-sector and food security in India. In addition, we will improve access to finance to the farmer community thereby promoting agriculture development as a means of alleviating poverty. NCML indirectly services over one million farmers.

Environmental and social rationale

E&S risks are categorized as Category B+ mainly due to organizational health and safety, supply chain and land acquisition risks largely limited to the client’s business procurement division. These potential risks can be mitigated when managed according to the following IFC performance standards: PS 1 Assessment and Management of Environmental and Social Risks, PS 2 Labor and working conditions, PS 5 Land Acquisition and Involuntary Resettlement, and PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. The client does not/will not perform any industrial processing, and their operations are located with considerable distances to communities, hence PS 3 and 4 are not applicable. The project sites are not in the sphere of influence of Indigenous People (PS 7) nor Cultural heritage (PS8) based on this performance standards 7, and 8 are not applicable. If FMO’s investment proceeds, FMO will periodically review the project’s compliance with the Performance Standards and adequate mitigation measures will be agreed.

Agribusiness, Food & Water
Signing date
Total FMO financing
INR 3200.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)