Sohan Lal Commodity Management Pvt Ltd (SLCM) has acquired non-banking finance company (NBFC) BP Jain Finance & Investments, as per a report in The Hindu.
The firm is putting up Rs 50 crore into the Chennai-based NBFC which would allow it to enter the area of agricultural financing.
BP Jain Finance will use the funding to provide finance to warehousing receipts and it is planning to introduce a new product called Kisan Dhan in April this year.
"Providing warehousing receipt finance will be complementary to what we already do (warehousing management services). Chennai–based subsidiary will look to build a book of Rs 400 crore (for warehouse receipt financing and other agri-financing) during 2014-15,†said Sandeep Sabharwal, CEO, SLCM.
Founded in 1971, New Delhi-based SLCM provides agri-commodity warehouse management and procurement solutions to farmers, processors, traders, agri exchanges and government across 70 locations and 12 states in the country. The firm's warehousing capacity exceeds 150,000 MT with warehousing space of over one million sq ft.
In November 2012, Everstone Capital and Emerging India Fund (EIF), a fund under ICICI Bank, had together invested $23.5 million (Rs 129.3 crore) in SLCM for 25.55 per cent and 6.93 per cent stake, respectively. In March 2011, Mayfield India and Nexus Venture Partners invested Rs 35.5 crore in the company.
(Edited by Joby Puthuparampil Johnson)
