Incorporated in 2004, NCMSL is an independent provider of integrated supply chain solutions as well as risk management services for producers, traders and end users of agricultural (wheat, rice, pulses, cotton etc.) and non-agricultural commodities (soap/ shampoo/toothpaste or other fast moving consumer goods). NCMSL mainly offers four distinct services for its clients: (a) Procurement, (b) Storage and Preservation; (c) Testing and Quality certification services; and (d) Collateral Management. The Company currently operates around 400 warehouses taken on short / medium term lease contracts across the country in over 80 locations.

The Company’s expansion plan involves construction of 55 new dry warehouses (each of capacity 15000 MT), 6 cold storages (each of capacity 4000 MT) and three 3PL (Third Party Logistics) warehouses (for industrial/commercial products, each with storage area 100,000 sq. ft.) to be constructed in phases. In addition, the Company will continue to operate leased warehouses at all locations where owned warehouses are not planned. IFC is proposing an investment comprised of both equity and debt to part finance NCMSL’s expansion plan (the “Project”).

Typically, each of NCMSL’s proposed new warehouses will be: located on plots of land ranging from 1.5 to 6 acres; adjoining at least a 20-30 ft wide road; away from municipal areas and resident village communities; and on agricultural land purchased on willing seller-buyer basis, which has been converted to non agricultural use. NCMSL’s operations involve: (a) weighment and receipt of agricultural and non agricultural commodities from depositors; (b) handling (manual unloading of 50-100 kg bags) and storage (stacking in 30 x 20 x 18 ft stacks); (c) safety and security during storage including fumigation and pest management; (d) facilitating and documenting withdrawals by commodity/goods owners; (e) procurement of commodities on behalf of large scale sourcers/traders at market price from agricultural produce markets or from farmers directly under the government’s minimum support price scheme including bagging, transport and storage of procured commodities; and (f) testing and quality certification of goods as sought by various commodity owners. Typically, in most of NCMSL’s existing leased warehouses: roofing is asbestos cement sheets with some skylight sheets; no lighting/electrical points are provided inside the warehouse; there is a guard rooms at the gate; an office building with one office room, a small storage room and washroom/toilets; and electricity is grid power with usually a backup diesel generator (DG) set. The proposed new warehouses will, depending on the planned capacity at each location, have two or three sheds, each of about 100 x 200 feet with asbestos cement roofing (prefabricated steel roofing in the 3PL warehouses), adequate sky light arrangement, flame proof/spark proof electrical/lighting fittings and arrangement for fire safety. Further, each warehouse will have basic amenities like guard room, area lighting for night, office room, consumable store room, toilet and bath and grid connected power. The cold storage warehouses are expected to be basement plus five floor format with grid electricity and 100% backup diesel generator sets.