StarAgri Warehousing and Collateral Management Limited

The Company collaborates with over 375 food processing companies, including Cargill India and Archer Daniels Midland and meets their demand by buying from farmers and mandis (wholesale markets). It has 15 labs to ensure purchases meet client-specifications in terms of quality and quantity.[2] StarAgri caters to customers ranging from banks to international bulk commodity buyers, food, health & FMCG companies and commodity exchanges. It is authorized to hold commodities worth Rs.25 billion over 110 collateral management locations through tie-ups with some of the country's leading financial institutions.[9]

StarAgri has tie-ups with 32 banks and financial institutions that give farmers credit, using agri-commodities in the warehouses as collateral.[10]

In July 2014, StarAgri entered into Memorandum of Understanding with Karnataka Bank for extending storage facilities to farmers and finance against the warehouse receipts.[11]

In February 2014, StarAgri tied up with Canara Bank. The partnership is to assist farmers in financing their requirements at all stages of the supply chain, ranging from pre-harvesting to the marketing and export stages.[12]

In 2013, the company signed Memorandum of Understanding with Corporation Bank for providing finance against warehousing receipts.[13]

In 2012, StarAgri collaborated with State Bank of India, for farmer funding and collateral management.[14] It also entered into a partnership with Dena Bank in the same year for warehousing receipt funding.[15]

In 2009, StarAgri tied up with Axis Bank and Punjab National Bank, for collateral management services. During the same year, the company also entered into a strategic alliance with NCDEX as a warehousing service provider.[16][17]

In 2008, it tied up with IndusInd Bank for collateral management services and started operations in Haryana.[18]

In 2007, the company launched its warehousing services with Rs 303 crore credit facility from ICICI Bank, for warehouse receipt-based funding.[18] This was the largest ever credit facility provided by ICICI Bank.[19]

In addition, StarAgri has collaborated with Bank of Baroda, Central Bank of India, IDBI Bank and Kotak Mahindra Bank among others. Among financial institutions, it has collaborated with Reliance Capital and L&T Finance.[16][17]

In 2014, Temasek Holdings invested Rs. 250 crore for a significant minority stake in the company. The funds will be utilized in developing assets like warehouses, supply chain & logistics facilities.[20]

In 2012, IDFC Private Equity, invested Rs.150 crore in the company through IDFC PE Fund III for a significant minority stake. This was IDFC's first PE first transaction in agri-services company and its maiden investment in an “Integrated Independent Post Harvest Management Company”.[21] StarAgri will direct this investment towards expanding high quality warehouse network and also for creating a pan India footprint of the allied post-harvest management services.[3]