Kolkata, Sep 15 (Calcutta Tube) Gontermann-Peipers India (GPI) is expecting to get the Forward Markets Commission‘s approval for a planned multi-commodity exchange soon, a top company official said here Wednesday.
‘We are expecting the approval shortly for the multi-commodity exchange,’ L.K. Poddar, managing director of the engineering firm, told reporters at a press meet.
The company wants to foray into commodity exchange arena to tap the growing market of future trading in commodity. GPI plans to invest Rs.150 crore for the bourse.
It plans to allow trading of agricultural commodities and metals (including steel) in the proposed multi-commodity exchange.
‘We are looking for a foreign partner. After we get the approval we will approach the foreign companies. We are in talks with four foreign companies,’ Poddar said.
He, however, declined to mention the name of the foreign companies, but he said the companies are from the US, Europe and Southeast Asia.
The company is looking for a technical or equity tie-up with the foreign company for the exchange.
At present, there are four national-level commodity bourses in India- Multi Commodity Exchange of India (MCX), National Commodity & Derivatives Exchange (NCDEX), National Multi Commodity Exchange of India (NMCE) and Indian Commodity Exchange (ICEX).
He said it would take one to two years for the exchange to be fully functional after it gets the approval. It has sought for FMC approval in July.
About its expansion plans of cast and forged rolls, Poddar said the company is investing Rs.48 crore to extend its product portfolio with the launch of 6,000 tonne per annum value added castings project.
GPI, which was acquired by the Ispat Group in 1981, has 40 percent marketshare in the roll industry in India.
The company has entered into a memorandum of understanding with the Chhattisgarh government for setting up a pelletisation plant of 1.2 million tonnes per annum, which would entail an investment of Rs.300 crore.
‘We will require 50 acres for the Chhattisgarh project,’ he said.