Reliance Money picks up stake in commodity exchangeSeptember 30th, 2008 - 8:43 pm ICT by IANS
Mumbai, Sep 30 (IANS) Anil Dhirubhai Ambani Group (ADAG) has become the first large business group to enter the commodity space by acquiring a 10 percent stake in the Ahmedabad-based National Multi-Commodity Exchange (NMCE), the company said Tuesday.The requisite approval has been obtained from the ministry of consumer affairs, it said.
“Our foray into the national commodity exchange space - that is expected to cross an annual turnover of Rs.7.4 million crore (Rs.74 trillion or about $1.8 trillion) in volumes by next year,” said Sudip Bandyopadhyay, director and CEO of Reliance Money, an ADAg subsidiary.
Reliance Money plans to acquire a total of up to 26 percent stake in NMCE, Bandyopadhyay said.
NMCE is the oldest of the country’s three national commodity derivatives exchanges, with a good presence in the black pepper, rubber and raw jute futures trading.
Bandyopadhyay, who was inducted in the NMCE board this year, believes this strategic tie-up would help them to utilise the vast growth potential of commodity trading business in India to its optimum.
“We are also set to leverage our wide distribution network of over 10,000 outlets across 5,165 cities and towns to add value to NMCE,” he added.
Earlier on, Bombay Stock Exchange had bought 26 percent in the exchange and got a berth on its board.
Tags: annual turnover, black pepper, bombay stock exchange, commodity derivatives, commodity space, commodity trading, futures trading, ministry of consumer affairs, multi commodity exchange, raw jute