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Mother Dairy Foods Processing Limited, a group company of NDDB (National Dairy Development Board) and the owner of brands like ’Mother Dairy’, ’Safal’ and ’Dhara’, has signed a joint venture agreement with Financial Technologies (India) Ltd and MCX (Multi Commodity Exchange of India Ltd.) to establish the SAFAL National Exchange of India Ltd (SNX).
Headquartered at SAFAL MARKET in Bangalore, SNX would be a subsidiary company of Mother Dairy Foods Processing Ltd., with 51% shareholding. MCX and FTIL would jointly hold 49%.
This joint national initiative will provide for the first time, a nation-wide platform for trading in horticulture (fruit and vegetables), floriculture, dairy and allied products. SAFAL, NDDB’s Fruit and Vegetable Project, will provide its expertise in post-harvest handling of perishable commodities, organising farmer associations while Financial Technologies and MCX will provide the core technology along with the domain expertise and know-how to setup the first Spot Exchange for trading in horticulture, floriculture, dairy and allied products in the country.
SNX aims to provide the required infrastructure for electronic trading in horticulture, floriculture, dairy and allied products bringing in greater transparency, accessibility, and price discovery. The exchanged-based spot trading will allow producers to get the best possible price for their commodity at a given point of time, since buyers from all across the country will be able to buy commodites through SNX.
SNX will also provide on-line price dissemination and an efficient warehouse-based delivery system, which will complement the existing efforts in the supply chain management of perishable commodities and reduce wastage. Being a neutral integrated platform, the exchange will benefit not only individual producers, but also farmer associations, co-operatives, corporate houses and other stakeholders. SNX will provide the benefit and convenience of efficient price discovery and trading to producers and thus widen the scope of the market across the country. The exchange will unlock unprecedented value through benefits from better prices, transparent trading, guaranteed trades, better warehousing and logistics and lower marketing costs for farmers, traders and consumers.
Commenting on the launch of SNX, Mr Deepak Tikku, Chairman Mother Dairy Foods Processing Ltd said, “Over the last three decades, Mother Dairy has brought producers and consumers of dairy, horticulture and other products closer, ensuring regular supply of essential commodities at equitable prices. With the launch of SNX, we take our contribution to the country’s economic development a step further by providing on-line trading access to farmers, milk producers organisations and traders across the country”.
Mr Jignesh Shah, Chairman & Managing Director of Financial Technologies said “We are proud that NDDB/Mother Dairy, well known for the ‘White Revolution’ through ‘Operation Flood’ and brands like ‘Mother Dairy’, ‘Safal’ and ‘Dhara’, has chosen Financial technologies and MCX as partners in the venture. While others have talked about Spot Exchange for a long time, SNX will be the first to not only talk about it, but to actually execute and set it up. SNX will have significant time-to-market advantage, as NDDB has approvals from a number of states to set up horticulture markets. For us, SNX is an important addition to the list of partners who have selected us for our leadership in providing technology and domain expertise for financial markets and know-how to foster a vibrant Exchange Ecosystem for perishables. It is also a major initiative towards realizing our vision of integrating rural India with global markets, by unlocking value and driving growth to the last mile of the value chain. The experience of SNX may well lead other industries to adopt similar technology-enabled market infrastructure”.
About Mother Dairy Foods Processing Limited (Mother Dairy)
Mother Dairy Foods Processing Limited is a subsidiary of the National Dairy Development Board. Mother Dairy is engaged in the procurement, processing/manufacturing of liquid milk, milk & dairy products , fresh fruit & vegetables, edible oil and other processed foods.
About Financial Technologies (India) Ltd. (FTIL)
Financial Technologies (India) Ltd. (BSE: FINTECH, NSE: FINANTECH), is India's leading software product enterprise focused on developing mission-critical Straight-Through-Processing (STP) solutions. Financial Technologies has developed proven transaction automation technologies for Equities, Forex, Commodities and Derivatives markets. Deriving strength from its exhaustive library of product IPRs, Financial Technologies has set-up robust market-place platforms offering sophisticated 'exchange operations' & 'shared services' on high-end technology infrastructure.
About MCX (Multi Commodity Exchange of India Ltd)
MCX (ISO 9001: 2000), with permanent recognition from the Government of India is an independent and de-mutualised multi-commodity exchange. MCX, as a nationwide, digital exchange facilitates online trading, clearing and settlement operations for commodity futures trading. Key shareholders of MCX include Financial Technologies (India) Ltd., State Bank of India & its subsidiaries, Fid Fund (Mauritius) Ltd. an affiliate of Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank for Agriculture & Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.
