New Delhi, Sept 8 (UNI) Simbhaoli Sugars (SSL) today said it proposes to set up an associate company for trading in sugar and other commodities in the overseas market.
The new company is intended to be SSL's international trading arm working for the sustainable development of its overseas business in marketing and trading sugar both in bulk and specialty/consumer pack segments and alcohol-related products in different markets, a company statement said.
''In this regard, SSL has steps for incorporation of an Associate Company proposed to be named as Simbhaoli Global Communalities DMCC with Dubai Multi Commodities Centre Authority in the Free Trade Zone of Dubai, United Arab Emirates,'' Simbhaoli Sugars Director (Finance) Sanjay Tapriya said.
The new company will be engaged in trading/warehousing/hedging activities employing the companies experience in the Indian and international markets.
This includes creating depots, moving sugar from surplus to deficit areas, and will seek to take advantage of other arbitrage opportunities in the physical and futures markets.
The company will also import/export raw, white, and specialty sugars.
From October 2OO7, Indian ports have been allowed to accept deliveries for the London International Financial Futures and Options Exchange (LIFFE).
The trading business will be used to develop market-based industrial pricing contract for the companys buyers as well as trade large volumes.
The company intends to provide innovative solutions on commodity risk management using futures and forward contracts and pricing to meet the complex requirement of large industrial consumers.
SSL has been operating in the sugar, molasses, ethyl alcohol, fuel alcohol and other agro-based commodities and is associated with international trade houses, large industrial consumers and quality manufactures based across India and other important sugar geographies.
UNI SR MP KP1750