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The company has robust systems and processes built in to
minimize the various risks attached with the trading
business. The company either imports or procures from
domestic markets and sells to foreign and domestic
customers, producing a small margin for itself in the
process. The business is done either directly or through
the brokers to lower the default risk. The company also
has a system to monitor and hedge the prices of various
commodities on various commodity exchanges. |
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Depending upon the analysis of the market demand –
supply gap and intrinsic value of the commodities,
company also takes a long or short positions in various
commodities. The company also extends clearing &
forwarding services to its customers for the delivery of
goods. |
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The company’s marketing intelligence to identify trends
affecting global and Indian commodities production,
demand and supply positions as well as know-how of
global and local freight markets has served it well to
generate good returns on its equity. |