Trading Strategy
PIT harnesses decades of expertise in commodity markets, logistics, financing, and risk management to optimize returns and ensure success for both our partners and ourselves.
With our deep market knowledge, we have the capability to efficiently transport commodities across the globe to meet the most pressing demands.
Furthermore, our extensive network of robust partner relationships enables the company to execute trades efficiently and capitalize on trade margins and arbitrage opportunities:
Geographical
Our global presence, strategic partnerships, and market expertise empower us to purchase and sell commodities at optimal margins by capitalizing on price differentials between regions.
Time-based
Our ability to tap into a robust network of logistic infrastructure, financing options, and storage facilities enables us to leverage current and future commodity prices effectively.
Product-based
We aim to secure the most favorable prices by generating value through blending, leveraging variations
Capital Investment Framework
Capital Investment Goals
Our Investment Goals :
Expansion and growth opportunities
Value-based investments
Investment in sustainable businesses
Investment Opportunities we look for :
Logistics and infrastructure opportunities
Technological advancement projects
Projects which generate a positive Net Asset Value (NAV)
We achieve financing for these investment opportunities through
Equity infusion from Shareholders or Private Equities
Debt Financing
Reinvest Earnings
Risk Management
The company's trading operations come with inherent risks that are typical in the commodities business, including price volatility, foreign exchange fluctuations, interest rate changes, liquidity challenges, and credit risks, among others. While many of these risks are unavoidable in this industry, they can be closely monitored and effectively managed.
PIT has implemented a range of policies aimed at mitigating and managing these risks.
These policies represent crucial components for ensuring the company's stability and sustained growth. These include:
- Implementation of Commodity Trading Risk Management (CTRM) System to reduce operational risk, manage exposure and to establish an efficient way to recognize and report risk.
- To manage risks associated with trading, the company has been working on setting up of trading policies, risk management policies, commodity hedge policies, business activity manuals, trading authorization limits & credit risk policy.
- The company makes use of derivative instruments to hedge commodity price risk, basis risk, timing risk and foreign exchange risks. These help us ensure that economics of trades are protected.
- We use insurance to hedge various operational risks including freight- related and political risks.
- We adopt strict legal checks and a detailed KYC compliance for onboarding new counterparties and the timely review of existing ones.
- Ready access to sufficient capital and funding to hedge liquidity risks.
- Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks.
Digitalization
PIT is committed to remaining at the forefront of technological advancements in our corporate systems to ensure the optimization and security of our trading operations.
In an environment where cyber threats pose a significant concern for commodity trading companies, we have implemented multiple layers of security to safeguard our operations against a range of potential threats.
- Recognizing the importance of preparedness, we have recently introduced a Business Disaster Recovery (BDR) system and a Business Continuity Plan (BCP). These systems are in place to provide prevention and recovery mechanisms in the face of potential threats, such as natural disasters or cyberattacks.
- Additionally, we have adopted a Commodity Trading Risk Management (CTRM) solution, which has proven to be extremely valuable considering the system offers rapid deployment and cost reduction. It also provides access to market data & pre-trade analysis tools, streamlining our risk management and reporting processes while reducing operational risk and enhancing exposure management.
- To further optimize our operations, we have implemented a Human Resource Management System (HRMS) and a Document Management System (DMS), both of which contribute to our efficiency and productivity.
- In our ongoing commitment to security and knowledge sharing, we actively educate and promote a culture of awareness among our employees. This includes regular training and communication regarding security threats and best practices for avoiding and mitigating risks daily.
