The Hindu Business Line : MMTC to double turnover in 3 years

Mr S.D. Kapoor, Chairman and Managing Director, MMTC, addressing a press conference with Mr Sanjiv Batra, Director, Marketing, in the Capital. — Kamal Narang

New Delhi , April 4

HAVING registered the highest-ever sales turnover of Rs 10,000 crore in fiscal 2003-04, the MMTC group, including its fully-owned subsidiary of Singapore, is all set to double this volume of business by the end of the tenth Plan period (2006-07).

Stating this at a press conference here to announce the performance highlights of the company in the fiscal year 2003-04 as also its strategies for the current year, the Chairman & Managing Director, Mr S.D. Kapoor, said that the company has plans to leverage its core competency in the existing lines of business and also diversify into new areas, including building infrastructure for trading activities so as to earn the sobriquet of `Multi Merchandise Trading Corporation' (MMTC) soon.

Mr Kapoor said in the area of strategic initiatives, the company plans to put in place system for procuring foodgrains and other agro commodities directly from the mandis instead of purchasing the same from the Food Corporation of India (FCI) as it had done in recent period.

He said last year higher agricultural production drove up demand for fertilisers and fertilisers' raw materials, enabling the company to import larger quantities of imported fertilisers for domestic sales and the trend would continue this year too if monsoon is right on time and its spatial spread even across the country.

In consolidating core competencies, the company proposes to establish a crushing and screening plant at Banihatti to provide value addition to iron ore, besides exploring new outlets for minerals in Haldia, Mumbai and Redi. It also proposes to adopt differential pricing mechanisms to enhance sourcing of iron ore and would expand its duty-free shop network for export of jewellery. He said the company's exclusive jetty for iron ore at Ennore in Chennai port would start functioning from May 2004.

MMTC would expand bullion and Sanchi sales network for market penetration through hallmarking, minting, franchising and online sales etc. Mr Kapoor said bullion market might not display the same buoyancy this year, as physical demand would be determined by geo-political condition, investment by fund managers and dollar-rupee parity. As the domestic demand for gold is to hover around 600 to 650 tonnes, the import would depend on the level of prices and availability of recycled gold in the market. Mr Kapoor said the company would import rough diamond from Russia for value addition for eventual domestic sale and exports.

Mr Kapoor said with steel production poised to pick up, demand for LAM coke and metallurgical coke would pick up offering import outlet for the company to step up its trading activities.

Recounting the arduous journey the company traversed when 14 out of the 18 items it was dealing with were decanalised in 1991 and when the company's sales turnover plunged from a high of Rs 8,200 crore in 1991-92 to Rs 3,200 crore in 1993-94, Mr Kapoor said MMTC had come a long way since then as excluding its Singapore subsidiary, MMTC's own turnover of Rs 9,200 crore in 2003-04 would be highest ever. Profits are slated at Rs 75 crore with the company's net worth set to reach record high of Rs 677 crore at the end of 2003-04.

Giving details of export turnover in 2003-04, he said this was Rs 1,930 crore. Export of mineral products rose from Rs 1,245 crore in 2002-03 to Rs 1,443 crore in 2003-04 and overseas jewellery exhibition fetched Rs 50 crore. Imports at Rs 6,770 crore were by far the highest by MMTC as they were higher than the total turnover of the company in 2002-03. Domestic business of Rs 500 crore is the highest ever by MMTC with its sale of metal products at Rs 404 crore in the last fiscal.

He said the MMTC-promoted Neelachal Ispat Nigam Ltd (NINL) produced over 4 lakh tonnes of pig iron, which was marketed by MMTC in domestic and international markets. MMTC promoted Konark Met Coke Ltd (KMCL) generated 96 million units of power of which 41 million units were supplied to the Orissa grid after meeting captive requirements of NINL and KMCL.

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