The Hindu Business Line : KMML to export 18,000 tonne titanium dioxide this fiscal

The state-owned Kerala Minerals and Metals Ltd (KMML) at Chavara in the State's Kollam district has set an export target of 18,000 tonnes of titanium dioxide pigment during the current fiscal as against the 12,000 tonnes exported in 2005-06.

Speaking to Business Line, Mr K.P. Rajendran, KMML Managing Director, said that the company was optimistic of achieving the target as its product enjoyed international reputation because of its superior quality.

The demand from overseas, especially the US, Germany, South Africa, China, Spain, is on the upward curve, he said. Already 12,000 tonne of titanium dioxide pigment rutile grade had been exported last fiscal.

As the company has set a production target of 45,000 tonnes during 2006-07 it would be able to increase its exports by 50 per cent to 18,000 tonnes, he said.

Export realisation

The export realisation during the last fiscal per tonne of titanium dioxide pigment was $1,798 as against $1,757 a tonne in 2004-05, he said. "In the domestic market our price is competitive," he said.

Titanium dioxide production during 2005-06 stood at 33,191 tonnes as against 30,662 tonnes in 2004-05. Ilmenite production went up to 51,419 tonnes from 47,650 tonnes while that of synthetic rutile to 32,522 tonnes from 31,502 tonnes in 2004-05. Production of natural rutile and Zircon in 2005-06 was at 2,784 tonnes and 1,906 tonnes respectively, he said.

Domestic sales

Domestic sales of titanium dioxide last fiscal were at 20,072 tonnes as against 20,002 tonnes the previous year. The total sales turnover is Rs 290 crore compared to Rs 285 crore in 2004-05.

The profit last fiscal would come to Rs 25 crore as against Rs 24.10 crore in 2004-05, he said.

Pigment production

The pigment production capacity has been enhanced to 40,000 tonnes with effect from October last while the stage II capacity expansion to 60,000 tonnes is scheduled for completion by January 2007, he said.

KMML, Kerala's major profit making public sector unit, he said, is placed at an advantageous position with the availability of ilmenite-rich mineral sand abundantly close to the factory.

He said that the KMML had already awarded Rs 160 crore contract to a Finnish company, Ootokoumpo Technology Ltd, for supply of advanced technology, machinery, erection and commissioning of a 1.3 lakh tonnes capacity intermediate raw material, synthetic rutile, plant for expanding the company's titanium dioxide pigment rutile grade capacity to one lakh tonne a year involving an investment of Rs 760 crore.