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M. Somasekhar

Export commitment to be fulfilled in two instalments

Hyderabad , Dec. 19

Midhani, the special materials major has won an important export order from Bibus Metals of Poland, for the supply of titanium alloy, which has strategic application in the aerospace industry.

The Hyderabad-based public sector defence undertaking, Midhani, has recently signed an agreement with the Polish company. The deal is worth $4.5 million or about Rs 2 crore, according to Mr M. Narayana Rao, Chairman and Managing Director of the company.

The export commitment would be fulfilled in two instalments, the first by March 2007 and the rest by January 2008. The Polish company wants it that way, though Midhani is ready to deliver ahead of schedule, he told Business Line.

Midhani, which makes an array of strategic materials for the defence, space and nuclear, as well as the high-tech industry, has also bagged an Rs 4 crore order from the automobile major, Ashok Leyland.

"We will supply molybdenum-based products, which have good application in the automotive sector for the company," Mr Rao said.

Chinese challenge

Hoping to increase exports in the near future, the Midhani chief said China, which has surplus raw materials and price advantage, has impacted the company's markets in the past few years. "This challenge has to be factored in our strategy," he said.

Over the years, Midhani has done small exports to countries such as Singapore, Vietnam and Thailand. With hectic activity in nuclear power sector in the Asian countries, the scope for the export of products for the nuclear power reactors would grow. The inking of the Indo-US nuclear deal should also open up a window of opportunity in the sector.

Diversification

The defence undertaking is also diversifying into bearings and fasteners, which have wide applications in the civilian sector to broadbase its product mix.

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