`India-Singapore economic pact has made more competitive'
The dividend disbursed by the subsidiary to MMTC so far exceeds the seed capital contributed by the promoter.
New Delhi, May 10
MMTC Transnational Pte Ltd (MTPL), a wholly owned subsidiary of MMTC in Singapore, has drawn a business target of Singapore $ 1 b during the current fiscal, representing a growth of nearly 50 per cent over 2005-06.
The MMTC and MTPL Chairman, Mr S. D. Kapoor, told
Business Linethat the Singapore subsidiary, whose business activities encompass minerals, metals, fertilisers, agri products, coal and hydro carbon, registered a turnover of Rs 1,600 crore in 2005-06. Volumes traded during 2005-06 in metals, fertilisers and coal and hydrocarbon groups registered impressive growth of 93 per cent, 86 per cent and 53 per cent respectively over the corresponding levels of the previous year.
Mr Kapoor said the Comprehensive Economic Cooperation Agreement signed between the governments of India and Singapore recently has given an impetus to MTPL, making it more competitive, offering enormous business opportunities in and from Singapore. Mr Kapoor said MMTC's subsidiary presence in Singapore would impart a major boost and thrust to Indian importers dealing in the chemical, petroleum, pharmaceutical, shipping and machinery sectors.
He said MMTC has signed an MoU with Bharat Petroleum Corporation Ltd for promoting oil bunkering and other petroleum related trade activities using its subsidiary in Singapore as the base. Moreover, MTPL is sharpening its focus on increasing trade with ASEAN (Association of South East Asian Nations) with value addition by providing shipping/chartering services from Singapore. The company also plans to open representative offices in three countries - namely Indonesia, Vietnam and Bangladesh - to augment market coverage and enlarge its clientele. The dividend disbursed by the subsidiary to MMTC so far exceeds the seed capital contributed by the promoter; besides, it has multiplied its net worth by over four times in 10 years, said Mr Kapoor.
Mr Kapoor said in recognition of the performance and growth of MTPL, especially in the last five years, and the trade projections made for the near future, International Enterprises, Government of Singapore, which earlier accorded the company a prestigious `global trader' status, has now recommended to the authorities for upgrading the company status under the 5 per cent tax category effective from April 1, 2006. Only very few companies of Singapore have been accorded this special status, he added.
MTPL has been ranked 18th among the top 51 Singapore companies under the business classification of `general wholesale trade' by DP Information Group Singapore in its publication, said Mr Kapoor.