Companies

MMTC eyes new products, activities in trading

G. Srinivasan Bangalore | Updated on June 08, 2011 Published on June 08, 2011




Encouraged by sound business turnover in fiscal 2010-11, state-owned MMTC is going ahead with product and market diversification moves not only to consolidate its core competence in bullion and non-ferrous metals but to trading in new areas such as engineering goods and project exports.

Interacting with a group of journalists here, the company's Director (Marketing), Mr Ved Prakash, said MMTC is contemplating to add to its basket of traded goods new ones such as engineering goods and project exports in a bid to leverage its advantage as the largest procurer of industrial goods.

Elaborating, he said the engineering goods business will include transformers, conductors, hand tools and machine tools in the coming years.

Alongside, he said, the company is also considering acquiring mines in South Africa where it has recently opened an office, particularly in its traditional products such as coal, gold and diamonds and non-ferrous metals such as copper. These new moves, he said, are part of the company's systematic and strategic approach to ensure backward and forward linkages to bolster its trading activities through joint ventures.

Gold jewellery

Mr Prakash said plans were also afoot to launch MMTC's own brand of gold jewellery. With its considerable number of showrooms across the country, MMTC will also have its own branded jewellery products like that of Geetanjali and Tanishq.

Divestment

Asked about the company's disinvestment plan this fiscal, he said, MMTC has set off the process with the Government of India to induct four to five independent directors as a prelude to disinvestment.

The required independent directors would be in place in consultation with the Government by October since it is the majority shareholder in the company.

Recounting the performance of the company, he said, MMTC has logged 52 per cent growth in business volumes during 2010-11 posting a record turnover of Rs 68,687 crore, against Rs 45,214 crore in 2009-10. The aggregate turnover of Rs 68,687 crore included exports of Rs 3,672 crore, import of Rs 63,152 crore and domestic trade at Rs 1,863 crore.

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Published on June 08, 2011
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