The iron ore major NMDC Ltd. has charted out ‘Vision 2025’ that seeks to reorient its business model and strategise to retain its market leadership in the domestic market and make a mark on the global mining scene.
“The whole exercise is to ensure raw material security for Indian industry. The NMDC’s Vision 2025 aims to increase the iron ore mining capacity to 75 MTPA by 2018-19 and 100 MTPA by 2021-22,” Narendra Kothari, Chairman and Managing Director, NMDC Ltd, said.
With production of 30.4 million tonnes of iron ore in the last fiscal, NMDC is India’s single largest producer of iron ore meeting the requirement of a major section of Indian steel industry, while also exporting.
On the significance of Vision 2025, Kothari said, “It was essential for a market leader like NMDC to take a holistic view of its business in the short, medium and long term and strategise accordingly and not be constrained by short term fluctuations in business cycles.”
Releasing the Company’s policy framework for growth and expansion for the next decade on the sidelines of the mid-year review of its Annual Business Plan, Kothari expressed confidence in the growth of India’s steel industry and expressed NMDC’s intent to align its operations with the growth of the domestic steel industry, capitalising on its growth potential.
He hoped the growth would translate into higher domestic appetite for iron ore. Notwithstanding the present scenario, he exuded confidence about the envisaged growth trajectory of Indian steel industry.
Besides capacity addition, NMDC plans to strengthen exploration and forward-integration through value added businesses in Pellet making and Steel, strategically diversifying into commodities other than iron ore, and selectively invest abroad based on mining potential and the prevailing business environment.
Established on 1958, NMDC is India's single largest iron ore producer. NMDC closed last fiscal with a turnover of Rs 12,356 crore and a net worth of Rs 32,326 as on March 31, 2015. The company is diversifying into steel making and has undertaken several capital intensive projects to modernize and increase capacities to retain its domestic leadership.