Welcome summer, with deepening water crisis

How good are grandpas?

"We are pioneers in the gold trade field and are now going into the other precious metals trade. We are going to import more silver and more platinum. We are into the added value business of gold and silver and into major projects to promote the export of Indian jewellery."

We are indeed trying to spread our wings much wider. Not withstanding the imminent disinvestment of MMTC, efforts has been made to chalk out business strategies to propel the corporation growth path irrespective of the ownership patterns thus raising the returns and value for the stake holder.

I will not like to comment on government policy matter. My job is to implement the policy assigned to me to the best of my capability and capacity. The corporation is even sourcing diamonds from Russia. It is being given to the diamonds industry as a nominated agency and its SANCHI silver projects and all activities in this area are part of a total package. The corporation has established "SANCHI" sterling silverware and set the Hallmarking and Assaying facility to offer quality jewellery and minted products to the domestic market. At the same time it is expanding the duty free shop network to promote jewellery exports.

Despite the liberalised licensing policy, the corporation has remained the country’s largest exporter of minerals and ores, bagging CAPEXIL Top Mineral Exporter Award consecutively for the last 12 years. And here are some cornerstones of achievements during last five years that form the foundation of the Feel Gold Factor.

Overall growth of business in all areas of operations. Exports by the Corporation touched a level of Rs.2336 crore in 2002-03------highest ever in the history of the corporation. Consistently making net profits. Net profit after tax touched Rs. 25.04 crore in 2002-03. Focused efforts to reduce overheads and debts. Overheads to Sales (%) brought down to 1.55% in 2002-03 compared to 2.80% in 1998-99 and Debtors to Sales from 7.14% to 6.42%.

To restructure and optimise manpower, VRS schemes were successfully launched since 1998-99 resulting in downsizing the manpower strength from 2986 in 1998-99 to 2160 as on March 31, 2003. The organization consistently paid 20% dividend in the last four years. However, in 2001-02, Rs. 60 crore was paid as a special dividend------121 % to the Govt.

Developed infrastructure to support business expansion plans. Neelachal Ispat Nigam Limited (NINL) - a 1.1 million tonne iron and steel plant in Orissa, promoted by MMTC with the State Govt, has already commenced pig iron production and has emerged as the second largest producer of saleable pig iron in the country catering to both domestic as well as international market.

Another plant promoted by MMTC is Konark Met Coke Limited (KMCL) with annual capacity of 0.8 million tonne coke oven battery with byproduct recovery plant generating power. NINL and KMCL together will fetch trade turnover of over Rs.1200 crore annually to MMTC at full capacity.

MMTC Transnational Pte. Ltd. (MTPL), a wholly owned subsidiary of MMTC in Singapore, has demonstrated strong fundamentals by improving its net worth by 142%. In the last three years, the company has paid annual dividend of 25%. MTPL, which has clocked a turnover of
Rs. 249 million in the year 2002-03, has reflected a growth of 35% in its business in 2002-03 in the backdrop of a high pace already built up after having registered a 14% growth
in 2000-01.

MMTC's turnover grew from Rs.4253 crore in 1998-99 to Rs.6226 crore in 2000-01, touching Rs. 7244 crore in 2001-02 -- highest in the post liberalisation era. In the current year 2003-04, MMTC has recorded a turnover of Rs.4126 crore in the period April-Oct.'03, a growth of 11% over same period last year.