MMTC Limited

MMTC is widely recognized as India’s largest international trading company and the first public sector undertaking to be awarded Golden Superstar Trading House (now known as Premier Trading House) status in the country. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on ‘bulk’ operations, MMTC primarily has seven core commodity groups, viz., minerals, precious metals, coal & hydrocarbons, fertilizers, agro, metals and general trading.

Performance

The details of the Company’s trade performance for the years from 2005-06 to 2007-08 (April-October 2007) are given below:

• Top Indian Company in the Trading Sector for the D&B - American Express Corporate Awards 2006.
• Niryat Shiromani Puraskar to CMD and Gold Medal to MMTC Ltd. by Indian Council of Small and Medium Exporters.
• Niryat Shree Silver Trophy for outstanding export performance in the category of highest foreign exchange earner during the year 2003-04 awarded by FIEO.
• Niryat Shree Silver Trophy for outstanding export performance in the category of highest foreign exchange earner during the year 2004-05 awarded by FIEO.
• Niryat Shree Silver Trophy for outstanding export performance in the category of Gems & Jewellery, non-SSI during the year 2003-04 awarded by FIEO.
• Niryat Shree Certificate of Excellence for outstanding export performance in the category of multi product star export house, non-SSI during the year 2004-05 awarded by FIEO.

Union Minister for Commerce & Industry presenting Naryat Shree Silver Trophy for outstanding awarded by FIEO to MMTC.

• Niryat Shree Bronze Trophy for outstanding export performance in the category of Residual Products, non-SSI during the year 2004-05 awarded by FIEO.
• Top Exporter Award by the Institute of Marketing & Management New Delhi.
• Amity Corporate Excellence Award for being the Largest International Trading Enterprise contributing to Foreign Exchange.
• CAPEXIL Award for the highest export of minerals during the year 2005-06. (15th time in a row)
• Top ranking in ‘Trading Sector’ by Business Standard in their publication BS 1000 “India’s Corporate Giants” released in December 2006.
• MMTC has been included in the Top 40 Indian Companies by Forbes.com
• The highlights of the performance during 2007-08 are:
  Ø The Company has so far (April- October 2007) achieved a turnover of Rs. 13,521 crore, which is higher than the proportionate MOU target of Rs.9488 crore by 43%.
  Ø Export turnover at Rs. 2,066 crore as against MOU target of Rs. 1,925 crore for the April-October 2007 period – 107% achievement. Export is 18% higher than achieved during the same period last year.
  Ø Import during the same period stood at Rs.10,837 crore and achievement is164% of the proportionate MOU target of Rs. 6628 crore. Import is 4% lower than the achievement during the same period last year.
  Ø Domestic business turnover at Rs. 618 crore during April-October 2007 was 34% lower than proportionate MOU target of Rs. 935 crore.
  Ø By the end of 2007-08 the Company is likely to achieve around Rs. 24,000 crore business turnover, as against actual turnover of Rs. 23,301 crore in 2006-07.
  Ø During the year, the Company’s information technology capabilities were further reinforced aiming at enhanced management controls/ monitoring through generation of additional reporting features for operational excellence.
  Ø Harmonious industrial relations prevailed in Company throughout the year with no man days lost. The aggregate manpower of the Company as on 31st March 2007 was 1997 comprising of 609 officers, 1252 staff and 136 workers.

MMTC presenting Dividend Cheque to Union Minister for Commerce & Industry

MMTC Transnational Pte. Ltd., Singapore (MTPL)

The MMTC Transnational Pte. Ltd., Singapore (MTPL) is a wholly owned subsidiary company of MMTC. During 2006-07, it achieved business turnover of USD 545.46 million, generated a profit before tax of USD 1.64 million and profit after tax of USD 1.53 million. Its net worth stood at USD 7.29 million as on 31st March 2007 vis-à-vis USD 6.13 million as at 31st March 2006. The declared dividend for the year ended 31st March 2007 was @ 25% (net of tax). The Company has paid total dividend exceeding the capital contributed by MMTC besides multiplying its net worth by seven times since its inception. The Company continues to enjoy “Global Trader” status awarded to it by Singapore Trade Development Board.

Neelachal Ispat Nigam Ltd. (NINL)

Neelachal Ispat Nigam Ltd. is a Company promoted by Minerals & Metals Trading Corporation (MMTC), MMTC, Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL), National Mineral Development Corporation (NMDC), Metallurgical Engineering Consultants (India) Limited (MECON) etc. It set up an iron & steel plant for manufacture of 1.1 million tonnes/year hot metal at Kallinganagar, District Jajpur, Orissa. During the year ended 31st March 2007, the Company maintained its position of being the largest pig iron producer & exporter in the country for the third successive year. The total turnover of the Company for the financial year 2006-07 was Rs.1,301 crore, as compared to a total turnover of Rs.1,165 crore during the previous year i.e. 2005-06. The Company posted a cash profit of Rs. 148.60 crore and a net profit of Rs.57.80 crore after providing for interest, depreciation and tax in 2006-07.

Stack Yard at NINL Project (Plant)

Other Projects
Ø MMTC has been allotted a Coal block in Jharkhand, further activities have been started to conduct partial exploration by conducting pre-feasibility study.
Ø MMTC has acquired land at Haldia for setting up of second Free Trade Warehouse Zone, the first one under execution at Greater Noida.
Ø MMTC has joined hands with a consortium comprising of L&T and SICAL Logistics Ltd. for setting up a permanent iron ore loading berth at Ennore port.
Ø MMTC in association with M/s. Noble Group and M/s. Gammon India have jointly submitted technical bid for developing deep draft berths to handle Iron Ore and Coal vessels at Paradip and another consortium formed for development of Karwar port for handling iron ore vessels in Karnataka.
Ø MMTC has received permission for setting up of an Assaying and Hallmarking unit at Ahmedabad and expecting similar permission in respect of Kolkata, Bhubneshwar, Ludhiana and Jaipur.
Ø A joint venture in association with international agency is formed for setting up of medallion manufacturing and gold refining unit in Delhi.

State Trading Corporation of India Limited (STC Ltd.)

The State Trading Corporation of India Ltd. (STC) is one of India’s premier international trading organisations engaged in exports, imports and domestic trading activities. It was set up in 1956 primarily to undertake trade with East European Countries and to supplement the efforts of private trade and industry in developing exports from the country. The business activities, turnover and profitability of STC have grown manifold in the recent years as a result of focussed thrust on diversification and innovation.

Performance

The overall performance of the STC during the years 2005-06, 2006-07 and the performance during April-November, 2007 vis-a-vis the corresponding period of the previous year and estimates for the full year 2007-08 are given below:

• The highlights of the performance during 2006-07 are:

Ø The highest ever turnover of Rs 14335 crore (increased by more than doubled) exceeding the MOU target for the year by 43%.
Ø Major items of export are chemicals and pharmaceuticals, gold jewellery, construction material items, iron ore and consumer goods. Exports have demonstrated a strong growth of 167% to attain the best ever performance of Rs 2927 crore. Exports achieved are over thrice the MOU target. The outstanding export performance is mainly due to expansion of overseas steel operations to Bulgaria and higher volumes achieved from existing operations in

Philippines.

Ø The major items of imports were edible oils, vanaspati, pulses, fertilizers, hydro-carbons, minerals & metals, bullion and petro-products. The import turnover grew by 95% to reach an all time high of Rs 10692 crore.
Ø During the year, STC imported 54.54 lakh MT of wheat on Govt. account for Central Pool stocks. The imported wheat was sold to FCI on high seas sale basis resulting in a turnover of Rs 5038 crore.
Ø STC’s signed a contract with NTPC for supply of 5 million MT of non-coking steam coal valuing approx. Rs 2200 crore for its power plants. Imports are being arranged by STC to cater to NTPC’s requirements. As on 31st March 06 by the Hon’ble Prime Minister of India in a function held at New Delhi on 8.3.2007.

The highlights of the performance during 2007-08 (April-November 2007) are:

Ø The total turnover of the Company was Rs 8640 crore which exceeded the proportionate MOU target by 30%. The turnover is also 6% higher than what was achieved during the corresponding period of the previous year.
Ø Major items of exports are chemicals and pharmaceutical, gold jewellery, sugar, manufactured products, maize/rice bran and iron ore. Total exports of Rs 2560 crore during the period have surpassed the full year MOU target by 42%. During the period, overseas steel operations were continued to be pursued at Philippines and Bulgaria which emerged as the single largest area of exports.
Ø Major items of imports are bullion, hydro-carbons, minerals & metals, petrochemicals, pulses, edible oils and vanaspati. The import turnover has amounted to Rs 5535 crore thereby surpassing the proportionate MOU target by 14%.
Ø During the period, STC has again been asked by the Government of India to import wheat. A total quantity of 13.06 lakh MT has been contracted for wheat imports during the current financial year so far for arrival by December 2007. Shipments have already commenced and till the end of November 2007, wheat imports have yielded a turnover of Rs 202 crore as against Rs 2578 crore during the corresponding period of last year.
Ø Domestic sales grew by 28% to reach Rs 545 crore. During the period, STC continued to pursue oilseed operations which resulted in sales worth Rs 285 crore. Other major items of domestic sales are hydrocarbons, minerals & metals, pulses, rubber and jute.
Ø During the period, STC has started tea operations in Nilgiri district of Tamil Nadu with the twin objective of benefiting the small tea growers in their economic upliftment and boosting its own tea business. Since the start of operations in July 2007, about 500 small growers have been enlisted for assistance. The cost of leaves is directly credited to their bank accounts. Middlemen/ agents have been eliminated in the process and the small farmers are receiving best price of their produce. Under the operations, STC has been procuring green tea leaves directly from small tea growers, getting the same processed and selling the made Tea in the international markets viz Egypt, Pakistan and Afghanistan. Additionally, the tea has also been marketed domestically under the brand ‘Tohfa’. STC has been supplying tea to Gujarat State Civil Supplies Corporation (GSCSC) for sale through PDS. Since the start of operations, about 30 lakh kgs of green leaves valued at Rs. 2.10 crore has been procured from small farmers. The total turnover from these operations during the last six months is of the order of Rs. 3.5 crore.
Ø The Corporation has recorded a profit before tax (PBT) of Rs 41 crore during April-September 2007 which reflects a growth of 11% over the corresponding period of previous year.

* April-September

Spices Trading Corporation Limited (STCL)

STCL Ltd., a wholly owned subsidiary of STC of India Ltd, was originally incorporated in the name and style as “Cardamom Trading Corporation Limited” as a private Limited Company under the Companies Act, 1956 in October 1982.

Consequent to the change of name, the Company obtained a fresh certificate of incorporation under the name of Spices Trading Corporation Limited with effect from August 1987 in order to widen its marketing base from cardamom to other range of spices. Thereafter, STCL became a subsidiary of the State Trading Corporation of India Ltd. with effect from 14.9.1999 and shares held by the Ministry of Commerce were transferred to the State Trading Corporation of India Ltd.

With the diversified trading activities, the Company’s name has been further amended its name from Spices Trading Corporation Limited to ‘STCL Limited’ and a fresh Certificate of Incorporation under the name of ‘STCL Limited’ has been obtained with effect from August 13, 2004.

The Company’s Head office is in Bangalore and its branches are located at Madikeri, Sakleshpur (Karnataka), Visakhapatnam, Tirupati (Andhra Pradesh), Kochi, Kumily, collection centres viz., Anavilasam, Pampupara, Vandanmettu, Nariampara, Parathode and Santhanpara (Kerala), Chennai and Bodinayakanur (Tamilnadu) & New Delhi to promote its trade as well as for rendering services to growers.

STC presenting Dividend Cheque to Union Minister for Commerce & Industry

The main objectives of the Company are:

• To trade in spices, other agricultural commodities, fertilizers, pesticides in the domestic as well as global markets and establishing of processing units of international standards.
• To trade in all kinds of industrial goods, equipments, components and also the materials consumed by the Industries of Power and Energy.
• To diversify import/export of commodities and ensure an efficient and streamlined system of operations, with minimum transaction costs.
• To develop core competitiveness in selected areas of exports, exploit the market opportunities in these areas and provide on quality of services to its Clientele in the long-term business relationship.
• To support, protect, maintain, increase and promote production of Indian Spices and other Agricultural commodities as well as their Sale/Export.
• To undertake on a continuous basis training/re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.

The share capital of the Company is Rs. 5.00 crore, divided into 5 lakh equity shares of Rs. 100/- each. The Company’s paid up share capital as on today is Rs. 1.50 crore comprising of 1.5 lakh equity shares.

Performance

The overall performance during 2006-07, performance during April-December 2007 and estimates for the full year 2007-08 are given below:

Activities

Chairman, STCL Ltd. & CMD, STC of India Ltd., receiving Dividend Cheque from MD, STCL Ltd.
for the year 2006-07

PEC Limited

PEC Ltd. came into being on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited is now an independent Company under the Department of Commerce. The main activities of the Company are:

(Rs. crore)

N.B: MOU Targets/Projections for Exports, Imports, Domestic and Total Turnover have been fixed for Non-Bullion trade only.
* Includes Bullion – Rs. 969.60 crore.

Performance

The overall performance of the Corporation since 2005-06 is given below:

Financial Highlights

During 2006-07, the ITPO’s total income was Rs. 141.31 crore as compared to Rs. 171.52 crore in the previous year while the total expenditure was Rs. 93.68 crore as against Rs. 106.33 crore incurred during the previous year. The ITPO thus ended with a surplus of Rs. 47.63 crore as compared to Rs. 65.19 crore in the previous year.

Fairs in India

Large and small industries, exporters and manufacturers covering various sectors of trade and industry displayed their exhibits/products at ITPO’s fairs in India.

Between April-December 2007, 11 domestic events have been organised namely, Delhi International Leather Fair, Job & Education Fair, Delhi Book Fair, Stationery Fair, Sajavat, Arogya, 27th India International Trade Fair in Pragati Maidan, New Delhi. Another 10 more events will be organized in between December 2007 to March 31, 2008.

The 27th India International Trade Fair (IITF’2007) was held during November 14-27, 2007 at Pragati Maidan, New Delhi with the theme “Processed Food & Agro Industries”. The fair was inaugurated by the Hon’ble President of India Smt. Pratibha Devisingh Patil on November 14, 2007. 25 States and 5 Union Territories along with 18 Ministries and Govt. Departments, 23 Public Sector Undertakings and 4 Commodity Boards, Banks and Insurance companies etc. participated at the Fair. At the Fair, SAARC Countries (viz. Sri Lanka, Nepal, Pakistan, Afganistan, Bangladesh, Bhutan and Maldives) were the ‘Partner Countries’; Himachal Pradesh was the ‘Partner State’ and Meghalaya was the ‘Focus State’. The participation of the 44 foreign countries with 350 companies was an attraction of the Fair. A seminar on “Export Opportunities for Processed Foods & Agri Processed Industry” was organised in collaboration with EU-India, FICCI and APEDA. Besides, a series of seminars was organised in cooperation with State Governments.

In order to facilitate the promotion of technology partnership between Indian entrepreneurs and others, a seminar was organized on 14.11.2007. The seminar provided an opportunity to the exhibitors of ‘India Tech’ to exchange views with the professionals and other Govt. officials.

The 13th Edition of Tex-Styles India - a mega annual event focusing on Indian textile products was organised during February 27 – March 2, 2007 at Pragati Maidan, New Delhi. 253 companies exhibited various items of home furnishings and fabrics spread over an area of 16,000 sq.mtrs. Out of 8,000 business visitors, there were 942 overseas buyers and 358 buying agents of overseas companies based in India. Buyers from most of the developed countries like USA, Japan, UK, France, Germany, Italy and Australia and also from Africa, Middle East and other Asian countries and Latin American countries attended the show to source textile items from India. The next event i.e. 14th Edition of Tex-Styles India is scheduled during March 2-5, 2008.

The ITPO also leases its facilities in Pragati Maidan to organizers of trade events. During 2006-07, as many as 81 events were organized in Pragati Maidan by Export Promotion Bodies/Apex Industries Associations/Central Ministries as well as private fair organizers. During April-November 2007, as many as 63 events were organized and 15 exhibitions are scheduled to be held in the month of December, 2007 by the organizers of trade events. During the same period, ITPO also approved 168 international exhibitions to be held in different parts of the country. These events cover a wide range of subjects like Engineering Goods, Telecommunications, Electricals and Electronics, Chemicals, Pharmaceuticals, Food Processing, Furniture, Consumer Products etc.

For the benefit of exhibitors and visitors, all the exhibition halls in Pragati Maidan have been equipped with wired and wireless internet services. The service henceforth is available on demand at reasonable cost. For this purpose, ITPO has entered into a contract with Videsh Sanchar Nigam Ltd. who has been chosen as the exclusive internet service provider in Pragati Maidan.

Fairs Abroad

During the year 2006-07, ITPO organized participation in 51 overseas trade fairs. Out of these 51 events, 14 events were held in Europe, 9 events in Africa & Middle East region, 6 in Latin America, 14 in South East Asia including Far East, 7 events in USA and 1 event in CIS region. Out of 51 events, 13 were general fairs, 33 specialised fairs and 5 India Shows in Tokyo, Osaka, Mauritius, Sao Paulo and Melbourne.

During the year 2007-08, ITPO’s programme of foreign fairs includes participation in 41 fairs including 3 exclusive India Shows in Tokyo, Osaka and Bangkok. Out of these, 11 events will be in Europe, 10 in Africa & Middle East region, 4 in Latin America, 10 in South East Asia including Far East, 5 in USA and 1 event in CIS region. During the period April-November 2007, ITPO has already organized participation in 26 fairs abroad out of which 8 were general fairs, 16 specialised fairs and 2 India Shows.

Trade Development Activities

During the year, two Buyer-Seller Meets were organized – the “18th India Home Furnishing Fair” and the “28th India Garment Fair” in Japan. These events together generated enquiries worth US $ 25.73 million and orders booked worth US $ 2.88 million. The meets were attended by 2022 buyers from leading department stores, wholesalers, importers, trading houses, etc. Another exclusive “India Fair” in Bangkok (Thailand) is planned during February 14-17, 2008

During the year (up to November 2007), ITPO coordinated the visit of 12 foreign delegations/buyers from Costa Rica, Russia, Korea, and Japan. One to one meetings were organized with the Indian manufacturers/exporters pertaining to fire fighting equipments, herbal medicines, cosmetics & food supplements, IT sector during their visit. ITPO hosted the visit of 20 Members FTA Negotiation Committee from Thailand.

ITPO provided a package of services to export worthy units which are enrolled as Regular Members. Till November 2007, 182 trade enquiries received from ITPO foreign offices/Missions abroad were disseminated to Indian companies, enabling them to explore business opportunities with their overseas counterparts.

ITPO is networking with international organizations in the field of trade and commerce through membership or collaborative arrangements such as Memorandum of Understanding. In order to promote trade between two countries, an MOU was signed between ITPO and Costa Rican Chamber of Foreign Commerce (Costa Rica). ITPO is a member of “Asia Trade Promotion Forum (ATPF)” and participates in its annual meet regularly. Next Annual General Meeting is scheduled in April, 2008 at Hanoi (Vietnam). Under ATPF exchange programme, ITPO participated in a Capacity Building Initiative Programme (CBIP) organized by TWTC, Taiwan.

Trade Information

During 2006-07, 695 periodicals, 90 publications including trade directories and 60 CD-ROMs were added in the Trade Information Centre. During 2007-08, as many as 545 periodicals, 47 publications including trade directories and 9 CD Roms were received in the Centre. Besides these, 52 issues of Indian Export Bulletin were brought out and put on website. As on November 2007, ITPO has nearly 2000 Trade Portal subscribers.

Business Information Centre

With a view to provide reliable trade information to Indian exporters and overseas buyers, the ITPO has set up the Business Information Centre and Trade Portal www.tradeportalofindia.com at Pragati Maidan. The Portal, at present has 12 GB of information covering 54 major countries and 28 product groups which account for more than 85% of India’s trade. The Portal covers, among others, a data base of 52,013 overseas importers, 15,626 Indian exporters and 3,120 ITPO members, product profiles and country profiles; fairs and exhibitions, India’s trade statistics, global trade statistics, EXIM Policy; notifications and circulars of the Central Excise, Customs and RBI; market surveys, product catalogues of ITPO members’ and tariffs and taxes. It has links to various trade related organizations as well.

About 200 visitors access the Trade Portal daily. The ITPO also has a Physical and Electronic Library located at Hall No.19 at Pragati Maidan which is visited by more than 2000 visitors. The Centre provides online access to KOMPASS – (a database of 1.8 million companies for 82 countries, searchable by country and product, classified by manufacturer/importer/distributor/agent).

Setting up of Regional Trade Centres

The ITPO is providing assistance to State Governments in setting up Regional Trade Promotion Centres (RTPCs) for creating Export Infrastructure in State Capital/major cities.

Commercial Publicity & Public Relations

During the year, ITPO made significant and focused publicity arrangements through print, electronic and internet media to mobilize participation as well as promote its various events in India and abroad and other activities. This publicity campaign was supplemented with brochures, invitation mailers, posters, fair catalogues and outdoor media publicity. ITPO also effectively liaised with both print and Audio-visual media to ensure maximum coverage and footage respectively for ITPO’s events and activities. Advertorials supplementing corporate advertisements were also brought out in select media in India and abroad on ITPO’s activities and role in trade promotion for reinforcing the corporate image of the organization.

The various facets of the ITPO’s activities and its exhibition infrastructure were highlighted in the Calendar of Events which also listed ITPO’s programme of events in India and abroad. The Calendar was mailed to its target audience comprising Trade and Industry Associations in India and abroad, Overseas Missions in India and Indian Missions abroad, nodal industry organizations in different States etc.

ITPO also brought out a quarterly newsletter ‘‘Log On’’ for disseminating information on ITPO’s activities to trade and industry in India and overseas, Central Ministries and Departments, State Governments, PSUs, EPCs etc. A corporate folder “ITPO: In Sync with India Inc” which was brought out by the organisation, was also widely distributed to a target audience including decision-makers, senior bureaucrats, representatives of trade and industry during the year. A special trade fair daily newsletter, Trade Fair Today, was brought out by an agency in coordination with ITPO from November 14-27, 2007.

Infrastructure

During the year 2007-08, ITPO has undertaken works for modernization/upgradation of facilities in Pragati Maidan as follows:

• Providing PORTA CABIN for scanner machine at Gate No.10.
• Widening of roads in Pragati Maidan.
• Re-surfacing of roads at Pragati Maidan.
• Improvement in Shakuntalam Theatre - Replacement of old chairs and Re-laying of new carpet.
• Improvement of Conference Hall and Lounge of Hall No.7.
• Improvement in Pragati Niwas for creating International - Business Lounge.
• Providing street-light facilities along the road at Gate No.10.