As part of its business diversification strategy, MMTC Ltd., the state-owned trading entity, aims to commence exports of engineering goods and pharmaceutical products from Q1 of next fiscal.
The company is looking at transactions in new commodities and go beyond its forte in trade of bullion and major bulk minerals like iron ore and chromite.
“We have already empanelled suppliers for engineering goods exports. They are expected to take off from Q1 of next fiscal. Engineering goods will be primarily exported to African markets. We have also identified some Asian markets like Sri Lanka and Bangladesh,” said a senior MMTC executive.
MMTC is awaiting award of drug license to start exports of pharmaceutical products. Amongst the new pro-ducts identified for trade, minor minerals are targeted for exports alone and will be canalised through MMTC. The other identified commodities are meant for two-way trade. The company has initiated action on exports of minor mine-rals like feldspar and bentonite.
Historically known for its strengths in trade of bulk minerals like iron ore and chrome ore, MMTC is witnessing a downtrend in exports of these minerals in value and volume terms. In FY18, low grade chrome ore and chrome concentrates exports plunged 58% as a steep export tax of 30% weighed on exports. Total volumes exported in last fiscal were only 95,000-tonnes, down from 225,000-tonnes shipped in FY17.
MMTC is one of the premier bullion traders in the country with the precious metals division contributing significantly to its turnover.
The company has delineated a roadmap to double its top-line in the next five years. The surge in turnover is expected to be fuelled by MMTC’s diversification into new business areas.
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