MMTC Vizag office turnover zooms 135%

Despite a shortfall in the agro products' business, the Vizag division of the state-owned MMTC Limited has registered a 135 per cent growth in turnover in the fiscal ended March 31, 2005. MMTC has been engaged in the export and import of minerals and metals and domestic trading.

The business turnover of MMTC's Vizag office touched Rs 1,792.12 crore during 2004-05 as compared to Rs 763.04 crore in the previous year, thus posting a growth of 135 per cent.

Due to the increase in turnover, MMTC's Vizag office registered a 42 per cent growth in trading profits during 2004-05 as compared to the previous year. The corporation's trading profits increased to Rs 25.88 crore in 2004-05 as compared to Rs 18.18 crore in 2003-04.

"This growth was possible mainly due to the increase in gold and silver business, and the raise in prices of several minerals. In addition to this, we have achieved a significant growth in coking coal trading in the domestic market. Owing to these reasons, our turnover has increased by more than Rs 1,000 crore in 2004-05," MMTC sources told Business Standard.

In 2004-05, MMTC has exported around 3.54 million tonnes of iron ore to Japan and about 1 million tonnes to China as compared to 3.63 million tonnes and 0.6 million tonnes respectively in the previous year.

"We have exported about 10 lakh tonnes of iron ore to China in 2004-05 and have got very attractive prices on these exports. This is one of the reasons that helped us in achieving a good trading turnover," sources said.

MMTC's Vizag office has sold around Rs 650 crore worth of coking coal and lam coke to Visakhapatnam Steel Plant and Steel Authority of India Limited (SAIL) plants in 2004-05. In the gold and silver business, the corporation posted a 663 per cent growth last fiscal.

"We have sold about Rs 458 crore worth of gold and silver in 2004-05 as compared to Rs 60 crore in 2003-04," sources said. However, due to the government policies in the current year, agro products exports dropped significantly.

In 2003-04, MMTC Vizag office exported wheat worth Rs 60 crore, whereas in 2004-05, it exported wheat worth Rs 5 crore Rs 60 crore worth of, they added.