Buoyant market boosts OMC turnover

Helped by growing demand and higher price realisation for iron ore and chrome ore in the international market, Orissa Mining Corporation (OMC) expects to achieve Rs 356.67 crore turnover in 03-04 against the target of Rs.251.62 crores.

If the market remains buoyant in the next year as well, the company may cross Rs 600 crore turnover by 2004-05, said the sources. The company had recorded a turnover of Rs 200 crores in 2002-03.

In the first quarter of this year, OMC posted a turnover of Rs 73 crore which is 250 per cent higher than Rs 30 crore recorded in the corresponding period last year.

Similarly, the first half turnover at Rs 161 crore was nearly 100 per cent higher than Rs 83 crore achieved in the same period last year.

"Our profitability has also gone up because of increased production, higher productivity, and a favourable market for iron and chrome ore. On operation front we have cut down cost through large scale scientific mining and outsourcing of certain activities. Our production planning is incentive based and emphasises on optimisation of available resources and capacities. These steps have helped in increasing not only the turnover but also the profit margins", says CJ Venugopal, managing director of the company.

Meanwhile, OMC has initiated steps to reorganise its management and operations to combat professionally managed global rivals. The company has taken up inventory management with the assistance of National Mineral Development Corporation (NMDC).

Similarly the expertise of National Productivity Council (NPC) has been solicited for energy audit, consumption norms, asset up-gradation, turning around loss-making chrome / manganese mines and implementing quality circles. OMC has appointed Indian Institute of Management, Bangalore for ERP (Enterprise Resources Planning).