Def PSU Midhani eyeing to cut dependency on Chinese imports

The Mishra Dhatu Nigam (Midhani) Limited, a special grade metal maker, is looking at reducing dependency on China for the strategic metals used in defence products as it was facing issues over pricing and quality of imported materials, a top official of the PSU has said.

"There are issues in terms of pricing by Chinese companies on imports of some of the special grade metals used in making defenceproducts. Apart from this, the quality of Chinese materials is also some times inferior," city-based Midhani Chairman and Managing Director Dinesh Kumar Likhi said.

Midhani, a government of India enterprise under the Defence Ministry, produces special steel, super-alloys and is the sole manufacturer of titanium alloys in the country.

Likhi said Midhani as a defence PSU was in the process of taking various steps to reduce the dependency on China for the strategic metals and make the country self-reliant in the sector.

He also saidthe Detailed project Report for the proposedjoint venture with Nalco to manufacture aluminium alloys at Nellore in AndhraPradesh will bereadyin thenextsix months.

"Make in India cannot happen unless self-reliance in material comes.A few months ago cobalt wasselling at USD 30 (per kg) now it isselling at USD 100 per kg. A few months agoVanadium wasselling atRs1,800 kg today it is selling atRs 3,500 kg," he said elaborating on the price issue.

All theseChinesecompanieshadtakenthecontrolof rawmaterialsand were trying todictate, Likhi said.

"We are a small company. But we want to take this challenge and want to take pride that we will be making the country self-reliant in special metals. That is our mission," he told PTI during the recent "Customer Meet-2018", held here.

According to him, some of the rare minerals such as Tungsten, Cobalt and Nickle are not available in the country and it is forced to depend on imports.

He said Midhani, which has partnered with another PSU NMDC Limited, is in discussions with Vietnam-based Masan Resources to acquire minority stake in a Tungsten mine there.

"We are are alsotryingto talk to some of the friendly countries likeVietnam.Along withNEC,we aretryingto take some equity in atungstenmine,he added.

The Centre recently offloaded26 per cent of its holdingin Midhani, a Mini-Ratna which was set up in 1973 here.

More than 65 per cent of its customers is from the defence sector and the rest in automobiles and railways.

For the fiscal 2017-18,Midhaniregisteredabout4per centincrease in the profit-after-tax atRs131.26 croreagainst Rs126.31 crorein FY 17.

The totalincome, however, declined toRs695crorewhen compared to Rs833crorein the previous fiscal.

Likhisaid the company expected ten per cent growth in revenues during the current fiscal.