MMTC FY05 turnover zooms 66% to cross Rs 15,000cr

Enthused by a whopping 66% growth in turnover to Rs 15,100 crore in 2004-05, MMTC is seeking to double it by 2009, and has lined up a slew of investments including a foray into free trade warehousing zones and expansion of its steel-producing subsidiary Neelachal Ispat Nigam (NINL).

"Our turnover in 2004-05 is Rs 15,100 crore, up 66% from Rs 9,099 crore in the previous fiscal," S D Kapoor, chairman of MMTC, said today.

"In April last year, we had committed that MMTC would double its business from Rs 10,000 crore to Rs 20,000 crore in the next three years. The current performance indicates it is not only moving in the right direction, but would reach the target at an accelerated pace," he added.

Aiming at doubling turnover by 2009, Kapoor said the company was planning to raise the capacity of  NINL by one million tonne at an investment of Rs 1,000 crore besides investing Rs 600 crore to set up six free trade warehousing zones.

He said MMTC, which holds 51% in NINL, was open to all options including an initial public offer and a strategic partner for funding the expansion.

"We haven't decided on the funding mechanism. We have enough internal accurals to meet the requirement, but we will look at all options including an IPO and a strategic partner," Kapoor said.

MMTC proposes to hire a consultant for the expansion, which includes setting up a bar and rod mill in three years.