The state owned Orissa Mining Corporation (OMC) has earned a net profit of Rs 16.53 crore in 2002-03 registering a jump of 60.64 per cent over the previous year's figure of Rs 10.29 crore.
The turnover of the company at Rs 210.66 crore is also higher by 13 per cent from Rs 186.72 crore during the same period.
This performance of OMC is particularly commendable considering the fact that the company was in the red for three consecutive years up to March, 2001.
The turnaround in the company's fortunes is mainly attributed to encouraging market conditions for chrome ore and iron ore, the two main commodities traded by the company and the managements focus on maximising earnings through increased sales volume and cost cutting.
The iron ore from Daitary mines of the company which had very little export demand saw an upswing during the year. The demand for Daitary ore is said to be growing following commissioning of the steel unit of Nilachal Ispat Nigam (NINL) located nearby.
Meanwhile, the company complemented its aggressive marketing approach with increased production, particularly that of iron ore. For example, iron ore produced from Barbil and Gandhamardan mines of OMC reached 1.4 million tonnes from only 0.5 million tonnes a couple of years back. The total iron ore produced by OMC is poised to reach four million tonnes in the current fiscal.
Towards cost control measures, the company has introduced VRS for 1200 employees (funding on its own resources), sectional measurements in departmental mines and taken steps to link wage to work and reduce electricity bills significantly. Buoyed by this good show in 2002-03, OMC has an ambitious plan to increase turnover to Rs 300 crore during the current fiscal.
The plans are based on extensive preparations for enhancing production, improving productivity and reducing costs. The marketing plans have been developed with an eye on the international market conditions. The company has set a target to achieve turnover of Rs 500 crore in five years.
