State-owned trading company MMTC Ltd has initiated action for exports of minor minerals like feldspar and bentonite. Other new business areas where the company has started activity include trade in drugs & pharmaceuticals, engineering goods and import of steel scrap.
MMTC has offered to provide support to about 200 jewellery MSME (micro, small & medium enterprises) exporters by supplying gold for export promotion through SEZ (Special Economic Zone) at Sitapura near Jaipur and Noida.
The company has formulated a roadmap for 100 per cent jump in turnover over the next five years by diversifying into identified new potential areas. Its turnover is estimated at Rs 160.11 billion in FY18. For 2018-19, the turnover is expected to touch Rs 170 billion. In a recent presentation to the Ministry of Commerce & Industry, MMTC has targeted a gross profit of Rs three billion from its operations in this fiscal. Its net profit is seen at Rs 550 million while net worth is seen at Rs 14.75 billion.
Some of the major initiatives undertaken by MMTC include imports of 374,000 tonnes of pulses on Government of India account. The step was meant to build buffer stock as a mechanism for price stabilization in the domestic market and the company liquidated most of it. MMTC has opened an office at Guwahati to promote trade with North Eastern states. Trade has initiated in ginger and turmeric.
Under the Gold Monetization Scheme (GMS), MMTC has sold 68917 coins through seven banks weighing 651 kg and valued at Rs 2100 million. Currently, arrangements are being finalized with India Post for sale of Indian Gold Coin. MMTC has also started e-auction of gold collected by the Government of India under GMS.
MMTC has also decided to go for revamp of its e-commerce operations. The company has plans to put in place a full-fledged portal for the transaction of gold and silver.
The idea is to expand the retail footprint of gold and silver. MMTC wants to reach out to a wider customer base through a dedicated portal for bullion transactions. Though the company has a site for e-procurement, it needs to be substantially upgraded.
On the e-commerce site, MMTC's customers would be able to search for products by using different keywords like name and category. The site would also offer the customers the advanced search option.
MMTC is one of the premier bullion traders in the country with the precious metals division contributing significantly to its turnover. During 2016-17, the precious metals group contributed nearly 50 per cent to MMTC's gross turnover despite high volatility in bullion prices.