MMTC SIGNS MOU FOR 2003-04 - TARGETS 14% GROWTH

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MMTC Limited, India’s leading international trading company, has signed the Memorandum of Understanding (MOU) with the Government of India for the current financial year 2003-04 setting a growth target of about 14% at Rs. 7120 crores. The MOU was signed between Shri S.D. Kapoor, Chairman & Managing Director of MMTC Limited and Shri Dipak Chatterjee, Commerce Secretary here today. The MOU is an outcome of negotiations between MMTC and the Task Force set up for the purpose by the Department of Public Enterprises.

MMTC’s plan for 2003-04 incorporates extensive focus on exports. The export targets in the next MOU have been pegged at a level of Rs. 2360 crores – a 31% growth plan over the MOU targets set for the current year. On import front, the targets have been pegged at reflecting a 26% increase over current year’s likely achievements and a 16% growth plan over the MOU targets set for the current year has been planned. The company aims to achieve these targets by a plan to strengthen the new core competencies in agro products, coal and hydrocarbon sector, metal exports at the same time increasing market share in its established business areas of minerals, non-ferrous metals, fertilisers and precious metals. Despite the pressure on trading margins, the company plans to increase profitability and has pegged a profit before tax of Rs. 22.20 crores reflecting 17% growth against the target for the last year.

In the MOU for 2003-04 certain new dynamic parameters have been included aiming to guide the company’s plan to diversify in variety of areas and enter into the phase of business through e-commerce. MMTC has been on a path of business growth in the last 4 years and setting up of a target of Rs. 7120 crores for year 2003-04 is in line with the company’s ambition to reach a Rs. 10000 crore business by year 2005.