Indian Share Market Tips|MMTC plans foray into new commodities, eyes pharma, engineering goods
Minor minerals are targeted for exports and will be canalized through MMTC
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State-controlled trading entity MMTC Ltd is aiming at trading in new commodities like engineering goods, drugs and pharmaceuticals as well as minor minerals. The planned foray into new commodities signals the company’s diversification strategy to go beyond its proven strength in the trade of bullion and major bulk minerals like iron ore and chromite.
Minor minerals are targeted for exports and will be canalized through MMTC. The other identified commodities are meant for two-way trade.
“We aren’t losing focus of our bullion business where we are constantly looking to expand the footprint. At the same time, MMTC is aiming to tap emerging trade commodities such as engineering goods, drugs & pharmaceuticals and minor minerals. There is considerable trading activity globally on these items. Many countries are looking forward to government level participation in their trade. And, we as a government-owned company possess that natural advantage," said a senior MMTC executive.
For MMTC, plans to trade in the newly identified commodities are still incipient. “We haven’t pegged turnover targets yet for the new commodities”, the official said.
In a recent presentation to the Ministry of Commerce, MMTC’s parent ministry, the company delineated a roadmap to double its top line in the next five years. The surge in turnover is expected to be fuelled by MMTC’s diversification into the new potential business areas. MMTC is eyeing Rs 170 billion turnovers in this financial year with a targeted net profit of Rs 550 million. Last fiscal, the trading company logged Rs 375 million in consolidated net profit, recovering dramatically from Rs 297 million net loss it bled in 2016-17.
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