Record Annual Turnover for MMTC

The state-run Minerals and Metals Trading Corporation (MMTC), India’s largest trading company, registered a record turnover at Rs 262.76 million ($6.58 million) for fiscal 2007-2008 compared to Rs 233 million ($5.83 million) in the previous year.

The corporation also reported a profit after tax of Rs 2.061 billion ($51.6 million), up 63 percent over Rs 1.268 billion ($31.75 million) in 2006-2007. This is the highest ever net profit reported by the corporation since its inception in 1963.

MMTC is India's largest importer of gold and silver, and has plans to strengthen its presence in the gems and jewelry sector through a number of new initiatives that have recently been finalized.

These initiatives include setting up a silver and gold medallion and jewelry manufacturing unit in association with an international producer, and expansion of its retail presence in the sector through a joint venture with Gitanjali Group. The manufacturing joint venture is expected to start production in 2009, while the first of the retail stores will be opened later this year.

At its board meeting held last week, the directors of MMTC formally approved the formation of a joint venture with Tata Steel for exploration and development of mineral mines, ferrous and non-ferrous ores, precious metals, diamonds and coal on a public-private partnership route. The partnership is expected to enter the gold and diamond mining sector in Africa shortly.

Recently the company announced its intention to develop a gem and jewelry specific SEZ. Though the location is still to be finalized, company officials indicated that it was likely to be in Gujarat or Haryana.