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The State Trading Corporation of India Ltd (STC), the premier international trading company of the Ministry of Commerce & Industry, Government of India, is entering its 50th year of service to the nation and the Golden Jubilee celebrations were launched here by Shri E.V.K.S. Elangovan, Minister of State for Commerce & Industry, with the unveiling of a special 50th year logo.
The Corporation plans to organize a series of lectures, seminars and conferences for their valued partners, employees and all who have contributed in the Corporation’s growth and helped it in achieving its goal of serving the nation.
STC, an autonomous company, has an equity base of Rs.30 crore, of which, 91% is held by the Government of India. In the recent years, there has been a continuous spurt in the business activities of the Corporation and the Group turnover reached an all time high of over Rs.10000 crore. The turnover recorded by STC during 2004-05 is 44 % higher than the target set in the MOU with the Government of India and is 16% higher than the turnover achieved in 2003-04.
A noteworthy achievement of the Corporation on the export front has been the export of chemicals, drugs and pharmaceuticals. During 2004 – 05, STC exported Rs.227 crore worth of these items. The Corporation has also made headway in the export of iron ore (Rs.8.5 crore) and teak wood (Rs.11 crore). The total exports during 2004 – 05 amounted to Rs.610 crore. The import turnover of the Corporation has reached an all time high of Rs.8422 crore thereby exceeding the MOU target by 44%. During 2004-05, STC affected the highest ever bullion import sales of Rs.5677 crore thereby emerging as one of the largest importers/suppliers of bullion in the country. Having made a modest start in the import of hydrocarbons, minerals & metals during 2002-03, the Corporation has achieved a peak import turnover of Rs.1386 crore by way of import sales of these items during 2004-05. Import sales worth Rs.455 crore each were contributed by fertilizers and edible oils. During the year, the Corporation successfully diversified into import of petrochemicals, FMCG goods and IT products. It has also launched retail sale of gold coins in denominations of 5 gms and 10 gms. The Corporation also achieved the highest ever domestic sales of Rs.669 crore contributed largely by sales of hydrocarbons worth Rs.440 crore and pulses/maize worth Rs.186 crore.
STC has provisionally reported a net profit after tax of Rs.23.5 crore during the year, which is 68% higher than the MOU target. It has also paid an interim dividend of 15% of its equity for the year 2004-05.
Speaking on the occasion Mr. Arvind Pandalai, Chairman and Managing Director, STC expressed confidence to achieve the targeted performance for the year 2005 – 06 as there is increased buoyancy in all the sectors. He said that the Corporation took great pride in entering the 50th year of service to the nation”.
The Corporation has entered into an MOU with the Government of India stating performance targets for 2005-06. The emphasis is on improving efficiency and thereby achieving much better profitability. The net profit after tax (PAT) has been projected at level more than double of the previous year target.
Recent achievements
· STC has entered into an exclusive tie-up for production and marketing of ballistic protection equipment, including bullet proof armouring of vehicles under the Central Government’s strategic plan to modernize police/para-military forces and forensic science laboratories. For this purpose, STC has entered into an MOU with an Indian company who has exclusive authorization from Dupont, USA to manufacture light-weight bullet proof jackets. Based on this tie-up, STC has already made offers to various government departments including some state government entities. This is likely to develop into a major business area.
· STC has already finalised import and supply of one V.I.P. configuration helicopter for the Chief Minister and Governor of Tamil Nadu on buy-back basis. Negotiations are also under way for import and supply of two helicopters for the government of Punjab for VIP travel.
· The corporation has entered into a revised arrangement with Essar Oil for supply of high-speed diesel and motor spirit. Under this arrangement, business worth Rs. 1500 crore will be undertaken during the current year.
· The Government recently entrusted STC with disposal of about 5000 MT of kerosene oil at market driven prices. The same was accomplished successfully and sizable profits were earned.
The future plans of STC include undertaking substantial exports of petro products and iron ore. It is also planning to export bulk drugs to Kazakhstan for production of formulations in the CIS region. Warehousing in the CIS region is also being considered. The STC Management is also considering participation in a special purpose vehicle to be set up for developing Land Customs Stations in India. On the import front, the Corporation has already started imports of FMCG products and the import of IT products is also likely to start soon. The Corporation is proposing to diversify into imports of non-ferrous metals and take mining capacity on lease.
STC is set to achieve greater heights in the coming years.
SB/MRS
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