The Hindu : Business : STC sees new business in third countries

Online edition of India's National Newspaper
Wednesday, Jan 25, 2006

Business

Business

STC sees new business in third countries

Staff Correspondent

Plans investment in manufacturing facilities in Uzbekistan

MUMBAI: The State Trading Corporation of India (STC) has targeted doubling of its turnover to Rs. 20,000 crore ($4.5 billion) by 2008.

The corporation is in its fiftieth year and for a large part of its existence, it was the medium for developing the country's foreign trade and handled trade mainly with the former USSR and other East European countries in the controlled foreign trade regime. The decanalisation of trade affected STC in the Nineties. But the agency is now in direct competition with private trading houses in India and abroad, Arvind Pandalai, Chairman-cum-Managing Director (CMD), STC, while addressing the media here on Tuesday, said.

As part of diversification, the company had undertaken supply of iron and steel raw materials from India as also from third countries to a steel plant in the Philippines. The supply to the tune of $100 million has already been carried out.

STC has entered into domestic supply of raw materials and is executing a Rs. 800-crore contract to supply 1.9 million tonnes of thermal coal to NTPC. It has also ventured into bullet-proof armouring of vehicles and indigenously manufactured bullet proof jackets, bomb blankets and helmets.

STC expected this to contribute Rs. 250 crore annually. Nominated as a nodal agency by Uzbekistan for import from and exports to India, STC is examining proposals for investments in manufacturing facilities in Uzbekistan in a joint venture in the areas of textiles, chemicals and drugs.

STC is involved in finalising the off-set arrangements against bulk purchases made by the Central Government and is involved in off-set emanating from purchase of aircraft by the Indian Airlines and Air India.

STC is setting up warehousing facilities in the CIS for Indian exporters and is venturing into export of petro-products and import of non-ferrous metals.

It is also finalising a joint venture for development of high-end vegetable oils including packing and processing for export to Iran, Afghanistan and West Asia. This will be done from Mumbai and will include the entire range of edible oils.

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