Rana Som, CMD, NMDC, talks to deepak ranjan patra about what makes NMDC the most successful mining company in the country and what are its future plans...
NMDC has been amongst India’s top 15 most profitable companies for quite sometime now. What is the recipe for your success?
Sustainability is the key word for us. NMDC started as an one–product, one–customer company but has successfully diversified into multi–product, multi–customer company. We ensure that the price of our major product namely, iron ore, is not overpriced. This pricing mechanism helps us in increasing our customer base and thus the bottom-line of the company.
You had proposed a 3-million tonne Greenfield steel plant in Chhattisgarh. How has been the progress? How valuable is it for NMDC, considering the fact that two of your critical mines, Bacheli and Bailadila are close to the proposed site?
The proposed 3 MTPA integrated steel plant in Chhattisgarh is in an advanced stage. The company has already completed the process of land acquisition. The work has been divided into various packages and the awarding of various packages would start by October this year. After that it will take around 40 months for products to start rolling out.
Do you have any other plan as part of your forward integration strategy?
We also plan to have a steel plant in Karnataka, but it will be a JV with another organisation. In addition, we are trying to put up a slime-based pellet plant (a new iron making process utilising low grade fines is in the offing with Japanese collaboration) at Donimalai in Karnataka.
NMDC was looking for foreign partners for the Karnataka plant. Any development on that front?
Regarding foreign partners for the proposed plant in Karnataka, we are in the process of negotiations and things are developing at an appreciable pace.
Any other global plans...
Yes, we are actively pursuing acquisition of properties either on a standalone basis or in JV for securitising power (Coal, both metallurgical and thermal), iron ore and manganese in regions like South America, Africa, Australia, Russia et al.
NMDC has been amongst India’s top 15 most profitable companies for quite sometime now. What is the recipe for your success?
Sustainability is the key word for us. NMDC started as an one–product, one–customer company but has successfully diversified into multi–product, multi–customer company. We ensure that the price of our major product namely, iron ore, is not overpriced. This pricing mechanism helps us in increasing our customer base and thus the bottom-line of the company.
You had proposed a 3-million tonne Greenfield steel plant in Chhattisgarh. How has been the progress? How valuable is it for NMDC, considering the fact that two of your critical mines, Bacheli and Bailadila are close to the proposed site?
The proposed 3 MTPA integrated steel plant in Chhattisgarh is in an advanced stage. The company has already completed the process of land acquisition. The work has been divided into various packages and the awarding of various packages would start by October this year. After that it will take around 40 months for products to start rolling out.
Do you have any other plan as part of your forward integration strategy?
We also plan to have a steel plant in Karnataka, but it will be a JV with another organisation. In addition, we are trying to put up a slime-based pellet plant (a new iron making process utilising low grade fines is in the offing with Japanese collaboration) at Donimalai in Karnataka.
NMDC was looking for foreign partners for the Karnataka plant. Any development on that front?
Regarding foreign partners for the proposed plant in Karnataka, we are in the process of negotiations and things are developing at an appreciable pace.
Any other global plans...
Yes, we are actively pursuing acquisition of properties either on a standalone basis or in JV for securitising power (Coal, both metallurgical and thermal), iron ore and manganese in regions like South America, Africa, Australia, Russia et al.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
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Management Guru Arindam Chaudhuri
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IIPM Global Exposure
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IIPM Links
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
