Mr Rajeev Jaideva

Whole Time Director(Personnel)

Board of MMTC

1.What are the divisions that MMTC mainly

deals? A. MMTC majorly deals in trading of miner-als, precious metals, ferrous and non ferrous metals, fertilizers, coal and hydrocarbons and agro products. The company earns lot of profit by trading of minerals and maximum part of revenue is earned by trading of gold.

News Papers are flooded with advertisement of different car makers, with hefty discounts and assured gifts , even you can win assured gift just visit and take a test drive. Is those Companies are more focusing on customer relation or it’s a sign of drought of customers?? Is the

shutdown in a number of plants by car manufacturers indicative of avoiding the inventories and rescheduling the expansion plans are another bad sign?? Why a speed breaker in the Growth story of automobile sector when

every analyst is optimistic about the growth. Where Economy is also

under dark cloud and struggling to recover it’s another blow. Where

government is striving to make all the things normal and trying to fuel

the economy, the core sectors and other important sectors are not per-

forming well.

Banks play a vital role in spearheading the economic

development of a nation and are the main fuel of the

economic progress. A bank is a source of capital pro-

vider for every nation whether developing or a devel-

oped. Factors like Liberalization and globalization are

some other important aspects for renewing the bank-

ing system of this country. As gradual enhancement

of technology and restructuring and re-engineering

the processes of banking attempted by both foreign

and private sector banks is visible.

IN THIS ISSUE:

NEED FUEL FOR AUTO INDUSTRY …………..1

RETAIL BANKING : A NEW HORIZON .………1

CORPORATE SPEAK ……………………..1

DO YOU KNOW?? …………………….. 3

Volume 1 , Issue 12 | August 2012

Masters of International Business , Centre for management Studies ,

JAMIA MILLIA ISLAMIA

CORPORATE SPEAK RETAIL BANKING : A NEW HORIZON

NEED FUEL FOR AUTO INDUSTRY.

Cont….on Page 4

Cont….on Page 2 Cont….on Page 3

DOING BUSINESS IS NOT SO EASY: WORLD BANK.. 2

The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The

unleashing of products and services through the internet and fur-ther change because of exposure to the global trends and informa-tion explosion led by IT. There is shift from mass banking prod-ucts to class banking with an introduction of value added and cus-tomized products. Retail Banking is a banking service that is geared primarily to-wards individual consumers. Retail banking is usually made avail-

able by commercial banks, as well as smaller community banks. Unlike wholesale banking, retail banking focuses strictly on con-sumer markets. Retail banking is typical mass-market banking where individual customers use local branches of larger commer-cial banks. The term “Retail Banking” encompasses various finan-cial products viz., different types of deposit accounts, housing, consumer, auto and other types of loan accounts, demat facilities, insurance, mutual funds, credit and debit cards, ATMs and other

technology-based services, stock-broking, payment of utility bills, reservation of railway tickets, etc. It caters to diverse customer groups and offers a host of financial services, mostly to individu-als. It takes care of the diverse banking needs of an individual. Retail banking is a system of providing soft loans to the general public like family loans, house loans, personal loans, loans against property, car loans, auto loans etc.

The products are backed by world-class service standards and delivered to the cus-tomers through the growing branch net-work, as well as through alternative deliv-ery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. Growth opportunities in banking, espe-cially retail segment is set to witness fast

growth due to high consumption. The higher growth of retail lending in emerging economies is attribut-able to fast growth of personal wealth, favourable demographic profile, rapid develop in information technology, the conducive macro –economic environment, financial market reforms & sev-eral micro level supply side factors also playing a vital role for optimistic future of this sector.

The retail banking strategies of banks are undergoing major trans-

formation, as banks adopt a mix of strategies like organic growth,

It is not really easy to do business in INDIA that is what world Bank report is say-

ing, INDIA is ranked 132 when compared to other developing countries. India is lagging far behind from some of its Asian neighbor: Sri Lanka 89, China 91, Paki-stan 105, Nepal 107, Bangladesh 122. Singapore ranks first for the ease of doing business and New Zealand tops the chart for starting a business. Report is based on fallowing parameters:

• Starting a business • Dealing with construction permits • Getting Electricity • Registering property • Getting credit • Protecting investors • Paying taxes

• Trading across borders • Enforcing contracts • Resolving Insolvency.

Source: Global Finance July/August 2012

(http://www.gfmag.com/)

acquisitions and alliances. This has resulted in a paradigm shift in the

marketing strategies of the banks. Public sector banks are also adopting

aggressive strategies by leveraging their rural branch network .Banks

are also going in for innovative strategies like cross selling, packaged

selling of retail products and technology based banking. At the same

time, new foreign players are also entering this high growth sector.

Retail banking has a great scope in India due to increase in consumer-

ism, purchasing power of customers. Retail banking in India was first

emerged as one of the major drivers of the overall banking industry and

has witnessed enormous growth in the recent past. The retail banking

primarily covers analysis of the present status, current trends, and major

issues.

A huge and affluent middle class, youngest population in the world, rise

in literacy level, higher adaptability of technology, a continuing trend of

urbanisation and increasing consumption mindset of INDIA are the Rea-

sons for bright future of Retail banking in INDIA.

Analyst are assure about the Boom in Indian retail banking sector. The

market research providers are also optimistic about the future of Indian

banking industry. But some of international

rating agencies are still not sure about the

growth story as they already downgraded the

some nationalize bank. But as there is visible

growth retail banking it has been growing is

steadily from last decade and has a bright fu-

ture. Bankers are also optimistic about the fu-

ture of retail banking as they find auto and

home loans are more lucrative than any other.

Government is monitoring banks and assured

the customers about their money and invest-

ment. Assurance from government and policies

by RBI (Reserve bank of India) is making this

sector more robust and intact. As the norms from RBI are relevant and

effective so it will give smooth ride to this crucial sector. And we can

hope there will be no rating cut and downgrade in future.

By— Anam Khan

2nd Year MIB , JMI.

Page 2

RETAIL BANKING : A NEW HORIZON

Cont…..from Page 1

DOING BUSINESS IS NOT SO EASY : WORLD BANK

2.Does MMTC deal in any other business apart from export and import of various items? A.MMTC has a wholly owned subsidiary firm in Singapore which is better known as MMTC transna-tional private limited (MTPL). It started a joint venture plant with the Orissa government in the year 2003 for manufacturing pig iron, known as Neelchal Ispat Nigam Limited.

3.What has been the growth path for MMTC?

A. MMTC, incorporated in 1963 as a bifurcation of STC with the main objective of exporting mineral ores and importing essential metals has come a long way. An annual turnover of $10 billion during 2008-09 clearly depicts the massive growth. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of "FIVE STAR EXPORT HOUSE" by Government of India for long standing contribution to exports. It operates on very thin a margin which is evident through the difference between high turnover and low profits. The business has ex-panded from trading in minerals and metals to now trading in precious metals, coal and hydro carbons, fertilizers, & agro products

4.How is the ban on mining of iron-ore affecting the industry? A. The production of steel around the world has seen a slump. Even the Mittals who are the 3rd largest producer of steel have cut down on the production for steel as it is not fetching the margins of profit which was forecasted. Due to this declining trend in the manufacturing of steel, the demand for iron-ore has fallen down. The gap between the demand and supply is huge though which is being fulfilled by imports.

5.Which is the most focused area of MMTC? A. MMTC Limited is India’s Premier bullion trader, handling more than 185 MTs of Gold & 690 MTs of Silver during 2009-10. The Precious Metals Division has consistently contributed considerable

proportion of the total turnover of the Company. Further it continues to be largest supplier of iron ore handling about 15% of India’s total export.

6.In such a competitive environment, how is MMTC maintaining its market share and position? A. In today’s time, cut throat competition exists in the business environment. For MMTC the sole method for augmenting this gap is by entering and exploring other business opportunities. The demand for coal is ever expanding in the country due to need for extensive power generation. There are many power plants facing the challenge of low amounts of coal which is actually required. The actual gap calculated is somewhere around 15 millions. The organization has explored business opportunity to

further develop in the given domain.

7.MMTC being such a huge organization, how does it tackle the management of talent within the

organization? A. MMTC has around 2500-3000 employees. The employees remain wedded to the company till the age they retire. The average age of employees rendering there service to the organization is around 30-35 years. The attrition rate is as low as somewhere between 2%-5%.

8.What are MMTC steps towards job enrichment opportunities so as to ensure that employees re-

main motivated?

A. Opportunities are provided to all to enrich their knowledge base and technical skills through in-house training programmes and through trainings/seminars organized by reputed outside agencies. Human resource development in MMTC, therefore, is a continuous exercise compatible with the change in business patterns and technological innovations in an era of diversification and search for new business opportunities. Notwithstanding the culture of a public sector organization, we in MMTC realize that our most important asset is the employee. We design our HR policies to meet the above objective. MMTC follows the HR policies of job rotation, incentives and regular training programs so as to motivate employees to perform better and give in their best to the company

9.Up to what extend is MMTC meeting international standards? A. One of the bottlenecks in increasing the Indian Iron Ore exports is the deficiency in port facilities especially in the East-Coa in Goa, Mangalore, Bellikari etc. In this direction, MMTC has been suc-cessful in obtaining an exclusive right to develop a temporary Iron Ore Terminal at Ennore near Chen-nai. MMTC is also in constant dialogue with the various Ministries, Railways, Ports and exporters to assess the development potential for comprehensive infrastructure requirements for larger volume of exports. MMTC will continue to play a vital role in these directions.

DO YOU KNOW??

If Wal-Mart was classified as a country, it would be the 24th most productive country in the world.

Colgate's first toothpaste came in a jar.

The first product that Sony came out with was the rice cooker.

Walt Disney World generates about 120,000 pounds of garbage every day. Yahoo! was originally called 'Jerry's Guide to the World Wide Web'.

MMTC FACTS.

Established in 1963, MMTC, one of the two highest foreign

exchange earner for India.

It is the largest international

trading company of India and the

first Public Sector Enterprise to

be accorded the status of "FIVE

STAR EXPORT HOUSE" by Govt

of India for long standing contri-

bution to exports.

MMTC is the largest non-oil

importer in India.

MMTC, currently holding the

no. 1 rank amongst trading com-panies in India, concluded fiscal

2010-11 with its highest ever

topline for the seventh consecu-

tive year and achieved a business

turnover of Rs. 68,855 crores

which includes Exports of Rs.

3,694 crore, highest ever Imports

of Rs. 63,301 crore and domestic

trade of Rs. 1,860 crore.

———————

Volume 1 , Issue 12

Cont…..from Page 1

A gloomy June for car manu-facturers as sale is slowing down and buyers continued to stay away from showrooms. A high cost of ownership , high

interest rate and the hike in fuel price (petrol) has consid-erably impacted consumer sentiment. Buyers are more focusing on diesel cars thanks to Rs.30 per litter price differ-ential with petrol, petrol car sales can only be headed south.

Maruti Suzuki India notched a

sales increase of 19.3 percent

but the fact of the matter is that

the growth is due to the low

base in June 2011, when the

labor unrest had laid India’s

largest carmaker low. Hyundai

Motor India which, like Ma-

ruti, is trying hard to drive

sales saw meager growth of

0.15 percent in June 2012.

Mahindra & Mahindra (M&M)

and Toyota Kirloskar Motor

bucked the general downturn

by notching a growth of 23.3

percent and 22.2 percent .The

flagship XUV500 is a big draw

as is the ageing warhorse Bo-

lero. Toyota also recorded a

similar growth rate with sales

of 14,700 units, thanks to

strong demand for the diesel

variants of the Etios and Liva,

“Innovation distinguishes between a

leader and a follower .” - Steve Jobs Co-founder , Apple Inc.

CMS , MIB

E-mail: 2006.samik@gmail.com,

mohammadfurquan1985@gmail.com

Phone: 8285707738, 9716926240

For Previous Editions Pleases Visit http://www.slideshare.net/mibytes/

documents

EDITOR-IN-CHIEF:

SUNAYNA KUMAR Assistant Professor.

STUDENT EDITORS:

MOHAMMAD FURQUAN.

NAMITA DHAMANI.

SAMIK SARKAR.

INTERVIEW BY:

BUSHRA ANEES.

NAMITA DHAMANI. RUCHIKA PARMAR.

CONCEPT & DESIGN:

SAMIK SARKAR.

, and for the butch Fortuner

SUV. Tata Motors, surpris-

ingly, saw a sales decline of

21.59 percent in its June 2012

sales. This, despite a strong

diesel car portfolio; it could be

that buyers are plumping for

other diesel brands.

But why this decline, why

customers are suddenly out of

box? Is that simply an effect

of fuel price rise in every sec-

ond weekend, which is hurting

buyers emotions or a huge

volume of EMI because of

high interest rate. But there is a

visible shift form petrol to

diesel and CNG (only in met-

ros). Factors may and may not

be influencing buyers and

future buyers. But micro fac-

tors are influencing buyers and

they are waiting for decline on

interest rate (for that RBI in

pondering) or appraisal so they

can cope with these situations.

Automobile analyst still hope-

ful and manufacturers are too.

A number of new models and

variants are in the pipe line and

about to launch and they are

more focusing on diesel vari-

ants. It’s mid of the year and

festive season is about to begin

so the industry analysts are

hoping for a rise in sale, beside

that RBI is also planning to cut down the interest rate which will definitely help this sector to flourish. But

another dark cloud on the horizon is the Duty on Diesel Variants may fill the difference in the sale of diesel and petrol variant and also give the environ-mentalists a chance to smile. By— Md. Furquan

2nd Year MIB , JMI.

NEED FUEL FOR AUTO INDUSTRY.

Cont…..from Page 1

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