NATIONAL MINERAL DEVELOPMENT CORPORATION

K.TEJASWINI REDDYMBA 1ST YEAR08B81E0048

COMPANY LOGO

COMPANY HISTORY

Incorporated in 1958 Public sector unit of Govt. of India Under Administrative control of MINISTRY

OF STEEL Largest Iron ore producer and exporter of

India Involved in the exploration of wide range

of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc.

RANA SOMChairman cum

Managing Director

BOARD OF DIRECTORS

KEY OFFICIALS:

Mr. K R Venkateswarlu Mr. V K Sharma Mr. U P Singh Ms. Teresa Bhattacharya Dr.(Mrs.) Indira Misra Mr. R N Aga Mr. B S Meena Mr. Rana Som Mr. N K Nanda Mr. S Venkatesan

Director Director Director Director Director Director Director Chairman and Managing director Director (Technical) Director

The Board of Directors of NMDC consists of one full-time Chairman-cum-Managing Director and three full time Functional Directors namely, Director (Production) incharge of all production activities, Director (Technical) for technical activities including R&D, expansion, etc. and Director (Finance) for all financial matters of the Corporation and other part-time Directors nominated by the Government of India from time to time.

COMPANY VISSION MISSION

NMDC, a  Navaratna Public Sector Enterprise under the Ministry of Steel, Government of India and a multi locational, multi product and consistently profit making Mining & Mineral Exploration Organization with large turnover  is in the process of massive expansion and diversification activities both in India and abroad.  The Company is also setting up an Integrated Steel Plant at Jagdalpur , Chhattisgarh state.

What is Navaratna status??????

Navratnas was the title given originally to nine Public Sector Enterprises or PSE, identified by the Government of India in 1997 as its crown jewels or the most prestigious PSEs, which allowed them greater autonomy to compete in the global market The number of PSEs having navratna status has now been raised to 18

Navratna status is conferred by Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 (of the total 100).The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes) to capital employed, PBDIT to turnover, EPS (Earning Per Share) and inter-sectoral performance. Additionally, a company must first be a miniratna and must have four independent directors on its board before it can be made a Navaratna

EXPANSION

The mission is to achieve 50 million tonnes of iron ore by 2014-15.

The capacities of the existing mines are being expanded by upgrading equipment

A new mine, Bailadila deposit-11/B, with a capacity of seven million tones will be opened by 2009.

RESEARCH AND DEVELOPMENT

It has been stated in the Brief that NMDC has set up a R&D Centre at Hyderabad which has been declared as a “Centre of Excellence” by the UNIDO

undertaken studies to find the possibility of using its mine waste materials for different applications

Nucleus R&D cell R&D centre undertook extensive studies on

Kimberlite waste found in Panna Diamond Mining Project and found the possibilities of utilizing this waste for different applications

Recovery of silica as fluffy silica

NMDC intended to expand gold mines

CORPORATE SOCIAL RESPONSIBILITY

Organising Health camps Mobile Clinics Development of Backward Villages Education Drinking Water Grameen pusti yojana Free Treatment at Project Hospitals

PRODUCTS Iron ore copper rockphosphate limestone dolomite gypsum bentonite magnesite diamond tin tungsten graphite etc.

MARKET SHARE

Market share of Iron ore Market share of Diamonds

EXPORTS

NMDC is the largest producer and exporter of iron ore in this Country.

Its exports are around 7 million tonnes of iron ore per annum through Mineral & Metals Trading Corporation Limited, the canalising agency.

MAN POWER

During the last five years, the number of people employed is as follows:

2003-04 : 5,813 2004-05 : 5,620 2005-06 : 5,667 2006-07 : 5,582 2007-08 : 5,560

•Total number of employees 5560●Scheduled Caste employees 999●Scheduled Tribe employees 1179●Backward Class employees 615●Men : Women ratio 21:1

SWOT ANALYSIS

STRENGTHS: Financial strength characterized by high net

worth, zero debt, good credit rating. Good work culture - skilled, experienced and

dedicated workforce. Brand image of NMDC's iron ore in

domestic/international market. Highly mechanized iron ore mine. Availability of technology and infra-structure

of existing projects in Bailadila to add new projects in the area with comparatively less investment.

Core competence in iron ore mining. In-house R&D capability.

WEAKNESS

•Remote location of the projects acting as deterrent in attracting and retaining talent and also for reaching supplies and services.•Not connected by air.•Delay in forest and environmental and other clearances affecting time schedules for opening and commissioning new mines and affecting our investment plan.•Extreme foggy weather conditions causing stoppage of mining operations at Bailadila complex during monsoon months.•Inconsistency in securing placement of rakes by the Railways.

OPPURTUNITIES: Growth in steel production Availability of market even for low grade ore

including slime. Financial powers for investment in new

projects as a Navaratna Company. Exploration and mining opportunities in India

and abroad for high value minerals. THREATS:

Disturbances due to Maoists activities in Bailadila area.

Intense competition from private sector in securing fresh mining leases, resulting in denial of leases in many cases and litigation delaying actions.

Entry of MNCs and other Indian private companies into iron ore mining.

FINANCIAL REPORTS

Details 2003-04 2004-05 2005-06 2006-07 2007-08

Sale of Iron OreSale of DiamondsTurnoverPBTPATDividend Payment

1411.3936.191453.69616.02432.6346.25

2180.5843.822229.991223.65755.44151.32

3699.4735.693710.922770.131827.20365.57

4170.2910.604185.843498.312420.21465.91

5702.323.755711.314947.473250.98651.53

0

50000

100000

150000

200000

250000

300000

1 2 3 4 5 6 7 8 9 10

Series1 Series2 Series3

INTERPERTATION:On Y-axis we measure Sales and on X-axis we measure years.IN the intial stages i.e.sales are 42527 and gross profit is 4298 and the ratio is 2.42.In the same way sales and gross profit trend is increasing year by year.

GROSS PROFIT RATIO

Ratios        

Overhead To Sales % 0.6 0.5 0.6 0.6 1.0 1.5 1.5 2.3

Stock To sales % 2.1 0.8 1.5 0.7 1.8 2.0 1.6 4.3

Trading Profit To sales % 1.6 1.1 1.4 1.7 1.8 2.1 1.7 2.6

Profit Before Tax To Sales % 1.2 0.8 1.0 1.2 0.9 0.6 0.3 0.3

Profit After Tax To Sales % 0.8 0.5 0.7 0.7 0.6 0.4 0.3 0.2

Debtors to sales % 5.5 4.8 4.5 4.5 5.0 3.9 4.3 4.0

Working Capital To Sales % 14.4 6.7 6.4 5.0 8.5 7.6 9.8 14.9

Sales To Working Capital (Times)

6.9 14.9 15.7 20.1 11.8 13.1 10.2 6.7

Profit for The Year to Capital Employed %

43.8 32.7 15.9 22.9 10.4 6.7 3.3 2.5

Profit After Tax to Capital Employed %

26.8 21.5 10.1 13.7 6.3 4.9 2.5 1.5

Profit for The Year  to Net Worth %

31.8 21.9 20.5 24.1 12.8 5.6 4.1 3.7

Profit After Tax to Net Worth %

19.5 14.4 13.1 14.4 7.7 4.1 3.1 2.2

Number of Employees 1953 1997 2031 2063 2083 2160 2399 2456

Sales per Employee135.

3116.

780.6 73.3 43.7 28.8 30.2 21.6

FUTURE PLANS

company is planning to increase its iron ore production to 30 million tonnes by 2009-2010 (from 18 million tonnes, now).

plans to invest Rs400 crore to open a new iron ore mine in Bailadila

plans to increase its production capability from the existing 15 million tonnes to 30.7 million tonnes by 2009-10

company has plans to increase its Diamond production