NMDC intends to shift its investment focus to customized goods

21 Nov 2023 , 01:50 PM

According to chairman and managing director (additional charge) Amitava Mukherjee, National Mineral Development Corporation Ltd. (NMDC), the biggest producer of iron ore in India, adapts its products and services to suit the needs of various client classes.

McKinsey & Company and Deloitte have been hired by the Navratna PSU to conduct a five-six year market and customer requirements analysis and develop a marketing policy over the coming months. ‘We have engaged consultants and in about three to six months’ time we will have a clarity on what sort of investments we need to make to have customised products for different classes of customers rather than have a vanilla product for all of them,’ Mukherjee told analysts in a post-earning.

The 65-year-old business has been exploring a variety of minerals, including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands. It is administratively overseen by the Ministry of Steel. Among its clients are Nippon Steel, Arcelor Mittal, Jindal Steel, and JSW Steel.

According to Mukherjee, the policy will be ready by the end of the current fiscal year, and the business anticipates a spike in realisations after the customized items are sold. It would take NMDC an additional two years to increase iron ore production above 52 million tonnes.

Due to strong demand, the state-owned mining conglomerate posted a 15.7% rise in consolidated net profit in the second quarter.

When asked about NMDC Steel Ltd.’s (NSL) divestiture status, Mukherjee responded that while the company had received several proposals, further progress could not be achieved because of the Chhattisgarh elections.

In order to sell a 50.79% ownership in NMDC Steel with a transfer of management control, the federal government issued an expression of interest (EOI) request last year.

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