NATIONAL MINERAL

DEVELOPMENT CORPORATION

K.TEJASWINI REDDY
MBA 1ST YEAR
08B81E0048
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.
 BOARD OF DIRECTORS

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
RANA SOM R&D, expansion, etc. and Director (Finance)
Chairman cum for all financial matters of the Corporation and
Managing Director other part-time Directors nominated by the
Government of India from time to time.
KEY OFFICIALS:
Mr. K R Venkateswarlu
Mr. V K Sharma Director
Mr. U P Singh Director
Ms. Teresa Bhattacharya Director
Dr.(Mrs.) Indira Misra Director
Mr. R N Aga Director
Mr. B S Meena Director
Mr. Rana Som Director
Mr. N K Nanda Chairman and
Mr. S Venkatesan Managing director
Director (Technical)
Director
 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 Ore 1411.39 2180.58 3699.47 4170.29 5702.32

Sale of Diamonds 36.19 43.82 35.69 10.60 3.75
Turnover 1453.69 2229.99 3710.92 4185.84 5711.31
PBT 616.02 1223.65 2770.13 3498.31 4947.47
PAT 432.63 755.44 1827.20 2420.21 3250.98
Dividend Payment 46.25 151.32 365.57 465.91 651.53
 GROSS PROFIT RATIO

300000

250000

200000

150000

100000

50000

0
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.
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 6.9 14.9 15.7 20.1 11.8 13.1 10.2 6.7
(Times)

Profit for The Year to Capital 43.8 32.7 15.9 22.9 10.4 6.7 3.3 2.5
Employed %

Profit After Tax to Capital 26.8 21.5 10.1 13.7 6.3 4.9 2.5 1.5
Employed %

Profit for The Year to Net 31.8 21.9 20.5 24.1 12.8 5.6 4.1 3.7
Worth %

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
 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