Date:13/05/2005 URL: http://www.thehindubusinessline.com/2005/05/13/stories/2005051302170300.htm

Back STC told to focus on exports

Our Bureau

The Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan (left), with the Chairman & Managing Director of STC, Dr Arvind Pandalai, in the Capital on Thursday. - Kamal Narang

New Delhi , May 12

THE State Trading Corporation (STC) should focus on increasing its export turnover since the company's more than Rs 10,000 crore turnover during 2004-05 was on account of increase in its import turnover amounting to Rs 8,422 crore.

Stating this at a function to mark the STC entering its 50th year celebrations after unveiling of a special logo, the Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan, said that the company should take full advantage of the export growth opportunities. He said expansion of trade was closely linked to development of a trade infrastructure, including warehousing, transportation and cargo handling facilities.

For STC, he said, this would amount to backward integration which is required if the Corporation aims to have a quantum leap in performance. Equally important would be the forward integration, including brand marketing and retailing. In his welcome address, the Chairman-cum-Managing Director, STC, Dr Arvind Pandalai, said that the Corporation is now planning to handle the export and import needs of steel plants being put up by Indian companies overseas. In such cases, he said, STC would arrange for the supply of raw materials from third countries to these steel plants. He added that physical handling of goods would be monitored though globally reputed collateral management agencies.

STC would also try to export production of these steel plant plants to India or third countries. Operations are already under way in the Philippines and would soon be expanded to other countries.