‘MSTC aims for a full-fledged trading house’
MSTC Ltd (formerly Metal Scrap Trade Corporation) is a ‘Mini Ratna’ public sector unit under the Ministry of Steel. It has two major portfolios of business: marketing division that looks after the procurement of industrial raw materials in bulk for its principals and a virtual marketplace for domestic sellers and buyers to do business in metal scrap (ferrous/non-ferrous), surplus stores, machineries, obsolete spares, vehicles and plants. Malay Sengupta, chairman of MSTC, in conversation with M Rajendran, said the corporation is looking for strategic alliance to be an important player in the market. Excerpts:
The world is witnessing hectic mergers and acquisitions in this sector. What does it mean for MSTC?
For MSTC, the implication is that it must also get bigger and if possible form strategic alliances. We have recently formed such an alliance with the State Trading Corporation of India (STC).
MSTC has been regulator, a subsidiary and for many years an independent unit. What is the next big step?
Even after becoming an independent unit in 1982, we remained primarily a kind of a regulator, because we were the Canalising Agency for import of ferrous scrap. Our next big step will be to establish ourselves as a full-fledged trading house, being able to offer one window solution to supply-chain management programme.
MSTC had developed an e-Procurement portal. Can you throw some light on this?
Generally, an e-Procurement portal is taken to mean a system, which can accept online bids. We, however, believe that the e-Procurement portal should also have in the decision-making parameters built in, so that while bidding, a bidder can be informed that based on the bids made what is likely to be the order quantity for him and this will help him to improve his bid.
Any highlights of e-auction?
We have done one e-auction for Coal India for explosives worth about Rs 560 crore. Another e-Procurement programme for BPCL, based on multiple bidding and optimisation programme, was done recently. We have been acting as selling agents for years and our motto is that the dealing officers should fully empathies with the principals in realising their problems and work out a solution.