New Delhi, July 13: The State Trading Corporation of India Ltd (STC) has assigned SBI Capital Markets the responsibility of identifying suitable joint venture partners to develop a number of captive supply sources. STC plans to have around 25 per cent stake in such joint ventures. STC considers such supply sources as essential for it to emerge as a global company. It is also keen on taking equity stakes in companies abroad even though its first attempt in this direction -- to invest in a textile firm -- was shot down by the government.

STC chairman and managing director BK Chaturvedi said, "we would not like to enter into joint ventures with such companies that would consider our equity investment as a zero interest source of funds."

The corporation has been considering investment in manufacturing capabilities abroad. Some areas identified by it include fertilisers, oil extraction and processing plants to process and pack farm products.

STC believes that such investment will give it a competitive advantage and help it become a global player. "It is our vision to become a multinational company by the turn of the century," said Chaturvedi.

The corporation has already entered into joint ventures in the country. In fact, it had tied up with two Andhra Pradesh-based aquaculture units -- Bluegold Maritech International Ltd and Richfield Aquatech Ltd -- in 1995-96. Though the two projects are not fully operational yet, they accounted for Rs 1.3 crore of exports last year.

The corporation has also been strengthening its domestic presence by marketing branded edible oils. Says Chaturvedi, "significant progress is being made in the sales of soyabean oil and rapeseed oil." Though competition from the already established Marico Industries has affected its progress, he said that the company hopes to better its show after strengthening its sales network.

For the year ended March 1997, STC's total turnover was about Rs 2,600 crore, of which domestic sales accounted for around Rs 130 crore or 5 per cent. STC has targeted a turnover of Rs 5,000 crore -- a 100 per cent growth -- by the year 2000. Of this, Rs 1,000 crore would be through domestic operations.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.