The status will entitle the subsidiary, MMTC (Transnational) PTE Ltd (MTPL), to tax rebates offered by the Singapore government to foreign trading companies based on a minimum turnover and profit posted by them. The minimum cut-off level prescribed is Singapore $100 million. The premier public sector trading company Minerals and Metals Trading Company Ltd already enjoys the status of a super star trading house in terms of the current export and import policy (1997-2002).

The Singapore subsidiary upped its turnover by 37 per cent in the first quarter of 2000-01 over the previous corresponding period and the target for the whole year has been set at S$ 200 million, a growth of 46 per cent over the preceding year. The subsidiary is confident of achieving the target.

Building on the robust growth, the subsidiary had declared a dividend of 25 per cent during the year ended March 31, 2000, by far the highest declared by any Indian subsidiary. Weathering a fierce competition in a depressing market, the subsidiary posted a turnover of s$ 55 million during the 1998-99 fiscal, up by 70 per cent from the previous year's level.

The subsidiary's net worth too had grown in the past five years, helping it to build additional reserves. The subsidiary has now being recognised as one of the well-managed companies in the Asian region. Started with an equity stake of S$ 1 million, it increased its networth by more than 70 per cent and logged in a profit of S$ 6 lakh million in addition to declaring a dividend of 10 per cent for the year ending March 31, 1999.

A stand-alone company, the subsidiary does not get any support from its parent company. Initially set up as a liaison office, the subsidiary became a fully-owned subsidiary of MMTC in 1994. Since then, it has been trading with neigbouring countries such as China, Indonesia, Vietnam, the Philippines etc both for sourcing of supplies for third countries and exports outside India. It is diversifying into metallurgical coke, coal, minerals, agro items, machinery etc.

As part of the government's policy, MMTC's offices at Moscow and New York have been wound up. Implementing its strategic initiatives, MMTC was able to increase its mineral exports by 14 per cent in 1999-200 over 1998-99 in value terms by supplying higher quantities, notwithstanding the double digit reduction in the world prices.

Iron ore exports to China jumped by over 40 per cent, largely due to the sustained efforts by MMTC. For the same reason, exports of building materials increased by the same percentage. The company's agro business rose by 94 per cent and coal and hydrocarbon business by 320 per cent.