nmdc eyes stake in indonesian mine of renuka

8/12/2019 NMDC Eyes Stake in Indonesian Mine of Renuka

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Harshada Chavan Roll No. 16


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Incorporated in 1958 as a Government of Indiafully owned public enterprise. NMDC is underthe administrative control of the Ministry ofSteel, Government of India.

NMDC is India's single largest iron ore producer,presently producing about 30 million tonnes ofiron ore.

NMDC has been accorded the status of schedule

- A Public Sector Company. The Company has been categorized by the

Department of Public Enterprises as"NAVRATNA" Public Sector Enterprise in 2008.


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POSITIVE IMPACT The liberalization of trade in

goods, services, and othercommodity provideopportunities for Indonesia to

compete mere put foreigntrade markets,particularly agriculturalproducts, marine products,textiles, and minerals.

In the field

of services they have excitingopportunities for foreigntourists to enjoy the naturalbeauty and diverse traditionalcultures.

NEGATIVE IMPACT Inflows of foreign

trade causedthe national trade deficit.

The riseof smuggling goods into

Indonesia.

The entry of touriststo Indonesia diluting the

value of the noble nation.


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POSITIVE IMPACT The trend of foreign companies

move operations to a productioncompany that is developingcountries on account of geograph

ical advantages (the abundanceof raw materials,large areas, and labor is still

cheap), though still very limitedand vulnerable to changesin sociopolitical conditions in thecountry or globalchanges, Indonesia has the opportunity to choosea new place for these companies.

NEGATIVE IMPACT Companies in the country are

more interested in partneringwith companies fromoutside. As a result the condition of the country industrialism difficult to develop.

Damage to the environment and industrial waste pollution.

A foreign companies Their move operations out ofthe country resulted in layoffsof workers in the country.


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ENTRYMODES

EQUITY

JOINTVENTURE

WHOLLYOWNED

SUBSIDIARIES

AQUISITIONS

NON EQUITY


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PT Renuka Coalindo Tbk, previously known as PTAllbond Makmur Usaha Tbk (SQMI) is engaged inmining and commodities business. SQMI has listed onJuly 15, 2004 on Indonesia Stock Exchange. PT RenukaCoalindo, Tbk (SQMI) was founded as PT SanexQianjiang Motor International Tbk. At the beginningof 2008 the company changed its core business totrading and mining. Until now SQMI remains engaged

in mining and commodities business. SQMI focus ison acquisition of coal mining assets.


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POLITICAL: Extremist activist target both official and private interest Government turning towards business friendly

environment

Terrorists

ECONOMIC: Sustained increase in loan growth

Robust banking industry profits

Foreign trade agreement (APEC)

Consumer prices index is 5.63% higher in Feb. 2013


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SOCIAL: Robbery and armed burglary rose by 25% in 2010

specially in wealthy areas where most of the expatriatesstay

Attitudes and behaviours of Indonesian people TV is the most popular medium Consumers do not trust seller, influenced by online

reviews, consumers control what they want to say andwhat they want to hear

TECHNOLOGY Twitter is used by 20% population 85 million youth are excited by technology One of the largest mobile phone market in Asia


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Restrictive supply policies helped push up India's coalimports to a record high of nearly 138 million metrictons in the last fiscal year.

India sits on top of the world's fourth-largest reserves

of the fuel, but it has become the third-biggest coalimporter after China and Japan.

The government fights to tame a current accountdeficit that hit a record high last year and helpedknock the rupee currency to record lows in August.

When there is a focus on reducing the current accountdeficit to $70 billion, every bit of increased coalproduction contributes to decreasing the CAD.


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Prime Minister Manmohan Singh's administration has pledgedto tackle chronic power shortages that hobble the growth of

Asia's third-largest economy. But power companies are saddledwith debt. Power stations do not have enough coal or gas to runat full capacity, and state-run distribution companies are toobroke to pay for the power that utilities produce.

As a result, despite two decades of rapid economic growth,Indians consume only 900 kilowatt hours (kWh) per capita,compared to 7,000 in Europe and 14,000 in the United States,according to a recent note by consultants Bain & Company.

Most of the coal is dug up and doled out to power companies bystate-run Coal India Ltd (COAL.NS), the world's largest coal

miner, which has struggled to modernize, raise its output androot out corruption within its ranks. Its dominance is a legacy ofthe socialist policies of Prime Minister Indira Gandhi'sgovernment in the 1970s that nationalized coal mining.


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Jambi Prima Coal has reserves of 92mt and itsoperational capacity can be scaled up to 4-5mt,according to officials.

NMDC, India's leading iron ore miner, has so far been

known to be scouting for iron ore, coking coal andpotash assets in the interest of the country's rawmaterial security since India is deficient in the lattertwo minerals.

The acquisition would be a efficient way to reduceIndias coal shortages and strengthen our powergeneration plans.


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nmdc eyes stake in indonesian mine of renuka

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