Mishra Dhatu Nigam Ltd (MIDHANI), the key materials maker for India’s strategic sectors, is going global. It will create presence in Middle East with Dubai as hub and in Europe with Netherlands office to begin with.
The target is to take critical products that the public sector unit, coming under the Ministry of Defence, makes with titanium, nickel and high temperature alloys, which have huge opportunities, said D K Likhi, Chairman and Managing Director.
The Rs 710-crore turnover listed entity is targeting exports of Rs 40 crore during fiscal 2019-20. It earned Rs 8.5 cr in 2018-19. “We will set up warehouses in Dubai and Netherlands. Reach potential markets with the materials and also get global certification, wherever needed”, explained Likhi.
Order Book & Plans
The Hyderabad-based Midhani, which supplies material to space, defence and nuclear sectors, has an order book of Rs 1,815 crore as on September 1. Of this, Rs 1,300 crore is from the space department, the CMD told the media, after the company’s 45th Annual General Meeting today.
The Gaganyaan Project of the Indian Space Research Organisation (ISRO) with the objective of sending human to space by 2022 is a key driver of Midhani’s near time growth. Even in Chandrayaan-2, Midhani has supplied materials and components.
Aircraft & AI to 3D printing
Midhani will be part of the multi-million dollar Advanced Multirole Combat Aircraft (AMCA) being firmed up by the Defence Ministry. The Aeronautical Development Establishment (ADE) is the developer, while the Gas Turbine Research Establishment (GTRE), Bengaluru will develop the engine and Midhani & Defence Metallurgical Research Laboratory (DMRL), Hyderabad will provide the material and components to make the body and engine, Likhi said.
A committee headed by VK Saraswat is submitting a report on the AMCA and it is expected to produce about 250 numbers of the advance aircraft in the next five years, he added.
In the emerging areas too, Midhani has made inroads with 3D printing and Artificial Intelligence. The R&D spend is Rs 29 crore or about 4 per cent of the 2018-19 turnover.
Financials
The PSU has declared its highest dividend of Rs 41.03 crore on equity shares for the fiscal year ended March 31, 2019. Total dividend is Rs 2.19 per equity share. The company logged a net profit of Rs 130.56 crore on a turnover of Rs 710.85 cr for the year.
Midhani is hopping to reach the Rs 1000 cr turnover in the near future with a targetted exports of 10-15 percent by 2022.
Joint ventures
Midhani has forged a major joint venture with NALCO to set up a Rs 4,000 crore aluminium alloy manufacturing plant in Nellore district of Andhra Pradesh. The 50:50 joint venture with 30 per cent equity and 70 per cent debt will see infusion of Rs 170 crore each by the partners. The rest will be raised through a combination of debt and convertible debentures, the CMD said.
The joint venture company named Utkarsha Aluminium Dhatu Nigam Ltd has an office in Hyderabad, It will be ready in 4-5 years and product sheets, plates, extrusions, forgings etc.
The company also signed a joint venture with Hindustan Antibiotics Ltd to make bio-compatible implants .