ASSIGNMENT ON STATE TRADE CORPORATION OF INDIA

SUBMITTED BY:

AJAY WADHWA (11) AKANKSHA PATHAK(13) AKANKSHA SINHA(14) APURBA PRASAD NATH(35) ARPIT SHARMA(39)

Introduction
STC is a premier international trading company that was set up in
1956. Presently, 91.02% of its equity is owned by the Government of India.

STC undertakes import and export of large number of bulk

commodities such as rice, wheat, sugar, pulses, edible oils, fertilizers, coal, bullion, etc. and also undertakes import of mass consumption items like wheat, sugar, pulses, etc. as and when called upon by the Government to do so. STCs corporate office is at New Delhi. It has 13 branch offices spread across the country.

Present business handled by STC

(i) import of items like edible oils, pulses and fertilizers on behalf of
the Govt. of India, (ii) business carried out on behalf of business associates on back-toback basis and (iii)direct buying and selling in items like tea, soyabean seed, chana, etc.

Objectives
To develop core competencies in selected areas and exploit the market opportunities in these areas to the best advantage of the Corporation. To continuously undertake horizontal and vertical diversifications thereby enabling sustained growth of business. To make best use of financial strength of the Corporation in expanding its business. To lay emphasis on quality of services to customers so as to develop long-term business relationship with buyers and suppliers in and outside the country.

To undertake market intervention operation as and when advised by the Government of India.

Objectives (Continued)
To create new infrastructure and make optimum utilization of infrastructure available with the Corporation. To strive to pay adequate returns to the stakeholders. To fulfill Corporations social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities. To undertake on a continuous basis training / re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers. To ensure an efficient and streamlined system of operations, with minimum transaction costs. To act as a facilitator to small and medium exporters and importers.

STC has been in international trade for over five decades. Till 1990, the basket of STCs trade predominantly comprised bulk agro products, such as, rice, wheat, castor oils, sugar, edible oils, etc.
However, to meet the challenges posed by liberalization and globalization of trade policies, STC has diversified into new areas of trade over last two decades. Such areas in which the Corporation has diversified include bullion, hydrocarbons, metals, minerals, ores, fertilizers and petro-chemicals. In fact, some of these areas have today grown into major business lines of the company.

INDIAS TOP COMMODITIES OF EXPORTS

Values in US$ Millions (P) Provisional Rank 1 Commodity AprNov 2010 AprNov 2011(P) 38,591.60 %Growth 58.4 %Share 20.14

PETROLEUM (CRUDE 24,363.58 & PRODUCTS) GEMS & JEWELLARY TRANSPORT EQUIPMENTS MACHINERY INSTRUMENTS 19,225.69 11,238.65

2 3

30,714.19 14,298.50

59.76 27.23

16.03 7.46

AND 7,143.72

8,820.15

23.47

4.6

DRUGS,PHRMCUTES & 6,514.01 FINE CHEMLS

7,905.76

21.37

4.13

INDIAS TOP COMMODITIES OF IMPORTS

Values in US$ Millions (P) Provisional Rank 1 Commodity PETROLEUM, CRUDE PRODUCTS GOLD ELECTRONIC GOODS PERLSPRCUS SEMIPRCS STONES MACHINARY EXCEPT ELECTRONIC Apr-Nov 2010 65,967.77 AprNov 2011(P) 97,296.01 %Growth 47.49 %Share 30.74

&

2 3

25,471.34 18,482.26

37,797.47 22,380.10

48.39 21.09

11.94 7.07

18,819.23

19,981.80

6.18

6.31

15,449.06

19,741.06

27.78

6.24