Hindustan Copper Limited on a Growth Path

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INDIACSR News Network

Hindustan Copper Limited (HCL), a Mini Ratna Central Public Sector Undertaking under the Administrative Control of the Ministry of Mines was incorporated in November 1967. It is the only integrated primary copper producer in the country holding all the operating mine leases in India. Its copper mines are spread over three well known copper deposits in the country, viz., Malanjkhand in Madhya Pradesh, Khetri in Rajasthan and Ghatsila in Jharkhand.  The Government holds 90% of the paid up capital.  HCL is listed in BSE & NSE stock exchanges.

The main activities of the Company include mining of copper ore and production of refined copper as well as downstream products like Continuous Cast Copper Wire Rod. HCL has four operating Units, i.e., at Khetri (Rajasthan), Malanjkhand (Madhya Pradesh), Ghatsila (Jharkhand) and Taloja (Maharashtra). While Khetri and Ghatsila are fully integrated Units (from mining to ore beneficiation to smelting and refining), Malanjkhand has mining and ore beneficiation facilities and Taloja has only wire rod manufacturing facility.  The net worth of the Company as on 31st March, 2013 is Rs.1645.0 crore. The Company is consistently making profits since 2004-05.

The domestic production of copper concentrate accounts for only 3% of the country’s requirement. The smelting & refining segment in India has significant over capacity and is dominated by two strong competitors. Hence, there is a vast potential to increase mining production through capacity enhancement and exploration.

The Company’s growth strategy is to expand the mine and concentrate capacity significantly to sustain profitability even at low copper prices. At present, the Company is implementing an ambitious expansion plan to quadruple its mine capacity from 3.4 to 12.4 million tonne per year with a capex of Rs 3435.0 crore. Eight mine expansion projects have been rolled out concurrently. The Company proposes to fund the investment through a mix of internal accruals and debt.

To augment the resource base of copper mineral in the Country, HCL has filed 16 new reconnaissance permit, prospecting license and mining lease applications in the States of Rajasthan, Madhya Pradesh, Jharkhand and Haryana. As soon as the Company gets lease, it will undertake detailed exploration followed by mine development and operation. This will add to the profitability of the Company

Achievements of Turnover and Profit/Loss of last three years are:

Achievements of Turnover and Profit/Loss of last three years are:

(Rs. In crore)

Particular 2010-11 2011-12 2012-13
Turnover 1281.28 1638.18 1475.27
Gross Margin 436.02 618.51 558.24
Profit Before Tax 335.21 472.91 403.61
Profit After Tax 224.10 323.47 355.64

 

 

 

During the year 2012-13 the Company has achieved best ever profit after since inception.

HCL is on a growth path. The Company aims at becoming a highly profitable, socially responsible Nav Ratna Company in the days to come.

(With inputs from the Ministry of Mines.)

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