GCSR Sem-4 GTU MBA

Summary of part-1 The GCSR (Global Country Study Report) is an essential part to MBA sem-3. In this project we have to study global country industry and we have to analyze bilateral trade opportunity between India and any other particular country, and also we have to find trade opportunity Gujarat and Nagaland. Here we are studying mining industry in Canada and Mining industry of India.

Mining industry in India The Mining industry in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700,000 individuals. India is the largest producer of sheet mica, the third largest producer of iron

and the fifth largest producer of bauxite in the world. India's

metal and mining industry was estimated to be $106.4bn (£68.5bn) in 2010. Produced in India Minerals Coal Lignite Natural gas

Quantity 403 29 31007

Crude Petroleum Bauxite

32

Unit Million Tonnes Million Tonnes Million Cubic Tonnes Million Tonnes

Mineral Type Fuel Fuel Fuel

11278

Thousand Tonnes Metallic Mineral

Fuel

Copper Gold

125 3048

Iron Ore Manganese Ore Zinc Diamond

140131 1963 862 60155

Thousand Thousand Grammes Thousand Thousand Thousand Carats

Tonnes Metallic Mineral Metallic Mineral Tonnes Metallic Mineral Tonnes Metallic Mineral Tonnes Metallic Mineral Non Metallic Mineral

Mining industry in Canada 

Mining is one of Canada’s primary industries and involves the extraction, refining, and/or processing of economically valuable rocks and minerals. Mineral products – including gold, silver, iron, copper, zinc, nickel – are critical to modern industrial society.



Canada ranks first in the world for the production of potash and uranium and among the top five for the production of nickel and diamonds.



The mining industry is now a major player in Canada's economy, contributing nearly 5% of the country's Gross Domestic Product.



Canada's mining companies share a strong commitment to environmental and social responsibility. Canada is a world leader in the use of advanced

mining

technology

and

sustainable

environmental

practices designed to minimize the impacts of mining exploration and development on the natural environment and the communities in which they are located.

Facts and Figure for Mining in Canada  Production of the Canadian mining , mineral- processing , and metal producing industries total approximately $42 billion per year



Canada is one of the largest mining nations in the world, producing



more than 60minerals and metals More than 115 communities across Canada depend on the



minerals industry Over the past five years, the minerals and metals sector contribution



to Canadian Gross domestic Product (GDP) has averaged nearly 5% Canada is the world's third-largest producer of diamonds, accounting for 10% of the world's supply by weight and 14% of the



global market by value. Mining product shipments represent approximately 55% of Canada's



rail freight revenues and 60 to 75% of Canadian port tonnage The Canadian mining industry contributes more than $8 billion a year in taxes to federal and provincial/territorial governments

Mining in Gujarat Gujarat Mineral Development Corporation Limited (GMDC) is a major minerals and lignite mining company of India. It is State owned company owned by Government of Gujarat. In Gujarat product range includes essential energy minerals like lignite, base metals and industrial minerals like bauxite and fluorspar. The mining activities are carried out by GMDC in Gujarat. They conduct or organize many events or programs for the help of employees, society etc. some of the social factors like income distribution, labour mobility, life style, education facility, living condition and many more influence the operations of the industry/ company. The Company as a role model employer lays great stress on the welfare of its employees, their families and its vicinity habitats. The Company provides following comfort level facilities to its employees: 

Housing quarters at 7 projects and HRA at other Projects



Hospital at Panandhro and Medical facilities at projects with free



ambulance facility Free Medical treatment at Govt. / CGHS recognized Private hospital



empanelled by GMDC/ Trust hospitals as notified by Education to children of the employees free at three project through

         

own Schools Free School transportation to employee’s children Recreation club & Gym Library Free Uniform and shoes Free safety Shoes Free transport at Projects Sports with infrastructural facilities Reimbursement of Dish/ Cable connection expenses Clean and green environment By adopting the new technology, industry can increasing its production



as well as can decrease the cost factor. A good technical infrastructure would lead to better production, procurement and distribution logistics, resulting in reduced wastage



and lower costs. Sound technology may be a decisive factor for food technology innovation, better presentation, more effective business marketing, etc.

Indian mining industries is an important contributor to the GDP accounting for about 2-3%. Of more than 85 different types of minerals produced India ranks 1st in the production of mica blocks and splitting, 3rd in the production of coal & lignite, 4th in iron ore, 6th in bauxite and manganese ore, 10th in aluminum and 11th in crude steel Gujarat Government has proactively focused on value addition in sustainable mining and mineral processing industries. Owing to an increasing call for infrastructure development, coupled with the growth in economy and construction activity, the demand of minerals is on the rise. With a strong augmentation witnessed in mining activities, there is a paradigm shift towards development of sustainable mining cities, with a focus towards the following:

•Setting up co enablers for mining infrastructure, human capital and technology •Ensuring sustainable mining and development

Mining in Nagaland: The search for mineral deposit in the State of Nagaland had a very late start. Although the western part of the State was partly explored in early twentieth century mainly in connection with the search of ‘energy group’ of minerals, its

middle and eastern parts remained completely unexplored till the

inception of the State Directorate of Geology and Mining in late 1968. Minerals so far discovered by the Department include petroleum and natural gas

(proved

by

ONGC),

nickel-cobalt-chromium

bearing

magnetite,

limestone, marble, coal, clay, slate, dimensional and decorative stones. In addition to mineral investigation, the department also actively engages investigation for the development of Ground Water resources both in the plain as well as in the hilly terrain. NAGALAND has a number of important mineral resources but the state does not ‘seem too much concerned’ about their valuable holdings, according to a

central regulatory body during a recent review. Unorganized and haphazard mining activities are causing environmental degradation while ‘huge quantity of coal’ exploited every year is not being reflected in the yearly resource national data on coal, the Central Geological Programming Board has said. The board stated in its meeting summary that Nagaland does not ‘seem’ concerned about the environmental degradation that unorganized and haphazard mineral exploitation in the state are causing. Assam, Meghalaya and Nagaland are the three states that have ‘issues’ in this regard, according to

the

board.

The Central Geological Programming Board converged for its 52nd meeting on the 14th in New Delhi where officials from the north eastern states’ geology and mineral departments attended. The objective of the meeting was to discuss and finalize the Field Season Program of the Geological Survey

of

India

(GSI)

for

the

Field

Season

2013-2014.

Business plan Introduction of GMDC: Gujarat Mineral Development Corporation Limited Industry Founded Headquarters Area served Slogan Website Managing Director USP

Mining 1963 Ahmedabad, Gujarat, India Gujarat "Fueling The Growth" www.gmdcltd.com Shri B.B. swain Product range includes essential energy minerals like lignite, base metals and industrial minerals like bauxite and fluorspar.

Gujarat Mineral Development Corporation Limited (GMDC) is a major minerals and lignite mining company of India. It is State owned company owned by Government of Gujarat. GMDC was founded in 1963. Its corporate headquarters is at Ahmedabad. It develop major mineral resources in the state and commenced with a small silica sand quarrying plant near Thangadh to crush and screen the silica required for glass manufacturing. Its product range includes essential energy minerals like lignite, base metals and industrial minerals like bauxite and flourspar. Gujrat government as given its green signal to GMDC to form a joint venture with NALCO for a 1 mtpa refinery. GMDC also owns and runs Akrimota Thermal Power Station a 250 MW (2x125 MW) lignite based thermal power plant located in village Nanichher in Lakhpat Taluka, Kutch District.

Product Range: GMDC has grown in strength since its inception over the years. In 1963 the company commenced its operation with small silica sand quarry. In 1964 it started with bauxite mines in Kutch and now operates six bauxite mines. In 1971, a beneficiation plant was commissioned by GMDC to process 500 M.T of fluorspar ore and to produce calcium fluoride used for the manufacture of Hydro-fluoric acid and as flux in metallurgical industries. A captive mine at Ambadungar was established also to feed the plant. In 1976 lignite was discovered in Gujarat and GMDC started its first lignite mines at Panadhro. In 1980, a captive refining plant with copper mines was set up by GMDC near Ambaji. In 1983, another lignite mine was discovered & started by it at Rajpardi near Bharuch. In 1992, it established a calcination plant to add value to the bauxite mined by it at Gadhsisha in Kutch. In 1996, to use the lignite mined by it, GMDC also started thermal power plant at Nani-Chher in

Kutch. In 2005 & 2009 more lignite mines were started by GMDC at Tadkeshwar near Surat and near Bhavnagar, respectively. Also in 2006 it developed manganese ore mines at Shivarajpur in Panchmahals. It is also setting up an Alumina plant with Raytheon Corporation of USA.

Public Listing: In 1999, the government of Gujarat being the sole owner, divested 26% of its stake and the GMDC became a listed entity (BSE&NSE) and is occupying a position within the top fortune 500 companies in our country with an annual turnover surpassing 10 billion with considerable annual growth rate.

Competitors: 1.National Aluminium Company Limited (eliminated by JV) 2.AshapuraMinechem Ltd. 3.Sterlite Industries (India) Ltd

SWOT analysis of GMDC Strength: 1. Strong assets – Owns bauxite, manganese, lignite and fluorspar mines in Kutch, Gujarat 2. Strong financial position 3. Nationalized – Thus enjoys customer confidence 4. Strong negotiating power – as resources owned and minerals produced are key to other secondary industries 5. Expertise in sustainable mining

Weakness: 1. Limited operations in Gujarat only 2. Locational disadvantage – iron and steel plants located in Jharkhand

Opportunity: 1. Investment in mechanization and improvement in technology 2. Diversification in other minerals 3. Joint venture to expand business

Threats: 1. Regulatory pressures on business 2. Presence of private players

Selected product: lignite b. brief about lignite: Lignite is termed as the “Brown Gold” all over the world. Lignite, often referred to as brown coal, is a soft brown combustible sedimentary rock. Lignite is brownish-black in color and has a carbon content of around 2535%, a high inherent moisture content sometimes as high as 66%, and an ash content ranging from 6% to 19% compared with 6% to 12% for bituminous coal

It is mined in the following countries:  China  Bulgaria  Greece  Germany  Kosovo  Poland  Serbia  Russia  Turkey  United States    Canada    India Because of its low energy density and typically high moisture content, brown coal is inefficient to transport and is not traded extensively on the world market compared with higher coal grades. It is often burned in power stations near the mines. Gujarat Mineral Development Corporation (GMDC) is among the most profitable entities of the Gujarat government. A mining and mineral processing company, GMDC is the largest merchant seller of, lignite in India. It is also a major producer of bauxite, calcined bauxite, fluorspar and manganese ore. Besides, it is engaged in power generation, from conventional and non-conventional sources. GMDC is associated with the various projects of lignite all over Gujarat. Its main projects are located in the following areas. Tadkeshwar Rajpardhi Panandhro Mata no Madh Bhavnagar

Detail study of lignite projects of GMDC in Gujarat. Particulars Tadkeshwar Name of the Tadkeshwar

Rajpardhi Lignite Amod

Panandhro G-19 Panandhro

Lignite

mine

Mine

location

Tadkheshwar,Surat,G ujarat Commencem Year 2005-06 ent period Geological 48.92 million tonnes reserves Mineable 33.90 million tonnes reserves Exploration GMDC agency Commissionarate of Geology and Mining

Total exploration area Valuable customer

6.82 km2



        

Dhrangadhra Chemicals Works Ltd. Adani Wilmar Limited Indian Rayon Mafatlal Industries Ltd. Nirma Limited Nikisu Fab Pvt. Ltd Atul Ltd. (Colour Divn.) H.K.Finechem Limited Jay Bharat Dyg & Ptg Pvt. Ltd. Aquagel Chemical Pvt.

Extension Lignite Mine Amod,Bharuch Gujarat. 2007-2008

Mine

18.08 million tonnes 12.50 million tonnes Geological Survey of India Commissionarate of Geology and Mining

112 million tonnes

1.97km2

  

   





J.K.Paper Ltd Rupali Dyeing & Printing Mills Rita Dyeing & Printing Mills Pvt. Ltd Maize Products Omkar Textile Mills Ltd. Omkar Textile Mills Pvt. Ltd. CIL-Nova PetroChemical Limited Ruby Macons Limited (Morai Unit CPP) Nirma

Panandhro, Gujarat. 1973-74

kutch,

109 million tonnes Geological Survey of India Commissionarate of Geology and Mining Gujarat Mineral Development Corporation

Ltd. 

use

Lignite is directly used in Thermal Power Plants, Textile Industries, Paint Industries, Soda Ash industries, Roof and Tiles Industries, etc.

Limited Atul Ltd., (Colour Divn.)

Lignite is directly used in Thermal Power Plants, Textile Industries, Paint Industries, Soda Ash industries, Roof and Tiles Industries, etc.

Market analysis & Marketing plan Major mining companies in Gujarat and its market share 1. National Aluminium Company Limited (eliminated by JV)

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines, Govt. of India. It was established on 7th January, 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE having integrated and diversified operations in mining, metal and power with sales turnover of Rs 7024 crore in financial year 2013-14. Presently, Government of India holds 80.93% equity of NALCO. 2. AshapuraMinechem Ltd. Ashapura Group is India’s largest muti-mineral solutions provider. The flagship company Ashapura Minechem Ltd. is listed on India’s premier exchanges. The group has mining & mineral processing facilities in Rajasthan, Gujarat, Maharashtra, Karnataka, Kerala, Andhra Pradesh and Orissa. Today Ashapura Group has attained global status with projects in Belgium, Oman and Malaysia. 3. Sterlite Industries (India) Ltd. On 31 March 2013, the company's market capitalization was INR 31,490 crores (US$ 5.79 billion).

STP Analysis of GMDC: Segment- Industrial Segmentation Target Group- Iron and Steel plants and Aluminum manufacturing plants Positioning- Unlocks mineral wealth for value addition

Marketing Mix of GMDC:

Product: GMDC has following products: 1. Lignite Lignite - popularly termed as 'Brown Gold' all over the world. Gujarat is rich in high grade Lignite. To explore this GMDC brought in one of the world's best known mining technology in this field - TAKRAF of Germany. This has made GMDC a largest merchant seller of lignite in the Country. GMDC's operations have expanded geographically to other Indian States. Profile for Lignite Projects 

Tadkeshwar



Rajpardi



Panandhro



Mata No Madh



Bhavnagar

2. Flourspar 3. Managanese 4. Silica sand 5. Limestone 6. Bentonite 7. Ball Clay

State wise Production of lignite

State Gujarat Rajasthan Tamilnadu

2009-10 39.90 billion tonnes. 29.36 billion tonnes 38.93 billion tones