NMDC to diversify into new businesses

India’s largest mining company NMDC plans to set up three functional divisions to diversify into the energy, infrastructure and fertiliser sectors. The company plans to set up conventional and non-conventional power projects, steel manufacturing facilities and fertiliser plants under different joint ventures with prospective partners.

The company plans to form three separate verticals, each will be headed by expert CEOs. Respective verticals will forge alliances with private and public sector companies specialising in respective fields. The move is part of NMDC’s ambitious strategy to diversify its activities beyond mining and become a fully-integrated entity in the metals and mining space. The company has already set up its foreign division NMDC Global to look after acquisition of iron ore properties in overseas markets.

In the fertiliser vertical, NMDC plans to form joint ventures to undertake mining activities for rock phosphate and potash both in India and overseas. It is in talks with Rashtriya Chemicals and Nagarjuna Fertiliser for the proposed projects.

The proposed energy division will help NMDC to foray into coal-based power plants and solar power generation. The company has also in discussion with Tata Power, KSK Energy, Monnet Ispat and West Bengal Mineral Development and Trading Corporation for setting up joint ventures for developing coal blocks domestically.