Introduction
MSTC LIMITED is a listed, Schedule-B, Mini Ratna Category-1 Central Public Sector Enterprise (CPSE) under the administrative control of Ministry of Steel (MOS), Government of India (GOI) primarily engaged in providing e-commerce related services across diversified sectors. Presently, GOI has 64.75% shareholding in the company. The CIN of the company is L27320WB1964GOI026211.
Brief History
The company was incorporated as "Metal Scrap Trade Corporation Limited" under the Companies Act, 1956, on September 9, 1964, in Kolkata. The name was later changed to "MSTC Limited" following a special resolution passed by shareholders at the general meeting on September 26, 1994, with a new certificate of incorporation issued by the RoC on November 9, 1994.
Initially incorporated to engage in the export of ferrous scrap, the company became a subsidiary of SAIL in 1974, and a canalizing agent for the Government of India for importing metal scrap. In 1982, it became an independent Government of India company. Post-decanalization in 1992, the company diversified its business, evolving into a multi-product, multi-functional organization, and began conducting auctions and tenders for industrial scrap and surplus materials for its government clients.
In 2002, MSTC developed and launched an e-Auction platform and ventured into the B2B e-Commerce sector. Subsequently MSTC established itself as one of the leading e-commerce service providers in the country. The company also entered the recycling business through a joint venture with Mahindra Accelo Limited and established country’s first Registered Vehicle Scrapping Facility. In synopsis, the company operates mainly in three business verticals: (i) e-Commerce, (ii) Trading, and (iii) Recycling via MMRPL.
Activities
e-Commerce Services
MSTC Limited is a leading Public Sector Undertaking (PSU), in the e-commerce sector. Since 2002 the company is delivering innovative e-commerce solutions across various sectors, MSTC has been digitalising various B2B & G2B transactions. Currently MSTC is providing comprehensive e-commerce services, including e-auctions, e-sales, and e-procurement, e-Tenders etc. along with the specialized customized software solutions, meeting each and every requirement of its clients.
MSTC's business model is centred around leveraging its expertise in e-commerce to cater to a diverse range of industries. The company has established itself as a pioneer in the e-auction segment, offering services such as:
Sale of Scrap and Surplus Stores:
Conducting e-auctions for scraps, old plant & machinery, surplus stores, and real estate.
Power Sector Solutions:
Facilitating power procurement, transmission contracts, and equipment purchases.
Telecom Spectrum Allocation:
Providing e-solutions for the allocation of telecom 4G/5G spectrum.
Mining Sector Services:
Providing bidding solutions for allocation of mining leases, composite licenses, critical mineral allocations, exploration licenses, royalty collection, and mine development contracts for major mineral blocks. It also provides auction services for allocation of minor mineral and sand block with integrated payment and billing solutions.
EXIM Solutions:
Developing EXIM portals for leading petroleum companies to streamline exporting and importing activities and better price discovery.
Online Draw System (ODS):
Developed software for online computerised draw system for distribution of LPD & Retail Petrol Pump dealership.
Government Subsidy Allocations:
Implementing e-solutions for government subsidy programs such as Regional Connectivity Scheme (UDAN), RLNG, and DDUGJY/IPDS.
Forestry and Agricultural Produce:
Conducting e-auctions for forest products, agricultural produce, and other natural resources.
Duty Scrips Management:
Managing duty scrips for various sectors.
Coal Sector Services:
Facilitating coal auctions, coal block allocation, the Shakti Scheme, and coal gasification projects.
e-Procurement Services:
MSTC has also developed a tendering portal for procurement of Goods, Services & Works, which is being used by various Government & Private clients.
Experience and Expertise
With over 4.0 lakh successful auctions conducted till date and serving more than 3.25 lakh users, MSTC has become the preferred service provider for numerous government flagship projects. The company's strong credentials in the e-commerce vertical are demonstrated by the repeat business from its clients. The company provides a comprehensive package of services, from the preparation of auction catalogues to the issuance of delivery orders and advertisement facilities. MSTC has developed various e-Bidding modules, such as Price Bid Auctions, Price cum Quantity auction, SMRA Auctions, Swiss Challenge, Two Stage Bidding, International Competitive Bidding, Tender Linked Auctions, Reverse Auctions, etc. to cater to the diverse needs of its principals.
Transparency and Compliance
A key characteristic of MSTC's e-auction services is transparency, ensuring a fair and open process for all participants. MSTC's e-commerce system complies with the guidelines framed by the Central Vigilance Commission (CVC) and the IT Act and its amendments. The company's system department is ISO/IEC 27001:2013 certified from STQC, and its e-commerce division is ISO 9001:2015 quality certified.
In-House Development and Customization
MSTC's application software portals are developed in-house by a team of experts with domain knowledge in respective areas. This in-house capability allows MSTC to customize software according to the changing needs of its clients, ensuring flexibility and responsiveness.
Client Trust and Reliability
MSTC believes that its hands-off, automated bidding services with minimal human intervention have instilled credibility and trust in Government/Business relationships. The company's commitment to providing secure, transparent, and efficient e-commerce solutions has made it a trusted partner for various government and private sector clients.
MSTC Limited continues to innovate and expand its e-commerce services, contributing to the digital transformation of various sectors and enhancing the ease of doing business in India.
Important Milestones in E-Commerce
E-auction of Coal mine for Commercial Mining:
MSTC developed a secured e-bidding platform as per the policy of Coal Mine Auction for Commercial Mining. As on FY 2024 seven tranches of auctions under Commercial Mining have been completed, in which 106 mines have been successfully auctioned.
Spectrum Auction:
Department of Telecommunication has selected MSTC for development of the portal for conducting the auction for allocation of spectrum including 5G. The auction platform was developed and three tranches of auction were conducted. In the three tranches of auction Govt. of India was able to earn revenue of *2.39 Lakh Cr. approx.
UDAN (UdeDesh ka AamNagrik):
MSTC has designed an e-bidding platform to facilitate implementation of the scheme to promote air connectivity between the smaller cities / towns with bigger cities. Government of India has devised a Scheme for providing financial subsidy to interested airline operators who will operate to connect the underserved / un-served airports. The Scheme is known as Regional Connectivity Scheme & popularly known as UDAN. As on June, 2024 more than 550 air routes have been added through scheme.
E-Auction of Mineral Blocks/Exploration License:
MSTC has developed a national bidding platform for e-Auction of Exploration License, Mining Leases and Composite Licenses for Mine Blocks of various minerals including critical minerals. As on FY 24, MSTC has successfully conducted e-auctions for allotment of more than 300 major mineral blocks. MSTC has also conducted auctions for lease of Minor Mineral blocks in Chhattisgarh, Jharkhand, U.P. (sand), Rajasthan, M.P., Odisha & Assam.
Discovery of efficient electricity price (DEEP):
On behalf of Ministry of Power, MSTC also developed the national portal for e-bidding which involved multistage bidding. The portal is aimed at bringing uniformity in the power procurement process being followed by various DISCOMs in the country. The system has created greater opportunity for the power purchasers and sellers and the power tariff is expected to become cheaper and more affordable to consumers. Distribution companies of different States and Union Territories are availing this service.
Computerized Draw System for LPG & Retail Petrol Pump distributorship:
MSTC developed software for Oil Marketing Companies for Online Computerized Draw System for distribution of new LPG & Retail Petrol Pump dealership. This initiative is part of promoting digital India movement and to bring more transparency and accountability in the selection process. As on FY 24, MSTC has successfully conducted Online draw for >10000 LPG dealership & >65000 Retail Pumps across the country.
Portal for Export & Import of Petroleum Products:
MSTC has developed bidding portals for export & import of various petroleum products of major oil sector companies. The entire product export/import cycle can be completed through the single software package. This portal provides better price discovery option, and it has improved the efficiency in the Export & Import process.
Transmission Service Provider (TSP):
MSTC has designed the portal and provided tariff-based competitive bidding platform for selection of transmission service providers for inter-state electricity transmission services as per the amended guidelines issued by Government of India. Under the new guidelines the selected transmission service provider shall design and build the transmission network, operate and maintain for 36 calendar years and transfer it back to government at the end of the contract period.
Chhattisgarh Forest:
MSTC developed an e-auction platform for the Chhattisgarh Forest Department to facilitate the e-sale of timber from various depots and divisions. The portal includes multiple levels of authorization, ranging from Depot Managers to senior forest officers, and is designed to manage a high volume of timbers. The platform has seamless integration for secure payment transfers.
Trading
MSTC was a canalizing agency for import of ferrous scrap until 1992. After de-canalization, our Company had established itself as one of the major players in trading bulk raw material. The Trading division was engaged in import as well as domestic sourcing of bulk industrial raw material for actual users as well as traders.
Marketing Department, MSTC Limited is mainly engaged in the business of procurement of industrial/other raw materials, project equipment etc. on account of customer(s) who come to avail the financing facilities, expertise and market acquaintance of MSTC. The business activities include procurement of industrial/other raw materials, project equipment etc. on Facilitator model which is to be mutually agreed between MSTC and the interested customers. The said procurement is done against 110% BG margin, to be provided by the interested Party.
Recycling
To expand the spectrum of operation and to support the steel industry in India, in FY 2017, the Company through MMRPL forayed into the recycling sector. MMRPL has set up one of the organized state of the art auto dismantling plant in India for recycling ELVs and other white goods by converting these into shredded scrap which is a vital raw material for steel plants. A collection and dismantling centre with state-of-the-art technology has been set up in Greater Noida, State of Uttar Pradesh as a supply feedstock for the auto dismantling plant.
At present, MMRPL has set up 6 RVSFs in Noida, Chennai, Indore, Ahmedabad, Guwahati, and Bengaluru, which are now operational. Apart from RVSF plants MMRPL has setup 34 collection centers throughout India.
Financial Results
Reward to the shareholder
MSTC had issued bonus share to its shareholders at the rate of 1:1 in 1992-93, 3:1 in 2011-2012, 1:1 in 2015-16, 1:1 in 2016-17 & 1:1 in 2018-19. The current paid up capital of the Company is Rs 70.40 Crores. We are also a regular dividend paying company to the shareholders.
Subsidiary Company
Ferro Scrap Nigam Limited (“FSNL”), was incorporated as a private limited company on March 28, 1979 under the Companies Act, 1956 and the certificate of incorporation was issued by the Registrar of Companies, Bihar at Patna. In order to acquire the Indian business of processing steel mill slags and refuse from Heckett Engineering Co. (Indian branch of Harsco Corporation) and carry on its business, our Company had entered into a collaboration agreement and a sale agreement with Harsco Corporation on June 27, 1979 for the transfer of business from Heckett Engineering Co. to FSNL. The status of FSNL was changed from ‘private limited company’ to ‘deemed public limited company’ under the provision of Section 43(1A) of the Companies Act, 1956 with effect from August 1, 1979. Pursuant to an order of the CLB, Eastern Region Bench at Kolkata dated July 21, 1989, the registered office of FSNL was shifted to the State of Madhya Pradesh and a fresh certificate of incorporation was issued by the Registrar of Companies, Madhya Pradesh at Gwalior, on September 12, 1989.
FSNL became a wholly owned subsidiary of our Company on August 29, 2002 pursuant to the acquisition of shares from Harsco vide their share sale agreement dated June 29, 2002 entered into between our Company, FSNL, Harsco and Heckett Multiserv PLC, a wholly owned subsidiary of Harsco.The corporate identity number of FSNL is U27102CT1989GOI005468. The registered office of FSNL is at FSNL Bhawan, Equipment Chowk, Central Avenue, Bhilai-490001, District Durg, Chhattisgarh, India.
Joint Venture Company
Mahindra MSTC Recycling Private Limited (“MMRPL”) was incorporated as a private limited company, under the Companies Act, 2013 on December 16, 2016 pursuant to the JVA dated August 8, 2016 entered into by our Company and Mahindra Accelo Limited and a certificate of incorporation was issued by the Registrar of Companies, Maharashtra on December 16, 2016. The registered office of MMRPL is situated at Mahindra Towers, P. K. Kurne Chowk, Worli Mumbai-400018, Maharashtra, India. The corporate identity number of MMRPL is U37100MH2016PTC288535.