The State Trading Corporation of India (STC) was established in 1956 to supplement private trade and develop exports. It played a key role in regulating trade and intervening in domestic markets during the pre-liberalization era. Today, STC focuses on importing and exporting a diverse range of goods while also assisting small businesses. However, studies have found limitations such as a lack of entrepreneurial initiatives and expertise in marketing and supply chain management that have hindered its effectiveness. Going forward, STC aims to strengthen its leadership in boosting Indian exports.
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State trading corporation
1.
2. Establishment
The State Trading Corporation of India Ltd. (STC) is a premier International trading
company of the Government of India engaged primarily in exports, and imports
operations.
It was set up in 1956 primarily with a view to undertake trade with East European
Countries and to supplement the efforts of private trade and industry in developing
exports from the country.
The Corporation is registered as an autonomous company under the Companies Act,
1956 and functions under the administrative control of the Ministry of Commerce &
Industry, Govt. of India
3. Introduction
The Corporation has played a key role in the Indian economy. In the pre-
liberalisation era, it acted as an arm of the Government of India not only to
regulate foreign trade but also for intervention in the domestic market.
The Corporation handled canalized exports and imports of large number of items
varying from chemicals and drugs to bulk commodities such as edible oils,
cement, sugar, newsprint, wheat, urea, etc. thereby ensuring timely availability
and equitable distribution of mass consumption items as well as essential raw
materials for the industry.
Canalisation also helped the nation to benefit from economies of scale and
keeping a close watch on the scarce foreign exchange.
It undertook price support operations to ensure remunerative prices to growers
for their crops such as raw jute, shellac, tobacco, rubber and vanilla as and when
called upon by the Government to do so.
4. Vision:
To be a world class leading organisation, continuously diversifying and
delivering excellence in all areas of its operations thereby enhancing
stakeholder’s value.
Mission:
To consistently take advantage of upcoming business opportunities and trends
with proactive enterprising spirit thereby delivering substantial year on year
growth and contribute to India’s share in world trade
5. Objectives of STC:
To develop core competencies in selected areas and exploit the market
opportunities in these areas
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.
6. To create new infrastructure and make optimum utilisation of infrastructure
available with the Corporation.
To strive to pay adequate returns to the stakeholders.
To fulfil Corporation’s 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.
7. Present Activities
The present business handled by STC can broadly be classified into three
categories viz.
(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-to-back basis
and
(iii) Direct buying and selling in items like tea, soyabean seed, chana, etc.
Imports on behalf of the Govt. are arranged by STC through floating of global
tender and imported quantities are either handed over to the agency (such as FCI,
Department of Fertilizers) nominated by the Govt. or sold in the domestic market
through tenders. In the case of back-to-back business, the terms of trade are
finalized in consultation with the business associate and STC charges a fixed trade
margin in the range of 1 to 1.5%.
8. Today STC undertakes exports/imports of a diverse range of items to/from
countries all over the world. Its export basket includes wheat, rice, tea,
coffee, cashew, extractions, castor oil/seed, sugar, spices, jute goods, iron
ore, chemicals, pharmaceuticals, light engineering goods, construction
materials, consumer goods, processed foods, textiles, garments, jewellery,
leatherware, etc.
The Corporation also monitors counter trade commitments against
Government purchases.
Major items of import by STC include gold, silver, edible oils, sugar, pulses,
fertilizers, metals, minerals, ores, hydro-carbons, petro-chemicals and raw
materials for the Indian industry.
It also undertakes import of technical and scientific equipment on behalf of
Forensic Science Laboratories, State Police and Intelligence Departments and
Paramilitary Organisations, etc.
9. Corporate Office of STC
Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi –110001 (India)
10. Organisational Structure
The Board of Directors of STC comprises of whole time Chairman-cum-
Managing Director, five whole-time Directors(three Marketing, one Finance
and one Personnel), two ex-officio Directors from Ministry of Commerce and
independent Directors appointed by the Govt. from time to time.
The Corporate office of the Corporation at New Delhi is organised into a
number of trading and services groups. These groups are headed by Chief
Managers/General Managers who in turn report to their respective Chief
General Managers/Directors.
STC has thirteen branch offices in India, the major ones being at Mumbai,
Kolkata, Chennai, Ahmedabad, Bangalore and Hyderabad.
STC has own tank farms, warehouses, godowns at various locations of the
country for storage of liquid/dry cargo.
STC has a wholly owned subsidiary, namely, STCL Ltd., which is based at
Bangalore and is engaged in spices trading/ auctions
organisational web.pdf
13. Top countries of India’s export and import:
top countries.pdf
Annual report:
Annual report.pdf
14. Awards & Rankings of STC
14th rank in terms of net sales among 206 PSUs as per Public Enterprises Survey :
2009-10
39th rank in terms of net sales among Top 500 Companies by Financial Express
(Feb’2012).
32nd rank in terms of net sales among Top 1000 Companies by Business Standard
(Mar’2012).
Won first prize under the category of agencies supplying gold to export against
replenishment during 2009-10 from Gems & Jewellery Export Promotion Council in
October’2010.
Won award for Gentle Giant Miniratna – I (Largest Non-Manufacturing Company)
Awards2011
Won Greentech HR Excellence Award 2010 from Greentech Foundation, New Delhi
for outstanding achievement in innovation in employee retention strategies.
Won Asia’s Best Employer Brand Award 2010 for Talent Management at Singapore.
15. STC at a Glance
NAME The State Trading Corporation of India Ltd. (STC)
INCORPORATION 18
th
May, 1956 under Indian Companies Act, 1956
PHONE +91-11-23313177
WEBSITE www.stclimited.co.in
PRINCIPAL
ACTIVITIES
International Trading
ADMINISTRATIVE
MINISTRY
Ministry of Commerce and Industry Government of India
PRESENT STATUS
1. Schedule ‘A’ Central Public Sector Enterprise of the Govt. of
India
2. A Mini-Ratna Category-I Company
3. Recognised by the Govt. of India as a Four Star Export House
LISTING
National Stock Exchange
Bombay Stock Exchange
16. BRANCHES
In addition to its Corporate Office at New Delhi, STC has
twelve branch offices in India, covering all important
trading centres including port towns.
MANPOWER (AS ON
31.03.2017)
Managers 464
Staff 207
Total 671
EQUITY (AS ON
31.03.2017)
60 Crore (US$ 9.25 Million)
RESERVES (AS ON
31.03.2017)
831.25 Crore (US$ 128.25 Million)
TURNOVER (2016-17) 7,752 Crore (US$ 1196.29 Million)
SUBSIDIARY COMPANY
STCL Ltd. (Formerly Spices Trading Corporation Ltd.) is a
fully owned subsidiary of STC.
17. Limitations of the STC:
There are certain inherent weaknesses of the STC, pointed out in a study conducted by
Indian Institute of Management, Ahmedabad were:
1. Though the objectives of the STC were quite clear and well defined but it has not
taken any major entrepreneurial decision of its own so far.
2. There seems to be no guidelines for the choice of new products to be exported and
new markets to sell its products.
3. Not much expertise has been developed to locate and develop sources of supply for
exportable products and also for procuring imports from sources of supply abroad.
4. Much of the expertise is in operation as an agent, in processing indents and tenders
and transportation and distribution not in merchandising, procurement and
marketing.
5. The set back in the exports of non-canalized items can be attributed to the STC’s
failure to develop an appropriate supply base and take adequate promotional step
among importers.
18. Conclusion:
On the whole, the STC has developed a sound infrastructure for development
of exports through it about 13 branches in India and 18 overseas offices and a
large force of trained marketing personnel. Foreign offices provide market
intelligence and can pursue the STC business matters with the various parties
concerned.
With this sound infrastructure, STC should not only act as a casualising agency
but should also make efforts to create an image of an effective trading house
on lines of Japanese trading houses.
It should provide new dimensions and leadership as the biggest export house in
the country. It has stepped forward towards achieving its objectives of boosting
exports.
