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A Miniratna Category - I PSU

Under the administrative control of

Ministry of Steel, Government of India

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About Us


MSTC Limited is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel, Government of India. Government of India has 64.75% share holding in the company.

Brief History

Our Company was incorporated as “Metal Scrap Trade Corporation Limited”, under the provisions of the Companies Act, 1956 on September 9, 1964 at Kolkata. Our Company was granted the certificate of commencement of business on April 12, 1965 by the RoC. Subsequently, the name of our Company was changed to “MSTC Limited” pursuant to the special resolution passed by the Shareholders in the general meeting held on September 26, 1994 and a fresh certificate of incorporation consequent upon such change of name was issued by the RoC on November 9, 1994. The CIN of our Company is L27320WB1964GOI026211.

Our Company was incorporated to deal in export of ferrous scrap. Our Company became a subsidiary of SAIL on August 22, 1973 to act as a canalizing agent of the GoI for the import of metal scrap. Thereafter, on May 21, 1982 our Company became an independent GoI company upon acquisition of the shares of SAIL by the Selling Shareholder. Since its incorporation till the decanalisation of metal scrap by the GoI in 1992, our Company was mainly engaged in import of metal scrap as a canalising agency of the GoI. After the decanalisation, our Company had decided to diversify our business and emerge as a multi-product and a multi-functional organization.



Our Company is one of the leading PSU entity engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale, e-procurement services and development of customized software/solutions. We have emerged as a pioneer in the e-auction segment catering to the Government sector, partnering with different Government agencies and ministries in conducting e-Auctions. We are one of the key players offering comprehensive range of services in e-procurement segment. (Source D&B Report).

With an experience of over 1,90,000 auctions, serving over 1,10,000 users as at December 31, 2018, we have emerged as the preferred service provider for various government and Government controlled entities which is demonstrated by the fact that we get repeat business from the same client. Many of our clients are engaging us on a nomination basis based on our strong credentials in e-commerce vertical. We have conducted 28,600 auctions/events during Fiscal 2018 and 30,500 auctions/event for nine months period ended December 31, 2018.

Since Fiscal 2002, our Company is the offering e-auction platform to a large number of Government departments and Government controlled entities. Our Company offers complete package of services from preparation of the auction catalogue to the issuance of delivery orders and advertisements of the same on case to case basis with epayment and e-wallet facilities. Starting with sale of coal through e-auction way back in 2004, we have been developing different modules of e-auction such as lot wise auction, price quantity auction, tender cum auction, etender etc to cater to the various needs of different sellers. Our Company has conducted e-auction for sale of scraps, old plant & machineries, minerals, agricultural produce, coal and non-coal mine blocks, land parcels, tea, gorgon nut, tendu leaves, timbers and other forest produce, etc. A key characteristic of our e-auction is transparency in conducting these services. We are working towards bringing onboard historically unorganized products and sectors to create ease in transacting. We are a nominated service provider for all major mineral blocks and minor mineral blocks of a few states namely, Assam, Chhattisgarh, Jharkhand, Rajasthan and Uttar Pradesh. E-auction of sand mining blocks in Uttar Pradesh has been one of the signature events in recent past. We have also developed an EXIM portal for one of the leading petroleum companies to provide a transparent online platform for their exporting and importing activities.

We commenced our e-procurement services from Fiscal 2012. Our Company offers end-to-end platform solutions for e-procurement starting from raising of indents to issuance of letter of intent/purchase order for both e-tender and e-reverse auctions. We are backed by mandatory STQC certification for quality requirements. The application modules are primarily developed in-house and comply with the guidelines framed by the CVC, IT Act and its amendments and general financial rules. Our e-procurement portal has been certified by STQC for quality and security checks, thereby providing secured operations and customisation as desired by the client. We provide etender and e-reverse auction services for procurement of a range of products including raw materials, industry supplies, coal, electricity and store items etc.

We develop e-commerce modules (i.e. e-commerce application software) for providing customised e-commerce services to our principals. The development of application software portals is done in-house by our team having domain knowledge in respective areas. All the developments are done in-house by a team of expert and no part of any services is outsourced. We have the expertise to customize the application software as per the requirement and changing need of business from time to time as required by various principals. The in-house capability and flexibility of making changes in the software enables us to retain our customers. Our Company has achieved status of CMMI Level 3 maturity, which catapults the company at a ‘defined level’ for continuous process improvement in the areas of application software.

Our e-commerce system complies with CVC guidelines and IT Act and its subsequent amendments to ensure services to customers in a most transparent and fair manner. Our system department is ISO/IEC 27001:2013 certified from STQC. Our e-commerce division is also ISO 9001:2015 quality certified. We believe that our handsoff, automated bidding services with minimal human intervention has instilled credibility and trust in our customer relationships for many years.


Since incorporation, we were a canalizing agency for import of ferrous scrap until 1992. After de-canalization, our Company has established itself as one of the established players in trading bulk raw material. The Trading division is engaged in import as well as domestic sourcing of bulk industrial raw material for actual users as well as traders. This division looks after sourcing, purchase and sale of industrial raw materials like low ash metallurgical coke, HR coil, naptha, crude oil, coking coal, steam coal, line pipes etc. on behalf of our customers. We are mainly catering to customers across steel, oil and gas, power sectors in private and public sector.

There are different business models we use, depending on the customer, the materials, and other factors. These include cash and carry model, 110% bank guarantee backed procurement and associate supplier model.


To expand our spectrum of operation and to support the steel industry in India, in FY 2017, our Company through MMRPL forayed into the recycling sector. MMRPL is poised to set up one of the organized state of the art auto shredding 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 shredding plant.

Recent Milestones in E-Commerce

E-Bidding Platform under DDUGJY

Proposed by the Ministry of Power, we developed e-bidding portal for DDUGJY & IPDS to augment and strengthen sub-transmission and distribution infrastructure of the country. The aforementioned schemes were implemented to facilitate and handhold states in mobilizing major equipment/material used for transmission and distribution infrastructure of desired quality with standard technical specifications at competitive prices through transparent bidding. We are associated with the aforementioned scheme to provide e-tender and e-reverse auction which shall be utilized to purchase of the equipment/materials under the DDUGJY/IPDS schemes.

E-Auction of sand mining blocks in the State of Uttar Pradesh

We recently created an e-auction portal for the government of Uttar Pradesh for the allocation of sand mining blocks. The arrangement is to conduct e-tender cum e-auctions for minor mineral blocks on behalf of government of Uttar Pradesh. Each of the auctions conducted by us for the aforementioned project is carried out in two stage processes wherein the bidders are required to submit their initial price offer for the bid which shall not be below the royalty rate as notified by the government, thereafter the bidder qualified for the bid are required to do the bidding for the mineral block which will start from the highest initial price offer quoted by any of the bidder. The purpose of conducting e-auction of mineral block by government is to increase maximum participation and maximum revenue to the government. We have conducted approximately 435 auctions of sand blocks and letter of intent have been issued for approximately 336 blocks. Due to the success of the aforementioned auction various government department of different states are considering to auction the mineral through same manner.


The Ministry of Civil Aviation, GoI, has released the National Aviation Policy, 2016 with one of the objective to enhance regional air connectivity through fiscal support and infrastructure development. Executed with the Airports Authority of India, the goal of this program is to enhance growth in aviation sector by establishing regional air connectivity to materialize through open market mechanisms in terms of airline assessing demand on various routes, developing networks through deployment of appropriate capacities & technologies, infrastructure development etc. We have developed the e-bidding platform for this project for providing facility to airline operators to submit their proposals for flying airlines between routes and networks between different airports and to quote viability gap funding required to operate flights between these airports.

DEEP Portal

DEEP is a business venture under our e-procurement sub-line of business. We have built e-platforms for short-term, medium-term (three months to five years) and long-term (more than seven years) power procurement activities. The DISCOMs procure their power requirements through this e-reverse bidding platform at a very competitive price. This portal is used for establishing PPAs between the DISCOMs and power generating companies across the country.

"M3" MSTC Metal Mandi

We have launched M3 MSTC Metal Mandi (“M3”), a virtual marketplace for the trading of metals, ores, engineering goods, and other products. It essentially provides a one stop platform for sellers and buyers, displaying the products and offerings of MSMEs. More recently, in addition to the open-market-style of this portal, we also have begun to adopt an inquiry-based process where prospective buyers submit to us the products they desire, both quantity and price range. We then facilitate the negotiation and eventual trade between that buyer and a suitable seller. There is no registration fee for either sellers nor buyers. Instead, we generate income from this project by instituting a markup based on the tonnage of items sold and purchased.

EXIM Portal for one of the leading petroleum companies

Our company was mandated by one of the leading petrolium companies to develop and maintain an e-procurement portal in relation to e-forward/reverse auction facility for their exporting and importing activities. One of the main problems faced by petroleum companies is the lack of a well-functioning, market-determined price discovery system. The way the industry is set up right now with exporting and importing products, organic competition is not developing. This leads to the fair market price of petroleum never being truly discovered, which in turn drains these companies’ financial resources as they blindly attempt to price their products. Our online platform serves to remedy this.

The exporting module consists of e-tendering and forward auctioning. First, the bidders submit their tender price which triggers the forward auction for further improvement in price. The importing module, likewise, consists of e-tendering followed by e-reverse auction.

These modules are the first of their kind in India. So far, their designs allow the transparent and efficient export and import of petroleum products like high speed diesel, gasoline, benzene, bitumen, naphtha, and others.

e-RaKAM (e-Rastriya Kishan Agri Mandi) Portal

On August 1, 2017, we launched a nation-wide electronic portal for trading exclusively in agricultural produce, with the support of the Honorable Minister of Consumer Affairs, Food, and Public Distribution and the Honorable Minister of Steel. The platform primarily deals in food grain, vegetables, fruits, spices, and more recently, pineapple and ginger, among others. The services include forward auctions, procurement and fixed price sales.

JaivikKheti Portal

The JaivikKheti project is a marque project of Ministry of Agriculture primarily focusing on organic farming and organic produce. The web portal of jaivikkheti is a single window service platform for farmer, regional councils or anybody interested in organic farming. This portal also have a dedicated e-commerce window (marketplace) for selling and buying of organic produce with an inbuilt payment gateway.

Financial Results

For the half year period ended on September 30, 2018, Fiscals 2018, 2017 and 2016, our total revenue was ₹ 14,915.50 million, ₹ 27,931.50 million, ₹ 18,762.00 million, and ₹ 33,078.00 million respectively.

Our revenues from trading vertical is ₹ 12,075.18 million, ₹ 22,627.50 million, ₹ 13,261.00 million and ₹ 28,114.70 million for half year ended September 30, 2018 and for Fiscal 2018, 2017 and 2016 respectively representing 80.96%, 81.01%, 70.68% and 85.00% of our total revenue for the half year period ended on September 30, 2018 and Fiscals 2018, 2017 and 2016, respectively.

Our revenues from e-commerce vertical is ₹ 1,045.71 million, ₹ 1,900.60 million, ₹ 1,618.80 million and ₹ 1,277.50 million for half year ended September 30, 2018 and for Fiscal 2018, 2017 and 2016 respectively representing 7.01%, 6.80%, 8.63% and 3.86% of our total revenue for the half year period ended on September 30, 2018 and Fiscals 2018, 2017 and 2016, respectively.

For the half year period ended on September 30, 2018 and for Fiscals 2018, 2017 and 2016 our EBITDA was ₹ 803.03 million, ₹ 1,131.99 million, ₹ 2,626.40 million and (₹ 853.50) million respectively.

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. The details of dividend paid in the last couple of financial years are as follows:

In FY 2014-15 the amount of Dividend Paid (Final) is ₹ 1822 lacs.

In FY 2015-16 the amount of Dividend Paid (Final) is ₹ 1804 lacs and Dividend Paid (Interim) is ₹ 1672 lacs.

In FY 2016-17 the amount of Dividend Paid (Final) is ₹ 2499 lacs.

In FY 2017-18 the amount of Dividend Paid (Final) is ₹ 2604.80 lacs.

MOU Ratings

MSTC has been rates as "Very Good", "Excellent", "Good" and "Fair" in the last five fiscal.

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 MIL 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.

Organization Structure