The metal segment plays a important role in our Indian economy. The involvement of LUN in recent time's handling these raw materials has not only reached its matured business module but also contributed substantially in the overall revenue. Raw material dept under MPLUN has implemented several initiatives to provide better services.

Raw Material Department of MPLUN is procuring and distributing ferrous & nonferrous items to the SMEs of the State through a chain of four Raw Material depots, situated at Bhopal, Gwalior, Indore & Jabalpur. The Items being distributed through the Nigam are Iron & Steel like long products, flat products, structural steel, wire rods etc., and non-ferrous metals like Brass Scrap. LUN is interacting with SMEs and their organization to explore new items required to distribute through these Depots. The volume of business under this activity depends on the allocations and availability of material from main producers like SAIL, RINL and Ministry of Defence. However, constant efforts are being made by the Nigam to get increased allotments.
The raw material distribution activity is mainly service-oriented and was undertaken at a time when the availability of raw material was scarce and controlled. Changing trends in the international market in the present scenario has undergone a change. Even then MPLUN is distributing Raw material to the SMEs of the state in competition with open market.
LUN receives the annual allocation of Iron & Steel on the basis of the lifting of material against allotment of previous year from the Ministry of Steel, Govt. of India. According to allocation, LUN registers quarterly booking of Iron & steel with main Producer like SAIL (Steel Authority of India Ltd), RINL (Rashtriya Ispat Nigam Ltd.). The quantity of raw materials, demanded by the SMEs is purchased from these main manufacturers and is distributed to them through Depots. MPLUN is offering rebate to SSI units against advance payment for purchase of Iron & Steel from main producers. This service is provided by LUN to facilitate SSI sector of MP state.
Looking at the demand of the brass scrap of SSI units of MP state, the Nigam arranges its distribution to SSI units. The brass scrap is received through the Ministry of Defence, Govt. of India. This activity is managed at Head Office level.


Serial No Year   Cement Tor Steel Iron & steel Brass Scrap   Marketing of SSI Item's Total (Rs. in Lacs)
1 2009-10 5278.19 957 5350.24 254.47 6125.61 17965.51
2 2010-11 4850.33 780.06 4498.41 159.90 5602.80 15891.50
3 2011-12 1299.88 204.94 6446.19 375 8359.40 16685.41
4 2012-13 1461.46 183.58 5534.44 574.05 11541.18 19294.71
5 2013-14 1171.02 324.89 5383.83 NIL 12819.06 19698.80

Distribution of Iron &steel , brass scrap during 5 years

Serial No Year   value Rs. in cr. assisted SMEs
1 2008-09 87.24 163
2 2009-10 74.81 121
3 2010-11 57.89 87
4 2011-12 71.57 105
5 2012-13 61.08 116