PP Metallix Limited was developed as a trading company. The main business segment of PPML is trading of ferrous and non – ferrous metals. The primary focus of the Company is to grow by focusing on high margin deals, zero-price risk approach (by synchronizing purchase and sales contracts to avoid risk of price fluctuations) and product diversification.
In order to achieve these objectives, the Company will gradually employ established and experienced traders.
Product diversification mitigates the dependency on one product and price fluctuations. A product mix of ferrous and non-ferrous metals in the business balances trade volumes and turnover. A product mix of high value/low volume metals such as tin and low value/high volume metals such as steel scrap would help sustain both revenues and profits. The product mix varies each year and is dependent on market conditions and contracts in hand.
The Company would stringently follow the business model where it does not take any price risk as all the customer orders would be synchronized with those placed with the suppliers. This mitigates the risk of price fluctuations. This business model will also insulate the company from inventory carrying costs as the logistics would not be managed by the company.