``Our ambitious diversification plans to give value-addition to the `waste' materials generated in the production process has been fulfilled,'' a senior official told The Financial Express.

The senior official said that the company's state-of-the-art R&D centre at Uppal, here, using blue dust, a waste item found in powder form in the iron ore bearing range, has developed three valuable products, which will be manufactured at Vizag plant.

He said the three products -- ferric oxide (will be widely used in electronics and telecommunications industry); iron powder (finds its place in power metallurgical industry) and pigment grade ferric oxide (used in paint industry) have got a potential and wide market base in India.

According to him, this pioneering project, which wasproposed during the last year, could be possible with its highly sophisticated R&D centre. One of the best equipped laboratories, the R&D centre here has been declared `Centre of Excellence' at the UNIDO experts meeting.

The `mini ratna' major is also exploring the possibility of mining beach sands and its subsequent value addition to synthetic rutile/titanium sponge/pigment grade TiO2 in collaboration with the Andhra Pradesh Mineral Developmeent Corporation and Indian Rare Earths Ltd, the official said.

The company also participating in the global tender floated by the Andhra Pradesh Government for prospecting gold and diamond in Ananthapur district. The company expects to bag the bid amidst big competition.

The mining raw material major posted a lower profit of Rs 142 crore as against Rs 175 crore during 1997-98. This was due to worldwide slump in the market and price realisation which went down sharply owing to finished product companies' poor performance, the official explained.