It was in 1961 when Usha Martin was started in Ranchi, Jharkhand where it manufactured wire rope. As of now, the same manufacturing company has managed to build an empire of 1 billion along with an exceptional worldly presence. The company has outdone its work by setting higher and new standards in terms of wire rod manufacturing, steel wires, wire ropes, and conveyor cord.
Usha Martin Limited also deals with the rope business as it produces wires, LRPC, strands, and wire ropes which are utilized in infrastructure, construction, steel, and more. In terms of manufacturing capacity, the company has around 230,000 tonnes every year through the two facilities in India that are in Ranchi (Jharkhand), and Hoshiarpur (Punjab) as well as through the three overseas units located in Thailand, the UK, and Dubai.
Impact of selling steel business to the Tatas
As per the recent reports it has been in the news that Usha Martin sold around 1 million tones integrated steel plant that was located in Jamshedpur to the auspicious Tata Steel for whopping money of 4,200-4,600 crore. After selling the steel business, UML or Usha Martin ltd primary focus will be creating a strong foundation in the wire rope business in the coming three quarters and it is said that only after this they would set off on their new journey of organic and inorganic growth opportunities. Furthermore, the company has a vision of being one of the top five wire rope players on a global scale.
Rajeev Jhawar who is the current managing director of Usha Martin claimed that both the organic as well as organic growth will be largely funded through internal accruals. In fact, as per the stated record, it was on 31st March 2019 when the Usha Martin Limited turnover was somewhere around 1,700 crore rupees. Apart from that, the Ebitda was somewhere approximately 250-300 crore rupees on a consolidated basis.
Impact of the prevailing slow growth
Since there is very minimal or slow growth in the domestic as well as international markets, it has created a significant impact on the top line of UML. This is when Rajeev Jhawar, the MD of the company stepped up. Within all the chaos, it has been claimed by the company that as soon as there is a certain revival in the demand factor, it will enable the company to quickly clock the 10-15 percent topline growth and this will be accompanied by an acceptable growth in profitable terms and this all is expected to happen in three years.
Jhawar family dispute
After the grand family dispute, the board of Usha Martin decided to appoint Rajeev Jhawar for five years from 19 May. The year before that when the Jhawar cousin, Prashant Jhawar was ousted from the position of non-executive chairman of Life Insurance Corporation of India. Both factions of the Jhawar extended family has ownership of approximately 25.5% stake in each of the companies. Later, Prashant Jhawar was formerly based in London after which he moved to the Kolkata bench of the National Company Law Tribunal after alleging mismanagement of the company by his cousin. The reason that he stated behind his removal from the post is his position as chairman was improper.The board of the company has appointed the Royal Bank of Canada for advising it on the sale that is proposed concerning the wire rope business.
Basant Jhawar fighting back for his rights
The founding promoter and former chairman of Usha Martin Basant Kumar after being ousted from the board has returned to fight for his rights. He claimed that he will leave no stone unturned to prevent all the alleged diversion of funds that was done by Brij Kishore, the former’s brother. The two brothers have made it into several headlines for their legal disputes before there was any kind of overcontrol of Usha Martin which is a steel and wire rope company business.
Rajeev Jhawar arraigned: the case against ex-CBI SP
Rajeev Jhawar Usha Martin MD has been arraigned in the case of the CBI or Central Bureau of Investigation arrest of N.M.P Sinha who is the retired Superintendent. Apart from these, some of the other names are that of the chartered accountant Vinay Jalan along with this son Parth and the authorized signatory of Usha Martin Raj Kumar Kapur. According to the FIR, it has been alleged that a conspiracy was coined by Mr. Sinha along with other people who are accused where a bribe has been received in lieu which was in the favors that are extended to them in another case that was registered against the grand brand Usha Martin.
This was then followed up when the agency said that Mr. Sinha held a meet-up with Mr. Jalan at a certain hotel in Delhi on the 23rd of September where Mr. Jalan asked his son to be ready for a reply to the entire summons that the CBI issued to Usha Martin. Furthermore, he has also asked him to hold a meeting with Mr. Sinha during the following visit.
Thus, ever since its establishment Usha Martin has been actively engaged in the production of wire rope and according to the sources, the maximum revenue was generated from the very wire as well as wire ropes. Apart from this, the company also deals with selling steel wires, strands, cords, and wire ropes. Despite all the ongoing disputes, Rajeev Jhawar has managed to keep the base foundation of Usha Martin as strong as he can. One of the many achievements of the company is that it acquired around 80% stake in Brunton Shaw, UK, from the Carclo Group. Furthermore, a second unit was established in Jamshedpur so that the capacity of the company can boom to a higher level.
As of the latest status of the company, Usha Martin has managed to establish new facilities by doing the utmost modifications in the cable plant so that higher value-added products were produced. Some of the names of such products are said to be conveyor cords, bright bars, and special wires.
Mr. Rajeev Jhawar is getting reappointed as the Managing Director of Usha Martin Limited for a 5-year term starting from May 19th, 2023.