Established in 1960, Usha Martin is one of the leading steel producers and wire rope manufacturers in the country for a long time. The company underwent the incorporation process in the year 1986 under the name Usha Beltron Ltd. Since its inception, the company had been seeing immense growth and was elegantly walking up the ladder for the past 50 years. Some of its manufacturing units are set up in Ranchi, Hoshiarpur, Dubai, Bangkok and UK. Rajeev Jhawar is the Managing Director of Usha Martin Limited.
Rajeev Jhawar Usha Martin Ltd (UML) recently focuses on consolidating and strengthening its wire rope business over the next three quarters before embarking on organic and inorganic growth opportunities once demand revives. According to Rajeev Jhawar, Managing Director, UML, the company with its deleveraged balance sheet post the sale of its steel business to Tata Steel and with healthy cash flows will look to strengthen its position among the top three wire rope players globally.
Usha Martin Ltd claims to be among the top five wire rope players globally. “With the deleveraged balance sheet and healthy cash flows expected out of the business, we hope to grow both organically and inorganically over 3-5 years and rank among the top three players globally,” Rajeev Jhawar said. However, clarified that any growth — organic or inorganic will be funded largely through internal accruals. “I would never like to grow on the strength of taking debt. It would be more on internal accruals and a very conservative financial commitment,” he said.
UML’s standalone turnover was close to ₹1,700 crore, while on a consolidated basis it was around ₹2,500 crore. The EBITDA on a consolidated basis was around ₹250-300 crore as on March 31, 2019. The current slowdown, both in the domestic and international markets, might impact UML’s topline this year. However, once demand revives, the company expects to be able to clock 10-15 per cent topline growth anda decent growth in profitability in about three years.
UML’s standalone turnover was close to ₹1,700 crore, while on a consolidated basis it was around ₹2,500 crore. The EBITDA on a consolidated basis was around ₹250-300 crore as on March 31, 2019. The current slowdown, both in the domestic and international markets, might impact UML’s topline this year. However, once demand revives, the company expects to be able to clock 10-15 per cent topline growth and a decent growth in profitability in about three years. Imports account for about 40 per cent of turnover, and the aim of Rajeev Jhawar Usha Martin is to take it to 50 per cent.
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