By IANS
Kolkata : Usha Martin Ltd, a leading producer of speciality steel and wire rope, is looking to increase its operating margin to 24 percent in 2008-09 from the present 19 percent.
The company will also double its steel making capacity to 7,00,000 tonnes by 2009-10 from the current production capacity of 3,50,000 tonnes.
“We would invest Rs.21 billion ($533 million) altogether for enhancing the company’s capacity of steel production and minerals supply, and developing self-sufficiency in power production by 2010. Of this total amount, we have already spent Rs.7 billion,” Usha Martin managing director Rajeev Jhawar said here Tuesday.
He said about Rs.16 billion would be invested to double steel production capacity, setting up of a captive power plant at Jharkhand and enriching the company’s mineral resources.
The remaining Rs.5 billion would be spent on developing the company’s value-added products like wire ropes, wires and bright bars, Jhawar added.
Usha Martin Ltd would set up a 20-MW captive power plant at Jharkhand by next fiscal to supply power to their existing wire rope manufacturing unit at Ranchi.
During the third quarter of the financial year 2007-08, the company has reported a consolidated net sales growth of 16 percent at more than Rs.5.5 billion, compared to Rs.4.8 billion during the corresponding period last year.
The company’s net profit rose to Rs.412.3 million from Rs.399.5 million with an increase of three percent.
The company has also posted a growth of 12 percent in its global wire rope production in the third quarter of the current fiscal.
Usha Martin has created a worldwide distribution, service and marketing network spread across the US, Britain, Europe, Africa, the Middle East, South Asia and Australia.
It has manufacturing units in Ranchi and Jamshedpur in Jharkhand. Its overseas units are located in Britain, Thailand, the United Arab Emirates and the US.