The Hindu Business Line : ‘Withdraw export duty on steel products to finishing units’

Mr Rajiv Jhawar (right), Managing Director, Usha Martin, and Mr Prashant Jhawar, Vice-Chairman, announcing the company’s results in Kolkata on Tuesday. —

Our Bureau

Kolkata, May 13 Usha Martin Ltd will make a representation to the Union Ministries of Finance and Steel to withdraw the 10 per cent export duty on steel products, especially when such exports are made to finishing plants overseas that are subsidiaries of the Indian company.

Speaking to newspersons here today, Mr Rajeev Jhawar, Managing Director of Usha Martin Ltd, said the company exports 30,000 tonnes of wire rods annually to its manufacturing facility located at Thailand. The export duty currently works out to $100 a tonne.

Additionally, the company exports 6,000 tonnes of wire every year for finishing at its Dubai plant.

“We will request the government to at least consider the possibility of withdrawing the export duty when we are exporting steel wire rods and wires to our own finishing plants abroad,” he said, adding that representations in this regard would be made by the company individually as well as through industry associations.

Mr Prashant Jhawar, Chairman of Usha Martin, said the company’s expansion projects at its plants at Jamshedpur and Ranchi were on track and would be completed within the next 24-30 months.

Of the planned capital expenditure of Rs 2,100 crore, Rs 800 crore had already been made while the rest would be invested over time.

capacity

When the expansion projects are completed, the company’s steel-making capacity would go up to one million tonnes.

Mr Jhawar ruled out immediate plans of diversifying into the manufacture of commodity-grade steel.

Results

On a standalone basis, Usha Martin notched gross sales – without netting off inter-unit transfer – of Rs 2,392.28 crore in 2007-08, up from Rs 2,036.65 crore in 2006-07. The profit before tax in 2007-08 was Rs 200.72 crore (Rs 138.40 crore).

The profit after tax stood at Rs 144.84 crore (101.48 crore). A dividend of 100 per cent (Re 1 on equity shares of the face value of Re 1 each) has been recommended for the year 2007-08.

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