Usha Martin Ltd plans to set up a greenfield facility in Thailand to manufacture high-performance steel wire ropes.
The facility will be set up by Usha Siam Steel Industries Public Company Ltd — a subsidiary of Usha Martin — in joint venture with Japan-based Tesac Wire Ropes Company Ltd.
According to Rajeev Jhawar, Managing Director of Usha Martin, the 50:50 joint venture company — Tesac Usha Wirerope Company Ltd — will be operational in the next 16-18 months.
Tesac Usha aims to manufacture 1,000 tonnes a day of steel rope in the next four-to-five years.
Usha Siam will invest close to $16 million (approximately Rs 85 crore) in the next five years in the JV company, Jhawar said.
“Through this joint venture company we plan to cater to the Asean market. The ropes manufactured by Japanese units are becoming expensive and this unit will help address the cost issues,” he said at a press meet to announce the company’s performance during the quarter here on Wednesday.
The manufacturing unit is expected to come up close to the company’s existing unit in Thailand which manufactures about 3,000 tonnes a day of steel wires and ropes.
This apart, Usha Martin International Ltd — another subsidiary of Usha Martin — has set up a research and development and distribution centre in Italy for wire ropes under the name of Usha Martin Italia S.R.L.
Results
Riding on the back of an improved product mix in value-added steel and an improvement in sales volumes the company’s consolidated net profit by 15 per cent to Rs 30 crore for the quarter ended December 31, 2012.
Net profit stood at Rs 26 crore during same period last year.
Net sales grew by 9 per cent to Rs 889 crore.
Shares of Usha Martin closed at Rs 30.90, up by 4.75 per cent, on the BSE on Wednesday.