Usha Martin targets top slot in wire rope capacity

Usha Martin is planning to become the number one wire rope manufacturer in the world by December 2006, surpassing the largest wire rope manufacturer in the world. Korean transnational Kis now holds the top slot in wire rope globally.

S Somany, V-P, Usha Martin, said the group now has a capacity of 80,000 tonne in wire rope. It plans to add over 10,000 tonne in a year. Kis currently has a production capacity of 90,000 tonne a year. He said the target to be the top wire rope firm is part of the group's aim to have a global presence.

"We are now focusing on specialty steel and wire rope. The company is stepping up capacity mainly in these two fields," he said. The company did not have any immediate plans for acquisition.

UML currently has manufacturing facilities in Dubai, India, Thailand and the UK and is setting up a unit in the US. "The US unit will be operational by late 2006 and the production capacity will be around 8,000 tonnes per year," he said..

"Usha is investing Rs 460 crore in the next two years in wire rope and steel. More than 80 per cent of the investment will be on steel. We are stepping up the capacity of our Jamshedpur plant from the present level of 3.6 lakh tonnes to five lakh tonne," he said.

Somany said UML was stepping up specialty steel capacity as it now foresees major growth in auto component mart. "Jamshedpur is the best place for that," he added.

Somany pointed out that out of Rs 460 crore, a sum of Rs 200 crore was being mobilised through the GDR and private placement. The rest would be internal accruals.