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An endeavor is not complete and successful till the people who make it possible are given due credit for making it possibleThis project would have been a distant dream without the grace of almighty. So, first and foremost, we, profusely thank god for his blessings and grace, without which my project would not have seen the light of the day. I would like to thank the HRD Manager, Mr. Arvind Kumar who provided us a golden chance for training and our especial thanks to Mrs.Pragyan Puspanjali & others faculty of management science of central university of Jharkhand for their guidance and appreciative support in spite of busy schedule at Usha Martin Limited.



GROWTH HISTORY :The Company is a part of the Usha Martin Group, which was formed in India in the early 1960s with the establishment of Usha Martin Industries Limited (UMIL), engaged in the manufacture of steel wires, wire ropes and other related products. The group was promoted by Mr. B. K. Jhawar, who is the Chairman of the Company. Usha Beltron Limited was incorporated on 21 May, 1986 as a joint venture between Usha Martin Industries Limited, Bihar State Electronics Development Corporation Limited, AEG Kabel, Germany (now Kabelrhydt and a member of the Alcatel group) and DEG, Germany, to manufacture Jelly Filled Telephone Cables (JFTC). Pursuant to the Orders of the Hon'ble High Court of Kolkata and Patna (Ranchi Bench) Usha Martin Industries Limited merged with Usha Beltron Limited with effect from 15th May, 1998. Thereafter the registered office was shifted from Tatisilwai, Ranchi, and Bihar to Kolkata in the State of West Bengal in the year 2000. The name of Usha Beltron Limited was changed to Usha Martin Limited with effect from 1st May, 2003

UMIL commenced production of wire and wire ropes

UMIL promoted "Usha Ismal Limited" in collaboration with CCL Systems Ltd, UK for manufacture of rope accessories and splicing equipment at its factory at Ranchi. UIL merged with UMIL in 1990 and became a division of the company.

UMIL promoted Usha Alloys & Steels Limited" for the manufacture of steel billets at Adityapur, Jamshedpur. UASL merged with UMIL in 1988.

UMIL set up its Machinery Division at Bangalore for manufacture of wire drawing and allied products in collaboration Marshall Richards BARCO Ltd, UK. UASL acquired an on-going rolling mill at Agra.

In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a Wire Rod Rolling Mill at Jamshedpur.

The joint venture company Usha Siam Steel Industries Public Limited Company" was incorporated in Thailand for manufacture of wire, wire ropes and auto cables.

UMIL, along with Bihar State Electronics Development Corporation, promoted Usha Beltron Ltd. (UBL) in collaboration with AEG KABEL of Germany for the manufacture of Jelly Filled Telephone Cables.

Usha Martin completed its supplies of the parallel wire stay cables for the Second Hooghly Bridge at Kolkata and established the Company's capability for manufacturing sophisticated special cables.

The Company made its first GDR issue at a price of US$ 10.70 per GDR, for a total consideration of US$ 35,000,000. The Company established Usha Martin Europe Limited as its subsidiary, in joint venture with Exim Bank of India to create worldwide marketing and distribution set up for export of wire ropes.

Commissioning of Mini Blast Furnace at Jamshedpur to reduce cost and improve productivity.

New state of the art Wire Rod Mill at Jamshedpur commissioned to produce higher weight coils for better productivity.

UMIL merged with UBL we 1st October,1997. The shareholders of UMIL were allotted one equity share of UBL in respect of every three shares of UMIL held by them.

The Companys IT division was demerged into a new Company named as Usha Martin InfoTech Limited (UMITL). In accordance with the Scheme, UMITL issued and allotted one equity share of Rs. 5/- each to all the shareholders of the Company in the ratio of one equity share of Rs. 10/- each held by them in the Company. Consequently as per the Scheme of De-merger, the face value of the shares of the Company was reduced to Rs. 5/- each. The Company established UM Cables Limited as its wholly owned subsidiary to set up a green field JFTC and OFC plant at Silvassa. Commissioning of 25 MW thermal power plants at Jamshedpur for captive consumption. The Company acquired a majority stake in Usha Siam Steel Industries Public Limited Company, Bangkok (engaged in manufacture of wire ropes at its plant in Bangkok).

The Company also acquired 80% stake in Brunt on Shaw Limited, UK, from Carclo Group. The Company made its second GDR issue at a price of US$ 3.25 per GDR, for a total consideration of US$ 11,375,000 (1 GDR representing 1 equity share).

The Company established Usha Martin Singapore (Pty.) Limited as its wholly owned subsidiary to set up a distribution center at Singapore for wire ropes. Commissioning of 2nd SMS at Jamshedpur to enhance capacity to 350000 TPA and produce quality specialty steel.

The Company has disposed of its Rolling Mill Division at Agra for focusing on core business. The Promoters & IFC contributed towards equity 53, 45,455 and 52, 64,727 no of shares respectively @ Rs 33/- per share. IFC & DEG also provided to the Company foreign currency loans of USD 21 million and Euro 10 Million respectively. The name of the Company was changed to Usha Martin Limited with effect from 1st May, 2003. Brunt on Wolf Wire Ropes FZ Co Middle East Dubai commenced its commercial production with production capacity of 6,000 MT p.a. A joint venture between Usha Martin International Ltd and Gustav Wolf of West Germany. The Company obtained prestigious order for wire ropes for a period of 3 years from OTIS Elevators for world-wide supplies. The Company successfully created new facilities by modifying the cable plant to manufacture value added products such as bright bars, special wires and conveyor cords.

The Company successfully commissioned DRI and WHRB power plant at its Steel Division in Jamshedpur.

The Company signs an MOU with Joh.Pengg for manufacturing of the specialist oil tempered spring steel wire. Takeover of JCT Ltd.s steel division completed and successfully integrated with Usha Martin. Commences Iron ore mining successfully. Railway Siding commenced. DRI power plant capacity augmented by further 5 mw by putting up 40 mph char boiler. Commissioning of 3rd Ladle Furnace at SMS to increase steel capacity to 3,60,000 mt p.a. The Company made its third GDR issue at a price of US$ 4.61 per GDR, for a total consideration of US$ 33.29 Million (1 GDR representing 1 equity share). Preferential allotment of 5800000 warrants to promoters@ Rs 153/- per warrants totaling Rs 88.74 Crores. Incorporation of Brunton Shaw America Inc as a new subsidiary of the company

Pursuant to B.T.A the company acquired the business of Usha Construction Steel Ltd, Rolling Mill at Agra i.e. 1st December, 2006 as a part of its steel segment.

The company acquired Netherland based distribution and rigging company De Ruiter Stackable B.V. Successful commissioning of Wire Rope Plant at Houston, America. The company subdivided its equity share from Rs 5/- each to Rs 1/- each.


Usha Martin Limited was started in 1961 in Ranchi (Jharkhand) as a wire rope manufacturing company. Today the Usha Martin Group is a Rs.3000 crore conglomerate with a global presence. The products are, wire rods, bright bars, steel wires, specialty wires, wire ropes, strand, conveyor cord, wire drawing and cable machinery. Incorporated in 1960 Mr. B.K. Jhawar, the present chairman, pioneered it.It was promoted to manufacture steel and wires ropes in collaboration with Martin Black of Scotland as a joint Indo-British venture. From 1st October 1997, this company has been merged with Usha Beltron Ltd which has been renamed as wire and wire ropes division, within which six companies are included.


Vision:To be a respected, world class & leadership in business, in quality, productivity, profitability & customer satisfaction. Mission: be a customer and shareholder observed factory. enhance value to shareholders and services to all stake holders develop highly motive team with a sense of satisfaction. as a value driven organization. the value in case of quality. expand its area of its operation& utilize the raw material efficiently. Quality policy: Providing product & services that meet customer expectation. continual improvement to our quality management system and process. Continues enrichment of the skills and knowledge through training Compliance to all applicable statutory and regulatory. fostering the professional development of our employee. our suppliers and customers are our partner in progress.

PRODUCT & SERVICE PROFILE:Main products of usha martin which the company produce & export. Wire Rope bar cord cable


Defense units. Railways. Engineering industries. ESCORTS. BEML units. Automobiles / Foreign industries.

Marketing Strategies adopted to attract and retain Cus Buyer market. Quick delivery. Better quality Market Segmentation Market segmentation means dividing the market into different segments or sector in Usha Martin Ltd., the market segmentation is on the basis of customer wise and product wise. By customer-wise Defense sectors. Railway sector. Auto and Forging sector. Engineering sector. Trade sector. By product-wise Alloy steel. Spring steel Scraps Slag.

Product: UMLs product has good demand in market UMLs product are well tested and inspected by the world class testing authorities like ABS,IRS,LOYDS

Price: Overheads are quite high as compare to other companies From customer point of views due to high cost of UML product it looses certain prospective customer From geographical point of view UML plant in Ranchi is well positioned , but there are certain problems like band & strikes & lack of infrastructural facilities


Finance Review for the year 2008-09

(Rs. in thousand) Current year Previous Year 21, 40,412 20, 07,127

Finance Results Profit/Loss before Tax Loss: Provision for Tax

Current Tax: Fringe Benefit Tax: Differed Tax

9, 10,000 11,500 (2, 46,655)

5, 10,300 11,800 36,700 14, 48,327 8, 06,050 2, 09,186 24, 63,563 2, 50,242 42,529 17, 50,000 4, 20,792

Profit/Loss After tax 14, 65,567 Debenture redemption reserve written back Profit brought forward from previous year 4, 20,792 Profit available for appropriation 18, 86,359 Deduct: Provision for Proposed Dividend 2, 50,242 Deduct: Provision for Dividend Tax 42,529 Deduct: Transfer to general reserve 12, 50,000 Balance carried forward to Balance sheet 3, 43,588



UML is the FOURTH largest producer or wire and wire ropes in the world and the market leader in India for many years.

UML was the first steel company in India to receive the JIIM award. UML has got sufficient capacity to produce in world that produces specialties products in huge qualities.

UML has a good brand image.

UML produces quality products. UML is one of the few producers in the world that produces specific wire and wire rope products. UML has wide product range. UML has a large number of consumers like SAIL, TISCO, ONGC, ACC, CCL, BHEL, and L$T. UML has a good infrastructure. UML provide many facilities to their employees such as free medical facility transportation facility and several other welfare facilities that help to improve employees satisfaction and motivation.

UML has environment management as one of the core priorities and its practices confirm to the standards presented by the various regularity authorities, this proves UMLS concerns towards environment protection and this as earned its goodwill among various securities of society and Government.

UML has overlooked small consumers.

UML has large overheads. UML products are available at high prices. it lacks warehouses and distribution centers . UML has shown lack of coordination among the production sales and marketing departments. UMLS Tools and machines have become old and obsolete. Non effective advertisement image. Lack of professionalism and work ethics in employees. As its pricing strategy is completely different from other competitors in this field generally known certain customary. Surplus employees with an average age over forty years, lack of young dynamic blood at work.

UML has increased its sales by reducing costs.

UML can strengthen its position in the market by making alliances and other give with small rivals, which are doing well across the country. UML can increase its profit if it gives more emphasis on getting the customers. UML can improve its global market share. UML can develop elevator rope with maximum breaking load. UML can look for regions where there are no or less competitors. UML can look for new range of products taking their feasibility with diversification. Government is planning regarding the expensive hanging bridge like Nani Bridge in Uttar Pradesh, vidya sager setu on Hooghly River in Kolkata .

New opportunity in the sail offshore field especially in oil drilling ropes as reliance has found crude oil in Krishna Godavari in south Basin. fishing developing in southern coastal cities so UML should take visit to these markets.
Competitors are not as strong as UML.

Small rivals are emerging in different parts of the Countries.

Low prices of the rivals products are the great threats. Timely delivery of the products by the competitors has put pressure on UML to improve its efficiency. Changes in Government policies regarding import duties, export subsidies do changes in regular basis thereby increasing the risk for UML. Fluctuation in exchange rate. Poor infrastructure of the state. As U.S has imposed anti-dumping duties in steel product from India, China and Malaysia etc. Resistances from the state and central government of India. Frequently bands and strikes in Jharkhand which delays the delivery and hinder the availability of raw material. Local political instability. Excess work force less automated procedure.

The company has to focus on the reducing cost by reducing the unproductive expenses.Forthatpurposethecompany has to divide its overheads into sub heads so the company can know that which expenses is high and how can reduce. As well as the company should compare its standard cost with actual cost. By doing this practice the company has been successful in reducing many of the unnecessary expenses. There has been manpower rationalization i.e. a reduction in duplication of work and consequent underutilization of human capacity. The result of this was improved efficiency. UML is committed to add value to the products it makes, de-bottlenecking. its capacities with intelligence so that the production cost gets reduced, utilizing the resources more efficiently. The company is focusing on its integrated steel and steel products business with an increased focus on exports to neighboring countries. To improve competitiveness in the global market, the company has planned to make strategic investment in steel to reduce the cost of products by leveraging the availability of raw materials from within the region. The company is also focusing on an improvement in the realization of products like wires, wire ropes, strands and by migrating to high value branded products. To meet the challenges of the loss of cable business, the company has embarked on the strategy to make the use of

productive assets for diversification into value added products. The company is strengthening its international marketing capability through an intelligent combination of initiatives like the expansion of its distribution outlets marketing offices and strategic alliances


Usha martin limited is the only leading company in India and the 2nd largest company in the world which deals in wire and wire ropes. The company has continued to pursue its long term strategy of creating a critical mass integrated business of specialty steel and value added steel product, with key focus on wire ropes, cords, strands, wire and bright bars. The integrated business of captive minerals, specialty steel and global wire ropes manufacturing, marketing and distribution with rich product mix and focus on development has given significant strength of the company. Capital expenditure programmed to increase capacity in mining, power generation, DRI, blast furnace route iron making, steel melting, and stages of implementation and is likely to be commissioned in phased manner in current and next6 financial year. On standalone basis, the company achieved a net turnover of Rs.2127.23Crs. with a growth of 28.5%over previous year. The gross profit has also increased by 18.3%toRs.422.43Crs. From Rs357.01Crs.The profit

before tax and profit after tax, records in the year by the company are Rs.214.04Crs.and Rs.146.56Crs.respectively. The company has achieved significant growth of 29.0% over previous year. On consolidated basis the company and its subsidiaries have achieved a net turnover, profit before tax and profit after tax of Rs 2949.85Crs. and Rs.280.59Crs.and Rs.185.34Crs. Respectively. These figure are significantly higher

over those of previous year by 27.8%,13.7% and 5.7% respectively. Gross sales stood at Rs499.41Crs. which is higher by 30.0% over the previous year. The government of India, Ministry of corporate Affairs, has issued notification dated 31stMarch,2009 under which the Company, by opting for alternative accounting could have capitalized and differed net charges of such losses to the extent of about Rs73.00Crs. The company has however decided not to avail this option and instead follow an approach of accounting for such changes in foreign currency rates through Profit & loss account.