Usha Martin is known for making a wide range of wire rope products, which have applications across the world. The ropes manufactured by Usha Martin serve in some of the most critical applications across diversified industrial segments, which include oil & offshore, cranes, mining, elevators, aerials, fishing, conveyor belts and general engineering. The outbreak of the corona virus pandemic globally and in India has caused significant disturbance and slowdown of economic activities.
The outbreak of the corona virus pandemic globally and in India has caused significant disturbance and slowdown of economic activities. Usha Martin also had faced some serious concerns that too after all the turmoil. The company’s operations and revenue during the period have also been impacted. Usha Martin’s revenues stood at Rs2,130.60 crore in 2020-21, as against Rs2,207.17 crore in 2019-20. The net profit for 2020-21 is Rs150 crore, compared to Rs418 crore in 2019-20.
After making losses for several years, the sale of the steel division, the company is now in the black. The present performance is an indication of the company’s effort in building a resilient business, capable of performing even in the most adverse conditions. Company's share value during the last one year has gone up from Rs20 to Rs50. Currently, it is hovering at Rs51-52, giving the company a market cap of Rs1,552 crore.
The promoters hold 50.87 per cent of UML, while FIIs have 8.18 per cent, DIIs, 0.05 per cent and others, 40.90 per cent. Rajeev and his family hold 30 per cent of the total promoters’ stake, while the balance is with Prashant and family. It is reported that Prashant has been selling his share-holding in the market during the last few quarters. Both Prashant and Rajeev Jhawar have refused to make any comment on the family wrangle. “My focus is clearly on the company’s growth and nothing else,” Rajeev says. UML has established markets globally. But the future of the company lies in being able to take full advantage of this massive opportunity. And Usha Martin under Rajeev Jhawar is in the right path.
Usha Martin was founded by Basant Jhawar, a commerce graduate, in 1960, at Ranchi, in collaboration with Martin Black of the UK. He was later joined by his younger brother Brij K Jhawar, a mechanical engineer. The first wire rope reel rolled out of the company in 1962. Its public issue in 1961 was oversubscribed by more than 300 per cent.
In 1963, the company paid its maiden dividend and doubled the production from 3,600 tonnes to 7,200 tonnes in just two-and-a-half years. It soon became one of the largest manufacturers of wire ropes in the world and the leading specialty steel manufacturer in India. The steel division was recently sold to Tata Steel’s arm Tata Sponge, which was later renamed Tata Steel Long Products.
With a history of over 60 years, the company now has manufacturing bases of wire rope in India, the UK, Dubai and Bangkok. It is also tied up with globally reputed companies like Gustav Wolf of Germany, Joh. Pengg AG of Austria and Tesac Wire Rope of Japan. The ropes manufactured by Usha Martin serve some of the most critical applications across diversified industrial segments, such as oil & off-shore activities, crane operations, mining, elevators, aerial & fishing business, conveyor belts and general engineering. The group was also one of the pioneers in mobile telephony in the country through its brand Command, which was later sold to Hutch in 2000.
Both Basant and Brij have grown the business into a large wire rope conglomerate in the country. Later on, their sons Prashant and Rajeev joined the business. While Prashant was responsible for managing the day-to-day affairs of the company from the corporate office in Kolkata, Rajeev was involved in the manufacturing of products.
The working arrangement continued till 2000, when Prashant shifted base from India to the UK to grow its international business and start a software business. Rajeev then took charge of the company, which later acquired some wire rope companies in Europe and turned the business profitable.
Rajeev Jhawar’s leadership qualities, sharp business acumen, in-depth understanding of business administration and strategic decision making has taken the Group to an altogether higher growth trajectory. He is on the Boards of various corporates including Orient Cement Limited (part of CK Birla group companies) and Neutral Publishing House Limited which has a leading regional newspaper under the flagship title ‘PrabhatKhabar’ published in the Indian cities of Patna, Dhanbad, Ranchi, Jamshedpur & Kolkata. He is also a Director on the boards of Usha Martin’s overseas subsidiaries, i.e Usha Martin International Limited at UK, Usha Siam Industries Public Company Limited at Thailand and Brunton Wire Ropes FZCo at Dubai.