Prashant Jhawar will become the Chairman of the company
To enhance steel-making facilities including a pellet plant, a coke oven unit
Bright bar unit in Chennai recently commissioned besides two other plants in Jamshedpur
KOLKATA:Even as its Rs. 2,100-crore capacity expansion scheme enters the last phase, speciality steel wire-rope producer Usha Martin Ltd (UML) has chalked out a Rs. 1,200-crore plan which mainly aims at further cost optimisation, company Chairman Prashant Jhawar said.
Addressing a pressmeet, he said that around Rs. 1,050 crore of this project would be used on enhancing the steel-making facilities, including the setting up of a pellet plant, a coke oven plant and an ore beneficiation plant. The expansion is to be funded through internal accruals and debt.
He said that the company had already commissioned its bright bar unit at Chennai, besides a DRI plant, a steel melting shop and a captive power plant at Jamshedpur. It has manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpuir, the U.K., Thailand, UAE and the U.S.
The company ended 2009-10 with a 15 per cent drop in its consolidated sales with a 9 per cent decline in its post-tax profit which stood at Rs. 168.62 crore on a turnover of Rs. 2,514.41 crore.
The company said that things have now started improving and the improvement in business conditions along with the implementation of projects and benefits of full integration with iron ore and coal mines, its profitability is set to improve.
The board of directors has recommended a dividend of Re. 1 per share of Re. 1 each.
There have been some top-level changes at the board with the founder-chairman B. K. Jhawar stepping down in favour of Prashant Jhawar who becomes Chairman from Vice-Chairman.
Mr. B. K. Jhawar will be Chairman Emeritus. Two new persons P. K. Jain and Vijay Sharma have joined the board.