Usha Martin keen to enter Chinese market
Usha Martin Limited is keen to enter the Chinese market for which it is carrying out a detailed study, its Chairman BK Jhawar said.india Updated: Jan 28, 2006 15:52 IST
The world's second largest wire rope manufacturer Usha Martin Limited is keen to enter the Chinese market for which it is carrying out a detailed study, its Chairman BK Jhawar said on Saturday.
Speaking to newspersons to announce the company's future growth plans, Jhawar said since China was a low cost producer with a huge market, Usha Martin was certainly interested in looking at that country.
However, he said since China was a complex market, an in-depth analysis was required before taking a final decision on whether to set up marketing infrastructure there or to put up a greenfield plant. "A decision will be taken within 18 months."
On US operations, Jhawar said that the Houston plant would be operational by March 2007 when the first phase of production was expected to start.
Usha Martin, which has floated a wholly-owned subsidiary in the US, would be investing around Rs 46 crore in the plant with a full-rated capacity of 25,000 tpa.
The US plant would primarily cater to the high-end market in that country.
Joint Managing Director of Usha Martin P Bhattacharya said this additional revenue would boost the bottom line of the company, which already has overseas operations in the UK, Thailand and Dubai.
The company's total production of wire ropes is 75,000 tonnes, second to Kiswire of South Korea.
With Usha Martin acquiring captive iron ore and coal mines in Jharkhand, the company is going for production of speciality steels.
Besides the wire rope business, the company was also doing well on the telecom cables front. He said the company was earning substantial revenue from this business.
He said the company planned to become competitive internationally for which management concentration was directed.