Usha Martin is one of the world’s leading manufacturers of wire rope. Established in the year 1960, today Usha Martin is a multi-unit and multi-product organisation. The wire rope manufacturing facilities located in Ranchi, Hoshiarpur, Dubai, Bangkok and UK produce one of the widest ranges of wire ropes in the world. Rajeev Jhawar, the son of Brij Jhawar, is the managing director of Usha Martin Limited since May 19, 2018, and in the three decades that he has been at the helm of the Usha Martin Group. According to Rajeev Jhawar, the various measures announced by the Central government to boost the economy are likely to start yielding results post-monsoon of 2020.
Wire rope manufacturer Usha Martin Ltd (UML) is expecting domestic demand, particularly in the construction and auto sectors, to start picking up post-monsoon of 2020.
The covid 19 struck economy is in its recovery phase. According to Rajeev Jhawar, Managing Director, Usha Martin Ltd, the various measures announced by the Central government to boost the economy are likely to start yielding results post-monsoon of 2020.
Rajeev Jhawar expects those post-monsoon things should be better. He feels that there should be a pick-up in demand during the festival season post-September-October, by which time he also hopes that the Covid situation would also be brought slightly under control.
Due to the lockdown in the wake of the Covid-19 pandemic, the domestic demand across various sectors has been very low compared to a “fairly decent” demand for wire rope in international markets says, Rajeev Jhawar.
According to Rajeev Jhawar, the primary impact on the demand for wire rope is the reverse migration of labourers that had affected industries such as construction, particularly in the western and northern regions of the country.
Rajeev Jhawar also stressed on ramping up of capacities. Usha Martin ltd wire rope business manufactures wire, strands, LRPC and wire ropes, which cater to various industries, including steel, infrastructure, construction and auto.
He says that the export demand is, however, good and the rupee depreciation is supporting the company. The plants are operated at 50-55% of their installed capacity due to the low demand from the construction, auto and oil sectors.
The company is hopeful of ramping up capacities by the second half of this fiscal year 2020, once the Covid situation is brought under control and the domestic demand starts picking up.
In its two facilities in India — at Ranchi (Jharkhand) and Hoshiarpur (Punjab) — and three overseas units in the UK, Thailand and Dubai, the Usha martin ltd. has a manufacturing capacity of around 2,30,000 tonnes per annum across. There has been a “fairly decent”, if not strong, demand from markets such as Europe, the US, South America, Australia and South-East Asia, he adds.
Exports account for close to 40 per cent of the company’s consolidated turnover, which stood at around ₹2,154 crores for the year ended March 31, 2020, claims MD Rajeev Jhawar
The loss in production following the lockdown and subsequent weak demand is likely to impact its top line in FY21. However, we expect the various cost reduction measures undertaken by the company under Rajeev Jhawar would help it achieve break-even or marginal profits by the end of this fiscal.
95 thoughts on “Rajeev Jhawar, the expert mind to save UML in the pandemic era”
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