1. A PROJECT REPORT ON USHA MARTIN
LIMITED
SUBMITTED TO: SUBMITTED BY:
SAGAR KUMAR
PRAGYAN PUSPANJALI
CUJ/1/2009/MBA/26
FACULTY, CENTRE FOR BUSINESS
ADMINISTRATION

2. CONTENTS
INTRODUCTION
 BACKGROUNDAND INCEPTION OF THE COMPANY
 VISION, MISSION &POLICY
 PRODUCT & SERVICE PROFILE
 MARKETING NETWORK OF USHA MARTIN LIMITED
 FINDINGS
 ORGANISATIONAL STRUCTURE
 FINANCIAL REVIEW FOR THE YEAR 2008-09
 MANUFACTURING PROCESS DIAGRAM
 SWOT ANALYSIS
 SUGGESTION
 CONCLUSION

3. .
ACKNOWLEDGEMENT
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.
INTRODUCTION
:-
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

4. 1962
UMIL commenced production of wire and wire ropes
1965
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.
1971
UMIL promoted “Usha Alloys & Steels Limited" for the manufacture of steel billets at Adityapur, Jamshedpur. UASL
merged with UMIL in 1988.
1975
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.
1979
In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a Wire Rod Rolling Mill at Jamshedpur.
1980
The joint venture company “Usha Siam Steel Industries Public Limited Company" was incorporated in Thailand for
manufacture of wire, wire ropes and auto cables.
1986
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.
1991
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.
1994
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.
1995
Commissioning of Mini Blast Furnace at Jamshedpur to reduce cost and improve productivity.
1996
New state of the art Wire Rod Mill at Jamshedpur commissioned to produce higher weight coils for better productivity.
1998
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.
2000
The Company’s 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).

5. 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).
2001
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.
2003
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.
2004
The Company successfully commissioned DRI and WHRB power plant at its Steel Division in Jamshedpur.
2005
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
2006
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.
2007
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.
BACKGROUND AND INCEPTION OF THE COMPANY

6. Usha Martin Limited was started in 1961 in Ranchi (Jharkhand) as a wire ropemanufacturing 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 collaborationwith Martin Black of Scotland as a joint Indo-British venture. From 1stOctober 1997, this company
has been merged with Usha Beltron Ltd which has been renamed as wire and wire ropes division, within which six
companies areincluded.

7. VISION, MISSION & QUALITY POLICY
Vision:-
To be a respected, world class & leadership in business, in quality, productivity, profitability & customer
satisfaction.
Mission: -
 Tobe a customer and shareholder observed factory.
 Toenhance value to shareholders and services to all stake holders
 Todevelop highly motive team with a sense of satisfaction.
 To excelas a value driven organization.
 To createthe value in case of quality.
 Toexpand 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
WireRope
 Bright bar
 Conveyor cord
 Telecom cable

8. MARKETING NETWORK OF USHA MARTIN Ltd.
Major customers
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.
Findings
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

9. ORGANISATION STRUCTURE
Finance Review for the year 2008-09
(Rs. in thousand)
Finance Results Current year Previous
Year
Profit/Loss before Tax 21, 40,412 20, 07,127
Loss: Provision for Tax

10. Current Tax: 9, 10,000 5, 10,300
Fringe Benefit Tax: 11,500 11,800
Differed Tax (2, 46,655) 36,700
Profit/Loss After tax 14, 65,567 14, 48,327
Debenture redemption reserve written back - 8, 06,050
Profit brought forward from previous year 4, 20,792 2, 09,186
Profit available for appropriation 18, 86,359 24, 63,563
Deduct: Provision for Proposed Dividend 2, 50,242 2, 50,242
Deduct: Provision for Dividend Tax 42,529 42,529
Deduct: Transfer to general reserve 12, 50,000 17, 50,000
Balance carried forward to Balance sheet 3, 43,588 4, 20,792
WIRE AND WIRE ROPE MANUFACTURING PROCESS FLOW DIAGRAM
THE SWOT ANALYSIS OF UML
STRENGTHS
➢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.

11. ➢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 employee’s satisfaction andmotivation.
➢ 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 UML’S concerns towards environmentprotection and this as earned its
goodwill among various securitiesof society and Government.
WEAKNESSES
➢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.
➢ UML’S 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.
OPPORTUNITY
➢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 UttarPradesh, vidya sager setu on
Hooghly River in Kolkata .

12. ➢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.
THREATS
➢Small rivals are emerging in different parts of the Countries.
➢ Low prices of the rival’s 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, exportsubsidies 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.
SUGGESTIONS
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 andconsequent 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 therealization 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 onthe strategy tomake the use of

13. 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
CONCLUSION
 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, powergeneration, DRI, blast furnace route iron making,
steel melting, and stages ofimplementation and is likely to be commissioned in phased manner in current and next6
financial year.
 On standalone basis, the company achieved a net turnover ofRs.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. andRs.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.