Usha Martin is a leading, ISO 9000-accredited producer of steel, wire ropes, steel wires, alloy steel wire rod and bars. IFC financing supported the company’s $50.4 million investment plan to strengthen its balance sheet, reduce operating costs, and increase capacity utilization from 72 to 86 percent. Plans also included constructing a new Direct Reduced Iron plant to enhance backward integration and building a captive co-generation power plant to enhance energy and cost efficiencies.
The company owns manufacturing subsidiaries in the United Kingdom, United States, UAE and in Thailand. Its global sales, service, and distribution network reaches more than 50 countries, including distribution subsidiaries in Singapore, Australia and Netherland.
According to company chairman B. K. Jhawar, IFC financing has played a key role in the company’s expansion strategy. “IFC’s global expertise in manufacturing has benefited us immensely in focusing on our core business of wire ropes and wires,” he said. The company has elevated community outreach and a focus on sustainability to strategic levels.
IFC role and development impact:
- $24.6 million in debt and equity financing
- Support for company’s community development program in Jharkhand
- Efficiency increases will result in lower prices
- Reduced carbon emissions: reuse of hot waste gases from the DRI plant as fuel in the power plant
- Supporting the community development organization, Krishi Gram Vikas Kendra, to support sustainable employment opportunities, provide education on health and family planning and create new economic opportunities
- Training for local farmers on watershed management, and farming techniques to increase crop output
