### **Company Overview** Usha Martin Limited, founded in 1960, is a leading global and India’s number one provider of **specialty steel wire rope solutions**. With over six decades of engineering excellence, the company has evolved from a traditional wire rope manufacturer into a **global solutions provider**, offering high-reliability, mission-critical products and services across diverse industrial sectors. Its brand philosophy—**“Engineered to Transform”**—reflects its strategic shift from volume-led growth to a **value-accretive, high-margin business model**. Usha Martin serves eight key industries: Oil & Gas, Mining, Construction & Infrastructure, Utilities, Elevators, Cranes, Fishing, and Defence. The company is transitioning from a metal converter into a **global engineering enterprise**, supported by innovation, digital transformation, and sustainability. --- ### **Core Business Segments** Usha Martin operates through two key reportable segments: 1. **Wire & Wire Ropes**: Includes specialty steel wire ropes, wires, low relaxation prestressed concrete (LRPC) strands, end-fittings, accessories, and wire drawing machinery. 2. **Others**: Comprising jelly-filled and optical fibre telecommunication cables, primarily through its subsidiary **UM Cables Limited (Silvassa, India)**. International markets contribute **approximately 55%** of consolidated revenue, underscoring the company’s strong global footprint. --- ### **Manufacturing & Global Footprint** Usha Martin operates an integrated, globally distributed manufacturing network: - **India**: Ranchi (Jharkhand), Hoshiarpur (Punjab), Silvassa (UT of Dadra & Nagar Haveli) - **Overseas**: Dubai (UAE), Bangkok (Thailand), Nottinghamshire (UK) The company employs around **3,100 people** globally and maintains over **250 group distribution centers and channel partners** across six continents. #### **Key Subsidiaries** - **Usha Martin International Limited (UMIL)** (UK): Oversees European operations with subsidiaries in the UK, Netherlands (De Ruiter Staalkabel), Italy (Global R&D Centre), and Spain (new global growth hub). - **UM Cables Limited** (India): Manufactures telecom cables. - **Usha Siam Steel Industries (USSIL)** (Thailand): Fully owned production facility with step-down unit USSWCL. - **Usha Martin Singapore Pte. Limited (UMSPL)**: Distribution hub for Asia-Pacific. - **Usha Martin Americas Inc. (UMAI)**: Supplies North America, Caribbean, and Latin America. - **Brunton Wire Ropes FZCO** (Dubai): Serves Eurasia and Africa. - New presence in **Saudi Arabia** via a wholly owned subsidiary. The company has **20 listed subsidiaries** and **three joint ventures**: - Pengg Usha Martin Wires Private Limited - CCL Usha Martin Stressing Systems Limited - Tesac Usha Wirerope Company Limited (step-down JV) --- ### **Innovation & Product Development** Usha Martin invests heavily in **R&D and product innovation**, supported by: - A **Global R&D Centre in Concesio, Italy**, using proprietary software for advanced wire rope design. - An **in-house R&D facility in Ranchi, India**, focused on application-specific engineering and testing. #### **New Product Launches (FY 2024–25)** - **Oceanfibre**: A high-performance **HMPE-based synthetic sling solution**, developed in the UK, for offshore wind, oil & gas, and crane lifting. The facility includes a **2,000 MT in-house test bed**. - **Galstar (formerly Galfan® line)**: **Aluminum-zinc coated wire range**, commercial production commenced in Q1 FY25–26. Targets rockfall protection, slope stabilization, fencing, and automotive springs. - **Plasticated & galvanized LRPC strands**: Corrosion-resistant prestressing solutions for bridges (e.g., Pamban Bridge, Chennai) and metro rails. The company now offers **complete prestressing solutions**, with customized sheathing, indented, and compacted strand variants. --- ### **Strategic Initiatives & Transformation** #### **1. ‘One Usha Martin’ Integration Program** Launched post-divestment of the steel business (completed Feb 2025), this initiative aims to: - Harmonize global operations across manufacturing, procurement, logistics, and sales. - Centralize back-office functions to India for cost optimization. - Implement **global digital platforms**: SAP S/4HANA (core), Salesforce (CRM), and SuccessFactors (HR). - Shift finished rope production from UK to India for certain lines, while **UK facility retains focus on large-diameter, high-end offshore ropes**. **Impact (H2 FY24–25):** - Working capital days reduced from **209 to 199 (Sept 2024–Mar 2025)** - **₹141 crore** unlocked in operating cash flows from international operations - Consolidated net debt reduced to **₹63 crore** - Standalone entity achieved **net cash position** Full integration expected by **September 2025**, with sustained cost and supply chain efficiencies. #### **2. Capacity Expansion** - **Ranchi Plant (India)**: Phase I operational; ongoing capex of **₹167 crore** to enhance high-value product output (elevator, mining, crane, and offshore ropes). - Expected completion: **H1 FY25–26** - **Thailand Plant**: Additional **₹62 crore** investment for phased commissioning over 12–18 months. #### **3. Digital & Sustainable Transformation** - SAP S/4HANA rollout underway in Singapore, US, Thailand, and upcoming in Europe. - Route optimization and **fuel-efficient logistics fleet** to reduce carbon emissions. - Investments in **automation and plant modernization**. --- ### **Market Focus & Growth Drivers** #### **Domestic (India)** - Strong demand from **infrastructure projects** under government initiatives: **Bharatmala, Sagarmala, Smart Cities, Parvatmala, and metro rail expansions**. - **Elevator and crane rope segments** growing in Tier-2 and Tier-3 cities. - Supplying wire ropes for landmark projects: - **Chenab Bridge** (world’s highest railway arch bridge) – used in construction and maintenance. - **Three Gorges Dam (China)** – hoisting mechanisms. - **Pamban Sea Bridge (India)** – vertical lift system in saline conditions. - **CE-certified** manufacturer of wire ropes for ropeways, positioning to capture **250+ planned Indian ropeway projects** (e.g., Parvatmala). - Gaining market share via expanded **dealer network**; domestic wire rope volumes increased from **28,000 to 34,000 MT** in first nine months of FY25. #### **International Markets (55% of Revenue)** - **Middle East (UAE & Saudi Arabia)**: Target oil & gas, ports, and construction. Supplying **150–200 tons/month to Saudi Arabia**, with projected growth to **4,000 tons/year**. - **Europe & North Sea**: Offshore wind and oil & gas drive demand for **Oceanmax and synthetic slings**. - Secured order to supply **OCEANMAX ropes** for Huisman’s 2,600T wind turbine installation crane (2.35 km main hoist, 4.3 km boom hoist). - **8–9% market share** in Europe; building customer confidence in India-made finished ropes. - **North America**: Facing tariff uncertainty, but strong OEM base ensures business continuity. **3–4% market share** (accounting for 5–6% of total revenue). - **Latin America**: Strategic focus on mining and ports. - **Asia-Pacific**: Demand from mining expansions in Australia and resource sectors in ASEAN. --- ### **Financial & Operational Highlights (FY24–25)** - **Wire rope division**: **+19.2% revenue growth** and **+18.5% volume growth** despite monsoon seasonality. - **International Subsidiary Performance**: - **UMIL (UK)**: Turnover grew from GBP 71.9M (FY22–23) to GBP 81.7M (FY24–25) - **UMSPL (Singapore)**: Turnover USD 37.9M; PAT USD 2M - **USSIL (Thailand)**: Turnover THB 1,531.3M; PAT THB 35.3M - **UMAI (USA)**: Revenue USD 23.6M - **Strong Order Pipeline**: Driven by OEM contracts and replacement demand (e.g., mining, elevators). - **Target EBITDA Margin**: **18%+** via product mix optimization and cost discipline. --- ### **Challenges & Mitigation** - **Pricing pressure** in general-purpose wire ropes from low-cost East Asian imports. - **Working capital stress** due to project delays and long receivable cycles. - **Geopolitical disruptions** impacting shipping and trade, especially in US and Europe. - **LRPC market volatility** due to oversupply and delayed projects—mitigated by focus on **plasticated/galvanized variants**. - **European economic slowdown** leading to margin pressure—addressed via lean operations and India-based supply.