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US-based Otis partners with Usha Martin
By siliconindia
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Monday, 02 August 2004, 19:30 IST
KOLKATA: USHA Martin Ltd has been chosen by elevator major Otis of the US as a "contract partner" for supply of wire rope and related products for the next three years.
The company will supply wire rope and related products to Otis' operations in western Europe and Asia, barring China and Korea. It has also received a breakthrough for supply of high-performance mining rope to the US.
According to Dr P. Bhattacharya, Joint Managing Director of the company, the elevator rope business would account for around 25 per cent of Usha Martin's total wire rope business, which is expected to be of the order of Rs 450 crore to Rs 500 crore in the current fiscal. Otis has a 30 per cent share of the global market for elevators and, hence, the scope for the wire rope business was very good.
Dr Bhattacharya was fielding questions from newspersons after the conclusion of the company's 18th annual general meeting held here on Tuesday. The Chairman and Vice-Chairman, Mr B.K. Jhawar and Mr P. Jhawar, respectively, were also present.
In India, the company is bullish on prospects of increased supplies to the automobile sector. Usha Martin supplies steel to component makers who manufacture products for original equipment manufacturers.
During the year ended March 31, 2004, Usha Martin generated a turnover of Rs 797.07 crore compared with Rs 736.71 crore the previous year. The profit before tax in 2003-04 stood at Rs 23.27 crore (Rs 13.35 crore). The profit after tax was Rs 15.52 crore (Rs 8.21 crore). A dividend of 15 per cent (75 paise on every share with a face value of Rs 5) was declared for the year gone by.
According to Dr Bhattacharya, Usha Martin was hopeful of achieving a turnover in excess of Rs 1,100 crore in the current fiscal. Export earnings have been pegged at Rs 300 crore this year.
During the quarter March-June 2004, the company's total income stood at Rs 255.46 crore against Rs 149.66 crore achieved in the quarter April-June 2003.
The net profit during the first three months of the current fiscal stood at Rs 8.15 crore against Rs 3.12 crore in the corresponding quarter of last year.