Usha Martin is a widely popular steel-producing company besides producing some of the largest wire ropes on a global scale. It was established in 1960 and is a multi-product organization. The primary concentration of the company is to manufacture wire rope steel. Usha Martin is also having its manufacturing facilities in various regions of the country namely Barajamda in Jharkhand, Ranchi in Jamshedpur, Bangalore in Karnataka, and more.
Besides these, their manufacturing unit is overseas as well namely in the United States, Dubai, and more. Rajeev Jhawar who is the managing director of Usha Martin has contributed and is still contributing his best skills so that the company can thrive. The global R&D center of Italy has been working tirelessly to design the wire ropes meanwhile using the property design software so that the products can be developed. On the overseas operation of the company, Rajeev Jhawar expressed his views that doing this signifies a solid synergy where it will support the overall performance of the business. Another benefit that he stated is that doing this will help in spreading the offering on a global scale.
Rajeev Jhawar: Managing Director of Usha Martin
Ever since May 19 of 2018, Rajeev Jhawar who is the son of Brij Kishore Jhawar has been appointed as the managing director of Usha Martin. Besides this, he is also the director of Neutral Publishing House ltd.
Rajeev Jhawar has also been the Vice Chairman of Usha Martin Education and Solutions from the month September of the year 2010. He also holds the prestigious position of Non-Executive Director at the Usha Martin Education & Solutions Limited ever Since March 4 of the year 2000. it can be well said that the Jhawar family is a proud owner of the Neutral Publishing House Limited through its multiple companies.
Rajeev Jhawar on ‘Usha Martin’
Being the managing director of manufacturing, Rajeev Jhawar has long ambitions for Usha Martin. He said that from their total revenue, 60% of the revenue will be going in terms of EBITDA. Furthermore, he also went on to say that there has been a great improvement in the steel cycle, and terms of the last 2 quarters; the company has witnessed a significant turnaround.
He believes that the bottom line of both the steel and wire rope business has improved which is why he took the opportunity of selling the steel business at these levels for an improvised evaluation. In terms of wire rope, it is more likely to have a solid residual company that will have a strong balancing sheet where the annual profit would range somewhere between 250 to 300 crores. In a nutshell, it can be said that with the further investment of Usha Martin in the domestic market, there are high goals of decent profit growth in the upcoming three years.
The Jhawar Family
The Jhawar Family has two brothers named Basant Kumar Jhawar and Brij Kishore Jhawar. The son of Basant Kumar Jhawar is Prashant Kumar and the son of Brij Kishore Jhawar is Rajeev Jhawar. Rajeev Jhawar has three daughters whose names are Shreya Jhawar, Amisha Jhawar, and Stuti Jhawar. The father-son team of Brij-Rajeev and Basant-Prashant has held around 25.5% respectively in their company.
Out of the fathers, it was Brij Kishore Kumar who founded Usha Martin Limited. It was in the year 2017 of April when the SBI nominee removed Prashant Jhawar from his post of non-executive chairman besides cutting off certain power of Basant Jhawar,83, who was in the position of chairman emeritus. Many members of the industry strongly believe that it was Rajeev Jhawar Usha Martin who heavily influenced the board in removing not only his uncle but also his cousin.
Usha Martin: post-pandemic
After the second wave of the pandemic struck the world, it adversely affected the manufacturing industry. This is said as the steel industry faced disruptions when it came to the import the steel from Ukraine as well as the Russian regions because of the famous conflict between the mentioned nations. This very conflict has aggravated the conditions of putting in the prices of high-level carbon wire rods. It was in March 2022, when it was witnessed the prices reached the sky limit. Rajeev Jhawar, firmly believes that there are high expectations of a surplus of export volume in the USA, Canada, South-East, Australia, and Latin America.
The ultimate Tata deal
It was in 2019 of April when Tata Sponge which is a subsidiary of Tata Steel tool authority of the one million ton of steel plant of Usha Martin that was in Jamshedpur. Although many steel business such as Tata Steel, Vedanta, JSW Steel, and The Kalyani Group was showing interest to buy its steel division, however, it was ultimately sold to Tata. The deal was sealed for Rs 4,525 crore. Tata Sponge, which was later named Tata Steel Long Products or TSPL is in the industry of manufacturing long products that are alloy based. In terms of numbers, although TATA absorbed more than 2000 people from Usha Martin’s steel division, the deal was made under the condition that Usha Martin will receive steel supply for its wire ropes division at a market price from Tata for a solid five years.
Thus, the manufacturing company of Usha Martin has undergone great problems of debt as well as family disputes. It was only after hiving off the steel division to Tata in 2019 and making sure that most of its debts are cleared; the company is in a good position.
As of now, Usha Martin has set off on the journey of strengthening its pillar again under the leadership of the ultimate game changer Rajeev Jhawar. The company has recently adopted an HR policy that helps in identifying the leaders of the future as the HR process helps in the analysis of selective high-potential performers. Usha Martin is training such individuals by conducting internal processes so that the organization can mold powerful future leaders.
Mr. Rajeev Jhawar is getting reappointed as the Managing Director of Usha Martin Limited for a 5-year term starting from May 19th, 2023.