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Rs 1200 cr for power, mines

Calcutta, Jan. 31: Usha Martin Ltd, the second largest wire rope manufacturer in the world, plans to make a capital investment of Rs 1,350 crore in the next four years, the bulk of it in Jharkhand, announced UML managing director Rajeev Jhawar here today.

UML, one of the largest wire rope manufacturers globally, produces wires for industries, chord for conveyor belts and special steel for the auto-component industry.

In the first nine months of the current financial year, UML has already earned a net profit of Rs 98.15 crore, which is higher than its net profit in 12 months of the last year at Rs 84.35 crore, said joint managing director P. Bhattacharya.

UML plans to spend Rs 1,200 crore in Jharkhand in augmenting power and mining facility. UML, which aims to increase its capacity to 1 million tonnes in the next three years, will become self-reliant in coal, iron ore and power.

The company had acquired mining rights in June 2005 at Barajamda and a coal mine in Kathautia last year. “We have reserves of 30 years in iron ore and coal and with the current power capacity of 130 MW, we would be taking a call in the next 13 months for an additional 50 MW,” Bhattacharya explained.

The company’s iron ore mine has already gone into production, while production in its coal mine, also in Jharkhand, would begin in the next six months. “Once iron ore and coal mines are linked, UML will emerge stronger,” said both Jhawar and Bhattacharya.

UML is the second largest wire rope manufacturer in the world after the Korean manufacturer KIS Wire Ltd. The specialty steel and wire rope manufacturing major aims to end this fiscal with a gross turnover of Rs 3,000 crore. The company has recorded a gross turnover of Rs 2,186.79 crore in the nine-month period. Its gross turnover during 2005-06 was 2,612.58 crore.

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