Usha Martin Ltd, the world’s second-largest maker of wire rope, is close to acquiring a European distribution company which will give it a greater access to more lucrative wire rope market in the continent.
Rajeev Jhawar, managing director, Usha Martin, said the investment in the deal will be small, involving about $2-3 million (Rs8.2-12.3 crore). He declined to give further details.
However, he added that this investment would be an incentive to expand the manufacturing base. The company will be pitching in about $15 million over the next three years to raise the UK plant’s current capacity of 6,000 tonnes per annum (accounting for just 7% of Usha Martin global production) to 10,000 tonnes per annum.
The distribution arm that Usha Martin is looking to acquire, will push the company’s turnover in Europe past the $100 million mark, said P. Bhattacharya, joint managing director, Usha Martin. The various operations of the company in Europe generate a revenue of about $84 million, he added.
The company also plans to enter China, opening a liaison office at Shanghai or Guangzhou to sell its high-end speciality ropes in China. Company officials said they are open to the idea of setting up a production base in China if the market warrants it.
Read more in The Live Mint article.
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